Bajaj Finserv Limited · NSE:BAJAJFINSV
Bajaj Finserv — Bajaj Finance — Q4 FY15 Earnings Presentation
21 slides from Bajaj Finserv's earnings presentation, May 20, 2015
Slide 1: Bajaj Finance Limited Q4 FY15 Presentation
BAJA) FINANCE LIMITED Q4 FY15 Presentation 20th May 2015
Slide 2: Presentation Path
PRESENTATION PATH DISCLAIMER BAJA) GROUP STRUCTURE WHAT DO WE STAND FOR OUR JOURNEY THUS FAR FINANCIAL SNAPSHOT DIVERSIFIED BUSINESS MODEL BUSINESS/PRODUCT LAUNCH JOURNEY STRONG DISTRIBUTION REACH KEY PERFORMANCE HIGHLIGHTS FOR THE QUARTER KEY PERFORMANCE HIGHLIGHTS FOR THE YEAR SUMMARY FINANCIAL ST
Slide 3: Disclaimer
This presentation has been prepared by and is the sole responsibility of Bajaj Finance Limited (together with its subsidiaries, referred to as the “Company” or “Bajaj Finance”). By accessing this presentation, you are agreeing to be bound by the trailing restrictions. This presentation does not cons
Slide 4: Bajaj Group Structure
BAJAJ GROUP STRUCTURE FINSERV Bajaj Holdings and Investment Limited (Listed) Bajaj Auto Limited 3 39.16% Bajaj Finserv Limited (Listed) (Listed) Auto Business Arm Financial Services Arm Bajaj Finance Limited (Listed) Bajaj Allianz life Insurance Bajaj Allianz General Company Limited Insurance Compan
Slide 5: Our diversified financial services strategy
Our diversified financial services strategy envisages an optimal mix of risk and profit to deliver a sustainable The business business model construct is to deliver a sustainable ROA(1) & ROE in the medium term Note 1. Refers to return on average receivables under financing
Slide 6: Successfully delivered the transformation journey in last 8 years
AuM crossed Rs. 324 Bn PBT crossed Rs. 13.5 Bn Rights Issue of Rs. 7.4 Bn Preferential issue of warrants to Bajaj Finserv Ltd of Rs.3.9 Bn Rights Issue of Equity Shares FY15 FY14 of Rs.4.1 Bn and of Non Convertible Debentures (NCD) FY13 with detachable warrants FY12 optionally convertible into equit
Slide 7: Strong financial performance over the last 5 years on all metrics
(1) Strong financial performance over the last 5 years on all metrics Notes 1. Consolidated; 2. Defined as employee benefits expense + depreciation and amortization + other expenses; 3.Defined as PAT/(Opening receivables under financing + closing receivables under financing)/2; 4. Defined as PAT/(Op
Slide 8: Diversified business model
Consumer SME Commercial Rural (41% of FY15(1) AUM) (53% of FY15(1) AUM) (5% of FY15(1) AUM) (1% of FY15(1) AUM) Vendor Financing - Term Consumer Durable Financing Loan Against Property Loans & Purchase Order Consumer Durable Financing Financing Large Value Lease Rental Digital Product Financing Home
Slide 9: Sustained approach to product line expansion
+6 Consumer Loans to doctors SME (currently +28 Loans to +5 +5 Commercial Professionals) Extended Digital Fee Products Warranty EMI Card Product Cross Sell Financing Vendor Financing - Financial Term Loans Co-branded fitness & Purchase Credit Card report Order +3 +3 Financing Loans Construction Infr
Slide 10: Deep distribution, stable acquisition and growing balance sheet
Assets Under Management (Rs Bn) Geographic Presence Business Line FY13(1) FY14(1) FY15(1) Business Line FY15(1) Consumer Lending 71.4 93.3 132.0 Urban 161 Of which Consumer Lending branches 161 SME Lending 84.0 128.5 171.4 Of which SME Lending branches 119 Commercial 19.8 18.3 17.4 Lending Rural 232
Slide 11: Key performance highlights for the quarter
• ` ` • ` ` • • ` ` ` ` • ` ` • • • `
Slide 12: Key Performance Highlights for FY14-15
KEY PERFORMANCE HIGHLIGHTS FOR FY14-15 FINSERY ¢ Total income for FY15 4X 33% to % 5,418 Crore from % 4,074 Crore in FY14. * Profit after tax for FY15 4X 25% to % 898 Crore from = 719 Crore in FY14. * Customers acquired during FY15 4\ 45% to 49,24,448 from 33,89,560 in FY14. * Assets Under Managemen
Slide 13: Summary Financial Statement
SUMMARY FINANCIAL STATEMENT BAIAI FINSERV Financials snapshot Q4'15 Q4'14 FY'15(1) FY'14 YoY Assets under finance (AUF) 31,199 22,971 Assets under management (AUM) 32,410 24,061 35% 1,099 Interest expenses 612 450 Total Interest & fee Income 1,445 Net Interest Income (NII) Operating Expenses Loan Lo
Slide 14: Management Discussion
MANAGEMENT DISCUSSION Sree mer Market Assessment : * As of April 3, 2015 gross outstanding credit of scheduled commercial banks amounted to 70.4 lac crore registering an increase of 12.6% against a growth of 13.37% in the previous year. Bank credit growth continued to show weak trends. Bank lending
Slide 15: Management Discussion (contd.)
MANAGEMENT DISCUSSION (CONTD.) FINSERV Two Wheeler financing penetration of Bajaj Auto’s domestic Two Wheeler sales inched up to 31% from 28% in the corresponding quarter for the previous year. Overall volume for the quarter dropped by 16% YoY and 14% for the entire year. Three wheeler business volu
Slide 16: Management Discussion (contd.)
MANAGEMENT DISCUSSION (CONTD.) FINSERV * Rural Lending business continued with excellent momentum in Q4. Business over delivered on all metrics for 2014-15. During the quarter, the rural business made entry into the state of Karnataka with the launch of 11 branches. It also increased its geo coverag
Slide 17: Management Discussion (contd.)
MANAGEMENT DISCUSSION (CONTD.) FINSERV Other commentary : * Gross NPA and Net NPA for Q4 FY15 stood at 1.51% and 0.45% respectively with a provisioning coverage tatio of 71% as of 31 March 2015. The Company continues to provide for loan losses in excess of RBI requirements. * Interest cost for the c
Slide 18: Financial Performance Trends Q4 FY15
FINANCIAL PERFORMANCE TRENDS Q4 FY15 Sper # of Loans Disbursed (‘000) A 51% YoY | AUM (¥ Crore) A 35% YoY (@2 Wheelers +m Others 1531 1252 ne2 978 768 1366 30,822 32,410 1027 aon 26,943 28,004 846 a4 Qrs 215 Q35 Qs gaa Qris Q25 Q3'5 gas Revenue (% Crore) A 31% YoY | Net Interest Income (NII) (= Cror
Slide 19: Financial Performance Trends Q4 FY15
FINANCIAL PERFORMANCE TRENDS Q4 FY15 ree FINSERV Operating expenses % of NII Loan loss provision (% Crore) A 81% YoY AT% 46% 46% 45% 44% Q4n4 Qi15 Q245 Q315 Q415 Q4n4 Qi15 Q245 Q315 Q415 Net NPA & Provisioning coverage Pre Tax Profit (= Crore) A 25% YoY Ga Net NPA (%) Coverage (%) 76% 76% 78% 76% 74
Slide 20: Financial Performance Trends Q4 FY15
FINANCIAL PERFORMANCE TRENDS Q4 FY15 BAJAJ FINSERV Capital adequacy ratio Earnings per share - Basic (®) A 27% YoY GTier-1 @Tier- 10.5% 18.0% 19.3% 18.7% 17.97% 2.8% 4.0% 3.8% 51.7 16.6% 36.6 39.5 15.2% 15.1% 14.7% 14.2% Q414 Qt15s Q215 Q3'15 Q4'15 Q4'14 Qi'1s Q2'15 Q3'15 Q45s Return on avg. assets
Slide 21: NPA provisioning norms are stringent than RBI norms
Bajaj Finance provides a general provision of 0.40% on all standard assets (0.50% on Mortgages) against RBI’s requirement of 0.25% (from FY16 0.30%) Bajaj Finance Provisioning Consumer Lending SME Lending Commercial Lending RBI Norms provision coverage provision coverage provision coverage For FY15