Paisalo Digital Ltd. · NSE:PAISALO
Paisalo Digital — Q2 FY2023 Earnings Presentation
28 slides from Paisalo Digital's earnings presentation, Nov 14, 2022
Slide 1: Cover letter to stock exchanges
Date: November 14, 2022 The Manager The Listing Department Department of Corporate Relationship National Stock Exchange of India Limited BSE Limited Exchange Plaza, Bandra Kurla Complex 25th Floor P. J. Towers, Dalal Street Bandra (East) Mumbai -400 001 Mumbai -400 051 Scrip Code: 532900 (Equity) SC
Slide 2: Investor Presentation Q2 FY 2023
PAISALO DIGITAL LIMITED Investor Presentation Q2 FY 2023 A Systemically Important Non-Deposit Accepting Non-Banking Finance Company 1
Slide 3: Presentation Path
1. Financial Summary Presentation 2. Transformation Update Path 3. Paisalo Digital Limited Overview 4. Financial Performance 2
Slide 4: Financial Summary
Financial Summary Q2 FY 2023 3
Slide 5: Paisalo Snapshot Q2 FY 2023
Paisalo Snapshot Q2 FY 2023 ₹ 29,767 mn ₹ 2,329 mn ₹ 11,216 mn AUM Revenue Networth YoY Growth ~ 24% YoY Growth ~ 22% YoY Growth ~ 25% An excellent first half for the Company across balance sheet growth, portfolio quality and profitability. Confident of strong FY 2023. 4
Slide 6: Paisalo Snapshot Q2 FY 2023
Paisalo Snapshot Q2 FY 2023 ₹ 451 mn 43.19% 0.27% PAT CAR NNPA YoY Growth ~ 24% An excellent first half for the Company across balance sheet growth, portfolio quality and profitability. Confident of strong FY 2023. 5
Slide 7: Paisalo Snapshot Q2 FY 2023
Paisalo Snapshot Q2 FY 2023 » Highest ever AUM of ₹ 29,767 Mn. » AUM as at Q2 FY 2023 was up 23.79% at ₹ 29,767 mn as against Q2 FY 2022 at ₹ 24,046 mn. » Total geographic footprint stood at to 195 branches and 2125 postal codes, in the quarter. In Q2, the company added 21 new locations. » Over the
Slide 8: Paisalo Snapshot Q2 FY 2023
Paisalo Snapshot Q2 FY 2023 » Paisalo has written off bad debts totaling to INR 233 mn and has recovered old written off bad debts worth INR 98 mn in Q2 FY 2023. » The Tangible Networth is INR 11,216 mn versus Bank Borrowings (secured) INR 10,606 mn , i.e., 0.95 times » Capital Adequacy remained ver
Slide 9: Paisalo Snapshot Q2 FY 2023
Paisalo Snapshot Q2 FY 2023 » The company signed Co-Lending with UCO Bank in Q2 FY 2023, the same has been rolled at certain branches in Q2 FY 2023. » UCO Bank empanelled the Company as Corporate Business Correspondent (BC) for deployment and management of CSPs in 5 states. The same is expected to b
Slide 10: Transformation Update
Transformation Update 9
Slide 11: Purpose of business transformation
At Paisalo we believe that the purpose of any business transformation is that it should result in stronger growth momentum, better customer experience, additional cross sell, lower credit risk, lower ALM risk and improved liquidity 10
Slide 12: Pursuing our Business Transformation with these objectives
We are Pursuing our Business Transformation with these objective’s 11
Slide 13: Technology, Time, and Team: Phase 1
At the outset, All business transformations takes “Technology, Time, and Team”. We started Phase 1 of this transformation project in October 2019, with beta testing initiated in January 2020 Phase 1 was focused on creating a “Strong, Stable and Scalable” foundation. 12
Slide 14: Phase 1 features live; Phase 2 on track
As articulated in previous Quarters all Phase 1 features of the stack are live. Phase 2 : 3000 disbursements per day Phase 2 is on track; focusing on augmenting current credit underwriting feature set, disciplined execution, rapid adoption in all processes of the company and continued progress on al
Slide 15: Paisalo Digital Limited Overview
Paisalo Digital Limited Overview 14
Slide 16: What do we Stand For
1. Disruption – Revolutionizing and Disrupting Rural Credit 2. High Tech : High Touch – What do we Engage and transact without friction to deliver a Stand For sustainable business model 3. Innovation – Focus on continuous innovation to transform customer experience and create growth opportunities 4.
Slide 17: Uniquely Positioned for Growth
1. Leader with a huge Early Mover advantage in “Co-Lending” 2. Offering easiest and cheapest product in its Uniquely market segment Positioned 3. Access to almost unlimited capital, relative to size for Growth 4. Negligible ‘Liquidity Risk’ 5. Negligible ‘Credit Risk’ 6. Negligible ‘ALM Risk’ 16
Slide 18: Key strategic differentiators
1. Leader with a huge Early Mover advantage in “Co- Lending” 2. A Unique and Scalable business model Key strategic 3. In-house Proprietary Digital Platform uses Data, AI and ML differentiators 4. Serviced 1.5 Mn customers 5. Paisalo has strong Brand Recognition in area of operations 6. Team of 1400+
Slide 19: Executive Summary
§ Engaged in the business of providing convenient and easy loans to the financially excluded at bottom of India's economic pyramid § Lending business with an AUM of ₹ 29,767 Mn § Already serviced more than 1.5 million customers Executive § An experienced team of 1400+ operating from 195 branches in
Slide 20: Financial Performance
Financial Performance 19
Slide 21: Financials
Q2 FY Q3 FY Q4 FY Q1 FY Q2 FY PARTICULARS 2022* 2022* 2022* 2023 2023* AUM ₹24,046 ₹25,201 ₹26,973 ₹27,174 ₹29,767 Disbursements ₹7,240 ₹11,303 ₹16,343 ₹4,752 ₹6,058 Revenue ₹1,746 ₹2,926 ₹3,922 ₹1,126 ₹2,329 PBT ₹516 ₹864 ₹1,071 ₹287 ₹613 PAT ₹380 ₹643 ₹793 ₹209 ₹451 FINANCIALS Net Worth Total Liab
Slide 22: Financials
PARTICULARS FY 2020 FY 2021 FY 2022 Q1 FY 2023 Q2 FY 2023* AUM ₹21,119 ₹23,178 ₹26,973 ₹27,174 ₹29,767 Interest Income ₹3,375 ₹3,115 ₹3,922 ₹1,126 ₹2,329 NIM 6.47% 4.05% 4.03% 5.51% 5.35% PAT ₹540 ₹609 ₹793 ₹209 ₹451 Cash Accrual ₹580 ₹646 ₹819 ₹216 ₹465 FINANCIALS Net worth ₹7,603 ₹8,619 ₹10,241 ₹1
Slide 23: Financials: Critical Ratios
Particulars FY 2020 FY 2021 FY 2022 Q1 FY 2023 Q2 FY 2023 Tangible Net ₹7,603 ₹8,619 ₹10,241 ₹10,453 ₹11,216 Worth (TNW) Bank Borrowings FINANCIALS (BB) ₹7,983 ₹7,412 ₹9,588 ₹9,416 ₹10,606 Critical Ratios Total Outside ₹13,738 ₹14,814 ₹15,989 ₹15,871 ₹16,005 Liabilities (TOL) BB / TNW 1.05 0.86 0.94
Slide 24: AUM and Revenue
AUM Revenue ₹26,973 ₹3,922 ₹23,178 ₹3,177 ₹3,375 ₹21,119 ₹3,115 ₹19,253 FY 2019 FY 2020 FY 2021 FY2022 FY 2019 FY 2020 FY 2021 FY2022 ₹ in Millions ₹ in Millions 23
Slide 25: Net Worth and CAR
Net Worth CAR ₹10,241 43.06% 44.47% 42.92% ₹8,619 34.04% ₹7,603 ₹6,447 FY 2019 FY 2020 FY 2021 FY2022 FY 2019 FY 2020 FY 2021 FY 2022 ₹ in Millions 24
Slide 26: ROE and ROA
ROE ROA 8.81% 3.09% 7.78% 7.15% 7.07% 2.91% 2.61% 2.66% FY 2019 FY 2020 FY 2021 FY 2022 FY 2019 FY 2020 FY 2021 FY 2022 ₹ in Millions 25
Slide 27: Safe Harbor Statement
» This document contains certain forward – looking statements based on current expectations of Paisalo Digital Limited ’s management. Actual Results may vary significantly from the forward - looking statements in this document due to various risks and uncertainties. These risks and uncertainties inc
Slide 28: Thank You
THANK YOU Phone: Email: Website: +91 11 43-51-8888 ir@paisalo.in www.paisalo.in 27