CSL Finance Limited · NSE:CSLFINANCE
CSL Finance — Q2 FY2020 Earnings Presentation
31 slides from CSL Finance's earnings presentation, September 2019
Slide 1: FY20 Q2 - Update
FY20 Q2 - Update September 2019 © 2019 C S L F I NA NC E L I M I T E D , A L L R I G H T S R E S E R V E D
Slide 2: Table of Contents
Table of Contents Company Snapshot 3 Business Strategy 4 Key Management Team 5 Our Presence 7 Product Portfolio 8 Wholesale Book 10 SME Retail Lending Book 19 Financial Snapshot 23 ALM Breakup 28 Debt Profile 29 Our Outlook & Strategy 30 © 2019 CSL Finance Limited, All Rights Reserved. 2
Slide 3: Company Snapshot
Company Snapshot Listed on Bombay Delhi based NBFC with Wholesale housing book of 98% of loan Stock Exchange AUM of Rs 318 Cr as on 30th INR 249 Cr & SME Retail book is secured Sep-19 book of INR 69 Cr. 19 Branches spread Raised Rs 51 Cr from High CAR BBB rating across North and West India Marquee i
Slide 4: Business Strategy
Business Strategy Portfolio Quality Focussed Approach Pragmatic build up of portfolio Prudent risk management and in chosen geographies through continuous monitoring of portfolio cluster approach Costs Flexibility Optimisation of Flexible offerings in line with operating profits customer needs throu
Slide 5: Management Team
Management Team Rohit Gupta (Managing Director) Naresh Varshney (CFO) Rohit is a CA with over 25 years of diverse Naresh is a CA with more than 25 years of diverse experience in the fields of merchant banking, experience in the field of financial services, corporate finance, financial restructuring,
Slide 6: Management Team
Management Team Ranjheet Jha (State Head SME Delhi) Rakesh Singh Shokeen (SME Collections) Ranjheet has over 8 years of rich experience in Rakesh has over 7 years of extensive experience in managing various channels in retail lending the collections fields of SME and MSME segments. products. He has
Slide 7: Our Presence
Our Presence Jalandhar Ludhiana Dehradun Patiala Yamuna Ambala Nagar Hissar Panipat New Delhi States Present Faridabad Delhi Sikar Haryana Jaipur Ajmer Punjab Jodhpur Uttrakhand Bhilwara Rajasthan Gujarat Mehsana Ahmedabad Baroda Surat Map not to scale, for representation purposes only © 2019 CSL Fi
Slide 8: Product Portfolio
PRODUCT PORTFOLIO Product Category Book Size (Rs Cr) Q2 FY20 Customer Segment Wholesale Lending Standard and Structured loans given to corporates into Wholesale Large 138.33 Group housing projects Loans given to Small Builders, engaged in development Wholesale Small 80.75 of Single Plotted Projects
Slide 9: AUM Composition
AUM Composition Q2 FY20 Q2 FY19 SME Retail Book SME Retail Book 22% 11% 78% Wholesale Book 89% Wholesale Book © 2019 CSL Finance Limited, All Rights Reserved. 9
Slide 10: Wholesale Lending Book
Wholesale Lending Book Business Approach Assets Under Management (AUM) Figures in INR Crores Focused approach with concentration in limited geographies helped to gain better knowledge , control & monitoring 295 Market Penetration with conscious selection of customers. Structured deal basis future ca
Slide 11: Wholesale Large Book (WS Large)
Wholesale Large Book ( WS Large) Wholesale Large Portfolio Segment Update WS Large book mainly consists of Group housing projects of middle & affordable Commerical Group 2% segment concentrated in Northern Region of Housing India 39% Total AUM of WS large book is INR 138.33 Cr as on 30th Sept. There
Slide 12: WS Large – Affordable Housing
WS Large –Affordable Housing Affordable Group Housing Segment Update Figures in INR Crores Projects with average unit cost less than 25 lacs, high saleability and large customer reach due to higher affordability 120 114 It constitutes of 33% (INR 81.63 Cr) of total Wholesale book (AUM) 100 Until now
Slide 13: WS Large – Group Housing
WS Large – Group Housing Residential Group Housing Segment Update Figures in INR Crores 60 Projects with average ticket size of INR 30- 50 lacs majorly focusing on mid segment income 50 group 44 Consistent demand due to easy affordability 40 37.73 and ready to move inventory 29.41 It constitutes of
Slide 14: WS Large – Commercial Projects
WS Large –Commercial Projects Commercial Projects Segment Update Figures in INR Crores This segment consists of small commercial Projects with retail shops cum office spaces 10 8.5 It constitutes only 2 projects i.e. approx. 2% (INR 2.15 Cr) of total Wholesale book (AUM) 8 Both the projects are comp
Slide 15: WS Small – Small Builder Loans
WS Small – Small Builder Loans Small Builder loans Segment Update Figures in INR Crores Delhi NCR is a big market having a potential of 10K crore for small builders, whose borrowing requirements are not serviced by the standard products offered by Financial Institutions/ Banks 100 Geographically, Bu
Slide 16: WS – LAP/ MSME
WS – LAP/ MSME LAP / MSME Segment Update Figures in INR Crores WS LAP/MSME comprises of business or working capital loans provided to MSME/ business entities for various 50 business activities 44.93 Total AUM of the WS LAP book is INR 29.96 Cr which is 40 just 12% of the total wholesale book (AUM) I
Slide 17: Wholesale Lending Book – Risk Management Framework
Wholesale Lending Book – Risk Management Framework Presence in selected pockets of Delhi NCR Excellent understanding of the market dynamics and risks Presence in select 1 Customer selection based on end use demand markets Last mile financing – significantly reduces project risk Deal with r
Slide 18: Wholesale Book – Product Breakup
Wholesale Book – Product Breakup Wholesale Book - Large (Rs Cr) Wholesale Book - Small (Rs Cr) 100 200 180 174 85 79 80 81 155 80 75 152 147 147 152 160 138 56 60 120 45 40 33 80 40 20 0 0 Q3FY18 Q4FY18 Q1FY19 Q2FY19 Q3FY19 Q4FY19 Q1FY20 Q2FY20 Q3FY18 Q4FY18 Q1FY19 Q2FY19 Q3FY19 Q4FY19 Q1FY20 Q2FY20
Slide 19: SME Retail Lending Book
SME Retail Lending Book Assets Under Management (AUM) Business Approach Figures in INR Crores Focus on increasing market presence in current 70 68.62 geographies of north and west India. 65 64.24 60 To increase market presence with hub and spoke model 55 55.26 within existing 19 branches 50 45 Conti
Slide 20: SME Retail Book – Industry Composition
SME Retail Book- Industry Composition Industry wise Composition (INR Cr) Salaried Individual Manufacturing 2.97 3.47 Kirana Merchant 4.52 Auto Workshops 1.69 Healthcare 1.14 Services 11.72 Trading & Others 10.84 Schools 25.31 Dairy 6.15 © 2019 CSL Finance Limited, All Rights Reserved. 20
Slide 21: Wholesale Lending Book – Operational Update
Wholesale Lending Book – Operational Update • AUM for Wholesale Lending Book in Q2 FY20 is INR 249 Cr • There is no NPA in the wholesale book & no account is in 30+ DPD • AUM for the wholesale book has been decreased by 11% during Q2 FY20 vis-à-vis Q2 FY19 • Despite our wholesale lending book doing
Slide 22: SME Retail Book – Operational Update
SME Retail Book – Operational Update • AUM for SME Retail book in Q2 FY20 is INR 69 Cr & Net NPA is maintained at 1.17% during Q2 FY20 in the SME book • AUM for SME Retail book has almost doubled during Q2 FY20 vis-à-vis Q2 FY19 • The operating environment has been tough because of the slowing econo
Slide 23: Financial Snapshot
Financial Snapshot INR Cr Metrics FY20 Q2 FY19 Q2 FY19 Revenue 15.13 14.62 59.69 NII 11.89 10.81 42.91 PAT 7.25 5.89 25.15 Net worth 223.78 198.77 214.76 AUM 316.88 313.17 323.51 CAR 70% 63% 66% © 2019 CSL Finance Limited, All Rights Reserved. 23
Slide 24: Financial Update
Financial Update • CSL Finance recorded an increase of 3% in revenues in Q2 FY20 vis-à-vis Q2 FY19 • Operating profit increased by 8% in Q2 FY20 vis-à-vis Q2 FY19 • Net interest income has increased by 10% Q2 FY20 vis-à-vis Q2 FY19 • AUM increased by 1% in Q2FY20 vis-à-vis Q2FY19. • Cash flows of wh
Slide 25: Financial Metrics
Financial Metrics 1 Total Income (Rs Cr) Operating Expenses (Rs Cr) 20 4.00 15.81 15.6 15.39 15.13 16 14.62 3.04* 13.23 13.67 3.00* 3.02* 2.93* 3.00 2.81* 12 10.81 2.27* 2.21* 2.00 8 2.00 4 1.00 0 Q3FY18 Q4FY18 Q1FY19 Q2FY19 Q3FY19 Q4FY19 Q1FY20 Q2FY20 Q3FY18 Q4FY18 Q1FY19 Q2FY19 Q3FY19 Q4FY19 Q1FY2
Slide 26: Financial Metrics (contd..)
Financial Metrics (contd..) 2 Net Interest Income (Rs Cr) AUM – End of Quarter (Rs Cr) 15 400 12.07 11.89 313 322 324 317 318 11.05 302 12 10.81 10.8 320 281 9.75 10.25 260 9.32 9 240 6 160 80 3 0 0 Q3FY18 Q4FY18 Q1FY19 Q2FY19 Q3FY19 Q4FY19 Q1FY20 Q2FY20 Q3FY18 Q4FY18 Q1FY19 Q2FY19 Q3FY19 Q4FY19 Q1F
Slide 27: Financial Metrics (contd..)
Financial Metrics (contd..) 3 Borrowings (Rs Cr) Net worth (Rs Cr) 250 224 150 215 221 130 199 206 124 122 194 116 200 178 184 120 102 102 105 90 150 90 60 100 30 50 0 0 Q3FY18 Q4FY18 Q1FY19 Q2FY19 Q3FY19 Q4FY19 Q1FY20 Q2FY20 Q3FY18 Q4FY18 Q1FY19 Q2FY19 Q3FY19 Q4FY19 Q1FY20 Q2FY20 Cash & Cash Equiva
Slide 28: ALM Breakup
ALM Breakup Maturity Pattern of Assets & Liabilities as on 30th Sept,2019 (INR Cr) 200 188 150 133 100 84 50 25 13 0 0 Upto 1 year 1-5 years Over 5 years Assets Liabilities Note: • First bucket of upto 1 year includes CC limit and WCDL of INR 67 Cr which are renewable every year • Last bucket of ove
Slide 29: Debt Profile as on 30th Sept, 2019
Debt Profile as on 30th Sept, 2019 Sanction O/s Loan Amount as on Lender’s Name Facility Type Period 30.09.2019 (in INR CR) Tourism Finance Corporation of India Term Loan Nov’17 18.50 Ltd TATA Capital Term Loan May’18 3.75 AU Small Finance Bank Term Loan Aug’18 13.33 AU Small Finance Bank Term Loan
Slide 30: Current Strategy & Outlook
Current Strategy & Outlook • Continuous and rigorous review of all loan accounts considering challenging market conditions • We are focused on the improving the quality of our book and are more selective in our disbursements • We are migrating to a newer version of FinnOne LOS Software, which is com
Slide 31: Thank You
Thank You Corporate Office: Investor Contact: 716-717, 7th floor, Tower B, Akash Gupta World Trade Tower, Sector16, Phone: 0120 4290650-52-53-54-55 Noida- 201301 Email: investor@cslfinance.in Email: akash.gupta@cslfinance.in Registered Office: 410-412, 18/12, 4th floor, WEA, Arya Samaj Road, Karol B