Csl Finance Limited · NSE:CSLFINANCE
Csl Finance — Q3 FY2024 Earnings Presentation
40 slides from Csl Finance's earnings presentation, Jan 29, 2024
Slide 1: Covering letter to stock exchanges
CIN: L74899DL1992PLC051462 January 29, 2024 National Stock Exchange of India Limited BSE Limited Exchange Plaza, C-1, Block-G, Bandra Corporate Relationship Department Kurla Complex, Bandra (E), Mumbai - Phiroze, Jeejeebhoy Towers, Dalal Street, 400051 Mumbai-400001 NSE Symbol: CSLFINANCE BSE Scrip
Slide 2: Q3FY24 Investor Presentation
January 2024 Q3FY24 Investor Presentation
Slide 3: Quarterly Business Update
CSL FINANCE LIMITED 2 Quarterly Business Update Loan Book Size Asset Quality Asset Quality: Stage Analysis P&L Highlights Treasury Update Quarterly Financial Snapshot Operational Updates Lending Partners
Slide 4: Business Growth YoY
CSL FINANCE LIMITED 3 Business Growth YoY Q3’24 Q3’24 Q3’24 ₹944 Cr ₹246 Cr Consistent Performance 39% Assets Under 32% Disbursement 99% 99% Management Collection Efficiency ₹681 Cr ₹187 Cr Q3’23 Q3’23 Q3’23 Q3’24 Q3’24 Q3’24 ₹34.0 Cr ₹16.8 Cr 47:53 9% Shift in Favour 44% NII 42% PAT of SME Retail L
Slide 5: Loan Book Size
CSL FINANCE LIMITED 4 Loan Book Size DISBURSEMENTS COLLECTIONS LOAN BOOK COLLECTION EFFICIENCY (₹ crore) 32% -17% (₹ crore) 12% 59% (₹ crore) 34% 7% (%) YOY Change QOQ Change YOY Change QOQ Change YOY Change QOQ Change 163 167 29 296 149 32 99 99 99 99 99 246 29 105 187 187 82 147 915 858 681 736 71
Slide 6: Asset Quality
CSL FINANCE LIMITED 5 Asset Quality GROSS NPA NET NPA PROVISION COVERAGE RATIO WRITE-OFFS & RECOVERIES -32 BPS -15 BPS -19 BPS -9 BPS (%) (%) (%) (₹ crore) YOY Change QOQ Change YOY Change QOQ Change 0.72 0.75 0.9 0.42 0.43 292 0.9 0.61 0.8 0.8 0.55 0.7 0.35 0.32 224 206 0.6 0.40 173 175 0.23 0.4 0.
Slide 7: Asset Quality: Stage Analysis
CSL FINANCE LIMITED 6 Asset Quality: Stage Analysis CLASSIFICATION OF ASSETS BASIS THE ECL COMPUTATION AS PER IND-AS: PARTICULARS Q3FY23 Q2FY24 Q3FY24 Gross Stage 3 (GNPA) 4.89 4.55 3.67 % portfolio in Stage 3 0.72% 0.55% 0.40% ECL provision Stage 3 2.08 1.92 1.60 Net Stage 3 2.81 2.63 2.07 ECL Prov
Slide 8: P&L Highlights
CSL FINANCE LIMITED 7 P&L Highlights NET INTEREST INCOME TOTAL INCOME PROFIT AFTER TAX YIELDS (₹ crore) 44% 18% (₹ crore) 46% 19% (₹ crore) 42% 13% (%) YOY Change QOQ Change YOY Change QOQ Change YOY Change QOQ Change 45.7 18.3 18.1 18.1 34.0 16.8 17.8 18.1 17.1 38.5 16.7 16.6 16.6 16.9 28.8 35.5 33
Slide 9: Treasury Update
CSL FINANCE LIMITED 8 Treasury Update LEVERAGE LIQUIDITY (Time) (₹ crore) 1 The Company has adequate liquidity of ₹ 45.11 crore & ₹ 20 crore as undrawn Credit facilities as on 31st December 2023 1.13 2 The Company has 1.09 53.0 positive ALM across the buckets 3 Credit Rating for the 20.0 Company sta
Slide 10: Quarterly Financial Snapshot
CSL FINANCE LIMITED 9 Quarterly Financial Snapshot (₹ crore) PARTICULARS Q3FY23 Q2FY24 Q3FY24 Disbursements 186.57 297.37 245.89 Revenue 31.29 38.53 45.65 Interest Income 28.64 33.94 39.46 PBT 15.86 20.25 23.76 PAT 11.85 14.82 16.77 Bad debts written off 0.04 0.74 0.79 Bad debts recovered 0.25 0.57
Slide 11: Operational Updates
CSL FINANCE LIMITED 10 Operational Updates NET INTEREST INCOME & PROFITABILITY LOAN BOOK • Improving employee and branch level efficiency • Both NII and PAT have registered a good growth of • The Loan Book has shown robust growth of 7% QoQ remains an ongoing activity and a key area of focus, 18% and
Slide 12: New Product Updates: Suvidha Loans (1/2)
CSL FINANCE LIMITED 11 New Product Updates: Suvidha Loans (1/2) LOAN BOOK Overview (₹ Crore) Company has undertaken Challenges Encountered So Far 5.4 the pilot launch of a new • Given the unique nature of this product, being a product i.e. Suvidha 2.1 combination of personal & supply-chain loan prod
Slide 13: New Product Updates: Suvidha Loans (2/2)
CSL FINANCE LIMITED 12 New Product Updates: Suvidha Loans (2/2) AVERAGE TENURE (Month) Outlook 3 3 3 • Given the short tenure & quick feedback loop of this product, the Company is making necessary improvisations to the product and the platform. With the launch of a new platform scale-up Q1FY24 Q2FY2
Slide 14: Lending Partners
CSL FINANCE LIMITED 13 Lending Partners Banks & SFBs NBFC Kotak Mahindra Investments Limited
Slide 15: 5Y Financial Snapshot
CSL FINANCE LIMITED 14 5Y Financial Snapshot (₹ crore) PARTICULARS FY20 FY21 FY22 FY23 9MFY24 Disbursements 270.10 433.32 491.10 758.72 730.33 Revenue 60.85 61.67 74.62 117.54 119.65 Interest Income 58.42 59.18 67.66 108.54 104.66 PBT 31.74 39.36 44.98 61.47 62.27 PAT 22.47 27.53 33.68 45.52 44.78 B
Slide 16: About CSL Finance
CSL FINANCE LIMITED 15 About CSL Finance Introduction & Snapshot Wholesale Business Verticals & Products SME Retail
Slide 17: Introduction
CSL FINANCE LIMITED 16 Introduction CSL Finance Limited is a Non-Banking Finance ₹944 Crore BBB+ Company registered with the Reserve Bank of AUM Rated India and listed on the NSE and BSE. The Company is a one-stop destination for Small and Medium-Sized Enterprises (SMEs) and real estate and non-real
Slide 18: Business Verticals & Products
CSL FINANCE LIMITED 17 Business Verticals & Products SME SME Fabricator Wholesale Retail Loan WS SME SME WS WS OTHER SME MID- FABRICATOR LARGE SMALL TERM RETAIL SIZED LOAN LOAN LAP Structured loans for Construction loan Loan against SORP/SOCP Micro/Small Loans to Kirana Loan against properties Purch
Slide 19: Wholesale Business Vertical
CSL FINANCE LIMITED 18 WHOLE- SALE BUSINESS VERTICAL Niche, focused, real estate wholesale book Focused on secured lending book (100% of the book) Built on in-depth expertise of NCR and all its micro-markets Strength in affordable housing segment Robust collection framework via escrow accounts
Slide 20: Wholesale (1/2)
CSL FINANCE LIMITED 19 BETTER CUSTOMER SELECTION: STRONG SOURCING • Presence in strategically selected micro-markets of NCR • Excellent understanding of dynamics of each micro-market • Customer selection based on end-use demand • Primarily involved in last-mile funding, thus reducing project executi
Slide 21: Wholesale (2/2)
CSL FINANCE LIMITED 20 Wholesale (2/2) ACTIVE ACCOUNTS AVERAGE LOAN-TO-VALUE AVERAGE TICKET SIZE AVERAGE TENURE (#) (%) (₹ crore) (Year) 38 71 72 12 3 3 3 3 3 64 63 36 52 11 11 11 34 34 33 10 Q3FY23 Q4FY23 Q1FY24 Q2FY24 Q3FY24 Q3FY23 Q4FY23 Q1FY24 Q2FY24 Q3FY24 Q3FY23 Q4FY23 Q1FY24 Q2FY24 Q3FY24 Q3F
Slide 22: Wholesale Large: Affordable Group Housing
CSL FINANCE LIMITED 21 Wholesale Large: Affordable Group Housing 44% Contribution to Salient Salient Features Features Wholesale loan book 1 Approved projects under the 3 Committed Affordable Housing Policy of Haryana Receivables are 3x of Government existing POS 2 Time-linked payment 4 Average tick
Slide 23: Wholesale Large: Mid-Income Group Housing
CSL FINANCE LIMITED 22 Wholesale Large: Mid-Income Group Housing 21% Contribution to Wholesale Salient Features loan book 1 Last-mile funded Mid-Income 3 Committed Receivables are Group Housing projects 3x of existing POS 2 Located in NCR region 4 Average ticket size of units is under ₹60 Lakhs COMP
Slide 24: Wholesale Small: Small Builders
CSL FINANCE LIMITED 23 Wholesale Small: Small Builders 28% Contribution to Wholesale Salient Features loan book 1 Tenure of these loans is 5 Construction cost is a small under 36 months part of these projects 2 Small Builder Floors are G+4 floor 6 Feedback loop is fast and structure buildings demand
Slide 25: SME Retail Business Vertical
CSL FINANCE LIMITED 24 SME RETAIL BUSINESS VERTICAL Target market: Unbanked & underserved Using alternative data instead of conventional scorecards Swift loans and ease of application Small & flexible ticket sizes Achieving efficiency through digital transformation Focused on secured lending book (9
Slide 26: SME Retail (1/5)
CSL FINANCE LIMITED 25 SME Retail (1/5) PRODUCTS MID FABRICAT0R JYOTI SAARTHAK SHAKTI SAMADHAN NIRMAN SIZE LAP LOAN Loan Amount ₹2-7.5 ₹5-10 ₹7.5- 25 ₹25-50 ₹35-50 ₹1-5 ₹0.5-5 Lakhs Lakhs Lakhs Lakhs Lakhs Crores Lakhs TENOR (In Years) 3-4 5-6 7 7-8 7 2-3 45-90 Days Target Customer Small farmers, Sa
Slide 27: SME Retail (2/5)
CSL FINANCE LIMITED 26 SME Retail (2/5) PRESENCE 31% 20% BRANCH AGEING 8 Branches 7 Branches Rajasthan Gujarat <1 year 14% 16% 24% 3 Branches 5 Branches Punjab Haryana 1- 3 years 48% 2% 6% Clustered 1 Branch 2 Branches Approach to expanding branch network, based on New Delhi Uttarakhand understandin
Slide 28: SME Retail (3/5)
CSL FINANCE LIMITED 27 SME Retail (3/5) AUTOMATING WORKFLOW TO IMPROVE EFFICIENCY LOAN LOAN LOAN LOAN ORIGINATION EVALUATION DISBURSEMENT COLLECTION • Customer on-boarding & authentication • Multi Bureau checks + CIBIL Auto analysis • 100% cashless, E-disbursement of loan • Digital mobile App for fi
Slide 29: SME Retail (4/5)
CSL FINANCE LIMITED 28 SME Retail (4/5) Relying on a banking Migrated to a bespoke customer onboarding & loan Roadmap: customer onboarding & underwriting platform with multiple API integrations. Airtel Payments Bank loan underwriting platform Integration Data Analytics Recent achievements: • Lead Ma
Slide 30: SME Retail (5/5)
CSL FINANCE LIMITED 29 SME Retail (5/5) ACTIVE ACCOUNTS AVERAGE LOAN-TO-VALUE AVERAGE TICKET SIZE AVERAGE TENURE (#) (%) (₹ Lakh) (Year) 2,396 2,587 34 34 34 34 13 13 2,076 2,171 26 10 10 11 1,876 6 6 6 6 6 SME Q3FY23 Q4FY23 Q1FY24 Q2FY24 Q3FY24 Q3FY23 Q4FY23 Q1FY24 Q2FY24 Q3FY24 Q3FY23 Q4FY23 Q1FY2
Slide 31: Prudent Risk Management
CSL FINANCE LIMITED 30 Prudent Risk Management Well Managed ALM Conservative Leverage Standards
Slide 32: Well Managed ALM
CSL FINANCE LIMITED 31 Well Managed ALM Cumulative Inflow - 24 47 53 64 270 355 0 Outflow 456 442 236 164 154 96 101 59 60 54 43 36 19 11 >1 month >2-3 month >3-6 month >6-12 months 1-3 Years 3-5 Years Over 5 Years Inflow Outflow
Slide 33: Conservative Leverage Standards
CSL FINANCE LIMITED 32 Conservative Leverage Standards CONSERVATIVE LEVERAGE THRESHOLD 1.5-2X in Wholesale & <4X in SME 500 90% 450 Total Equity Leverage Ratio Capital Adequacy Ratio 80% 73% 456 79% 66% 400 65% 64% 70% 362 35 0 60% ₹54 50% 320 48% 300 Crore 50% Equity Fund raise ₹48 25 0 in FY18 259
Slide 34: Leadership
CSL FINANCE LIMITED 33 Leadership Board of Directors Leadership Team
Slide 35: Board of Directors
CSL FINANCE LIMITED 34 Board of Directors Rohit Gupta Rachita Gupta Ashok Parmod Bindal Subhash Chand Ayussh Mittal Managing Whole-time Kathuria Independent Kwatra Independent Director Director Director Director Independent Director Director Mr Rohit Gupta has over two decades of Ms Rachita is a com
Slide 36: Management Team
CSL FINANCE LIMITED 35 Management Team Work Experience Years at CSL Rohit Gupta Rachita Gupta Amit Ranjan Naresh Varshney Atul Agrawal Chandan Kumar Ranjan Banerjee Managing Director Whole-time Director Chief Operating Officer Chief Financial Officer President – Wholesale Credit Head Zonal Credit He
Slide 37: Strategy
CSL FINANCE LIMITED 36 Strategy Strategic Priorities Key Takeaways
Slide 38: Strategic Priorities
CSL FINANCE LIMITED 37 Strategic Priorities Leveraging Optimising Focusing Credit rating Rationalisation technology to branch on adding upgrade of portfolio strengthen performance competencies operations • In the last credit rating review in • The Company aims to rationalise its • The Company is wor
Slide 39: Key Takeaways
CSL FINANCE LIMITED 38 Well Capitalised 01 CSL is a well-capitalised lender with a superior Capital Adequacy Ratio. BBB+ Rated 02 CSL has recently upgraded to BBB+, achieving the crucial A credit rating will help in raising debt at competitive terms, and open doors to a new set of lenders. Key Deliv
Slide 40: Safe Harbour
CSL FINANCE LIMITED 39 Safe Harbour This presentation may contain certain words or phrases that are forward - looking statements, which are tentative, based GET IN TOUCH on current expectations and on certain assumptions of the management of CSL Finance Limited (“CSL”). Actual results may vary from