CFO — Finance, Cash & Capital

Quality of earnings, 13-week cash, covenant runway, working-capital unlock and the value levers behind the PE thesis.

Aditya Birla Housing Finance Limited · FY24 (modeled)

Top 10 Indian Housing Finance Companies by AUM

1,200 employees · 0+ US sites · 1 countries

▲ Executive read· the answer, then the moves

Liquidity of $1600M (≈ 94 weeks of cover) and $-444M of deal capacity make capital the lever, not the constraint. Free the trapped cash first: normalizing DSO to 48d releases ≈ $-493.2M and clears $17.6M of overdue receivables.

8 of 8 headline metrics improving vs prior · still off target: Revenue $6.00B vs $7.50B, EBITDA $1.48B vs $1.70B, Liquidity Buffer $1.60B vs $1.80B

Do now — ranked by urgency

1
Retail Home Buyers (Gomti Nagar) credit exposureAct now
Why it matters
Move to credit hold pending paydown; reforecast ARR net of likely churn.
What's driving it
Overdue AR
Signal: Alert
FYI
Distress filings + overdue AR; churn risk High on $6.4M account.
Act →▤ open the overdue book
2
Covenant headroom 0.9× (lev 4.6× vs 5.5×)Act now
Why it matters
Sets deal capacity and refinancing risk.
What's driving it
Q1 (act)
Signal: Threshold
FYI
Net-debt/EBITDA 4.6× against a 5.5× ceiling.
Owner: CFO · Treasury
Act →
3
Pull working capital — drive DSO 18→48dWatch
Why it matters
Closing the DSO gap releases ≈ $-493.2M of one-time cash; $17.6M is already >60 days overdue and at collection risk.
What's driving it
DSO 18d vs 48d target
Overdue (>60d) $17.6M of $107M AR
FYI
Brand-level unlock to a 50d stretch ≈ $7.8M
Owner: Treasury
Collect →▤ open the overdue receivables
4
3 brands running DSO > 65 daysWatch
Why it matters
Targeted collections sprint on $0.9M; tighten milestone billing on ISC projects.
What's driving it
DSO
Signal: Alert
FYI
ISC (67d), Risk Analytics Suite (66d), Retail Home Buyers (Gomti Nagar) account (67d) lifting blended DSO.
Act →▤ open the overdue book

Adjusted EBITDA

$1480M

+26% YoY · 24.7% margin

Liquidity

$1600M

≈ 94 weeks of disbursements

M&A deal capacity

$-444M

≈ $-44M EBITDA @ ~10x to 5.5x

Working-capital unlock

$-493.2M

DSO 18→48d target

Quality of earnings

Reported → Adjusted EBITDA

$1395.44M of add-backs (94% of adj.) — the diligence-grade walk.

Driver bridge

EBITDA — prior to current year

Organic vs. acquisitive vs. price/mix vs. cost.

Treasury

13-week direct cash flow forecast

Above minimum

Net weekly cash (bars) and ending cash (line) vs. $20M minimum. Forecast trough: $26.38M.

$31.25M

Opening cash

$224M

13-wk collections

$221M

13-wk disbursements

$34.1M

Closing cash

Capital structure

Leverage runway vs. covenant

Net Debt/EBITDA deleveraging path against the 5.5x covenant ceiling.

Headroom = firepower

Deal capacity

Net-debt capacity to 5.5x

$-444M

≈ $-44M acquirable EBITDA @ ~10x

Net Debt / EBITDA5.8x

Covenant Headroom1.3x

DSCR1.5x

Free Cash Flow$980M

Where the cash is trapped

Working-capital cash unlock

$7.8M opportunity

Normalizing laggard brands to a 50-day DSO releases ~$7.8M of one-time cash.

PMAY 2.0 Support67d

$1.8M

Lease Rental Discounting61d

$1.6M

Aditya Birla Home Loans56d

$1.5M

Risk Analytics Suite66d

$1.2M

Digital Loan Origination60d

$0.9M

LAP by ABHFL58d

$0.7M

ABHFL Construction Finance54d

$0.2M

Concentrated in newer cohorts (ISC, Signet, RFI) where billing discipline lags integration — the fastest cash win this fiscal year.

Revenue quality

Recurring engine & margin

Annuity growth and where EBITDA is generated.

Recurring Fee Income

$125M

▲ 13.6% vs priorTarget $140M

Recurring Mix

9.1%

▲ 7.1% vs priorTarget 10.0%

Net Revenue Retention

98.0%

▲ 1.0% vs priorTarget 100.0%

Gross Revenue Retention

94.0%

▲ 2.2% vs priorTarget 96.0%

Annuity engine

ARR bridge

Trend

ARR growth

By business unit

EBITDA margin

Collections

AR aging

Total AR $107M

Current days$50.09M

1-30 days$26.65M

31-60 days$12.41M

61-90 days$9.01M

90+ days$8.55M

Overdue (>60d) = $17.6M at collection risk.

By account

Receivables & credit watch

Accounts ranked by DSO and credit/churn risk.

Account	Revenue	DSO	NRR	Credit/Churn
Retail Home Buyers (Gomti Nagar)	$5.88M	67d	97%	High
M. Gupta	$11.86M	63d	104%	Medium
Merchant Partners via BharatPe	$3.77M	59d	100%	Medium
S. Kumar	$13.05M	58d	112%	Low
Developers (Construction Finance)	$6.62M	55d	105%	Medium
IBM	$8.92M	52d	101%	Medium
UPS	$10.39M	49d	106%	Low
A. Sharma	$17.1M	47d	108%	Low
Lucknow Collections Team	$14.8M	44d	119%	Low
SME Owners (Jaipur)	$5.33M	41d	110%	Low

M&A

Acquisition cohort economics

EBITDA uplift, DSO normalization and synergy realization (as-acquired → current).

Brand (cohort)	Acq.	Revenue	EBITDA %	DSO	Integration	Synergy	Status
LAP by ABHFL	2021	$31.25M	8.27→12.87%	71→58d	100%	92%	Integrated
ABHFL Construction Finance	2021	$20.22M	7.35→11.95%	66→54d	100%	90%	Integrated
Aditya Birla Home Loans	2022	$88.23M	10.11→14.71%	68→56d	95%	88%	Integrated
Lease Rental Discounting	2023	$53.31M	9.19→11.95%	70→61d	82%	74%	In progress
PMAY 2.0 Support	2024	$37.68M	8.27→10.11%	73→67d	60%	55%	In progress
Digital Loan Origination	2024	$34.01M	8.27→11.03%	71→60d	80%	78%	In progress
Risk Analytics Suite	2024	$26.65M	7.35→8.27%	69→66d	45%	40%	Early

Supply

Supplier terms & risk

Partner spend, DPO (working-capital lever), delivery and risk.

Supplier	Category	Spend	DPO	OTIF	Score	Risk
ValuEdge	Video Surveillance	$58.82M	45d	96%	91	Low
BharatPe	Fire & Access	$53.31M	42d	93%	88	Low
Vendor Audit Team	Critical Comms	$37.68M	38d	90%	85	Medium
National Housing Bank	Video Surveillance	$24.82M	36d	89%	83	Medium
Vendor Management	Video VMS	$21.14M	40d	95%	87	Low
Collections CRM	AV / Collaboration	$17.46M	44d	92%	86	Low