Authum Investment & Infrastucture Ltd · NSE:AIIL
Authum Investment & Infrastucture — Authum Investment & Infrastructure — Investor Presentation (June 2024)
41 slides from Authum Investment & Infrastucture's investor presentation, Jun 5, 2024
Slide 1: Cover letter to stock exchanges
June 5, 2024 To, Department of Corporate Relationship National Stock Exchange of India Limited BSE Ltd. Exchange Plaza, C-1, Block G, Phiroze Jeejeebhoy Towers, Bandra Kurla Complex, Dalal Street, Fort, Mumbai – 400 001. Bandra (E), Mumbai – 400051 Scrip Code: 539177 NSE Symbol – AIIL The Calcutta S
Slide 2: Making the Big Leap
MAKING THE BIG LEAP AUTHUM INVESTMENT & INFRASTRUCTURE LIMITED June 05, 2024 1
Slide 3: Table of Contents
PART ONE Overview 03 PART TWO Authum 1.0 : Value Creation through Investments 08 PART THREE TABLE OF Authum 2.0 : The Game-Changer NBFC Acquisition 12 CONTENTS PART FOUR Strategic Way Forward 18 PART FIVE FY24 Financials 23 PART SIX Governance & Management 31 2
Slide 4: Overview
PART ONE OVERVIEW 3
Slide 5: Who we are
Who we are Background Footprint Leadership Incorporated in 1982 Headquarters: Mumbai Enterprising Promoter Group with strong track record of Value Creation Acquired by Alpana Sanjay Dangi in FY2020. No. of Branches: ~25 Professional team with deep domain expertise Authum is a registered NBFC with co
Slide 6: Our growth journey
Our growth journey 2023-2024 The company continued with strong outcomes vide 2022-2023 the investments in capital market and management focus on harvesting the acquired portfolio / The Company acquired Reliance Commercial Finance 2021-2022 turnaround of RCFL and RHFL businesses. Limited and Reliance
Slide 7: Networth Accretion (INR Cr)
Networth Accretion (INR Cr) 12,000 2,644 10,345 10,000 -4,010 4,285 4,304 8,000 6,000 INR Cr 3,416 4,000 1,021 3,121 669 1,280 1,432 1 2,000 16 135 0 Equity PAT Other Networth Equity PAT Other Networth PAT Other Networth PAT Other Networth equity equity equity equity FY2021 FY2022 FY2023 FY2024 Valu
Slide 8: Authum's growth across the years
Authum’s growth across the years Particulars (Liabilities) FY 23-24 FY 22-23* FY 21-22 FY20-21 Particulars (Assets) FY 23-24 FY 22-23* FY 21-22 FY20-21 Investments 8,779 3,543 3,186 1,626 Net worth 10,345 3,416 3,121 1,432 Long term loans 1,681 2,253 33 121 & advances Borrowings & other Cash & cash
Slide 9: Authum 1.0: Value Creation through Investments
PART TWO AUTHUM 1.0 Value Creation through Investments 8
Slide 10: Authum 1.0: Value Creation Framework
AUTHUM 1.0 : Value Creation Framework Strong fundamentals Mid and Large Cap We invest mostly in large and mid-cap companies which are We invest in companies with strong fundamentals, either market leaders or have a potential to become market attractive valuation and high potential for re-rating. lea
Slide 11: Track Record: MOIC and IRRs of Exited Investments
Track Record: MOIC and IRRs of Exited Investments FY2021 FY2022 3.50 200%+ 5.00 180%+ 150%+ 150%+ 150%+ 150%+ 150%+ 150% 150% 3.00 150%+ 150% 150%+ 150%+ 150%+ 150%+ 150%+ 150%+ 150%+ 106% 4.00 2.50 100%+ 120%+ 2.00 3.00 98% 21%+ 50%+ 1.50 90%+ 1.19 2.87 2.85 1.57 1.53 1.33 1.30 1.13 1.11 0%+ 67% 1.
Slide 12: Track Record: MOIC of Current Portfolio
Track Record: MOIC of Current Portfolio (notional basis, as on Mar 31, 2024) 5.00 4.82 4.50 4.00 3.50 3.05 3.00 2.50 2.21 2.13 2.00 1.78 1.50 1.41 1.39 1.38 1.20 1.02 1.00 Rank 1 Rank 2 Rank 3 Rank 4 Rank 5 Rank 6 Rank 7 Rank 8 Rank 9 Other MOIC Note 1: Top 9 exits by MOIC are ranked 1 to 9. Others
Slide 13: Authum 2.0: The Game-Changer NBFC Acquisition
PART THREE AUTHUM 2.0 The Game-Changer NBFC Acquisition 12
Slide 14: Deal Overview: Reliance Commercial Finance Limited (RCFL)
Deal 1 Overview: Reliance Commercial Finance Limited (RCFL) Amongst 1st Financial Services Company ~90 % of lenders approved All regulatory approvals received for to be resolved outside IBC with lenders and the transaction. implementation of Plan / Change of Control court approval. Honorable Supreme
Slide 15: Deal Overview: Reliance Home Finance Limited (RHFL)
Deal 2 Overview: Reliance Home Finance Limited (RHFL) Amongst 1st Financial Services Company ~99 % of lenders approved All regulatory approvals received for to be resolved outside IBC with lenders and the transaction. implementation of Plan / Change of Control court approval. Honorable Supreme Court
Slide 16: Strategic imperative for the NBFC acquisitions
Strategic imperative for the NBFC acquisitions 1. Diversification 4. Customer Segment Significant re-pivot from Equity Led Portfolio acquired cuts through entire Business a Wide Ranging Credit spectrum of product suite; thus Business leapfrogging experience curve in building incremental businesses 2
Slide 17: Capabilities: geographic presence, robust systems and synergistic potential
Capabilities: significant geographic presence, robust systems and synergistic potential Presence Agency Network System Capabilities ✓ > 25 Branches ✓ Field Agencies - 120+ ✓ Robust systems- LOS & LMS ✓ Reach across ~170 Locations ✓ Repossession/ ✓ E-collect Mobile application through vendor network
Slide 18: Capabilities: Expansive product suite
Capabilities: Expansive product suite Property Backed Education Institution, SME Agri Loans against property (LAP) Loans & SME Working Capital Construction Finance Affordable Housing (AH) Term Loans Asset Backed Hypothecation Unsecured SME Term Loans & Vehicle Loans – Commercial Infrastructure Finan
Slide 19: Strategic Way Forward
PART FOUR STRATEGIC WAY FORWARD 18
Slide 20: Corporate Restructuring Scheme
Corporate Restructuring Scheme A demerger scheme was approved by NCLT in May 2024 de-merging the identified business of RCFL into its Parent Company, Authum Investment & Infrastructure Limited Pre-Demerger Post-Demerger Authum Investment & Authum Investment & Infrastructure Limited Infrastructure Li
Slide 21: Strategic Way Forward
Strategic Way Forward FY26-27 FY25-26 Financial FY24-25 powerhouse poised for Platformize & significant FY23-24 Professionalize value creation Allocate for scale Capital with a favourable Diversify risk-reward Self sustaining platforms to create multiple growth engines revenue and overall franchisee
Slide 22: Proposed Capital Allocation to Business Divisions
Proposed Capital Allocation to Business Divisions in the Coming Years Existing: Existing: Future: Future: Source of Funds Equity / other investments Loans & credit substitutes Capital raises Fresh borrowings ✓ Dividend income ✓ Principal repayments ✓ Balance sheet strength ✓ Capital gains ✓ Interest
Slide 23: Blueprint for Authum as an integrated credit platform
Blueprint for Authum as an integrated credit platform ✓ Collections of existing Book ✓ Best in Class Debt Buy Out Platform ✓ Redeploy in Structured Credit / Real Estate ✓ Across Retail & Corporate Capabilities ✓ Low Cost of Operations / Yield @16 % ✓ Differentiate on Superior Resolution ✓ Moderate L
Slide 24: FY2024 Financials
PART FIVE FY2024 FINANCIALS 23
Slide 25: Balance Sheet Highlights: Liabilities
Balance Sheet Highlights Liabilities (~INR Cr) Liabilities: Details FY 2021 FY 2022 FY 2023 FY 2024 14,000 11,621 A. Networth 1,432 3,121 3,416 10,345 12,000 1,276 B. Borrowings & Payables 536 898 3,484 1,276 10,000 6,900 -PTC borrowings - - 1.040 492 8,000 4,019 -Dissenting creditors - - 734 177 6,
Slide 26: Balance Sheet Highlights: Assets
Balance Sheet Highlights Assets (~INR Cr) Assets: Details FY2021 FY2022 FY2023 FY2024 14,000 11,621 A. Investments 1,626 3,186 3,543 8,779 12,000 1,161 B. Loans / credit substitute 121 33 2,253 1,681 10,000 6,900 1,681 -Legacy book from RCFL - - 2,162 607 8,000 -PTC assets - - - 473 4,019 6,000 1,10
Slide 27: P&L Statement Highlights (INR Cr)
P&L Statement Highlights (INR Cr) FY 2021 FY 2023 4500 84 112 47 1000 30 3600 52 750 156 2700 4286 4,304 500 1800 907 669 250 900 281 542 0 0 Revenue Finance cost Other Tax PAT Revenue Finance Exceptional Net Other Tax PAT expenses cost Income provisions expenses FY 2022 FY 2024 5000 160 59 300 - 40
Slide 28: Revenues Mix (Cr)
Revenues Mix (Cr) 6,000 4,746 5,000 4,450 Revenues Detail (Cr) FY2021 FY2022 FY2023 FY2024 4,000 Investment Income 237 873 339 1,959 3,000 Interest Income 14 8 107 513 2,000 Change in provisions & bad - - (23) 1,860 907 debts recovery 1,000 255 Exceptional Income - - 4,286 58 - Miscellaneous Income
Slide 29: Expenses Mix (Cr)
Expenses Mix (Cr) 450 393 400 Expenses split (%) FY2021 FY2022 FY2023 FY2024 350 112 Finance costs 21% 36% 71% 29% 300 250 Other expense 79% 64% 29% 71% 208 200 Total 100% 100% 100% 100% 150 281 160 98 100 81 50 77 51 65 21 30 - FY 2021 FY 2022 FY 2023 FY 2024 Finance Costs Other expenses Notes: 1.
Slide 30: Assets Breakdown
Assets Breakdown Particulars Amount Remarks ✓ Investments in equity shares ✓ ~INR 8,778 cr ✓ Market value of listed shares: ~8,700 cr ✓ Book value: unlisted / MFs: ~200 cr ✓ Loans & credit substitutes: ✓ INR 1,199 cr ✓ ~50% is from legacy RCFL / RHFL and standard the rest is from fresh disbursal ✓ L
Slide 31: FY2024 Business Done and Debt Recoveries at RCFL
FY2024 Business Done at RCFL (lending business) Fresh disbursements (Cr) 700 592 600 500 400 300 200 75 92 100 0 0 Q1 Q2 Q3 Q4 FY2024 Debt Recoveries at RCFL (lending business) Repayment / Recoveries: Retail Segment (Cr) Recoveries: Corporate Segment (Cr) 1200 1,120 120 109 97 97 1000 100 89 800 706
Slide 32: Governance & Management
PART SIX GOVERNANCE & MANAGEMENT 31
Slide 33: Governance at Authum
Governance at Authum Promoters Board Management Balance Sheet ✓ Enterprising and first-generation ✓ Strong Board of Directors ✓ Top quality management team with ✓ Fortress Balance Sheet with Rs bold entrepreneurs encompassing various backgrounds specialization in the areas of build 10,350 Cr, net wo
Slide 34: Leadership Team: Non Executive & Independent Directors
Leadership Team: Non Executive & Independent Directors Mr. Rahul Bagaria Independent Director B.com & CA with over a decade of Industry experience. Currently a Partner with Bagaria & Co.. Experienced in the field of assurance, consulting, taxation & financial advisory service. Mr. Haridas Bhat Indep
Slide 35: Leadership Team: Non Executive & Independent Directors
Leadership Team: Non Executive & Independent Directors Mr. Vimal Ajmera Independent Director B.com & CA with around 2 decades of Industry Exp., in Corporate Accounting, Taxation Laws, Tax Audit etc. Mrs. Bhaviika Jain Independent Director CS with around a decade of Industry Exp., in Compliance & sec
Slide 36: Leadership Team: Promoter Director and Executive Director
Leadership Team: Promoter Director and Executive Director Promoter Management Enterprising and First Generation Bold Entrepreneurs with exemplary track record of value creation. Strong capital position with Net worth of 10,350 Cr, minimal leverage and Market Capitalization of ~15,000 Cr. Lead and Ma
Slide 37: Leadership Team: Management Team
Leadership Team: Management Team Mr. Rohit Bhanja Chief Executive Officer – RCFL B.com & MBA with over 2 decades of Industry Exp. Previously associated with Reliance Group & Tata Steel Ltd. Experience across sales & product management roles in both Secured and Unsecured loans. From high ticket corpo
Slide 38: Leadership Team: Management Team
Leadership Team: Management Team Mr. Rajkumar M Chief Compliance Officer, RCFL B.E & MBA with over 2 decades of Industry Exp., Previously associated with Orange Retail Finance, Unimoni Financial Services, Reliance Capital Group, ICICI Bank, and BPL Ltd. Experience in Banking/NBFC Operations, Credit
Slide 39: Leadership Team: Management Team
Leadership Team: Management Team Mr. Savneet Chopra Head – Operations & Customer Service B.SC & PGDBM with over 2 decades of Industry Exp Previously associated with Reliance Group, Aircel, Vodafone, Wipro, Philips India. Experience across Operations, Sales, Marketing & Product. Mr. Nimesh Chonkar He
Slide 40: Disclaimer
DISCLAIMER Certain statements made in this document may constitute forward -looking statements. These forward -looking statements are subject to certain risks and uncertainties which are customary to investment and lending business. Authum Investment & Infrastructure Limited will not be in any way r
Slide 41: Thank You
Thank You 40
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