IndoStar Capital Finance Limited

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ICFL/LS/0153/2022-23 20 February 2023 BSE Limited Listing Department, 1st Floor, P J Towers, Dalal Street, Fort, Mumbai - 400 001. National Stock Exchange of India Limited Exchange Plaza, C

₹ 7,669

ey Performance Highlights – 9MFY23 AUM Disbursements Gross Stage 3 Net Stage 3 CRAR Branches ₹ 7,669 crs ₹ 1,200 crs 7.9% 3.6% 33% CRAR 423 Branches Net Total Income PAT NIMs ₹ 463.2 crs ₹ 14

₹ 1,200

e Highlights – 9MFY23 AUM Disbursements Gross Stage 3 Net Stage 3 CRAR Branches ₹ 7,669 crs ₹ 1,200 crs 7.9% 3.6% 33% CRAR 423 Branches Net Total Income PAT NIMs ₹ 463.2 crs ₹ 149.2 crs 6.4%

rs 7.9

hts – 9MFY23 AUM Disbursements Gross Stage 3 Net Stage 3 CRAR Branches ₹ 7,669 crs ₹ 1,200 crs 7.9% 3.6% 33% CRAR 423 Branches Net Total Income PAT NIMs ₹ 463.2 crs ₹ 149.2 crs 6.4% 770%

3.6%

23 AUM Disbursements Gross Stage 3 Net Stage 3 CRAR Branches ₹ 7,669 crs ₹ 1,200 crs 7.9% 3.6% 33% CRAR 423 Branches Net Total Income PAT NIMs ₹ 463.2 crs ₹ 149.2 crs 6.4% 770% 6.2% 5

33%

M Disbursements Gross Stage 3 Net Stage 3 CRAR Branches ₹ 7,669 crs ₹ 1,200 crs 7.9% 3.6% 33% CRAR 423 Branches Net Total Income PAT NIMs ₹ 463.2 crs ₹ 149.2 crs 6.4% 770% 6.2% 50 bps

₹ 463.2

ranches ₹ 7,669 crs ₹ 1,200 crs 7.9% 3.6% 33% CRAR 423 Branches Net Total Income PAT NIMs ₹ 463.2 crs ₹ 149.2 crs 6.4% 770% 6.2% 50 bps 3 IndoStar 2.0 “go-to” NBFC in Retail Lending CV Fina

₹ 149.2

669 crs ₹ 1,200 crs 7.9% 3.6% 33% CRAR 423 Branches Net Total Income PAT NIMs ₹ 463.2 crs ₹ 149.2 crs 6.4% 770% 6.2% 50 bps 3 IndoStar 2.0 “go-to” NBFC in Retail Lending CV Finance Housing

rs 6.4

₹ 1,200 crs 7.9% 3.6% 33% CRAR 423 Branches Net Total Income PAT NIMs ₹ 463.2 crs ₹ 149.2 crs 6.4% 770% 6.2% 50 bps 3 IndoStar 2.0 “go-to” NBFC in Retail Lending CV Finance Housing Finance

770%

s 7.9% 3.6% 33% CRAR 423 Branches Net Total Income PAT NIMs ₹ 463.2 crs ₹ 149.2 crs 6.4% 770% 6.2% 50 bps 3 IndoStar 2.0 “go-to” NBFC in Retail Lending CV Finance Housing Finance We pr

6.2%

% 3.6% 33% CRAR 423 Branches Net Total Income PAT NIMs ₹ 463.2 crs ₹ 149.2 crs 6.4% 770% 6.2% 50 bps 3 IndoStar 2.0 “go-to” NBFC in Retail Lending CV Finance Housing Finance We provide

50 bps

% 33% CRAR 423 Branches Net Total Income PAT NIMs ₹ 463.2 crs ₹ 149.2 crs 6.4% 770% 6.2% 50 bps 3 IndoStar 2.0 “go-to” NBFC in Retail Lending CV Finance Housing Finance We provide financin

“No offering of securities of the Company will be made except by means of a statutory offering document containing detailed information about the Company.”

“plus in Q4FY23 overall and much higher going forward • Focus on used CV vehicles targeting high yield • Explore product line expansion to car, MUV, Tractor, CE, 2W & 3W • Diversify methods of sourcing through truck addas & DSA networks, to target first-time borrower and drivers transitioning to first-time owners • Actively pursue competition analysis to find niche and white-spaces • Targeting used CV with avg.”

Household Income

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Large CV Market

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Sector Lending

1

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Investor Presentation on Unaudited Financial Results (Standalone and Consolidated) for the quarter and nine months ended 31 December 2022 Ref.: Regulation 30 of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015 (“Listing Regulations”) Dear Sir/ Madam, Pursuant to Regulation 30 of Listing Regulations, please find enclosed Investor Presentation on Unaudited Financial Results (Standalone and Consolidated) of the Company for the quarter and nine months ended 31 December 2022. Request you to kindly take the above on record and disseminate the same on your website. Thanking you, Yours faithfully, For IndoStar Capital Finance Limited Jitendra Bhati SVP – Compliance & Secretarial (Membership No. F8937) Encl.: a/a IndoStar Capital Finance Limited Registered Office: Unit No. 505, 5th Floor, Wing 2/E, Corporate Avenue, Andheri - Ghatkopar Link Road, Chakala, Andheri (East), Mumbai – 400093, India. | T +91 22 4315 7000 | F +91 022 4315 701

Large CV Market

INR 5.6 Lakh Crores Second-hand truck financing under-penetrated, ~60% with informal credit 8% 31% 61% Core focus of IndoStar CV business Pipeline for future business Market typically run by private financiers and money lenders who charge high interest rates 60% 40% CV Market Value CV Market Value 10+ Years 0.4 0-4 years 3.4 Informal Credit Formal Credit 5-10 years 1.7 31% of the market or 1.7 Lakh Crores is 5 -10 years old 336,521 270,553 279,903 331,486 391,544 450,416 516,089 19.4% 13.6% 3.6% 44.0% 12.3% 7.2% FY19 13.3% 14.2% 3.3% 47.5% 14.5% 7.2% FY20 11.2% 11.5% 2.5% 47.1% 18.8% 9.0% FY21 15.2% 11.7% 2.7% 14.9% 13.9% 3.0% 14.3% 14.5% 3.1% 13.8% 15.0% 3.2% 47.5% 44.5% 44.7% 45.1% 15.6% 7.3% FY22 14.9% 8.7% FY23E 14.3% 9.1% FY24E 13.7% 9.2% FY25E MHCV LCV MLCV CAR & MUV Tractor CE ▪ ▪ ▪ ▪ Automobile industry is growing bigger year on year the estimated sale going to cross 5.6 lakh crore by FY25 Similarly, opportunity to lend to Used vehicle segment is going to increase and is expect

Household Income

Rs 3 Lacs AUM (RS Tn) Market Share Indian Mortgage Market Tier II and Below ~20 Mn Units Affordable Mortgage Market is expected to grow at over 10% in the next 5 years… …with AHFCs gaining market share in overall HFC market over the past few years Rs. 8 Tn 4.0 5.0 7.2 FY27E Mar-18 Mar-20 Dec-21 Rs. 5 Tn FY20 Under Penetratio n in Tier II and Below Market Financed Units Financed Units Financed Units 10 Mn 1,100 Mn / 220 Mn ~5% Significant room to grow Metros and Tier I 10 Mn 230 Mn / 46 Mn ~22% Housing Shortage ▪ In 2022, housing shortage in India was 100 Mn units with LIG & EWS contributing 95% to the same ▪ Incremental housing loan demand from above shortage is Rs 50-6- Tn indicating huge potential for growth Significant Tailwinds In Favour Of Affordable Housing Helping Affordable Housing Finance Companies (‘AHFC’) Gain Market Share Source: CRIF High Mark Report, ICRA, Prospectus of Listed Peers 9 Future Ready to Seize Affordable Housing Market Opportunity Management Team Geographical

Sector Lending

• Agriculture • Micro, Small & Medium Enterprises (MSME) • Export Credit • Housing loans of up to Rs. 35 lakh, for dwellings costing less than Rs. 45 lakh, are treated as priority sector lending (PSL) What is the RBI guideline for Banks around PSL? 1) Domestic commercial banks (excl. RRBs & SFBs) & foreign banks with 20 branches and above: 40% of • Adjusted Net Bank Credit (ANBC) or • Credit Equivalent of Off-Balance Sheet Exposure (CEOBE) 2) Small Finance Banks (SFB) 75% of ANBC as computed in para 6 below or CEOBE whichever is higher What is the qualifier to get an IndoStar loan tagged as PSL? Across the IndoStar portfolio, here are the criteria that is used to tag loans as PSL • CV: Udyam* (MSME) Registration • SME: Udyam* (MSME) Registration • Housing: All loans for housing units <45 Lakhs What is the advantage to IndoStar? 1) Given the RBI directive to banks to meet 40% of ANBC and 75% for SFBs as PSL, there is a clear market for high quality PSL books 2) It is in IndoStar’s inter