Can Fin Homes Ltd Q4 2020 Earnings Call Transcript

The following is excerpted from the question-and-answer section of the transcript.

Question: Shubhranshu Mishra - BOB Capital Markets Limited, Research Division - Analyst : Just wanted to understand your salaried customer base a little more. Of the salaried base, sir, how many people are employed in government sectors? And if they are not, what kind of private sector jobs are they doing? Are they teachers? Are they employed in IT companies? So if you can elaborate on that on a percentage basis, it will be great, sir. The second question is that how do you compete with the banks like SBI or any other banks, which are also present in the Tier 2, Tier 3 markets? And the salaried guys would have their salary accounts with the banks, so why should they pay for higher yield or higher pricing versus the banks, which will offer them a cheaper rate? So these are the first 2 questions. without the prior written consent of Thomson Reuters. 'Thomson Reuters' and the Thomson Reuters logo are registered trademarks of Thomson Reuters and its affiliated companies. JUNE 17, 2020 / 5:30AM, CNFH.NS - Q4 2020 Can Fin Homes Ltd Earnings Call

Question: Aditya Singhania - Enam Holdings Pvt. Ltd - Analyst : Sir, I just have a few questions that on your moratorium, which you said was at 29%, do you think that's likely to increase because technically, people can opt for moratorium even in July? Or it stays stable here? Or it gets lower?

Question: Aditya Singhania - Enam Holdings Pvt. Ltd - Analyst : This is as of end June? This is as of June or...

Question: Aditya Singhania - Enam Holdings Pvt. Ltd - Analyst : Okay. And do you think people will pay up a little lower or it broadly remain like this only?

Question: Rohan Mandora - Equirus Securities Private Limited, Research Division - Analyst : So if you could share what percentage of our portfolio currently would carry an execution risk in terms of the property not completely completed? That would be one. Second, in case there are any new sanctions that we have done in, say, May and June, what is the customer profile? What is the nature of the demand that is coming up in terms of the customer profile? And third, in terms of the rate, I think there was some benefit that we have given to the customers in, say, April, May, June. So how do we -- what is the incremental cost of fund and incremental yield that we have made in the last 3 months?

Question: Rohan Mandora - Equirus Securities Private Limited, Research Division - Analyst : Yes. I think if any new sanctions that we have done in, say, after April...

Question: Rohan Mandora - Equirus Securities Private Limited, Research Division - Analyst : Right. And so what your nature of the customers who were coming up for the new loans? And is this salaried? Is it self-employed? And within that, what is the income source of these people where business expects they are from? Some color on that. Just to understand what is the nature of demand that is coming up? Is it actually the investor profile? Or is it the genuine customers who are getting better deals, say, 20%, 30% lower than the market price, that's why they are purchasing a house right now?

Question: Aditya Singhania - Enam Holdings Pvt. Ltd - Analyst : My questions have mostly been answered. I just wanted to stress on this again, but the INR 210 crores question that was asked previously. You're saying this is the SMA-2 in its entirety on which you have taken the provision more than required. Part of this, you would have already collected in the month of March? Or this is the part which has not been collected upon?

Question: Aditya Singhania - Enam Holdings Pvt. Ltd - Analyst : And has the pool that was not collected upon, let's say, out of INR 210 crores, you collected on INR 100 crores and you did not collect on INR 110 crores, is that INR 110 crores part of the state fee or NPA? Or is it is not part of state fee and NPA?

Question: Aditya Singhania - Enam Holdings Pvt. Ltd - Analyst : I understand. So basically, that part is whatever that part you did not collect on, whether it's INR 50 crores or INR 100 crores, that is not part of the NPA?

Question: Aditya Singhania - Enam Holdings Pvt. Ltd - Analyst : Yes, I understand. I understand. And just -- I'm so sorry to stress upon this collection efficiency again and again. I know repeated questions have been asked.

Question: Aditya Singhania - Enam Holdings Pvt. Ltd - Analyst : Yes. So what is -- there is a way -- the way collection efficiency has been defined by most NBFCs and housing finance companies is -- what was the total that you were supposed to get from customers, whether regular or delinquent? And how much you actually received? So if you could just sort of talk about that in whatever way you can without giving actual numbers rather than just on the delinquent customers as you've been sort of highlighting?

Question: Aditya Singhania - Enam Holdings Pvt. Ltd - Analyst : So let me just attempt to ask it 1 more time. If, let's say, your -- on your total loan book, if you had a collection, all buckets put together of INR 100 crores, let's say, out of that, how much did you collect roughly in, let's say, March?

Question: Aditya Singhania - Enam Holdings Pvt. Ltd - Analyst : That is like 98%, 99%.

Question: Aditya Singhania - Enam Holdings Pvt. Ltd - Analyst : I know we're just trying to -- I think most people on the call are trying to understand it a little bit differently. So if you can clarify of the 71 customers who are not in moratorium, 71%, what percent of customers would be paying you in April or in May?

Question: Aditya Singhania - Enam Holdings Pvt. Ltd - Analyst : And so, of the people who have not opted for morat? Actually who have not opted?