Poonawalla Fincorp Limited · NSE:POONAWALLA
Poonawalla Fincorp — Magma Fincorp — Investor Presentation (September 2019)
29 slides from Poonawalla Fincorp's investor presentation, Sep 15, 2019
Slide 1: Cover letter to stock exchanges on investor presentation
15 September 2019 Corporate Relationship Department Company Code - 524000 BSE Limited 25th Floor, P.J. Towers, Dalal Street, Fort, Mumbai – 400 001 The Manager Symbol - MAGMA Listing Department, National Stock Exchange of India Limited “Exchange Plaza” Bandra- Kurla Complex, Bandra (E), Mumbai – 400
Slide 2: Towards a Robust, Sustainable and Profitable Growth
Towards a Robust, Sustainable and Profitable Growth Magma Fincorp Limited 1
Slide 3: Agenda
Agenda 1 India – Economy & Financial Sector Outlook 2 About Magma 3 Magma Business Strategy 4 Key Pillars to Drive Sustainable Growth 5 Annexures Note: We have used various abbreviations, nomenclature, financial & non-financial ratios in this presentation. These may differ from the customary or indu
Slide 4: India GDP & Credit Penetration
India GDP & Credit Penetration India's GDP Growth Rate Domestic Credit to Private Sector as % of GDP 7.7% 186% 7.2% 7.3% 5.8% 140% 5.0% 129% 4.0% 105% 87% 2.9% 78% 62% 50% 1960s 1970s 1980s 1990s 2000s 2010-2019 Last 5 USA Australia World France EU Germany Brazil India years Note: India GDP stands a
Slide 5: Change in Total Credit Mix in India
Change in Total Credit Mix in India Total Credit mix in FY08: ~INR 30 trillion Total Credit mix in FY18: ~INR 113 trillion Others Others 10% 11% Private Banks 18% Private Banks PSU Banks 24% 46% NBFCs 12% PSU Banks 60% NBFCs 19% Note: NBFCs share has increased from 12% (~INR 3.6 trillion) in FY08 to
Slide 6: NBFC Sector in India
NBFC Sector in India NBFCs’ AUM touched INR 22.1 trillion in FY18 Segment-wise share of lending from NBFCs 22.1 Other 25% 19.7 23% 12% 20 17.3 17.2 Home Loans 20% 14.5 Real Estate 31% 15 12.9 15% 10% 12% 10.6 10 8.7 6.8 10% 4.8 5.6 LAP / SME 5 5% 11% 0 0% FY08 FY09 FY10 FY11 FY12 FY13 FY14 FY15 FY16
Slide 7: Agenda
Agenda 1 India – Economy & Financial Sector Outlook 2 About Magma 3 Magma Business Strategy 4 Key Pillars to Drive Sustainable Growth 5 Annexures Note: We have used various abbreviations, nomenclature, financial & non-financial ratios in this presentation. These may differ from the customary or indu
Slide 8: Magma Journey
Magma Journey …. Launched Magma JV with HDI Gerling for Housing Finance General Insurance Company by acquiring Business GE Money Housing Finance Company Acquired Srachi Infrastructure Finance Ltd and Started Used CV Business 2013 2017 2010 2009 2006 Corporate Headquarter shifted to Mumbai, Started L
Slide 9: Holding Structure & Key Share holders
Holding Structure & Key Share holders Magma Fincorp Limited 100% 35% Magma Housing Finance Magma HDI General Limited Insurance Company Limited Shareholding (30-June-2019) Key investors True North HDFC Life Insurance Public, Promoters, 32.36% 24.41% Chrys Capital Reliance Nippon Mutual Aman
Slide 10: Board of Directors – Majority Independent Directors
Board of Directors – Majority Independent Directors Promoter Directors Independent Directors Mayank He is on the Board of • Supports policy formulation and Narayan K Serves on the Boards of various Poddar companies including Satya Brata guidance to the Seshadri reputed Indian companies Chairman Clea
Slide 11: Management Team
Management Team Business CEO / Functions Sanjay Chamria Support Functions VC and MD Rajive Kumaraswami Harshvardhan Chamria Rajneesh Mishra Deepak Patkar Kailash Baheti Manish Jaiswal Mahender Bagrodia MD & CEO - HFC, MD & CEO -MHDI CCO - ABF Chief Digital Officer Chief People Officer Chief Risk Off
Slide 12: Value Proposition – Sustainable Risk Reward
Value Proposition – Sustainable Risk Reward Nation-wide Diversified Leveraging Growing urban, semi product suite analytics & economy, urban & rural to support state of art NBFC gaining Distribution customer life digital Market share network cycle platform Focus on Robust risk Strong profitability, m
Slide 13: Community Commitment: Environment & Social Responsibility
Community Commitment: Environment & Social Responsibility Environment Education • Magma M Scholar offers Scholarship to meritorious students from poor families • A programme for Truck Drivers to train them on Road Safety and vehicle • Over past 4 years, M Scholar has offered 300 scholarships. 2015 m
Slide 14: Agenda
Agenda 1 India – Economy & Financial Sector Outlook 2 About Magma 3 Magma Business Strategy 4 Key Pillars to Drive Sustainable Growth 5 Annexures Note: We have used various abbreviations, nomenclature, financial & non-financial ratios in this presentation. These may differ from the customary or indu
Slide 15: Business Snapshot
Business Snapshot Company into 32nd year of retail Strong technology platform, financing business systems & processes Strong management team with Robust risk management extensive industry experience framework AUM1 – INR 173,116 mio ~ 2.4 Million Customers serviced Evenly spread across India since in
Slide 16: Extensive Pan India Distribution Reach
Extensive Pan India Distribution Reach Zone-wise Breakup 316 Branches as on 30th June 2019 North, 36% Himachal Pradesh, 3 Delhi, 4 Uttarakhand, 3 Punjab, 9 West, 22% Uttar Pradesh, 41 Haryana, 20 East, 17% Bihar, 18 Rajasthan, 26 Jharkhand, 8 South, 25% West Bengal, 18 Gujarat, 16 Rural-Urban Breaku
Slide 17: Provide Financing Solutions to Underbanked Customers in 'Rurban' India
Provide Financing Solutions to Underbanked Customers in ‘Rurban’ India Recognised and Trusted Brand in ‘Rurban’ India Diverse Product Offerings Asset Backed Finance (ABF) AUM1 : INR 116,553 mio Customer Focus Total AUM1 : Underserved SME Finance Affordable Housing Finance ‘Rurban’ India AUM1 : INR 2
Slide 18: Financing & General Insurance Solutions
Focus Customer Segments - High Cross-Selling of Products Customer Segments Illustrative Asset Profile Average Self Employed Small & Limited Average Average First Time Loan to Non Medium banking / Ticket Size Tenure Buyers Value Professionals Entrepreneurs credit history (INR mio) (months) Ratio ABF:
Slide 19: Business-wise Strategy
Business-wise Strategy • Expanding in to Hinterland: Leveraging in to • Diversified Product Mix: Focus on high ROA assets existing branch infra (current presence at 1/3rd i.e. Used Assets, Tractor and New SCV of Magma Network). • Scorecard Driven Lending: 2/3rd of Lending decisions • Expanding Produ
Slide 20: Business Growth
Business Growth ABF AUM AHF AUM 110,801 115,912 116,553 33,930 31,599 27,618 Mar-18 Mar-19 Jun-19 Mar-18 Mar-19 Jun-19 SME AUM Gross Written Premium 10,258 22,775 22,634 19,589 5,603 4,229 Mar-18 Mar-19 Jun-19 FY17 FY18 FY19 Values in INR million 19
Slide 21: Liability Profile – Stable credit rating and Stable sources of funds
Liability Profile – Stable credit rating and Stable sources of funds On Balance Sheet 123,270 134,010 135,600 Debt 5% 6% 14% 33% 46% 30% 26% 28% 19% 3% 4% 5% 19% 18% 20% 9% 8% 8% FY18 FY19 Q1 FY20 Perpetual & Sub Debt Term Loan NCD Pass Through Certificate Working Capital Commercial paper Instrument
Slide 22: Capital & Profitability
Capital & Profitability FY18: 7.5% FY18: 2.0% NIM NCL FY19: 8.5% FY19: 1.6% FY18: 1.5% FY18: 12.8% ROA ROE FY19: 1.9% FY19: 13.0% Net FY18: INR 19,720 mio FY18: 17.3% CRAR Worth FY19: INR 27,439 mio FY19: 24.9% 21
Slide 23: Agenda
Agenda 1 India – Economy & Financial Sector Outlook 2 About Magma 3 Magma Business Strategy 4 Key Pillars to Drive Sustainable Growth 5 Annexures Note: We have used various abbreviations, nomenclature, financial & non-financial ratios in this presentation. These may differ from the customary or indu
Slide 24: Key Pillars to Drive Sustainable Growth
Key Pillars to Drive Sustainable Growth • Deep understanding of informal (NINJA) customer • Digital vs. physical document flow: Loan & cash-flow assessment; data records & Origination System, Loan Management experience from three decades of underwriting System • Diversified Product suite to increase
Slide 25: Thank You
THANK YOU Investing in the smallest dream
Slide 26: Annexure: FY19 Financial Results – Profit & Loss Statement
Annexure: FY 19 Financial Results – Profit & Loss Statement INR Million FY19 FY18 Net Revenue 13,912 12,104 Expenses 6,841 6,055 Operating Profit 7,071 6,049 Net Credit Loss 2,654 3,159 Profit Before Tax 4,417 2,890 Tax 1,384 540 Profit After Tax 3,033 2,350 Share of profit in Joint Ventures / Assoc
Slide 27: Annexure: FY19 Financial Results – Balance Sheet
Annexure: FY 19 Financial Results – Balance Sheet INR Million FY19 FY18 Cash and Cash Equivalents 9,568 4,067 Loans and Advances 150,066 135,704 Other Assets 6,371 7,239 Fixed Assets 1,887 1,934 Total Assets 167,893 148,943 Borrowings 134,014 123,266 Other Liabilities 6,440 5,958 Share Capital 539 4
Slide 28: Disclaimer
Disclaimer This presentation has been prepared by Magma Fincorp Limited (the “Company”), for general information purposes only, without regard to any specific objectives, suitability, financial situations and needs of any particular person and does not constitute any recommendation or form part of a
Slide 29: Disclaimer (Contd.)
Disclaimer (Contd.) The information contained in these materials has not been independently verified. None of the Company, its directors, promoter or affiliates, nor any of its or their respective employees, advisers or representatives or any other person accepts any responsibility or liability what
Magma Fincorp — Investor Presentation (September 2019) on 6ix