CSL Finance Limited · NSE:CSLFINANCE
CSL Finance — Q4 FY2017-18 Earnings Presentation
20 slides from CSL Finance's earnings presentation, May 2018
Slide 1: Investor Update – Q4 FY17-18
Investor Update – Q4 FY17-18 May 2018 © 2018 CSL FINANCE LIMITED, ALL RIGHTS RESERVED
Slide 2: Table of Contents
Table of Contents Company Snapshot 3 Milestones 4 Business Strategy 5 Our Presence 8 Operational Overview 11 Financial Update 12 Financial Metrics 16 Future Growth Drivers 18 © 2018 CSL Finance Limited, All Rights Reserved. 2
Slide 3: Company Snapshot
Company Snapshot Delhi based NBFC with Listed on Bombay 99% of loan BBB rating AUM of Rs 282 Cr Stock Exchange book is secured from CARE 12 Branches spread High CAR Low cost of Raised 51 Cr from Marquee across North India of 65% operations investors in Sep 2017 © 2018 CSL Finance Limited, All Rights
Slide 4: Milestones
Milestones Invested in Raised debt of Rs 120 Fintech Cr for the first time Company Got NBFC registration from Controlling stake in Exited the Asian Reserve Bank of Asian Oilfield Services Ltd Oilfield for a Expanding our business of (a BSE listed Oilfield Services India return of 7X Secured Lending,
Slide 5: Business Strategy
Business Strategy Portfolio Quality Focussed Approach Systematic build up of portfolio Prudent risk management and in chosen geographies relentless monitoring of portfolio Costs Flexibility Focus on low operational Flexible offerings in line with and borrowing costs customer needs Niche Segments Cus
Slide 6: Product Portfolio
Product Portfolio Product Portfolio Wholesale Mortgage – Large (Group Housing) Wholesale Mortgage – Small (Builder Floor Financing) Wholesale Financing Wholesale Mortgage - LAP (Corporates and Education Sector) Secured Business Loans Retail Unsecured Business Loans Financing © 2018 CSL Finance Limit
Slide 7: A wholesale lending NBFC building a retail franchise
A wholesale lending NBFC building a retail franchise Multiple Growth Drivers Established Vertical 99% of loan book is Secured § Wholesale Credit § Structured Collateralised Credit High CAR driving growth Focused Expansion with a cluster based approach Emerging Vertical § SME Secured Credit Low cost
Slide 8: Branches
Branches Existing Branches Jalandhar Ludhiana Proposed Branches Dehradun Patiala Yamuna Ambala Nagar Panipat New Delhi Jaipur Ajmer Jodhpur Kota Ahmedabad Rajkot Surat Vapi Map not to scale, for representation purposes only © 2018 CSL Finance Limited, All Rights Reserved. 8
Slide 9: What do we stand for
What do we stand for Build a low cost profitable business model with a focus on high portfolio quality and customer satisfaction Focus to become formidable player in our niche target segment Build a sustainable business with ROE target of 16-18% in the medium term Service unbanked small businesses w
Slide 10: Risk Management Framework
Risk Management Framework § Presence in select pockets of NCR § Excellent understanding of the market dynamics and risks Presence in select 1 § Selective focus on market segments with good end-use demand markets § Last mile financing – significantly reduces project risk § Deal with reputed developer
Slide 11: Operational Update
Operational Update 5 New branches were opened in this quarter. The company now has 12 operational branches in Haryana, Punjab, Rajasthan and Uttaranchal The company has strengthened its sourcing, credit and monitoring function by adding requisite resources in the wholesale lending vertical and partn
Slide 12: Financial Update
Financial Update Total Revenue increased by 113.39% to Rs 13.23 Cr in Q4 FY2017-18 from Rs 6.20 Cr in Q4 FY2016-17 Net Profit increased by 110.51% to Rs 5.01Cr in Q4 FY2017-18 from Rs 2.38 Cr in Q4 FY2016-17 AUM increased by 108.43% to Rs 281.31 Cr in Q4 FY2017-18 from Rs 134.96 Cr in Q4 FY2016-17 N
Slide 13: Credit Business Mix
Credit Business Mix Product Category Book Size (Rs Cr) Corporate Lending Loans to Group Housing Projects consisting both of Wholesale Mortgage – Large 180 standard loans and structured collateralised loans Wholesale Mortgage – Small 50 Builder Floor & Site Redevelopment Loans Mezzanine loans given t
Slide 14: Wholesale Credit – Leveraging our Relationships
Wholesale Credit – Leveraging our Relationships Assets Under Management (AUM) Figures in INR Crores Business Approach 300 265.19 Better domain knowledge due to controlled geographical presence Selective focus on market segments with good end-use 200 demand High degree of flexibility in deal structur
Slide 15: Retail Credit Expanding Footprint
Retail Credit Expanding Footprint Assets Under Management (AUM) Business Approach Figures in INR Crores 18 Building a focussed retail presence. Started with select markets in NCR, Haryana and Punjab and expanding 16 16.03 into Rajasthan and Gujarat 14 Implementing Loan Origination & Management Syste
Slide 16: Financial Metrics
Financial Metrics 1 Total Income Operating Expenses (Rs Cr) 14 13.23 3.5 3.11* 12 10.81 3 10 9.22 2.5 8.2 1.98 1.71 1.84 8 6.2 2 1.5 6 1.5 4 1 2 0.5 0 0 Q4FY17 Q1FY18 Q2FY18 Q3FY18 Q4FY18 Q4FY17 Q1FY18 Q2FY18 Q3FY18 Q4FY18 Pre Provisioning Profit Before Tax (Rs Cr) Net Profit (Rs Cr) 10 6 5.09 5.01
Slide 17: Financial Metrics (contd..)
Financial Metrics (contd..) 2 Borrowings (Rs Cr) Net Interest Income (Rs Cr) 120 102.32 15.00 100 89.62 10.72 9.64 80 68.78 10.00 7.81 58.05 6.74 6.96 60 5.89 40 30.77 5.00 20 0 0.00 Q4FY17 Q1FY18 Q2FY18 Q3FY18 Q4FY18 Q3FY17 Q4FY17 Q1FY18 Q2FY18 Q3FY18 Q4FY18 AUM – End of Quarter (Rs Cr) Disbursemen
Slide 18: Financial Metrics (contd..)
Financial Metrics (contd..) 3 Capital Adequacy Ratio (%) Net Interest Margin (%) 150% 30% 105% 20.76% 18.74% 18.57% 17.44% 18.51% 100% 84% 84% 20% 16.26% 64% 68% 65% 50% 10% 0% 0% Q3FY17 Q4FY17 Q1FY18 Q2FY18 Q3FY18 Q4FY18 Q3FY17 Q4FY17 Q1FY18 Q2FY18 Q3FY18 Q4FY17 Number of Employees Number of Branch
Slide 19: Our future growth strategy
Our future growth strategy Portfolio Mix Consolidate our wholesale lending book and diversify into Retail SME lending Aim to achieve a mix of 60:40 between Wholesale and Retail lending over 3 years Wholesale Mortgage – Large Wholesale Mortgage-Small Broaden our loan target segment with better deterr
Slide 20: Registered & Corporate Office
Registered & Corporate Office: Phone Email Website 8/19, GF, W.E.A, Pusa Lane +91 11 42503441-44 info@cslfinance.in www.cslfinance.in Opp Metro Pillar 87, Karol Bagh, New Delhi -110005 © 2018 CSL Finance Limited., All Rights Reserved. CSL Finance Logo is a trademark of CSL Finance Limited. In additi