Muthoot Capital Services Ltd. · NSE:MUTHOOTCAP

Muthoot Capital Services — Q2 FY2019 Earnings Presentation

33 slides from Muthoot Capital Services's earnings presentation, Oct 18, 2018

  1. Slide 1: Board Presentation dated 18th October 2018

    Board Presentation dated 18th October 2018 Quarter ended 30th September 2018 1

  2. Slide 2: Agenda

    1 2 3 Sales and Performance Collection Asset Analysis Analysis Analysis 4 5 6 Management Liability Analysis – 5 Discussion & Analysis Quarters Analysis BLUE SOCH. Helping millions shape their tomorrow 2

  3. Slide 3: Snapshot

    Performance Sales & Collection Asset Liability Analysis Management Analysis Analysis Analysis 5 Quarters Discussion & Analysis Analysis No of States / UT Additional borrowings New Customers – AUM – ₹ 2515 Cr; currently operating in ₹90 Cr. 84,293 Disb – ₹ 541.8 Cr – 18 SNAPSHOT Quarter ended 30 Sept

  4. Slide 4: Financial Statement Metrics Quarterly and Half Yearly Trend

    Performance Sales & Collection Asset Liability Analysis Management Analysis Analysis Analysis 5 Quarters Discussion & Analysis Analysis Quarterly Trend Half Yearly Trend ₹. In Crores Financial Statement Metrics Q2 FY 19 Q1 FY 19 Q-o-Q Q2 FY 18 Y-o-Y H1 FY 19 H1 FY 18 Y-o-Y Disbursement : Hyp Loans 4

  5. Slide 5: Statement of Sources and Application of Funds

    Performance Sales & Collection Asset Liability Analysis Management Analysis Analysis Analysis 5 Quarters Discussion & Analysis Analysis STATEMENT OF SOURCES AND APPLICATION OF FUNDS ₹. In Crores As At As At Sources Applications 30-Sep-17 30-Jun-18 30-Sep-18 30-Sep-17 30-Jun-18 30-Sep-18 Share Capita

  6. Slide 6: Revenue, Gross AUM, Disbursement and Key Ratios

    Performance Sales & Collection Asset Liability Analysis Management Analysis Analysis Analysis 5 Quarters Discussion & Analysis Analysis Disbursement Gross AUM Revenue Q1 FY 19 : ₹ 485.5 Cr 12% Q1 FY 19 : ₹ 2367 Cr 6% Q1 FY 19 : ₹ 124.2 Cr 6% Q2 FY 19 : ₹ 541.8 Cr Q2 FY 19 : ₹ 2515 Cr Q2 FY 19 : ₹ 13

  7. Slide 7: Asset Quality and Provision Coverage

    Performance Sales & Collection Asset Liability Analysis Management Analysis Analysis Analysis 5 Quarters Discussion & Analysis Analysis ASSET QUALITY AND PROVISION COVERAGE ₹. In Crores 6.0% 45.0% As on As on As on 5.6% 5.2% 5.2% 5.3% 40.0% 30.09.2017 30.06.2018 30.09.2018 5.0% 4.6% 35.0% 4.3% Own B

  8. Slide 8: Other Expenses - Split

    Performance Sales & Collection Asset Liability Analysis Management Analysis Analysis Analysis 5 Quarters Discussion & Analysis Analysis OTHER EXPENSES - SPLIT ₹. In Crores Q2 FY 19 Q1 FY 19 Q-o-Q Q2 FY 18 Y-o-Y Collection Charges: 13.8 11.8 17% 12.4 11% Collection Cost as % of Collection Collection

  9. Slide 9: Main Factors Impacting Profitability - Delinquencies

    Performance Sales & Collection Asset Liability Analysis Management Analysis Analysis Analysis 5 Quarters Discussion & Analysis Analysis MAIN FACTORS IMPACTING PROFITABILITY - DELINQUENCIES ₹. In Crores Particulars For FY 17 For FY 18 Q2 FY 18 Q3 FY 18 Q4 FY 18 Q1 FY 19 Q2 FY 19 Unrealized 2.3 1.7 0.

  10. Slide 10: Zonewise Disbursement (Hyp Loans) - Q-o-Q

    Performance Sales & Collection Asset Liability Analysis Management Analysis Analysis Analysis Analysis 5 Quarters Discussion & Analysis ZONEWISE DISBURSEMENT (HYP LOANS) – Q- o -Q BRANCH 8% DEALER 7% TOTAL 4% Overall Share Growth Zone Q2 FY ' 19 Q2 FY '18 Q2 FY ' 19 Q2 FY '18 Q2 FY ' 19 Q2 FY '18 %

  11. Slide 11: Zonewise Disbursement (Hyp Loans) - Y-o-Y

    Performance Sales & Collection Asset Liability Analysis Management Analysis Analysis Analysis Analysis 5 Quarters Discussion & Analysis ZONEWISE DISBURSEMENT (HYP LOANS) – Y- o -Y ₹. In Crores BRANCH 9% DEALER 18% TOTAL 16% Overall Share Growth Zone H1 FY ' 19 H1 FY '18 H1 FY ' 19 H1 FY '18 H1 FY '

  12. Slide 12: Collection Performance Monitoring (Hyp)

    Performance Sales & Collection Asset Liability Analysis Management Analysis Analysis Analysis Analysis 5 Quarters Discussion & Analysis COLLECTION PERFORMANCE MONITORING (HYP) ₹. In Crores Bucket-wise Flow Collection Performance 50% 386 416 45% 364 2.0% 322 3.1% 2.0% 296 3.6% 40% 5.9% 35% 98.0% 30%

  13. Slide 13: Portfolio Trend - Hypothecation Loans

    Performance Sales & Collection Asset Liability Analysis Management Analysis Analysis Analysis Analysis 5 Quarters Discussion & Analysis PORTFOLIO TREND – HYPOTHECATION LOANS ₹. In Crores Own Month book 30+ 90+ 30+% 90+% 30.0% AUM 25.0% 01-Oct-17 1 227.9 206.4 94.3 16.8% 7.7% 01-Nov-17 1 377.3 204.6

  14. Slide 14: NPA Movement - Hyp Loan - Q2 FY 2019

    Performance Sales & Collection Asset Liability Analysis Management Analysis Analysis Analysis Analysis 5 Quarters Discussion & Analysis NPA MOVEMENT – HYP LOAN – Q2 FY 2019 ₹. In Crores Particulars HP Nos Principal Provision Unrealized Balance as on 30.06.2018 57 438 101.9 38.8 12.8 Add: Slipped to

  15. Slide 15: NPA Movement - Hyp Loan - Across 9 Quarters

    Performance Sales & Collection Asset Liability Analysis Management Analysis Analysis Analysis Analysis 5 Quarters Discussion & Analysis NPA MOVEMENT – HYP LOAN – ACROSS 9 QUARTERS ₹. In Crores Particulars Q2 ‘17 Q3 ‘17 Q4’ 17 Q1 ‘18 Q2 ‘18 Q3 ‘18 Q4 ‘18 Q1 ‘19 Q2 ’19 Opening Balance 69.2 66.5 78.1 7

  16. Slide 16: MCSL Geographic Overview - Hyp

    Performance Sales & Collection Asset Liability Analysis Management Analysis Analysis Analysis Analysis 5 Quarters Discussion & Analysis MCSL GEOGRAPHIC OVERVIEW - HYP ₹. In Crores SEP 30 2018 Zone Active % of Zone Regular NPA Total wise Clients NPA AUM % UttaraKhand South India 5 15 095 1 660.2 99.1

  17. Slide 17: Portfolio Analysis - Hyp

    Performance Sales & Collection Asset Liability Analysis Management Analysis Analysis Analysis Analysis 5 Quarters Discussion & Analysis PORTFOLIO ANALYSIS - HYP ₹. In Crores Portfolio Analysis Segment – wise Analysis 5.5% 121.4 2 190.1 5.2 94.5% 94.5% 77.4% 5.5% 22.6% 2 073.9 Two Wheeler Three Wheel

  18. Slide 18: Hyp Portfolio Split as on September 30th 2018

    Performance Sales & Collection Asset Liability Analysis Management Analysis Analysis Analysis Analysis 5 Quarters Discussion & Analysis HYP PORTFOLIO SPLIT AS ON SEPTEMBER 30TH 2018 ₹. In Crores Quetzal (DCB) 1.7 Fire finch (Indo Star) 3.9 19% Turaco (DCB) 13.7 Andhra DA 12.4 Toucan DA (SBM) 11.5 Br

  19. Slide 19: Market Capitalization

    Performance Sales & Collection Asset Liability Analysis Management Analysis Analysis Analysis Analysis 5 Quarters Discussion & Analysis MARKET CAPITALIZATION Movement of Market Price per Share (MPS) vs. The Company’s market capitalization has Book Value per Share (BPS) shown significant growth durin

  20. Slide 20: Borrowing Profile

    Performance Sales & Collection Asset Liability Analysis Management Analysis Analysis Analysis Analysis 5 Quarters Discussion & Analysis BORROWING PROFILE ₹. In Crores Q2 FY ’18 Q1 FY ‘19 Q2 FY ‘19 Particulars Amount Cost Amount Cost Amount Cost Bank Loan 1005.1 10.0% 1277.5 9.3% 1379.4 9.4% Sub debt

  21. Slide 21: Highlights - Securitisation / Direct Assignment Transaction

    Performance Sales & Collection Asset Liability Analysis Management Analysis Analysis Analysis Analysis 5 Quarters Discussion & Analysis HIGHLIGHTS – SECURITISATION / DIRECT ASSIGNMENT TRANSACTION Augmented Growth Capital saving: • Done 8 Securitization / 7 Direct Assignment An off balance sheet tran

  22. Slide 22: Spread Analysis

    Performance Sales & Collection Asset Liability Analysis Management Analysis Analysis Analysis Analysis 5 Quarters Discussion & Analysis SPREAD ANALYSIS ₹. In Crores Sep-17 Dec-17 Mar-18 Jun-18 Sep-18 Analysis on Avg loan book size Amount % Amount % Amount % Amount % Amount % Avg Loan Book Size 1360.

  23. Slide 23: Analysis of Cost & Yield

    Performance Sales & Collection Asset Liability Analysis Management Analysis Analysis Analysis Analysis 5 Quarters Discussion & Analysis ANALYSIS OF COST & YIELD EFFECTIVE RATE SL.No. Description of Loan Q2 FY ‘18 Q3 FY ‘18 Q4 FY ’18 Q1 FY ‘19 Q2 FY ’19 1 Hypothecation 26.5% 24.8% 26.0% 24.3% 24.0% 2

  24. Slide 24: Analysis of Cost & Yield

    Performance Sales & Collection Asset Liability Analysis Management Analysis Analysis Analysis Analysis 5 Quarters Discussion & Analysis ANALYSIS OF COST & YIELD Cost of Funds, Yield & Spread Composition of Yield 30.0% ICD - MFL 16.0% Collateral Deposits 7.4% 24.9% 24.7% Hypothecation 24.0% 25.0% 23.

  25. Slide 25: Expense as a % of Revenue - Q-o-Q

    Performance Sales & Collection Asset Liability Analysis Management Analysis Analysis Analysis Analysis 5 Quarters Discussion & Analysis EXPENSE AS A % OF REVENUE – Q-o-Q 10.9% 14.9% 15.2% 18.0% 16.5% 5.8% 7.1% 8.2% 9.1% 8.4% 9.8% 6.7% 9.5% 10.4% 8.9% 28.0% 24.6% 21.6% 20.7% 22.5% 31.9% 30.6% 27.2% 3

  26. Slide 26: Average LTV, Ticket Size, IRR and Processing Fee

    Performance Sales & Collection Asset Liability Analysis Management Analysis Analysis Analysis Analysis 5 Quarters Discussion & Analysis Average LTV Average Ticket Size 74.8% 76.8% 76.6% 75.9% 77.7% 52 993 52 726 55 722 50 170 53 135 Q2 18 Q3 18 Q4 18 Q1 19 Q2 19 Q2 18 Q3 18 Q4 18 Q1 19 Q2 19 Average

  27. Slide 27: Disbursement, Loan Book Size and Revenue

    Performance Sales & Collection Asset Liability Analysis Management Analysis Analysis Analysis Analysis 5 Quarters Discussion & Analysis Disbursement Count (Hypo Loan) Disbursement - Hypo Loan (in ₹ crores) 86 754 91 440 90 960 85 036 84 293 486 482 470 450 448 Q2 18 Q3 18 Q4 18 Q1 19 Q2 19 Q2 18 Q3

  28. Slide 28: Net Interest Income, OPEX, Loan Losses and PAT

    Performance Sales & Collection Asset Liability Analysis Management Analysis Analysis Analysis Analysis 5 Quarters Discussion & Analysis Net interest income (in Crores) OPEX as a % of NII 86.0 86.9 93.7 64.8% 73.1 57.1% 49.7% 49.9% 52.0% 65.0 Q2 18 Q3 18 Q4 18 Q1 19 Q2 19 Q2 18 Q3 18 Q4 18 Q1 19 Q2 1

  29. Slide 29: ROA, ROE, EPS and Capital Adequacy

    Performance Sales & Collection Asset Liability Analysis Management Analysis Analysis Analysis Analysis 5 Quarters Discussion & Analysis ROA and ROE Earning per Share (in ₹) 21.9% 22.1% 22.4% 20.3% 18.9% 13.0 12.5 12.2 4.0% 4.9% 4.2% 4.1% 10.4 3.0% 7.6 Q2 18 Q3 18 Q4 18 Q1 19 Q2 19 Q2 18 Q3 18 Q4 18

  30. Slide 30: Robust Growth in Disbursement & Collection

    Performance Sales & Collection Asset Liability Analysis Management Analysis Analysis Analysis Analysis 5 Quarters Discussion & Analysis • Hyp. loans had 4 % growth Y-o-Y; dealer point and MFL 7% & -8% ; Q2 FY 18 had the benefit of Onam volumes, which was lower this year. Floods in Kerala impacted cu

  31. Slide 31: Diversity in Funding and Borrowing Mix

    Performance Sales & Collection Asset Liability Analysis Management Analysis Analysis Analysis Analysis 5 Quarters Discussion & Analysis Diversity in • In Q2 FY 19 the Company got additional funding of ₹ 90 crs got from securitization transaction;. Emphasis on improving ALM has helped now when things

  32. Slide 32: Staff Attrition & Cost Control, Repayment Mode

    Performance Sales & Collection Asset Liability Analysis Management Analysis Analysis Analysis Analysis 5 Quarters Discussion & Analysis • Monthly staff attrition was lower at 3.34 % in Q2 FY ‘19 v/s 2.65% in Q1 FY 19 - The concept of Marketing Staff attrition & agents is also working well. In North

  33. Slide 33: Thank You

    THANK YOU CAPITAL

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