Paisalo Digital Ltd. · NSE:PAISALO
Paisalo Digital — FY2023 Earnings Presentation
29 slides from Paisalo Digital's earnings presentation, May 16, 2023
Slide 1: Listing exchange cover letter for Investor Presentation
Date: May 16, 2023 The Manager The Listing Department Department of Corporate Relationship National Stock Exchange of India Limited BSE Limited Exchange Plaza, Bandra Kurla Complex 25th Floor P. J. Towers, Dalal Street Bandra (East) Mumbai -400 001 Mumbai -400 051 Scrip Code: 532900 (Equity) SCRIP S
Slide 2: Investor Presentation FY 2023
PAISALO DIGITAL LIMITED Investor Presentation FY 2023 A Systemically Important Non-Deposit Accepting Non-Banking Finance Company 1
Slide 3: Presentation Path
1. Financial Summary Presentation 2. Transformation Update Path 3. Paisalo Digital Limited Overview 4. Financial Performance 2
Slide 4: Financial Summary
Financial Summary FY 2023 3
Slide 5: Paisalo Snapshot FY 2023: AUM, Revenue, Networth
Paisalo Snapshot FY 2023 ₹ 34,928 mn ₹ 4,732 mn ₹ 11,610 mn AUM Revenue Networth YoY Growth ~ 29% YoY Growth ~ 21% YoY Growth ~ 13% Excellent year across all financial and portfolio metrics. Given the momentum, and robust portfolio metrics, we are confident about growth and portfolio metrics for FY2
Slide 6: Paisalo Snapshot FY 2023: PAT, CAR, NNPA
Paisalo Snapshot FY 2023 ₹ 936 mn 40.34 % 0.02 % PAT CAR NNPA YoY Growth ~ 18% Excellent year across all financial and portfolio metrics. Given the momentum, and robust portfolio metrics, we are confident about growth and portfolio metrics for FY24. 5
Slide 7: Paisalo Snapshot FY 2023
Paisalo Snapshot FY 2023 » Highest ever AUM of ₹ 34,928 Mn. » AUM as at Q4 FY 2023 was up 29.49% at ₹ 34,928 mn as against Q4 FY 2022 at ₹ 26,973 mn. » Total geographic footprint stood at to 1052 touchpoints* (220 Branches + 432 Business Correspondent CSPs + 400 Distribution Points) across 18 states
Slide 8: Paisalo Snapshot FY 2023
Paisalo Snapshot FY 2023 » Paisalo has written off bad debts totaling to INR 441 mn and has recovered old written off bad debts worth INR 177 mn in Q4 FY 2023. » The Tangible Networth is INR 11,610 mn versus Bank Borrowings (secured) INR 13,018 mn , i.e., 1.12 times » Capital Adequacy remained very
Slide 9: Paisalo Snapshot FY 2023
Paisalo Snapshot FY 2023 » The company had signed Co-Lending with Karnataka Bank in Q4 FY 2023, the same is expected to being roll out in Q2 FY 2024 in some locations. » INR 1,840 mn infused by Promoters through equity in FY 2023. » Fresh Debt Sanction cumulatively amounting to INR 5,250 mn received
Slide 10: Transformation Update
Transformation Update 9
Slide 11: Purpose of business transformation
At Paisalo we believe that the purpose of any business transformation is that it should result in stronger growth momentum, better customer experience, additional cross sell, lower credit risk, lower ALM risk and improved liquidity 10
Slide 12: Pursuing our Business Transformation with these objectives
We are Pursuing our Business Transformation with these objective’s 11
Slide 13: Phase 2 achieved in March 2023
Phase 2 : We achieved Phase 2 in the month of March 2023. Next target is to stabilise Phase 2 with focused credit underwriting feature set, disciplined execution, rapid adoption in all processes of the company and continued progress on all metrics, before initiating Phase 3 (5000 disbursements) Next
Slide 14: Paisalo Digital Limited Overview
Paisalo Digital Limited Overview 13
Slide 15: What do we Stand For
1. Disruption – Revolutionizing and Disrupting Rural Credit 2. High Tech : High Touch – What do we Engage and transact without friction to deliver a Stand For sustainable business model 3. Innovation – Focus on continuous innovation to transform customer experience and create growth opportunities 4.
Slide 16: Uniquely Positioned for Growth
1. Leader with a huge Early Mover advantage in “Co-Lending” 2. Offering easiest and cheapest product in its Uniquely market segment Positioned 3. Access to almost unlimited capital, relative to size for Growth 4. Negligible ‘Liquidity Risk’ 5. Negligible ‘Credit Risk’ 6. Negligible ‘ALM Risk’ 15
Slide 17: Key strategic differentiators
1. Leader with a huge Early Mover advantage in “Co- Lending” 2. A Unique and Scalable business model Key strategic 3. In-house Proprietary Digital Platform uses Data, AI and ML differentiators 4. Serviced 1.5 Mn+ customers 5. Paisalo has strong Brand Recognition in area of operations 6. Team of 1650
Slide 18: Executive Summary
§ Engaged in the business of providing convenient and easy loans to the financially excluded at bottom of India's economic pyramid § Lending business with an AUM of ₹ 34,928 Mn § Already serviced more than 1.5 million+ customers Executive § An experienced team of 1650 managing 1052 touch points in 1
Slide 19: Financial Performance
Financial Performance 18
Slide 20: Financials: quarterly
Q4 FY Q1 FY Q2 FY Q3 FY Q4 FY PARTICULARS 2022* 2023 2023* 2023* 2023* AUM ₹26,973 ₹27,174 ₹29,767 ₹30,107 ₹34,928 Disbursements ₹16,343 ₹4,752 ₹10,810 ₹16,239 ₹25,996 Revenue ₹3,922 ₹1,126 ₹2,329 ₹3,552 ₹4,732 PBT ₹1,071 ₹287 ₹613 ₹984 ₹1,262 PAT ₹793 ₹209 ₹451 ₹730 ₹936 FINANCIALS Net Worth Total
Slide 21: Financials: annual FY2020-FY2023
PARTICULARS FY 2020 FY 2021 FY 2022 FY 2023 AUM ₹21,119 ₹23,178 ₹26,973 ₹34,928 Interest Income ₹3,375 ₹3,115 ₹3,922 ₹4,732 NIM 6.47% 4.05% 4.03% 5.50% PAT ₹540 ₹609 ₹793 ₹936 Cash Accrual ₹580 ₹646 ₹819 ₹950 FINANCIALS Net worth ₹7,603 ₹8,619 ₹10,241 ₹11,610 Total Debt ₹10,701 ₹14,814 ₹15,989 ₹18,5
Slide 22: Financials: Critical Ratios
Particulars FY 2020 FY 2021 FY 2022 FY 2023 Tangible Net Worth ₹7,603 ₹8,619 ₹10,241 ₹11,610 (TNW) Bank Borrowings FINANCIALS (BB) ₹7,983 ₹7,412 ₹9,588 ₹13,018 Critical Ratios Total Outside ₹13,738 ₹14,814 ₹15,989 ₹18,567 Liabilities (TOL) BB / TNW 1.05 0.86 0.94 1.12 INR in Millions (Times) TOL / T
Slide 23: AUM and Revenue
AUM Revenue ₹4,732 ₹34,928 ₹3,922 ₹26,973 ₹3,177 ₹3,375 ₹3,115 ₹23,178 ₹21,119 ₹19,253 FY 2019 FY 2020 FY 2021 FY2022 FY2023 FY 2019 FY 2020 FY 2021 FY2022 FY2023 ₹ in Millions ₹ in Millions 22
Slide 24: Net Worth and CAR
Net Worth CAR 43.06% 44.47% 42.92% ₹11,610 40.34% ₹10,241 34.04% ₹8,619 ₹7,603 ₹6,447 FY 2019 FY 2020 FY 2021 FY2022 FY2023 FY 2019 FY 2020 FY 2021 FY 2022 FY 2023 ₹ in Millions 23
Slide 25: ROE and ROA
ROE ROA 8.81% 3.09% 7.78% 7.90% 3.02% 7.15% 7.07% 2.91% 2.61% 2.66% FY 2019 FY 2020 FY 2021 FY 2022 FY 2023 FY 2019 FY 2020 FY 2021 FY 2022 FY 2023 ₹ in Millions 24
Slide 26: Shareholding Pattern
Shareholding Pattern NSE: PAISALO BSE: PAISALO Bloomberg: PAISALO:IN 32.18% 23.56% 44.26% Promoter FIIs and DIIs Public & Promoters Group 25
Slide 27: Credit Rating
Credit Rating IVR ‘AA- (Stable Outlook)’ IVR ’A1+’ (for Commercial Paper) 26
Slide 28: Safe Harbor Statement
» This document contains certain forward – looking statements based on current expectations of Paisalo Digital Limited ’s management. Actual Results may vary significantly from the forward - looking statements in this document due to various risks and uncertainties. These risks and uncertainties inc
Slide 29: Thank You
THANK YOU Phone: Email: Website: +91 11 43-51-8888 ir@paisalo.in www.paisalo.in 28