Shriram Finance Limited · NSE:SHRIRAMFIN

Shriram Finance — Shriram Transport Finance Company — Q4 FY20 Earnings Presentation

28 slides from Shriram Finance's earnings presentation, Jun 10, 2020

  1. Slide 1: Investor Update cover letter to BSE and NSE

    SEC/FILING/BSE-NSE/20-21/68A-B June 10, 2020 BSE Limited National Stock Exchange of India Limited P. J. Towers, Listing De`partment Dalal Street, Fort, Exchange Plaza, 5th Floor, Mumbai – 400 001. Plot no. C/1, G- Block, Scrip Code: 511218 Bandra-Kurla Complex, Mumbai – 400 051. NSE Symbol: SRTRANSF

  2. Slide 2: Q4 & FY20 Investor Update

    Shriram Transport Finance Company Ltd Q4 & FY20 Investor Update June 10, 2020

  3. Slide 3: COVID-19

    We SHRIRAM A WINNING RELATIONSHIP

  4. Slide 4: COVID-19

    COVID-19  As our fight against Coronavirus pandemic continues, we are witnessing a time like never before. It is indeed a test of our resolve and fighting spirit.  The Company is now focused on capital preservation, balance sheet protection and controlling overheads. The Company has a healthy capi

  5. Slide 5: COVID-19

    COVID-19  We are aggressively pursuing every cost-cutting measure available and are focussing on suspending all discretionary and non-essential spending.  While we are addressing the manpower cost, it is essential that the cost optimization measures have to be in place at all levels. Accordingly,

  6. Slide 6: COVID-19

    COVID-19  Sanitizers in adequate quantities are available in all the offices for usage by the employees. The Company has strongly recommended to use the same frequently. Moreover, our Offices and Branches are being sanitized regularly to ensure the safety of the employees and all other required arr

  7. Slide 7: COVID-19

    COVID-19  Business has picked up in the rural market due to harvest season and subsequent activities of Kharif sowing has started.  In terms of COVID-19 regulatory package announced by Reserve Bank of India ( RBI ) on March 27, 2020 and in accordance with the Scheme approved by the Board of direct

  8. Slide 8: COVID-19

    COVID-19  The spread of SARS-CoV-2 virus (referred as ‘COVID-19’) across the globe and in India has contributed to a significant decline and volatility in global and Indian financial markets and a shrink in the economic activities. The Government of India declared 21-day nation-wide lock-down to co

  9. Slide 9: COVID-19

    COVID-19  The Company has used relevant indicators of moratorium, considering various measures taken by Government and other authorities along with an estimation of potential stress on probability of defaults and loss given defaults due to COVID-19 situation in developing the estimates and assumpti

  10. Slide 10: COVID-19 Key metrics

    COVID-19 Key metrics Post-COVID Pre-COVID P&L Metrics (Rs. mn) Q4 FY20 FY20 Q4 FY20 FY20 Interest Income 40,949.1 162,871.2 40,949.1 162,871.2 Less: Interest Expenses 21,769.9 83,703.5 21,769.9 83,703.5 Net Interest Income 19,179.2 79,167.7 19,179.2 79,167.7 Other Income 711.6 2,846.9 711.6 2,846.9

  11. Slide 11: Performance Highlights – Q4 FY20 vs Q4 FY19

    Performance Highlights – Q4 FY20 vs Q4 FY19 (as per Ind AS) Q4 FY20 Rs 41,730.4 mn Total Income 7.46% Q4 FY19 Rs 38,833.8 mn Q4 FY20 Rs 19,179.2 mn Net Interest Income* 0.80%  Employee strength at Q4 FY19 Rs 19,027.6 mn 28,045 (including *including Direct assignment Income 16,972 field executives)

  12. Slide 12: Performance Highlights – FY20 vs FY19

    Performance Highlights – FY20 vs FY19 (as per Ind AS) FY20 Rs 165,826.3 mn Total Income 6.60% FY19 Rs 155,566.6 mn FY20 Rs 79,167.7 mn Net Interest Income* 1.99%  Cost to income ratio at FY19 Rs 77,620.4 mn 23.32% in FY20 as *including Direct assignment Income compared to 21.56% in Rs. 219.3 Mn (FY

  13. Slide 13: Performance Highlights – Q4 FY20 vs Q4 FY19

    Performance Highlights – Q4 FY20 vs Q4 FY19 (as per Ind AS) Q4 FY20 Rs 1,097,492.4 mn AUM 5.04% Q4 FY19 Rs 1,044,822.9 mn Q4 FY20 Rs 91,797.1 mn Gross Stage 3 assets 6.47% Q4 FY19 Rs 86,222.7 mn  CRAR at 21.99% as of Q4 FY20 compared to 20.27% as of Q4 FY19. Q4 FY20 Rs 59,910.1 mn Net Stage 3 asset

  14. Slide 14: AUM Break-up (as per Ind AS)

    AUM Break-up (as per Ind AS) Particulars (Rs. mn) Q4 FY19 Q1 FY20 Q2 FY20 Q3 FY20 Q4 FY20 YoY (%) QoQ (%) FY19 FY20 YoY (%) Loan Portfolio - On Books Balance sheet assets 850,847.3 846,514.5 847,722.0 856,784.9 873,971.2 2.72% 2.01% 850,847.3 873,971.2 2.72% Securitised assets 172,227.7 197,499.7 21

  15. Slide 15: Segment-wise Break up

    Segment-wise Break up Working Working Capital Capital Loans, Loans, Others, 3.09% Others, 2.69% 0.05% 0.06% Business HCVs, Business HCVs, Loans, 46.13% Loans, 46.40% 2.34% 2.84% Tractors, Tractors, 2.90% 3.52% Q4 FY20 Q4 FY19 Passenger Passenger Vehicles, M&LCVs, Vehicles, M&LCVs, 22.51% 23.47% 22.5

  16. Slide 16: Branch & AUM distribution – Q4 FY20 vs Q4 FY19

    Branch & AUM distribution – Q4 FY20 vs Q4 FY19 Branch (Nos) AUM (Rs in bn) Urban, Rural, Rural, 825 385.5 720 Q4 FY19 Q4 FY19 Total Branch 1,545 Total AUM Rs 1044.8 bn Urban, 659.3 Urban, 914 Rural, Rural, 844 445.3 Q4 FY20 Q4 FY20 Total Branch 1,758 Total AUM Rs 1,097.5 bn Urban, 15 652.2

  17. Slide 17: Provision Analysis

    Provision Analysis As per IND AS Particulars (Rs. mn) Q4 FY19 Q1 FY20 Q2 FY20 Q3 FY20 Q4 FY20 YoY (%) QoQ (%) FY19 FY20 YoY (%) Gross Stage 3 86,222.7 89,257.4 93,965.6 93,923.5 91,797.1 6.47% -2.26% 86,222.7 91,797.1 6.47% ECL provision-Stage 3 29,670.0 28,405.7 30,165.4 30,175.9 31,886.5 7.47% 5.6

  18. Slide 18: Well-entrenched Pan India Network

    Well-entrenched Pan India Network Regional Split of Branches ABBREVIATIONS Zone Zone Name ZOADH HYDERABAD ZONE ZORPR, 90 ZOADH, 179 ZODHP DELHI ZONE ZOPUN, 159 ZODHP, 48 ZOECE RANCHI ZONE ZOECE, 97 ZOCHN CHANDIGARH ZONE ZOIND, 130 ZOCHN, 58 ZOGRA AHMEDABAD ZONE ZOWON, 80 ZONCE LUCKNOW ZONE ZOGRA, 16

  19. Slide 19: P&L Statement

    P&L Statement Particulars (Rs. mn) Q4 FY19 Q1 FY20 Q2 FY20 Q3 FY20 Q4 FY20 YoY (%) QoQ (%) FY19 FY20 YoY (%) Interest income 38,291.7 39,867.5 40,908.3 41,146.2 40,949.1 6.94% -0.48% 153,955.4 162,871.2 5.79% Interest expended 19,264.1 20,397.3 20,761.1 20,775.2 21,769.9 13.01% 4.79% 76,335.0 83,703

  20. Slide 20: Balance Sheet

    Balance Sheet Particulars (Rs. mn) Mar-19 Jun-19 Sep-19 Dec-19 Mar-20 YoY (%) QoQ (%) I. ASSETS Financial Assets Cash and cash equivalents 10,291.4 31,379.3 7,564.7 9,653.1 30,889.9 200.15% 220.00% Bank Balance other than above 29,523.3 34,260.2 38,038.2 40,396.0 42,259.3 43.14% 4.61% Derivative fin

  21. Slide 21: Balance Sheet (Continued)

    Balance Sheet (Continued) Particulars (Rs. mn) Mar-19 Jun-19 Sep-19 Dec-19 Mar-20 YoY (%) QoQ (%) II. Liabilities and Equity Financial Liabilities Derivative financial instruments 834.2 1,351.0 225.0 - - -100.00% 0.00% Trade Payables 1,361.8 1,678.4 1,871.7 1,742.1 1,449.7 6.45% -16.78% Debt Securit

  22. Slide 22: Key Metrics – Q4 FY20

    Key Metrics – Q4 FY20 P&L Metrics (Rs. mn) Q4 FY19 Q1 FY20 Q2 FY20 Q3 FY20 Q4 FY20 YoY (%) QoQ (%) FY19 FY20 YoY (%) Interest Income 38,291.7 39,867.5 40,908.3 41,146.2 40,949.1 6.94% -0.48% 153,955.4 162,871.2 5.79% Less: Interest Expenses 19,264.1 20,397.3 20,761.1 20,775.2 21,769.9 13.01% 4.79% 7

  23. Slide 23: Borrowing Profile as on Mar 31, 2020 vs Mar 31, 2019

    Borrowing Profile as on Mar 31, 2020 vs Mar 31, 2019 Rs 943.72 bn Rs 879.14 bn Bonds, Commercial 22.95% Paper , 0.00% Bonds, 31.74% Borrowings in Borrowings in Commercial Foreign Paper Foreign Other currency, (Embedded currency, Borrowing, 6.32% NCD 3.4 %), 17.92% 1.65% 4.0% , 3.99% Public Other Q4

  24. Slide 24: Shareholding Pattern as on Mar 31, 2020 vs Mar 31, 2019

    Shareholding Pattern as on Mar 31, 2020 vs Mar 31, 2019 No. of shares outstanding: 226.88 mn Other Public , MF/Bank , Corporate Other Public , 6.07% 6.71% 1.75% Body , Corporate Promoter , Body , Promoter , NRI/OCBs , 1.14% 26.25% 11.52% 26.08% 0.13% MF/Bank , 3.57% NRI/OCBs , 0.15% Q4 FY20 Q4 FY19

  25. Slide 25: Has Attracted Strong Interest from Quality Investors

    Has Attracted Strong Interest from Quality Investors  Consistent track record and high growth Current potential has attracted reputed Key Shareholders Shareholding % institutional and private equity investors (Mn Shares) to infuse growth capital Shriram Capital Limited 59.50 26.23 Fidelity Investme

  26. Slide 26: For any Investor Relations queries please contact

    Contact Us For any Investor Relations queries please contact Sanjay K. Mundra Shriram Transport Finance Co. Ltd Email: smundra@stfc.in Tel. No. +91-22-4095 9507 25

  27. Slide 27: About Us

    About Us About Shriram Transport Finance Co. Ltd. Shriram Transport Finance Co Ltd. is the largest asset financing NBFC in India with Assets on Balance sheet of Rs. 109,749.24 crores. The company is a leader in organized financing of pre-owned trucks with strategic presence in 5-10 year old trucks.

  28. Slide 28: Thank You

    We SHRIRAM A WINNING RELATIONSHIP Thank You ~ eer

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