Creditaccess Grameen Ltd. · NSE:CREDITACC
Creditaccess Grameen — Q3 FY2023 Earnings Presentation
53 slides from Creditaccess Grameen's earnings presentation, February 2023
Slide 1: CreditAccess Grameen Limited Q3 & 9M FY23 Investor Presentation
CreditAccess Grameen Limited Q3 & 9M FY23 Investor Presentation February 2023 www.creditaccessgrameen.in
Slide 2: Disclaimer
Disclaimer By accessing this presentation, you agree to be bound by the following terms and conditions. This presentation (which may reflect some price sensitive information in terms of SEBI regulations and Companies Act, 2013, as amended from time to time) has been prepared by CreditAccess Grameen
Slide 3: Discussion Summary
Discussion Summary Key Business Updates Consolidated Overview CA Grameen: Financial Metrics MMFL: Financial Metrics Investment Rationale Annexure www.creditaccessgrameen.in 3
Slide 4: Key Consolidated Business Highlights
Q3 FY23: Key Consolidated Business Highlights Focusing on Growth And Prioritizing Superior Asset Quality, Leading to Strong Operating Profitability YoY% QoQ% YoY% QoQ% Q3 FY23 Q3 FY23 Change Change Change Change GLP (INR Cr) 17,786 +21.9% +7.5% NII (INR Cr) 567 +37.7% +9.9% CA Grameen 14,822 +21.7%
Slide 5: Strong New Customer Addition Momentum
Q3 FY23: Strong New Customer Addition Momentum Robust New Borrower Addition over Past 12 Months, partially offset by Write-offs CA Grameen Pre-Write-off Borrower Growth of 17.2% Borrowers (‘000) New Borrower Addition Total % Share over past 12 Months 167 827 344 Karnataka 1,81,820 18.5% Maharashtra
Slide 6: Superior Vintage Profile with High Borrower Retention
Q3 FY23: Superior Vintage Profile with High Borrower Retention Supporting the Retained / Higher Vintage Borrowers, whilst consciously Adding New Borrowers with Deep Rural Focus 1 Borrower Vintage Analysis CA Grameen MMFL Focus on 3-Year Loans for 3 Q3 FY23 49% 31% 20% Q3 FY23 43% 44% 12% High Vintag
Slide 7: Continued Improvement in Asset Quality
Q3 FY23: Continued Improvement in Asset Quality CA Grameen MMFL Consolidated Collection Efficiency (excl. arrears) Collection Efficiency (excl. arrears) Collection Efficiency (excl. arrears) 98% 98% 98% 98% 98% 98% 98% 98% 94% 96% 95% 96% Q2 FY23 Q3 FY23 Q2 FY23 Q3 FY23 Q2 FY23 Q3 FY23 CE% (excl. ar
Slide 8: Comfortably Placed to Protect NIMs in a Rising Interest Rate Scenario
Q3 FY23: Comfortably Placed to Protect NIMs in a Rising Interest Rate Scenario Consolidated Metrics Q1 FY23 Q2 FY23 Q3 FY23 9M FY23 Remarks • Revised pricing continues to be very Avg. New Disbursement Interest Rate % 20.3% 20.8% 21.5% 21.0% competitive • Improvement in yields driven by revised Portf
Slide 9: Performance on Track to Achieve Annual Guidance
Q3 FY23: Performance on Track to Achieve Annual Guidance Key Indicators – FY23 Q3 FY23 9M FY23 Remarks Consolidated Guidance Performance Performance • Focus on new borrower additions • Focus on asset quality whilst targeting GLP – Growth % 24.0% - 25.0% 21.9% 21.9% portfolio growth • FY23 growth gui
Slide 10: Awards & Recognitions
Awards & Recognitions www.creditaccessgrameen.in 10
Slide 11: Great Place to Work Certified for 4th Consecutive year
“Great Place to Work” Certified for 4th Consecutive year www.creditaccessgrameen.in 11
Slide 12: Discussion Summary
Discussion Summary Key Business Updates Consolidated Results Overview CA Grameen: Financial Metrics MMFL: Financial Metrics Investment Rationale Annexure www.creditaccessgrameen.in 12
Slide 13: Consolidated Performance Highlights
Q3 FY23: Consolidated Performance Highlights NIM Cost/Income Ratio 11.9% / 12.1%2 36.3% PPOP GLP: INR 17,786 Cr INR 379 Cr (+21.9% YoY) Weighted Avg. COB Opex/GLP Ratio (+38.7% YoY) 9.6% 5.0% ROA Capital Adequacy Ratio Total Equity 4.6% 24.9% INR 4,707 Cr PAT: INR 217 Cr (+85.3% YoY) ROE Tier 1 Rati
Slide 14: Consolidated P&L Statement
Q3 & 9M FY23: Consolidated P&L Statement Profit & Loss Statement (INR Cr) Q3 FY23 Q3 FY22 YoY% Q2 FY23 QoQ% 9M FY23 9M FY22 YoY% FY22 Interest Income 854.8 654.1 30.7% 771.3 10.8% 2,362.3 1,838.9 28.5% 2,567.3 - Interest on Loans 1 837.6 647.6 29.3% 762.1 9.9% 2,327.3 1,811.3 28.5% 2,533.0 - Income
Slide 15: Consolidated Balance Sheet
Q3 & 9M FY23: Consolidated Balance Sheet Balance Sheet (INR Cr) Q3 FY23 Q3 FY22 YoY% Q2 FY23 QoQ% 9M FY23 9M FY22 FY22 Cash & Other Bank Balances 1,002.1 1,625.3 -38.3% 757.9 32.2% 1,002.1 1,625.3 1,761.4 Investments 437.8 - 389.2 12.5% 437.8 0.0 Loans - (Net of Impairment Loss Allowance) 16,402.3 1
Slide 16: Understanding the Credit Cost Impact
Q3 & 9M FY23: Understanding the Credit Cost Impact CA Grameen MMFL Consolidated Consolidated (INR Cr) Q3 FY23 9M FY23 Q3 FY23 9M FY23 Q3 FY23 9M FY23 Opening ECL - (A) 299.2 403.8 86.9 130.0 386.1 533.8 Additions (B) - Provisions as per ECL 36.7 119.6 7.9 17.2 44.6 136.8 Reversals (on account of wri
Slide 17: Continued Business Traction with Rural Focus
Q3 FY23: Continued Business Traction with Rural Focus Gross Loan Portfolio (GLP) (INR Cr) Borrowers (‘000) 21.9% 5.3% 17,786 16,599 16,539 3,939 * 15,615 2,964 3,739 * 3,824 * 3,798 * 3,689 * 14,587 2,868 2,767 2,624 835 930 830 2,406 963 873 14,822 13,732 12,991 13,772 12,180 2,922 2,997 3,129 2,81
Slide 18: Consistent Growth in Infrastructure
Q3 FY23: Consistent Growth in Infrastructure Branch Additions Branches States FY22 Q1 FY23 Q2 FY23 Q3 FY23 Bihar 35 10 - 19 1,681 1,684 1,727 1,593 1,635 Chhattisgarh 5 2 - - Gujarat 28 5 1 - 474 476 476 Jharkhand 10 5 - - 467 471 Madhya Pradesh 20 1 - 6 Karnataka 10 - - - Kerala 6 - - - 1,207 1,208
Slide 19: Sustainable Operational Efficiency
Q3 FY23: Sustainable Operational Efficiency GLP / Branch (INR Cr) GLP / Loan Officer (INR Cr) 6.1 5.8 6.2 1.1 5.2 5.5 1.1 1.1 1.2 1.0 10.8 11.8 10.8 11.4 11.8 1.7 1.6 1.6 1.6 1.5 Q3 FY22 Q4 FY22 Q1 FY23 Q2 FY23 Q3 FY23 Q3 FY22 Q4 FY22 Q1 FY23 Q2 FY23 Q3 FY23 CA Grameen MMFL CA Grameen MMFL Borrowers
Slide 20: Product Range To Meet Diverse Customer Needs
Q3 FY23: Product Range To Meet Diverse Customer Needs GLP - Q3 FY22 Q4 FY22 Q1 FY23 Q2 FY23 Q3 FY23 Product Mix (INR Cr) % of Total (INR Cr) % of Total (INR Cr) % of Total (INR Cr) % of Total (INR Cr) % of Total IGL (Incl. MMFL) 13,894 95% 15,949 96% 14,937 96% 15,801 96% 17,054 96% Family Welfare 5
Slide 21: Well-Diversified Presence Across India
Q3 FY23: Well-Diversified Presence Across India Our Presence as on Dec-22 14 States & 1 UT 344 Districts Consolidated Q3 FY23 1,727 Branches Exposure of Districts No. of % of Total Uttar Pradesh 67 (% of GLP) Districts Districts Rajasthan < 0.5% 279 81% Bihar 76 89 + 36 (MMFL) 0.5% - 1% 40 12% 1% -
Slide 22: Discussion Summary
Discussion Summary Key Business Updates Consolidated Results Overview CA Grameen: Financial Metrics MMFL: Financial Metrics Investment Rationale Annexure www.creditaccessgrameen.in 22
Slide 23: CA Grameen Standalone Performance Highlights
Q3 FY23: CA Grameen Standalone Performance Highlights NIM Cost/Income Ratio 12.0% / 12.3%2 35.3% PPOP GLP: INR 14,822 Cr INR 324 Cr (+21.7% YoY) Weighted Avg. COB Opex/GLP Ratio (+31.8% YoY) 9.5% 5.0% ROA Capital Adequacy Ratio Total Equity 4.9% 28.4% INR 4,526 Cr PAT: INR 197 Cr (+52.8% YoY) ROE Ti
Slide 24: CA Grameen Standalone P&L Statement
Q3 & 9M FY23: CA Grameen Standalone P&L Statement Profit & Loss Statement (INR Cr) Q3 FY23 Q3 FY22 YoY% Q2 FY23 QoQ% 9M FY23 9M FY22 YoY% FY22 Interest Income 719.8 544.9 32.1% 644.7 11.6% 1,971.8 1,520.5 29.7% 2,124.8 1 - Interest on Loans 704.5 539.6 30.6% 637.1 10.6% 1,941.4 1,500.1 29.4% 2,099.3
Slide 25: CA Grameen Standalone Balance Sheet
Q3 & 9M FY23: CA Grameen Standalone Balance Sheet Balance Sheet (INR Cr) Q3 FY23 Q3 FY22 YoY% Q2 FY23 QoQ% 9M FY23 9M FY22 FY22 Cash & Other Bank Balances 765.5 1,367.8 -44.0% 482.7 58.6% 765.5 1,367.8 1,534.3 Investments 437.8 0.0 - 389.2 12.5% 437.8 0.0 0.0 Loans - (Net of Impairment Loss Allowanc
Slide 26: Well-Diversified Liability Mix
Q3 FY23: Well-Diversified Liability Mix Liability Mix - Institution / Instrument Wise (%) Focus on dynamic liability management • Focus on long-term funding with strong diversification between domestic Banks - NCD NBFCs - TL & foreign sources 2.0% FIs - TL 2.6% • Target to meet funding requirements
Slide 27: Stable Liquidity/ ALM Position/ Credit Ratings
Q3 FY23: Stable Liquidity/ ALM Position/ Credit Ratings Static Liquidity / ALM Position For the Month For the Financial Year Debt Diversification Q3 FY23 FY23 Particulars (INR Cr) Jan-23 Feb-23 Mar-23 FY24 Total Drawdowns 3,300 (Jan-23 to Mar-23) Opening Cash & Equivalents (A) 1,201.4 1,248.5 1,481.
Slide 28: Robust Quarterly Performance Trend (1/2)
Q3 FY23: Robust Quarterly Performance Trend (1/2) Gross Loan Portfolio (GLP) (INR Cr) Disbursements (INR Cr) 21.7% 4,648 3,866 4,044 14,822 3,646 13,732 12,991 13,772 12,180 1,861 Q3 FY22 Q4 FY22 Q1 FY23 Q2 FY23 Q3 FY23 Q3 FY22 Q4 FY22 Q1 FY23 Q2 FY23 Q3 FY23 Margin Analysis (%) Operating Efficiency
Slide 29: Robust Quarterly Performance Trend (2/2)
Q3 FY23: Robust Quarterly Performance Trend (2/2) Asset Quality (%) Total Income, NII, PPOP (INR Cr) 5.50% 759 694 672 4.40% 621 577 3.19% 481 4.23% 2.73% 446 434 3.12% 2.29% 349 380 2.54% 1.94% 2.26% 1.73% 1.48% 1.83% 331 324 1.39% 246 246 285 1.20% Q3 FY22 Q4 FY22 Q1 FY23 Q2 FY23 Q3 FY23 Q3 FY22 Q
Slide 30: Discussion Summary
Discussion Summary Key Business Updates Consolidated Results Overview CA Grameen: Financial Metrics MMFL: Financial Metrics Investment Rationale Annexure www.creditaccessgrameen.in 30
Slide 31: MMFL Performance Highlights
Q3 FY23: MMFL Performance Highlights NIM Cost/Income Ratio GLP 10.4% / 11.7%2 37.0% PPOP INR 2,964 Cr INR 60 Cr (+23.2% YoY) Weighted Avg. COB Opex/GLP Ratio (+85.7%) 10.2% 4.9% ROA Capital Adequacy Ratio Total Equity PAT 2.9% 22.2% INR 441 Cr INR 23 Cr (+349.7% YoY) ROE Tier 1 Ratio D/E Ratio 20.9%
Slide 32: MMFL P&L Statement
Q3 & 9M FY23: MMFL P&L Statement Profit & Loss Statement (INR Cr) Q3 FY23 Q3 FY22 YoY% Q2 FY23 QoQ% 9M FY23 9M FY22 YoY% FY22 Interest Income 140.2 109.2 28.4% 131.7 6.4% 405.8 318.3 27.5% 446.1 1 - Interest on Loans 138.3 107.9 28.2% 130.2 6.2% 401.2 311.8 28.7% 437.9 - Interest on Deposits with Ba
Slide 33: MMFL Balance Sheet
Q3 & 9M FY23: MMFL Balance Sheet Balance Sheet (INR Cr) Q3 FY23 Q3 FY22 YoY% Q2 FY23 QoQ% 9M FY23 9M FY22 FY22 Cash & Other Bank Balances 235.7 253.9 -7.2% 274.4 -14.1% 235.7 253.9 227.0 Investments 0.0 0.0 - 0.0 - 0.0 0.0 0.0 Loans - (Net of Impairment Loss Allowance) 2,672.0 2,212.3 20.8% 2,511.3
Slide 34: MMFL Quarterly Performance Trend (1/2)
Q3 FY23: MMFL Quarterly Performance Trend (1/2) Gross Loan Portfolio (GLP) (INR Cr) Disbursements (INR Cr) 23.2% 1,144 2,868 2,767 2,964 2,624 854 2,406 803 729 285 Q3 FY22 Q4 FY22 Q1 FY23 Q2 FY23 Q3 FY23 Q3 FY22 Q4 FY22 Q1 FY23 Q2 FY23 Q3 FY23 Total Income, NII, PPOP (INR Cr) Total Equity (INR Cr)
Slide 35: MMFL Quarterly Performance Trend (2/2)
Q3 FY23: MMFL Quarterly Performance Trend (2/2) Margin Analysis (%) Operating Efficiency (%) 19.5% 6.0% 18.7% 18.4% 18.8% 19.3% 5.3% 5.4% 5.4% 4.9% 10.2% 10.4% 10.4% 51.6% 10.0% 9.9% 43.6% 43.4% 40.2% 37.0% 10.1% 9.6% 9.7% 9.9% 10.2% Q3 FY22 Q4 FY22 Q1 FY23 Q2 FY23 Q3 FY23 Q3 FY22 Q4 FY22 Q1 FY23 Q2
Slide 36: MMFL Diversified Liability, Stable Liquidity, Positive ALM
Q3 FY23: MMFL Diversified Liability, Stable Liquidity, Positive ALM Static Liquidity / ALM Position For the month Liability Mix – Q3 FY23 Particulars (INR Cr) Jan-23 Feb-23 Mar-23 Institution / Instrument Wise Opening Cash & Equivalents (A) 219.5 272.0 346.1 Banks – Term Loan 72.9% Loan recovery [Pr
Slide 37: Discussion Summary
Discussion Summary Key Business Updates Consolidated Results Overview CA Grameen: Financial Metrics MMFL: Financial Metrics Investment Rationale Annexure www.creditaccessgrameen.in 37
Slide 38: Business Model with Inherent ESG Adherence (1/2)
Business Model with Inherent ESG Adherence (1/2) Note: All performance metrics are as on FY22 www.creditaccessgrameen.in 38
Slide 39: Business Model with Inherent ESG Adherence (2/2)
Business Model with Inherent ESG Adherence (2/2) Note: All performance metrics are as on FY22 Environmental Social Governance • Positive E & S impact: 99.9% loans • Customer Protection / Fair Practices: • Board structure: • Emissions Measurement: (Standalone) • 50% independent, 25% women (as on Dec-
Slide 40: Committed to Basics Through Classical JLG Lending Model
Committed to Basics Through Classical JLG Lending Model Microfinance loans are unsecured. JLG mechanism acts as security/ loan collateral Fully aligned with new harmonized guidelines in terms JLG Benefits: of - ✓ Strong group bonding ✓ Formulation of Board approved policies ✓ Mutual support – both f
Slide 41: Focus on Customer Centricity, Loyalty & Retention
Focus on Customer Centricity, Loyalty & Retention “One of the Lowest Cost Organised Financer” - One Stop Shop providing Support to Various Lifecycle Needs of the Customer One of the lowest lending rates in MFI industry Loan Customer Centric Ticket Size Tenure Purpose Type Products (INR) (months) Div
Slide 42: Calibrated Expansion Through Contiguous District-Based Approach
Calibrated Expansion Through Contiguous District-Based Approach Systematic geography selection based on availability of infrastructure, competition, historical performance trend, social/ CA Grameen’s contiguous economic/ political/ climate risk, growth potential district-based expansion Ensures cons
Slide 43: Unique Human Capital, Internal Audit & Risk Controls
Unique Human Capital, Internal Audit & Risk Controls Well-Established Operational Structure Multi-Pronged Approach For Risk Management Business Heads Sound Understanding of Rural Market Internal Audit (IA): • ~90% of employees are hired fresh from rural • IA frequency – 6 times in a year at branches
Slide 44: Continuous Technology Enhancement to Drive Operational Efficiency
Continuous Technology Enhancement to Drive Operational Efficiency Ensures Quick And Seamless Delivery of Need Based Financial Products and Services backed by Robust Technology Infrastructure High touch-high tech delivery model: Future Upgrades & Investments • Digitized all customer touchpoints • Upg
Slide 45: Integrating Risk Management in Every Operating Process
Integrating Risk Management in Every Operating Process Microfinance is a Collection Business, hence Risk Management is Integral to Core Strategy and Operating Processes Contiguous Customer Employee Target Customer Customer Employee District-based Lending Model Engagement Incentive Segment Due-Dilige
Slide 46: Strong Parentage of CreditAccess India B.V.
Strong Parentage of CreditAccess India B.V. Committed to Micro Finance Business Strong Financial Support • Invested through multiple rounds of capital funding along with • CreditAccess India B.V. (CAI) specialises in Micro and Small Enterprises secondary purchases during 2009 to 2017 financing • Dis
Slide 47: Past Five Years Performance Track Record (1/3)
Past Five Years Performance Track Record (1/3) Gross Loan Portfolio (GLP) (INR Cr) Active Borrowers (‘000) CAGR 35.2% CAGR 19.9% 16,599 4,055 * 3,912 * 2,868 3,824 * 13,587 1,215 11,996 1,098 930 2,246 2,100 2,470 7,159 1,851 13,732 4,975 11,341 2,905 2,871 2,922 9,896 2,470 7,159 1,851 4,975 FY18 F
Slide 48: Past Five Years Performance Track Record (2/3)
Past Five Years Performance Track Record (2/3) Branch Network Loan Officers Employees CAGR 33.4% CAGR 24.1% CAGR 25.5% 1,635 10,770 9,688 15,667 1,424 9,559 1,393 14,496 2,513 14,399 471 1,972 2,108 3,716 460 3,672 3,774 464 5,768 8,064 670 4,544 6,306 516 8,257 1,164 7,716 7,451 11,951 964 10,824 1
Slide 49: Past Five Years Performance Track Record (3/3)
Past Five Years Performance Track Record (3/3) Note: Refer Annexure for definition of key ratios Margin Analysis (%) Operating Efficiency (%) Asset Quality (%) 20.4% 20.0% 5.01% 19.4% 18.8% 18.3% 5.1% 5.0% 4.9% 4.8% 4.9% 3.61% 2.78% 11.5% 12.7% 12.2% 1.26% 1.14% 4.43% 10.7% 10.9% 39.2% 36.7% 38.1% 3
Slide 50: Discussion Summary
Discussion Summary Key Business Updates Consolidated Results Overview CA Grameen: Financial & Operational Metrics MMFL: Financial & Operational Metrics Investment Rationale Annexure www.creditaccessgrameen.in 50
Slide 51: Shareholding Structure
Shareholding Structure Shareholding Pattern – December 2022 Top 10 Institutional Investors – December 2022 Eastspring Investments Edelweiss Mutual Fund Others, 4.16 MF, AIF, Government Pension Fund Global Insurance, 12.53 ICICI Prudential Life Insurance Nippon Mutual Fund FPI, 9.60 Promoter SBI Mutu
Slide 52: Key Ratios: Definitions
Key Ratios: Definitions 1. Portfolio Yield = (Interest on loans – processing fees + Income from securitisation)/ Avg. quarterly on-book loans 2. Cost of Borrowings / Weighted Avg. COB = (Borrowing cost – finance lease charges) / Daily average borrowings 3. Marginal COB = (Borrowings availed during t
Slide 53: For Further Queries
For Further Queries: Nilesh Dalvi SVP & Head Investor Relations Contact No – 9819289131 Email Id – nilesh.dalvi@cagrameen.in Sahib Sharma AGM – Investor Relations Contact No – 7066559383 Email Id – sahib.sharma@cagrameen.in www.creditaccessgrameen.in 53
CreditAccess Grameen — Q3 FY2023 Earnings Presentation on 6ix