Csl Finance Limited · NSE:CSLFINANCE
Csl Finance — Q2 FY2024 Earnings Presentation
38 slides from Csl Finance's earnings presentation, Nov 6, 2023
Slide 1: Cover letter to stock exchanges
CIN: L74899DL1992PLC051462 November 06, 2023 National Stock Exchange of India Limited BSE Limited Exchange Plaza, C-1, Block-G, Bandra Corporate Relationship Department Kurla Complex, Bandra (E), Mumbai - Phiroze, Jeejeebhoy Towers, Dalal Street, 400051 Mumbai-400001 NSE Symbol: CSLFINANCE BSE Scrip
Slide 2: Q2FY24 Investor Presentation
November 2023 Q2FY24 Investor Presentation
Slide 3: Quarterly Business Update
CSL FINANCE LIMITED 2 Quarterly Business Update Loan Book Size Asset Quality Asset Quality: Stage Analysis P&L Highlights Treasury Update Quarterly Financial Snapshot Operational Updates Lending Partners
Slide 4: Business Growth YoY
CSL FINANCE LIMITED 3 Business Growth YoY Q2’24 Q2’24 Q2’24 ₹858 Cr ₹297 Cr Consistent Performance 43% Loan Book 30% Disbursement 99% 99% Collection Efficiency ₹599 Cr ₹228 Cr Q2’23 Q2’23 Q2’23 Q2’24 Q2’24 Q2’24 ₹28.8 Cr ₹14.8 Cr 45:55 8% Shift in Favour 35% NII 32% PAT of SME Retail Loan Book Mix (
Slide 5: Loan Book Size
CSL FINANCE LIMITED 4 Loan Book Size DISBURSEMENTS COLLECTIONS LOAN BOOK COLLECTION EFFICIENCY (₹ crore) 30% 58% (₹ cr o r e ) -9% -14% (₹ crore) 43% 20% (%) YOY Change QOQ Change YOY Change QOQ Change YOY Change QOQ Change 296 173 32 99 99 99 99 99 163 149 29 228 187 187 105 147 82 858 681 736 715
Slide 6: Asset Quality
CSL FINANCE LIMITED 5 Asset Quality GROSS NPA NET NPA PROVISIONAL COVERAGE RATIO WRITE-OFFS & RECOVERIES -29 BPS -20 BPS -16 BPS -11 BPS (%) (%) (%) (₹ crore) YOY Change QOQ Change YOY Change QOQ Change 0.84 0.9 0.75 224 0.72 206 0.9 0.48 0.8 0.43 0.7 0.61 0.42 173 175 0.55 161 0.6 0.35 0.6 0.32 0.4
Slide 7: Asset Quality: Stage Analysis
CSL FINANCE LIMITED 6 Asset Quality: Stage Analysis CLASSIFICATION OF ASSETS BASIS THE ECL COMPUTATION AS PER IND-AS: PARTICULARS Q2FY23 Q1FY24 Q2FY24 Gross Stage 3 (GNPA) 4.97 5.34 4.55 % portfolio in Stage 3 0.84% 0.75% 0.55% ECL provision Stage 3 2.09 2.26 1.92 Net Stage 3 2.88 3.07 2.63 ECL Prov
Slide 8: P&L Highlights
CSL FINANCE LIMITED 7 P&L Highlights NET INTEREST INCOME TOTAL INCOME PROFIT AFTER TAX YIELDS (₹ crore) 35% 15% (₹ crore) 41% 23% (₹ crore) 32% 12% (%) YOY Change QOQ Change YOY Change QOQ Change YOY Change QOQ Change 38.5 18.1 18.3 18.1 28.8 14.8 17.6 17.8 35.5 33.8 16.7 16.7 16.6 16.6 16.9 25.0 31
Slide 9: Treasury Update
CSL FINANCE LIMITED 8 Treasury Update LEVERAGE LIQUIDITY (Time) (₹ crore) 1 The Company has adequate liquidity of ₹ 41.30 crore & ₹ 53 crore as undrawn Credit facilities as on 30th September 2023 1.13 2 The Company has 0.98 0.96 0.96 53.0 positive ALM across the buckets 0.78 3 Credit Rating for the
Slide 10: Quarterly Financial Snapshot
CSL FINANCE LIMITED 9 Quarterly Financial Snapshot (₹ crore) PARTICULARS Q2FY23 Q1FY24 Q2FY24 Disbursements 227.60 187.07 297.37 Revenue 27.40 35.49 38.53 Interest Income 25.39 31.26 33.94 PBT 15.05 18.18 20.25 PAT 11.20 13.24 14.82 Bad debts written off 0.01 0.94 0.74 Bad debts recovered 0.62 0.85
Slide 11: Operational Updates
CSL FINANCE LIMITED 10 Operational Updates NET INTEREST INCOME & LOAN BOOK SUVIDHA LOANS PROFITABILITY • The Loan Book has shown robust growth of 20% QoQ • The pilot launch of Suvidha Loans - an unsecured loan based on • Both NII and PAT have registered a growth of and 43% YoY, reaching ₹858 Cr. We
Slide 12: Lending Partners
CSL FINANCE LIMITED 11 Lending Partners Banks & SFBs NBFC Kotak Mahindra Investments Limited
Slide 13: 5Y Financial Snapshot
CSL FINANCE LIMITED 12 5Y Financial Snapshot (₹ crore) PARTICULARS FY20 FY21 FY22 FY23 H1FY24 Disbursements 270.10 433.32 491.10 758.72 484.44 Revenue 60.85 61.67 74.62 117.54 74.02 Interest Income 58.42 59.18 67.66 108.54 65.20 PBT 31.74 39.36 44.98 61.47 38.43 PAT 22.47 27.53 33.68 45.52 28.06 Bad
Slide 14: About CSL Finance
CSL FINANCE LIMITED 13 About CSL Finance Introduction & Snapshot Wholesale Business Verticals & Products SME Retail
Slide 15: Introduction
CSL FINANCE LIMITED 14 Introduction CSL Finance Limited is a Non-Banking Finance ₹858 Crore BBB+ Company registered with the Reserve Bank of Loan Book Rated India and listed on the NSE and BSE. The Company is a one-stop destination for Small and Medium-Sized Enterprises (SMEs) and real estate and no
Slide 16: Business Verticals & Products
CSL FINANCE LIMITED 15 Business Verticals & Products SME SME Fabricator Wholesale Retail Loan WS SME SME WS WS OTHER SME MID- FABRICATOR LARGE SMALL TERM RETAIL SIZED LOAN LOAN LAP Structured loans for Construction loan Loan against SORP/SOCP Micro/Small Loans to Kirana Loan against properties Purch
Slide 17: Wholesale Business Vertical
CSL FINANCE LIMITED 16 WHOLE- SALE BUSINESS VERTICAL Niche, focused, real estate wholesale book Focused on secured lending book (100% of the book) Built on in-depth expertise of NCR and all its micro-markets Strength in affordable housing segment Robust collection framework via escrow accounts
Slide 18: Wholesale (1/2)
CSL FINANCE LIMITED 17 BETTER CUSTOMER SELECTION: STRONG SOURCING • Presence in strategically selected micro-markets of NCR • Excellent understanding of dynamics of each micro-market • Customer selection based on end-use demand • Primarily involved in last-mile funding, thus reducing project executi
Slide 19: Wholesale (2/2)
CSL FINANCE LIMITED 18 Wholesale (2/2) ACTIVE ACCOUNTS AVERAGE LOAN-TO-VALUE AVERAGE TICKET SIZE AVERAGE TENURE (#) (%) (₹ crore) (Year) 36 38 71 34 12 12 3 3 3 3 3 33 64 63 31 52 49 11 11 10 Q2FY23 Q3FY23 Q4FY23 Q1FY24 Q2FY24 Q2FY23 Q3FY23 Q4FY23 Q1FY23 Q2FY23 Q2FY23 Q3FY23 Q4FY23 Q1FY24 Q2FY24 Q2F
Slide 20: Wholesale Large: Affordable Group Housing
CSL FINANCE LIMITED 19 Wholesale Large: Affordable Group Housing 48% Contribution to Salient Salient Features Features Wholesale loan book 1 Approved projects under the 3 Committed Affordable Housing Policy of Haryana Receivables are 3x of Government existing POS 2 Time-linked payment 4 Average tick
Slide 21: Wholesale Large: Mid-Income Group Housing
CSL FINANCE LIMITED 20 Wholesale Large: Mid-Income Group Housing 19% Contribution to Wholesale Salient Features loan book 1 Last-mile funded Mid-Income 3 Committed Receivables are Group Housing projects 3x of existing POS 2 Located in NCR region 4 Average ticket size of units is under ₹60 Lakhs COMP
Slide 22: Wholesale Small: Small Builders
CSL FINANCE LIMITED 21 Wholesale Small: Small Builders 28% Contribution to Wholesale Salient Features loan book 1 Tenure of these loans is 5 Construction cost is a small under 36 months part of these projects 2 Small Builder Floors are G+4 floor 6 Feedback loop is fast and structure buildings demand
Slide 23: SME Retail Business Vertical
CSL FINANCE LIMITED 22 SME RETAIL BUSINESS VERTICAL Target market: Unbanked & underserved Using alternative data instead of conventional scorecards Swift loans and ease of application Small & flexible ticket sizes Achieving efficiency through digital transformation Focused on secured lending book (9
Slide 24: SME Retail (1/5)
CSL FINANCE LIMITED 23 SME Retail (1/5) PRODUCTS MID FABRICAT0R JYOTI SAARTHAK SHAKTI SAMADHAN NIRMAN SIZE LAP LOAN Loan Amount ₹2-7.5 ₹5-10 ₹7.5- 25 ₹25-50 ₹35-50 ₹1-5 ₹0.5-5 Lakhs Lakhs Lakhs Lakhs Lakhs Crores Lakhs TENOR (In Years) 3-4 5-6 7 7-8 7 2-3 45-90 Days Target Customer Small farmers, Sa
Slide 25: SME Retail (2/5)
CSL FINANCE LIMITED 24 SME Retail (2/5) PRESENCE 32% 20% BRANCH AGEING 8 Branches 6 Branches Rajasthan Gujarat <1 year 14% 15% 24% 3 Branches 6 Branches Punjab Haryana 1- 3 years 48% 2% 7% Clustered 1 Branch 2 Branches Approach to expanding branch network, based on New Delhi Uttarakhand understandin
Slide 26: SME Retail (3/5)
CSL FINANCE LIMITED 25 SME Retail (3/5) AUTOMATING WORKFLOW TO IMPROVE EFFICIENCY LOAN LOAN LOAN LOAN ORIGINATION EVALUATION DISBURSEMENT COLLECTION • Customer on-boarding & authentication • Multi Bureau checks + CIBIL Auto analysis • 100% cashless, E-disbursement of loan • Digital mobile App for fi
Slide 27: SME Retail (4/5)
CSL FINANCE LIMITED 26 SME Retail (4/5) Relying on a banking Migrated to a bespoke customer onboarding & loan Roadmap: customer onboarding & underwriting platform with multiple API integrations. Airtel Payments Bank loan underwriting platform Integration Data Analytics • BI Recent achievements: Dash
Slide 28: SME Retail (5/5)
CSL FINANCE LIMITED 27 SME Retail (5/5) ACTIVE ACCOUNTS AVERAGE LOAN-TO-VALUE AVERAGE TICKET SIZE AVERAGE TENURE (#) (%) (₹ Lakh) (Year) 2,396 34 34 34 13 2,076 2,171 26 26 10 10 11 1,876 9 6 6 6 6 6 SME 1,686 Q2FY23 Q3FY23 Q4FY23 Q1FY24 Q2FY24 Q2FY23 Q3FY23 Q4FY23 Q1FY24 Q2FY24 Q2FY23 Q3FY23 Q4FY23
Slide 29: Prudent Risk Management
CSL FINANCE LIMITED 28 Prudent Risk Management Well Managed ALM Conservative Leverage Standards
Slide 30: Well Managed ALM
CSL FINANCE LIMITED 29 Well Managed ALM Cumulative Inflow - 22 66 67 72 256 333 0 Outflow 441 439 257 103 97 106 92 63 69 41 50 49 24 15 >1 month >2-3 month >3-6 month >6-12 months 1-3 Years 3-5 Years Over 5 Years Inflow Outflow
Slide 31: Conservative Leverage Standards
CSL FINANCE LIMITED 30 Conservative Leverage Standards CONSERVATIVE LEVERAGE THRESHOLD 1.5-2X in Wholesale & <4X in SME 500 90% 450 Total Equity Leverage Ratio Capital Adequacy Ratio 80% 73% 79% 439 66% 400 65% 64% 70% 362 35 0 60% ₹54 51% 300 320 50% Crore 50% Equity Fund raise ₹48 25 0 in FY18 259
Slide 32: Leadership
CSL FINANCE LIMITED 31 Leadership Board of Directors Leadership Team
Slide 33: Board of Directors
CSL FINANCE LIMITED 32 Board of Directors Rohit Gupta Rachita Gupta Ashok Kumar Parmod Bindal Chander Subhash Ayush Mittal Managing Whole-time Kathuria Independent Kwatra Independent Director Director Director Director Independent Director Director Mr Rohit Gupta has over two decades of Ms Rachita i
Slide 34: Management Team
CSL FINANCE LIMITED 33 Management Team Work Experience Years at CSL Rohit Gupta Rachita Gupta Amit Ranjan Naresh Varshney Atul Agrawal Chandan Kumar Managing Director Whole-time Director Chief Operating Officer Chief Financial Officer President – Wholesale Credit Head Finance & Treasury 28+ 17+ 7+ 6
Slide 35: Strategy
CSL FINANCE LIMITED 34 Strategy Strategic Priorities Key Takeaways
Slide 36: Strategic Priorities
CSL FINANCE LIMITED 35 Strategic Priorities Leveraging Optimising Focusing Credit rating Rationalisation technology to branch on adding upgrade of portfolio strengthen performance competencies operations • In the recent credit rating review • The Company aims to rationalise its • The Company is work
Slide 37: Key Takeaways
CSL FINANCE LIMITED 36 Well Capitalised 01 CSL is a well-capitalised lender with a superior Capital Adequacy Ratio. BBB+ Rated 02 CSL has recently upgraded to BBB+, achieving the crucial AA credit rating will help in raising debt at competitive terms, and open doors to a new set of lenders. Key Deli
Slide 38: Safe Harbour
CSL FINANCE LIMITED 37 Safe Harbour This presentation may contain certain words or phrases that are forward - looking statements, which are tentative, based GET IN TOUCH on current expectations and on certain assumptions of the management of CSL Finance Limited (“CSL”). Actual results may vary from