Shriram Finance Limited · NSE:SHRIRAMFIN
Shriram Finance — Investor Presentation (March 2023)
62 slides from Shriram Finance's investor presentation, Mar 31, 2023
Slide 1: On a journey to become the most preferred Financial Services destination
On a journey to become the most preferred Financial Services destination March 31, 2023 1
Slide 2: Agenda
Company Overview 3 Business Model/Competitive Strengths 7 Market Dynamics & Growth Strategy 10 Organizational Structure 15 Performance Track Record 24 Recent Performance – Q4 FY23 34 Shriram Housing Finance (SHFL) 48 57 2 Consolidated Numbers
Slide 3: Company Overview
COMPANY OVERVIEW 3
Slide 4: Company Snapshot
Company Snapshot Leading player in organized high yield pre-owned CV financing segment and Two-wheeler segment. Diversified Portfolio – PCV’s, Construction Equipment, Tractor Financing, Personal loans, Gold Loans, MSME Finance Over 7.32 million customers Large network of 2,922 Branch offices and 732
Slide 5: Corporate History
Corporate History Securitised Rs. 87.57 Tied up with Merger of Shriram bn during FY 2010. Citicorp for CV Investment Ltd. and financing under Shriram Overseas Successfully raised Portfolio Finance Ltd. with Rs. 5.84 bn through Management STFC; PAT crosses QIP with domestic & Services (PMS) R
Slide 6: Corporate History
Corporate History Successfully Raised maximum Shriram City Union Finance Limited and Shriram Capital Limited merged raised Rs. 13.5 permissible US$ Raised Rs. 14.92 bn with Shriram Transport Finance Company Limited and was renamed as Bn through 750 million through through right issue in Shri
Slide 7: Business Model / Competitive Strengths
BUSINESS MODEL / COMPETITIVE STRENGTHS 7
Slide 8: Strategic Presence In High Yield Used CV Segment
Strategic Presence In High Yield Used CV Segment CV Financing Business Model Pre-Owned New Age of Truck 1 2 3 4 5 6 7 8 9 10 11 12 Lending Rates 14-16% 16-24% 12-16% Small truck owners (less than 5 trucks) with underdeveloped Existing customer base upgrading to new trucks Target Segment banking
Slide 9: Valuation Expertise & Relationship Based Model
Valuation Expertise & Relationship Based Model Knowledge Driven Valuation Model Critical Success Factor Vehicle Assessment Loan Amount Valuation EMI Old CVs 60-70% LTV Ratio Repayment Ability New CVs 75-80% LTV Ratio SFL has right mix of scale and skill Awareness of load structure / business mix Rel
Slide 10: Market Dynamics & Growth Strategy
MARKET DYNAMICS & GROWTH STRATEGY 10
Slide 11: Strong Industry Potential – Commercial Vehicles
Strong Industry Potential – Commercial Vehicles Market Potential (Rs. bn) Trucks (mn) Market for second hand truck financing is under penetrated with 55-60% of the market with private financiers / money lenders who 3,845 27% charge high interest rates 33% Stringent traffic regulations in major c
Slide 12: Strong Industry Potential – Other Portfolio Segments
Strong Industry Potential – Other Portfolio Segments Construction Two Wheelers Passenger Vehicles Tractor Financing Automall Equipment (Only New) Market Size Rs. 1,260 billion NA Rs. 1,000 billion Rs. 5,300 billion Rs. 1,600 billion (FY24) PM Gati Shakti with Access to ready Key Driver Personal Mobi
Slide 13: Transportation Model – Multiple Financing Opportunities
Transportation Model – Multiple Financing Opportunities Hub and Spoke Transportation Model Long Haul Medium Haul Short Haul Last Mile >800 kms 350-800 kms 50-350 kms <50 kms Load re-distributed from few large hubs in major regions of the country to large number of touch points in the hinterland CV L
Slide 14: Growth Strategy
Growth Strategy Strengthening presence Introduction of top-up and expanding reach products like finance for tyres, working capital and Increase penetration into engine replacement rural and urban centers Target AUM (Rs. bn) Economies of scale - Increase penetration of incremental cost of n
Slide 15: Organizational Structure, Management Team & Board of Directors
ORGANIZATIONAL STRUCTURE, MANAGEMENT TEAM & BOARD OF DIRECTORS 15
Slide 16: Branch Offices
Geographical Units Urban Semi-urban Rural Total Geographical Units Urban Semi-urban Rural Total (GU) Branches (GU) Branches GU1 Puducherry - 7 7 14 GU5 Total Tamil Nadu 73 196 383 652 Assam - 11 16 27 GU1 Total 73 203 390 666 Chhattisgarh 5 17 50 72 GU2 Karnataka 24 63 129 216 Andhra Pradesh 30 114
Slide 17: Professional Management Team with Vast Industry Experience
Professional Management Team with Vast Industry Experience • Joined as an Executive Trainee in 1987. He has been associated with Shriram Group for over 35 years Umesh Revankar and has shouldered various responsibilities and worked in several key roles of business operations. Executive Vice- • Holds
Slide 18: Professional Management Team with Vast Industry Experience
Professional Management Team with Vast Industry Experience P. Sridharan • Joined in 1996. Joint Managing • Over 26 Years experience in Shriram. Director • Holds a degree in BSC and MBA. Nilesh Odedara • Joined in 1997. Joint Managing • Holds a degree in BBA. Director • Over 26 Years experience in Sh
Slide 19: Professional Management Team with Vast Industry Experience
Professional Management Team with Vast Industry Experience K. Srinivas • Joined Shriram Group in 1992. Joint Managing • Over 30 Years experience in Shriram. Director • Holds a degree in B Com, MBA from Pune University. • Commerce Graduate, a Fellow of Cost and Management Accountants of India. R. Cha
Slide 20: Professional Management Team with Vast Industry Experience
Professional Management Team with Vast Industry Experience Hardeep Singh Tur • Joined in 1991. • Holds a degree in B. Com Chief Risk Officer • Over 32 Years experience in industry Sanjay K. Mundra President – Investor • Over 32 years experience in the finance Industry. and Media • Joined in 2007, a
Slide 21: Board of Directors
Board of Directors • Holds M.A. (Economics) from Delhi School of Economics and Post Graduate in Economics from Boston University, USA Jugal Kishore Mohapatra • IAS, Odisha Cadre, Currently, non-executive Chairman of India International Bullion Exchange IFSC Limited (IIBX) and Nominee Director of Fou
Slide 22: Board of Directors
Board of Directors • Joined as an Executive Trainee in 1987. He has been associated with Shriram Group for over 35 years Umesh Revankar and has shouldered various responsibilities and worked in several key roles of business operations. Executive Vice-Chairman • Holds a degree in MBA Finance. • Appoi
Slide 23: Board of Directors
Board of Directors • Joined CV Finance business of Shriram Group in 1992 as Head of Investment Servicing. • Currently serves as Managing Director of Shriram Capital Private Limited. D V Ravi • Spearheaded several successful M&A’s for TAKE Solutions Ltd. Director • Started his career in Strategy and
Slide 24: Performance Track Record
* SHRIRAM Finance PERFORMANCE TRACK RECORD
Slide 25: Strong Financial Track Record
Strong Financial Track Record P&L Metrics (Rs. mn) FY18 FY19 FY20 FY21 FY22 FY23* Interes t Income (Incl . Securi ti za ti on) 132,710.3 154,441.4 164,773.1 173,346.6 191,806.2 296,396.0 Les s : Interes t Expens es 64,857.9 76,366.0 83,703.3 91,675.6 98,645.6 126,766.0 Net Interest Income 67,852.4 7
Slide 26: Strong Financial Track Record
Strong Financial Track Record Balance Sheet Metrics (Rs. mn) FY18 FY19 FY20 FY21 FY22 FY23* - On Books 8,00,013.7 8,50,847.3 1,085,017.1 1,161,916.0 1,256,990.3 1,833,384.2 - Off Books 1,62,592.4 1,93,975.6 12,475.3 10,512.3 13,418.3 23,444.4 Total AUM 9,62,606.1 10,44,822.9 1,097,492.4 1,172,428.3
Slide 27: Healthy Asset Quality (as per IndAS)
Healthy Asset Quality (as per IndAS) Particulars (Rs. mn) FY18 FY19 FY20 FY21 FY22 FY23* Gross Stage 3 90,842.1 86,222.7 91,797.1 82,952.1 88,875.5 113,821.8 ECL provision-Stage 3 30,953.2 29,670.0 31,886.5 34,885.3 44,415.0 57,073.2 Net Stage 3 59,888.9 56,552.7 59,910.6 48,066.8 44,460.5 56,748.6
Slide 28: Access to Low Cost Funds
Access to Low Cost Funds Funding Mix as % of Overall Liabilities Retail Banks/Institutions 85.40% 87.18% 86.80% 84.76% 80.86% 77.11% 14.60% 12.82% 13.20% 15.24% 19.14% 22.89% FY 18 FY 19 FY 20 FY 21 FY 22 FY 23 Strategic mix of retail deposits and institutional funding matched favorably with deplo
Slide 29: Credit rating as on March 31, 2023
Credit rating as on March 31, 2023 Credit Rating Agency Instruments Ratings as on 31.03.2023 CARE Commercial Paper CARE A1+ CARE Non-convertible debentures CARE AA+/Stable CARE Subordinated debt CARE AA+/Stable CRISIL Bank Loan Long-term CRISIL AA+/Stable CRISIL Bank Loan Short-term CRISIL A1+ CRISI
Slide 30: Shareholding Pattern as on March 31, 2023 vs March 31, 2022
Shareholding Pattern as on March 31, 2023 vs March 31, 2022** No. of shares outstanding: 374.35 mn No. of shares outstanding: 270.52 mn Other Public, 4.49% Public, 5.52% Corporate Other Body , 8.53% Corporate Promoters Body , 0.20% & Promoters Promoters MF/Bank/ & Insurance group*, 25.51% * Promoter
Slide 31: Has Attracted Strong Interest from Quality Investors
Has Attracted Strong Interest from Quality Investors Consistent track record and high growth potential has attracted reputed institutional and private equity investors to infuse growth capital Last Four fund raising : 1. On March 29, 2023, the Company issued and allotted USD 0.15 bn Senior Secur
Slide 32: List of Key Shareholders
List of Key Shareholders Key Shareholders Shareholding As on % March 31, 2023 (Mn Shares) Promoter and Promoter Group 95.52 25.51 Piramal Enterprises Limited 31.22 8.34 Life Insurance Corporation Of India 16.37 4.37 TPG India Investments II, Inc. 9.92 2.65 Mirae Asset Tax Saver Fund (various sub fun
Slide 33: Well-Capitalized Balance Sheet
Well-Capitalized Balance Sheet Capital Adequacy Ratio at 22.61% (Tier I - 21.20%, Tier II - 1.41%) as on March 31, 2023 vs 15% mandated by RBI Networth (Rs. mn) CRAR (%) Book Value (Rs.) 22.61% 21.99% 20.27% 22.50% 22.97% 1,156.61 17.38% 958.61 852.30 793.59 697.99 598.35 1,35,479 1,58,087 1,79,77
Slide 34: Recent Performance
Ke SHRIRAM Finance RECENT PERFORMANCE
Slide 35: Performance Highlights – Q4 FY23 vs Q4 FY22
Performance Highlights – Q4 FY23 vs Q4 FY22* Q4 FY23 Rs 77,691.5 mn Total Income Q4 FY22* Rs 50,875.9 mn Q4 FY23 Rs 44,459.0 mn Net Interest Income** Q4 FY22* Rs 26,278.0 mn ** including Net Direct assignment Income Rs. 890.0 Mn (Q4 FY22 Rs. 426.1 Mn) Q4 FY23 Rs 13,082.0 mn PAT Q4 FY22* Rs 10,861.0
Slide 36: Performance Highlights – FY23 vs FY22
Performance Highlights – FY23 vs FY22* FY23 Rs 298,028.9 mn Total Income FY22* Rs 192,742.3 mn FY23 Rs 169,630.0 mn Net Interest Income** FY22* Rs 93,160.0 mn ** including Net Direct assignment Income Rs. 2,342.6 Mn (FY22* Rs. 2,233.9 Mn) FY23 Rs 59,792.0 mn PAT FY22* Rs 27,078.0 mn FY23 Rs 159.69 E
Slide 37: Performance Highlights – Q4 FY23 vs Q4 FY22
Performance Highlights – Q4 FY23 vs Q4 FY22* Q4 FY23 Rs 1,856,828.6 mn AUM 15.89 % Q4 FY22 Rs 1,602,266.2 mn Q4 FY23 Rs 113,821.8 mn Gross Stage 3 assets* Q4 FY22 Rs 88,875.5 mn Q4 FY23 Rs 56,748.6 mn Net Stage 3 assets* Q4 FY22 Rs 44,460.5 mn Q4 FY23 Rs 1,156.61 Book Value* Q4 FY22 Rs 958.61 Note:-
Slide 38: AUM Break-up
AUM Break-up Particulars (Rs. mn) Q4 FY23 Q3 FY23 Q2 FY23 Q1 FY23 Q4 FY22 YoY (%) QoQ (%) Loan Portfolio - On Books Balance sheet assets 1,620,893.0 1,567,662.6 1,482,206.4 1,409,852.8 1,373,944.7 17.97% 3.40% Securitised assets 212,491.3 190,749.6 195,502.5 205,850.8 214,081.6 -0.74% 11.40% Total O
Slide 39: Segment-wise AUM Break up
Segment-wise AUM Break up Product Q4 FY23 Q3 FY23 Q2 FY23 Q1 FY23 Q4 FY22 YoY (%) QoQ (%) (Rs. mn) Amt % Amt % Amt % Amt % Amt % Commercial Vehicles 932,949.2 50.24% 906,152.4 51.05% 876,760.3 51.77% 850,944.6 52.21% 828,259.7 51.69% 12.64% 2.96% Passenger Vehicles 338,726.4 18.24% 317,650.8 17.90%
Slide 40: Branch & AUM distribution – Q4 FY23 vs Q4 FY22
Branch & AUM distribution – Q3 FY23 vs Q3 FY22 Urban, Rural, Urban, Rural, Branch (Nos) 394 1,518 AUM (Rs in bn) 277.9 916.7 Q4 FY23 Q4 FY23 Semi- Semi- Total Branch 2,922 Urban, Total AUM Urban, 1,010 Rs 1,856.8 bn 662.2 Urban, Rural, Urban, Rural, 381 1,460 249.6 768.5 Q4 FY22 Q4 FY22 Semi- Semi-
Slide 41: Provision Analysis
Provision Analysis Particulars (Rs. in mn) Q4 FY23 Q3 FY23 Q2 FY23 Q1 FY23 Q4 FY22* YoY (%) QoQ (%) Gross Stage 3 113,821.8 110,586.1 105,830.5 101,315.5 88,875.5 28.07% 2.93% ECL provision-Stage 3 57,073.2 56,080.6 51,922.6 49,255.5 44,415.0 28.50% 1.77% Net Stage 3 56,748.6 54,505.5 53,907.9 52,06
Slide 42: Product wise Provision Analysis – Mar'23
Product wise Provision Analysis – Mar’23 Particulars (Rs. mn) Commercial Passenger Construction Farm MSME Two Gold Personal Others Total Vehicles Vehicles Equipments Equipments Wheelers Loans Gross Stage 3 59,990.3 19,176.0 10,388.1 3,487.2 11,222.3 4,305.7 1,410.3 3,674.6 167.2 113,821.8 ECL provis
Slide 43: P&L Statement
P&L Statement Particulars (Rs. mn) Q4 FY23 Q3 FY23 Q2 FY23 Q1 FY23 Q4 FY22* YoY (%) QoQ (%) FY23 FY22* YoY (%) Interest income 77,166.0 75,699.0 73,837.0 69,694.0 50,543.0 52.67% 1.94% 296,396.0 191,806.0 54.53% Interest expended 32,707.0 31,420.0 32,788.0 29,850.0 24,265.0 34.79% 4.10% 126,766.0 98
Slide 44: Summarized Balance Sheet
Summarized Balance Sheet Particulars (Rs. mn) Mar-23 Dec-22 Sep-22 Jun-22 Mar-22* YoY (%)* QoQ (%) I. Assets Financial Assets a) Cash and bank balances 158,174.0 167,437.0 251,951.0 257,084.0 163,551.0 -3.29% -5.53% b) Loans 1,719,846.0 1,650,433.0 1,576,253.0 1,519,011.0 1,166,652.0 47.42% 4.21% c)
Slide 45: Key Metrics – Q4 FY23
Key Metrics – Q4 FY23 P&L Metrics (Rs. mn) Q4 FY23 Q3 FY23 Q2 FY23 Q1 FY23 Q4 FY22* YoY (%) QoQ (%) FY23 FY22* YoY (%) Interest Income 77,166.0 75,699.0 73,837.0 69,694.0 50,543.0 52.67% 1.94% 296,396.0 191,806.0 54.53% Less: Interest Expenses 32,707.0 31,420.0 32,788.0 29,850.0 24,265.0 34.79% 4.10
Slide 46: Borrowing Profile
Borrowing Profile Q4 FY23 Q3 FY23 Q2 FY23 Q1 FY23 Product Amt in bn % Amt in bn % Amt in bn % Amt in bn % Non-Convertible Debentures 302.45 19.15% 325.93 21.26% 335.55 21.21% 292.25 19.21% Public Deposit 361.40 22.89% 344.89 22.49% 325.43 20.57% 303.63 19.96% Securitisation 221.06 14.00% 202.68 13.2
Slide 47: ALM statement on March 31, 2023
ALM statement on March 31, 2023 Over one Over 2 Over 3 Over 6 Over one Over 3 to Over 5 Particulars (Rs. mn) One month month to 2 months to 3 months to months to year to 3 Total 5 years years months months 6 months one year years Total Outflows 72,785.80 45,836.30 78,016.40 163,241.70 265,245.80 644
Slide 48: Shriram Housing Finance Limited (SHFL)
SHRIRAM HOUSING FINANCE LIMITED (SHFL) 48
Slide 49: AUM Break-up
AUM Break-up Particulars (Rs. cr) Q4 FY23 Q3 FY23 Q2 FY23 Q1 FY23 Q4 FY22 YoY (%) QoQ (%) Loan Portfolio - On Books Balance sheet assets 63,636.3 57,518.1 54,236.5 47,649.6 45,167.6 40.89% 10.64% Securitised assets 3,700.1 2,864.7 1,780.0 1,898.4 577.8 540.38% 29.16% Total On books 67,336.4 60,382.8
Slide 50: Assets under Management
Assets under Management Segment (Rs. Mn) Q4 FY23 Q3 FY23 Q2 FY23 Q1 FY23 Q4 FY22 YoY (%) QoQ (%) HL 47,487.5 42,518.4 38,800.5 34,720.0 31,951.6 48.62% 11.69% LAP 24,153.4 20,412.8 18,364.1 16,533.7 15,499.8 55.83% 18.32% Top up 4,082.9 3,475.2 3,176.9 2,910.8 2,743.8 48.81% 17.49% CF 3,856.5 4,115.
Slide 51: P & L Statement
P & L Statement Particulars (Rs. mn) Q4 FY23 Q3 FY23 Q2 FY23 Q1 FY23 Q4 FY22 YoY (%) QoQ (%) FY23 FY22 YoY (%) Interest income 2,275.1 2,044.4 1,911.4 1,598.8 1,431.1 58.98% 11.28% 7,829.7 5,307.3 47.53% Interest expended 1,222.1 1,030.3 951.6 749.2 703.0 73.84% 18.62% 3,953.2 2,806.0 40.88% Net int
Slide 52: Summarized Balance Sheet
Summarized Balance Sheet Particulars (Rs. mn) Mar-23 Dec-22 Sep-22 Jun-22 Mar-22 YoY (%) QoQ (%) I. Assets Financial Assets a) Cash and bank balances 48,954.2 13,888.4 25,056.3 28,075.0 22,954.7 113.26% 252.48% b) Loans 668,134.8 598,124.5 554,344.0 489,939.7 452,214.8 47.75% 11.70% c) Investments 2
Slide 53: Provision Analysis
Provision Analysis Particulars (Rs. in mn) Q4 FY23 Q3 FY23 Q2 FY23 Q1 FY23 Q4 FY22 YoY (%) QoQ (%) Gross Stage 3 6,243.2 6,964.2 8,536.7 7,717.8 7,879.7 -20.77% -10.35% ECL provision-Stage 3 1,588.0 1,697.8 2,071.7 1,815.1 1,843.7 -13.87% -6.47% Net Stage 3 4,655.2 5,266.4 6,465.0 5,902.7 6,036.0 -2
Slide 54: Key Metrics
Key Metrics P&L Metrics (Rs. mn) Q4 FY23 Q3 FY23 Q2 FY23 Q1 FY23 Q4 FY22 YoY (%) QoQ (%) FY23 FY22 YoY (%) Interest Income 2,275.1 2,044.4 1,911.4 1,598.8 1,431.1 58.98% 11.28% 7,829.7 5,307.3 47.53% Less: Interest Expenses 1,222.1 1,030.3 951.6 749.2 703.0 73.84% 18.62% 3,953.2 2,806.0 40.88% Net I
Slide 55: Shriram Automall Limited (SAMIL)
Associate Shriram Auotmall Limited (SAMIL) 55
Slide 56: Associate
Associate Shriram Automall India Limited (SAMIL), an ISO 9001:2015 certified company, is India's Largest Phy-gital Pre-owned Marketplace connecting pre-owned vehicles and equipment buyers and sellers. SAMIL began its journey in 2011 by setting up India's first professionally managed and organize
Slide 57: Consolidated Numbers
Consolidated Numbers 57
Slide 58: Financial Performance (Consolidated)
Financial Performance (Consolidated) Particulars (Rs. mn) Q4 FY23 Q3 FY23 Q2 FY23 Q1 FY23 Q4 FY22* YoY (%) QoQ (%) FY23 FY22* YoY (%) Interest income 79,265.1 77,562.8 75,569.2 71,041.6 50,542.9 56.83% 2.19% 303,439.6 191,806.2 58.20% Interest expended 33,928.8 32,449.7 33,739.0 30,597.4 24,264.7 39
Slide 59: Summarized Balance Sheet (Consolidated)
Summarized Balance Sheet (Consolidated) Particulars (Rs. mn) Mar-23 Dec-22 Sep-22 Jun-22 Mar-22* YoY (%) QoQ (%) I. Assets Financial Assets a) Cash and bank balances 163,069.5 168,805.8 254,456.8 259,891.1 163,551.6 -0.29% -3.40% b) Loans 1,786,851.4 1,710,571.8 1,632,188.4 1,568,681.1 1,166,651.5 5
Slide 60: About Us
About Us About Shriram Finance Ltd. Shriram Finance Limited is the flagship company of the Shriram group which has significant presence in Consumer Finance, Life Insurance, General Insurance, Housing Finance, Stock Broking and Distribution businesses. Shriram Finance Limited is India’s largest retai
Slide 61: For any Investor Relations queries please contact
Contact Us For any Investor Relations queries please contact Sanjay K. Mundra Shriram Finance Ltd Email: smundra@shriramfinance.in Tel. No. +91-22-4095 9507 61
Slide 62: Thank You
Thank You 62