Poonawalla Fincorp Limited · NSE:POONAWALLA
Poonawalla Fincorp — Magma Fincorp — Investor Presentation (August 2019)
14 slides from Poonawalla Fincorp's investor presentation, Aug 5, 2019
Slide 1: Magma Fincorp Investors/Analysts Presentation
Magma Fincorp Limited Regd. Office Development House 24 Park Street, Kolkata 700 016 Tel : 91 7596067686 91 33 44017350 Fax : 91 33 44017428 CIN : L51504WB1978PLC031813 Web: www.magma.co.in MAGMA Investing in the smallest dream 05 August 2019 Corporate Relationship Department Company Code - 524000 B
Slide 2: Organizational Priorities
Organizational Priorities Improve Asset Quality through the cycle…Sourcing, Onboarding, Servicing Opex optimization & Yield enhancement…balanced risk-adjusted returns Navoday Technology capex…Digital intervention for productivity enhancement 1
Slide 3: 90+ Static Pool: ABF- Car, CE, CV & Tractor
90+ Static Pool: ABF- Car, CE, CV & Tractor FY 15-16 Car: 90+ FY 16-17 FY 17-18 9.0% FY 18-19 8.0% 7.0% 6.0% 5.0% 4.0% 3.0% 2.0% 1.0% 0.0% QTR12 QTR1 QTR2 QTR3 QTR4 QTR5 QTR6 QTR7 QTR8 QTR9 QTR10 QTR11 QTR13 QTR14 QTR15 Vintage period --> FY 15-16 Tractor: 90+ FY 16-17 FY 17-18 20.0% FY 18-19 18.0%
Slide 4: 90+ Static Pool: ABF- Used Assets
90+ Static Pool: ABF- Used Assets Recent vintage delinquencies trending at multi-year lows: 3 1/3rd to 1/7th of last 4 year peak levels
Slide 5: 90+ Static Pool: Mortgages & SME
90+ Static Pool: Mortgages & SME Recent vintage delinquencies trending at multi-year lows: 4 1/3rd to 1/7th of last 4 year peak levels
Slide 6: NIM Strategy
NIM Strategy Disbursement Yield (%) 16.9% 16.1% 15.9% 15.8% Apr-19 May-19 Jun-19 Jul-19 Q1 FY20 Disbursement yield at 15.9% Projecting Q2 FY20 Disbursal yield 100bps higher (weighted for entire company) In ABF, it is through product-mix change majorly and approx. 20bps increase in per product
Slide 7: Credit Losses – Higher in Q1; recovery expected in Q2-Q4
Credit Losses – Higher in Q1; recovery expected in Q2-Q4 Table A Rs. Crs Collection efficiency impacted by seasonality and weak macros - 96.1% vs 97.7% (YoY) Q1 FY20 Reported Simulated • Successfully contained assets in lower buckets: Provision 25 85 • Better YoY roll forwards into 90+ but lesser ro
Slide 8: Investment in ABF Leadership
Investment in ABF Leadership Search for new CEO-ABF initiated Mahender Bagrodia elevated to Chief Business Officer-ABF…current Chief Credit Officer, past Zonal Business Head In addition to handling Credit & Collections, will also lead Business (driven by existing NBH) Current Chief Strategy
Slide 9: Corporate Governance: Key Focus
Corporate Governance: Key Focus Board comprises of 6 Directors: 4 Independent Directors, and 2 Promoter Directors Chairman of Board, Audit Committee and NRC are Independent Directors. Experienced management team with proven track record, VC&MD provides strategic direction Effective Monitorin
Slide 10: Key Management Team (1/2)
Key Management Team (1/2) Mr. Manish Jaiswal, CEO of Magma Housing Finance & SME Business Mr. Jaiswal is an engineer from VNIT, Nagpur and has done his Fast Track General Management from IIM, Bangalore. He has over 25 years of rich corporate experience and joined Magma after a very successful stint
Slide 11: Key Management Team (2/2)
Key Management Team (2/2) Mr. Rajneesh Mishra, Chief People Officer Rajneesh Mishra is the Chief People Officer of our Company. He holds a bachelor’s degree in Commerce and a bachelor’s degree in law from Pt. Ravishankar Shukla University, Raipur. He also holds a master’s degree in Personnel Managem
Slide 12: Enterprise wide, independent risk management framework
Enterprise wide, independent risk management framework 11 11
Slide 13: Magma: Looking Ahead
Magma: Looking Ahead FinTech Enablement: Launched Enterprise-wide Technology Transformation: ‘Project Navoday’ Expecting 20-40% improvement in productivity (reduction in Opex) modernize entire Technology stack: LOS, LMS, Data Warehouse, ERP, Mobility solutions Geo-tagging, Better Risk controls
Slide 14: Thank You
Thank You 13 13