Shriram Finance Limited · NSE:SHRIRAMFIN
Shriram Finance — Q3 FY2024 Earnings Presentation
68 slides from Shriram Finance's earnings presentation, Jan 25, 2024
Slide 1: Investor Presentation – Q3 & 9M FY2024
Just another milestone in our growth journey Shriram Finance Limited Investor Presentation – Q3 & 9M FY2024 January 25, 2024
Slide 2: Agenda
Company Overview 3 Business Model/Competitive Strengths 7 Market Dynamics & Growth Strategy 10 Organizational Structure 15 Shriram super App 22 Performance Track Record 30 Recent Performance – Q3 FY24 40 Shriram Housing Finance (SHFL) 54 Consolidated Numbers 63 2
Slide 3: Company Overview
COMPANY OVERVIEW 3
Slide 4: Company Snapshot
Company Snapshot Leading player in organized high yield pre-owned CV financing segment and Two-wheeler segment. Diversified Portfolio – PCV’s, Construction Equipment, Tractor Financing, Personal Loans, Gold Loans, MSME Finance Over 8.22 million customers Large network of 3,037 Branch offices and 700
Slide 5: Corporate History
Corporate History Securitised Rs. 87.57 Tied up with Merger of Shriram bn during FY 2010. Citicorp for CV Investment Ltd. and financing under Shriram Overseas Successfully raised Portfolio Finance Ltd. with Rs. 5.84 bn through Management STFC; PAT crosses QIP with domestic & Services (PMS) R
Slide 6: Corporate History
Corporate History Successfully Raised maximum Shriram City Union Finance Limited and Shriram Capital Limited merged raised Rs. 13.5 permissible US$ Raised Rs. 14.92 bn with Shriram Transport Finance Company Limited and was renamed as Bn through 750 million through through right issue in Shri
Slide 7: Business Model / Competitive Strengths
BUSINESS MODEL / COMPETITIVE STRENGTHS 7
Slide 8: Strategic Presence In High Yield Used CV Segment
Strategic Presence In High Yield Used CV Segment CV Financing Business Model Pre-Owned New Age of Truck 1 2 3 4 5 6 7 8 9 10 11 12 Lending Rates 14-16% 16-24% 12-16% Small truck owners (less than 5 trucks) with underdeveloped Existing customer base upgrading to new trucks Target Segment banking
Slide 9: Valuation Expertise & Relationship Based Model
Valuation Expertise & Relationship Based Model Knowledge Driven Valuation Model Critical Success Factor Vehicle Assessment Loan Amount Valuation EMI Old CVs 60-70% LTV Ratio Repayment Ability New CVs 75-80% LTV Ratio SFL has right mix of scale and skill Awareness of load structure / business mix Rel
Slide 10: Market Dynamics & Growth Strategy
MARKET DYNAMICS & GROWTH STRATEGY 10
Slide 11: Strong Industry Potential – Commercial Vehicles
Strong Industry Potential – Commercial Vehicles Market Potential (Rs. bn) Trucks (mn) Market for second hand truck financing is under penetrated with 55-60% of the market with private financiers / money lenders who 3,845 27% charge high interest rates 33% Stringent traffic regulations in major c
Slide 12: Strong Industry Potential – Other Portfolio Segments
Strong Industry Potential – Other Portfolio Segments Construction Two Wheelers Passenger Vehicles Tractor Financing Automall Equipment (Only New) Market Size Rs. 1,260 billion NA Rs. 1,000 billion Rs. 5,300 billion Rs. 1,600 billion (FY24) PM Gati Shakti with Access to ready Key Driver Personal Mobi
Slide 13: Transportation Model – Multiple Financing Opportunities
Transportation Model – Multiple Financing Opportunities Hub and Spoke Transportation Model Long Haul Medium Haul Short Haul Last Mile >800 kms 350-800 kms 50-350 kms <50 kms Load re-distributed from few large hubs in major regions of the country to large number of touch points in the hinterland CV L
Slide 14: Growth Strategy
Growth Strategy Strengthening presence Introduction of top-up and expanding reach products like finance for tyres, working capital and Increase penetration into engine replacement rural and urban centers Target AUM (Rs. bn) Economies of scale - Increase penetration of incremental cost of n
Slide 15: Organizational Structure, Management Team & Board of Directors
ORGANIZATIONAL STRUCTURE, MANAGEMENT TEAM & BOARD OF DIRECTORS 15
Slide 16: Branch Offices
Geographical Units (GU) Urban Semi-urban Rural Total Geographical Units (GU) Urban Semi-urban Rural Total Branches GU1 Branches Puducherry - 7 7 14 GU5 Tamil Nadu 73 200 428 701 GU1 Total 73 207 435 715 Assam - 12 18 30 GU2 Chhattisgarh 5 18 50 73 Andhra Pradesh 30 115 153 298 Odisha - 23 29 52 Karn
Slide 17: Professional Management Team with Vast Industry Experience
Professional Management Team with Vast Industry Experience • Joined as an Executive Trainee in 1987. He has been associated with Shriram Group for over 35 years Umesh Revankar and has shouldered various responsibilities and worked in several key roles of business operations. Executive Vice- • Holds
Slide 18: Professional Management Team with Vast Industry Experience
Professional Management Team with Vast Industry Experience • Commerce Graduate, a Fellow of Cost and Management Accountants of India. R. Chandrasekar • Has been serving the Shriram Group for more than 3 decades in the areas of Finance, Accounts and other back office functions. CCO and Joint Managing
Slide 19: Board of Directors
Board of Directors • Holds M.A. (Economics) from Delhi School of Economics and Post Graduate in Economics from Boston University, USA Jugal Kishore Mohapatra • IAS, Odisha Cadre, Currently, non-executive Chairman of India International Bullion Exchange IFSC Limited (IIBX) and Nominee Director of Fou
Slide 20: Board of Directors
Board of Directors • Joined as an Executive Trainee in 1987. He has been associated with Shriram Group for over 35 years Umesh Revankar and has shouldered various responsibilities and worked in several key roles of business operations. Executive Vice-Chairman • Holds a degree in MBA Finance. • Appoi
Slide 21: Board of Directors
Board of Directors • Joined CV Finance business of Shriram Group in 1992 as Head of Investment Servicing. • Currently serves as Managing Director of Shriram Capital Private Limited. D V Ravi • Spearheaded several successful M&A’s for TAKE Solutions Ltd. Director • Started his career in Strategy and
Slide 22: Shriram Super App
Shriram Super App 22
Slide 23: Overview
Overview Horizontals Popular Paytech Services Product Popular journey games Service 23
Slide 24: Lists of Modules
Lists of Modules - 105 Horizontal Work in Progress Completed - in CUG Identity Access Management Credit Score Products Onboarding Collections Home Screen | Bottom Nav| Profile Settings Hamburger Investment Plans Two Wheeler Loan Voucher Four Wheeler insurance BBPS - 23 UPI Savings Plans Mini Program
Slide 25: Customer Journey
Customer Journey 1 3 5 7 Engagement Engagement Cross Sell (Pre Onboarding) Collections (Application) • Target Audience • Drop-off • Insurance (LI/GI) • Allocation assistance • HEMI • Intent/Context • Skip tracing • Credit Card • Channel • Consumer • Timing Durable • Card Protection • Content Plan •
Slide 26: ShriramOne
ShriramOne 1 2 3 Shriram One is an It manages all the needs a user could We are moving with an end goal of One stop solution have in one place such as having everything from social for all of user’s financial needs. loans, payments, investments, networking, shopping, banking services, and more. Insu
Slide 27: ShriramOne - Screens
ShriramOne - Screens Home Screen UPI Home Page BBPS Home Page My Accounts Refer a Friend 27
Slide 28: Customer Launch Overview
Customer Launch Overview 18th September 27th September Launched on Google Play Launched on iOS App store store What next? Onboarding the exisitng set of SFL Customers on ShriramOne 28
Slide 29: Shriram One App Summary
Shriram One App Summary Data: Launch till date* 1,316,937 Total Installations BBPS UPI FD Overview Overview Overview TXNs Value TXNs Value Leads Value 13,16,937 12,62,534 157K 328 Mn 1100K 673 Mn 22K 102 Mn 4,88,680 3,86,678 2,59,779 1,20,385 1,39,394 Installs Onboarded UPI Register 1st UPI Payment
Slide 30: Performance Track Record
* SHRIRAM Finance PERFORMANCE TRACK RECORD
Slide 31: Strong Financial Track Record
Strong Financial Track Record P&L Metrics (Rs. mn) FY19 FY20 FY21 FY22 FY23* Interes t Income (Incl . Securi ti za ti on) 154,441.4 164,773.1 173,346.6 191,806.2 296,396.0 Les s : Interes t Expens es 76,366.0 83,703.3 91,675.6 98,645.6 126,766.0 Net Interest Income 78,075.4 81,069.8 81,671.0 93,160.
Slide 32: Strong Financial Track Record
Strong Financial Track Record Balance Sheet Metrics (Rs. mn) FY19 FY20 FY21 FY22 FY23* - On Books 8,50,847.3 1,085,017.1 1,161,916.0 1,256,990.3 1,833,384.2 - Off Books 1,93,975.6 12,475.3 10,512.3 13,418.3 23,444.4 Total AUM 10,44,822.9 1,097,492.4 1,172,428.3 1,270,408.6 1,856,828.6 - New Vehi cl
Slide 33: Healthy Asset Quality (as per IndAS)
Healthy Asset Quality (as per IndAS) Particulars (Rs. mn) FY19 FY20 FY21 FY22 FY23* Gross Stage 3 86,222.7 91,797.1 82,952.1 88,875.5 113,821.8 ECL provision-Stage 3 29,670.0 31,886.5 34,885.3 44,415.0 57,073.2 Net Stage 3 56,552.7 59,910.6 48,066.8 44,460.5 56,748.6 Gross Stage 3 (%) 8.37% 8.36% 7.
Slide 34: Access to Low Cost Funds
Access to Low Cost Funds Mar'19 Mar'20 Mar'21 Mar'22 Mar'23@ Product Amt in bn % Amt in bn % Amt in bn % Amt in bn % Amt in bn % Commercial Paper 35.04 3.98% - - - - - - - - Non-Convertible Debentures 253.43 28.81% 204.55 21.67% 213.93 20.14% 213.54 18.65% 302.45 19.15% Public Deposit 103.15 11.73%
Slide 35: Well-Capitalized Balance Sheet
Well-Capitalized Balance Sheet Capital Adequacy Ratio at 22.61% (Tier I - 21.20%, Tier II - 1.41%) as on March 31, 2023 vs 15% mandated by RBI Networth (Rs. mn) CRAR (%) Book Value (Rs.) 22.61% 21.99% 20.27% 22.50% 22.97% 1,156.61 17.38% 958.61 852.30 793.59 697.99 598.35 1,35,479 1,58,087 1,79,77
Slide 36: Credit rating as on December 31, 2023
Credit rating as on December 31, 2023 Credit Rating Agency Instruments Ratings as on 31.12.2023 CARE Commercial Paper CARE A1+ CARE Non-convertible debentures CARE AA+/Stable CARE Subordinate debt CARE AA+/Stable CRISIL Bank Loan Long-term CRISIL AA+/Stable CRISIL Bank Loan Short-term CRISIL A1+ CRI
Slide 37: Shareholding Pattern as on December 31, 2023 vs December 31, 2022
Shareholding Pattern as on December 31, 2023 vs December 31, 2022 No. of shares outstanding: 375.6 mn No. of shares outstanding: 374.4 mn Public , Other Public, 4.91% 4.61% Promoter Other Corporat Promoters s& Corporate e Body , Body , & 0.80% Promoter Promoters s group*, 8.59% group, 25.43% MF/Bank
Slide 38: Consistent track record attracted reputed institutional and private equity investors
Consistent track record and high growth potential has attracted reputed institutional and private equity investors to infuse growth capital Details of last Equity fund raising : 1. On November 25, 2021, allotted 1.736 mn equity shares of face value of Rs. 10/- each aggregating to Rs. 2.5 bn to S
Slide 39: List of Key Shareholders as on December 31, 2023
List of Key Shareholders as on December 31, 2023 Key Shareholders Shareholding As % on December 31, 2023 (mn Shares) Promoter and Promoter Group 95.5 25.43 Government of Singapore 18.6 4.96 Government Pension Fund Global 8.7 2.31 Kotak Mahindra Trustee Co Ltd. (under diff sub accounts) 8.6 2.28 BNP
Slide 40: Recent Performance
Ke SHRIRAM Finance RECENT PERFORMANCE
Slide 41: Performance Highlights – Q3 FY24 vs Q3 FY23
Performance Highlights – Q3 FY24 vs Q3 FY23 Q3 FY24 Rs 89,273.0 mn Total Income 17.28 % Q3 FY23 Rs 76,121.1 mn Q3 FY24 Rs 50,939.3 mn Net Interest Income** 15.04 % Q3 FY23 Rs 44,278.8 mn **including Net Direct assignment Income Rs. 731.2 Mn (Q3 FY23 Rs. 401.8 Mn) Q3 FY24 Rs 18,183.4 mn PAT 2.33 % Q3
Slide 42: Performance Highlights – 9M FY24 vs 9M FY23
Performance Highlights – 9M FY24 vs 9M FY23 9M FY24 Rs 254,997.6 mn Total Income 15.73 % 9M FY23 Rs 220,337.4 mn 9M FY24 Rs 143,507.9 mn Net Interest Income** 14.65 % 9M FY23 Rs 125,171.8 mn **including Net Direct assignment Income Rs. 2,532.2 Mn (9M FY23 1,452.6 Rs. mn) 9M FY24 Rs 52,446.2 mn PAT 1
Slide 43: Performance Highlights – Q3 FY24 vs Q3 FY23
Performance Highlights – Q3 FY24 vs Q3 FY23 Q3 FY24 Rs 2,142,334.7 mn AUM 20.70 % Q3 FY23 Rs 1,774,980.2 mn Q3 FY24 Rs 119,522.6 mn Gross Stage 3 Assets 8.08 % Q3 FY23 Rs 110,586.1 mn Q3 FY24 Rs 55,730.0 mn Net Stage 3 Assets 2.25 % Q3 FY23 Rs 54,505.5 mn Q3 FY24 Rs 1,252.8 Book Value 10.58 % Q3 FY2
Slide 44: AUM Break-up
AUM Break-up Particulars (Rs. mn) Q3 FY24 Q2 FY24 Q1 FY24 Q3 FY23 YoY (%) QoQ (%) FY23 Loan Portfolio - On Books Balance sheet assets 1,876,421.2 1,760,067.7 1,677,638.3 1,567,662.6 19.70% 6.61% 1,620,893.0 Securitised assets 234,140.5 235,879.3 229,580.5 190,749.6 22.75% -0.74% 212,491.2 Total On b
Slide 45: Segment-wise AUM Break-up
Segment-wise AUM Break-up Product Q3 FY24 Q2 FY24 Q1 FY24 Q3 FY23 YoY (%) QoQ (%) FY23 (Rs. mn) Amt % Amt % Amt % Amt % Amt % Commercial Vehicles 1,024,651.2 47.83% 984,362.7 48.58% 959,047.4 49.64% 906,152.4 51.05% 13.08% 4.09% 932,949.2 50.24% Passenger Vehicles 415,342.1 19.39% 396,935.1 19.59% 3
Slide 46: Branch & AUM distribution – Q3 FY24 vs Q3 FY23
Branch & AUM distribution – Q3 FY24 vs Q3 FY23 Branch (Nos) Urban, AUM (Rs in bn) Urban, 314.5 Rural, 1,065.8 401 Rural, 1,598 Q3 FY24 Q3 FY24 Semi- Urban, Semi-Urban, 1,038 762.0 Total Branch 3,037 Total AUM Urban, Rural, Rs 2,142.3 bn 401 Urban, 269.3 Rural, 867.7 1,502 Q3 FY23 Q3 FY23 Semi- Total
Slide 47: Provision Analysis
Provision Analysis Particulars (Rs. in mn) Q3 FY24 Q2 FY24 Q1 FY24 Q3 FY23 YoY (%) QoQ (%) FY23 Gross Stage 3 119,522.6 115,563.2 115,088.8 110,586.1 8.08% 3.85% 113,821.8 ECL provision-Stage 3 63,792.6 61,361.5 60,475.4 56,080.6 13.75% 5.49% 57,073.3 Net Stage 3 55,730.0 54,201.7 54,613.5 54,505.5
Slide 48: Product wise Provision Analysis – Dec’23
Product wise Provision Analysis – Dec’23 Particulars (Rs. mn) Commercial Passenger Construction Farm Two Personal Vehicles Vehicles Equipments Equipments MSME Wheelers Gold Loans Total Gross Stage 3 61,940.6 22,013.4 10,619.1 3,182.2 11,792.8 4,046.1 1,127.8 4,800.7 119,522.6 ECL provision-Stage 3 3
Slide 49: P&L Statement
P&L Statement Particulars (Rs. mn) Q3 FY24 Q2 FY24 Q1 FY24 Q3 FY23 YoY (%) QoQ (%) 9M FY24 9M FY23 YoY (%) FY23 Interest income 88,438.7 84,805.1 79,566.7 75,699.1 16.83% 4.28% 252,810.5 219,230.1 15.32% 296,396.4 Interest expended 37,499.4 36,623.3 35,179.9 31,420.3 19.35% 2.39% 109,302.6 94,058.3
Slide 50: Summarised Balance Sheet
Summarised Balance Sheet Particulars (Rs. mn) Dec-23 Sep-23 Jun-23 Dec-22 YoY(%) QoQ (%) Mar-23 I. Assets Financial Assets a) Cash and bank balances 126,028.7 106,756.7 150,044.0 167,437.1 -24.73% 18.05% 158,174.1 b) Loans 1,978,955.9 1,871,727.9 1,788,461.9 1,650,433.4 19.91% 5.73% 1,719,845.8 c) I
Slide 51: Key Metrics – Q3 FY24
Key Metrics – Q3 FY24 P&L Metrics (Rs. mn) Q3 FY24 Q2 FY24 Q1 FY24 Q3 FY23 YoY (%) QoQ (%) 9M FY24 9M FY23 YoY (%) FY23 Interest Income 88,438.7 84,805.1 79,566.7 75,699.1 16.83% 4.28% 252,810.5 219,230.1 15.32% 296,396.4 Less: Interest Expenses 37,499.4 36,623.3 35,179.9 31,420.3 19.35% 2.39% 109,3
Slide 52: Borrowing Profile
Borrowing Profile Q3 FY24 Q2 FY24 Q3 FY23 Q4 FY23 Product Amt in bn % Amt in bn % Amt in bn % Amt in bn % Commercial Paper 24.6 1.39% 17.8 1.08% - 0.00% - 0.00% Non-Convertible Debentures 309.5 17.44% 288.5 17.45% 325.9 21.26% 302.4 19.15% Public Deposit 431.2 24.30% 408.0 24.68% 344.9 22.49% 4.6 0.
Slide 53: ALM Statement as on December 31, 2023
ALM Statement as on December 31, 2023 Over one Over 2 Over 3 Over 6 Over one Over 3 to Particulars (Rs. mn) One month month to 2 months to 3 months to months to year to 3 Over 5 years Total 5 years months months 6 months one year years Total Outflows 82,206.40 54,993.70 138,296.60 158,865.70 267,064
Slide 54: Shriram Housing Finance Limited (SHFL)
SHRIRAM HOUSING FINANCE LIMITED (SHFL) 54
Slide 55: AUM Break-up
AUM Break-up Particulars (Rs. mn) Q3 FY24 Q2 FY24 Q1 FY24 Q3 FY23 YoY (%) QoQ (%) FY23 Loan Portfolio - On Books Balance sheet assets 87,822.7 82,761.1 73,901.7 57,518.1 52.69% 6.12% 63,636.3 Securitised assets 8,913.4 6,947.0 6,027.4 2,864.7 211.15% 28.30% 3,700.1 Total On books 96,736.1 89,708.1 7
Slide 56: Assets under Management
Assets under Management Segment (Rs. mn) Q3FY24 Q2 FY24 Q1 FY23 Q3 FY23 YoY (%) QoQ (%) FY23 HL 66,580.3 60,515.4 54,615.6 42,520.2 56.58% 10.02% 47,487.5 LAP 43,612.8 38,428.7 32,101.6 20,412.7 113.65% 13.49% 24,153.4 MLAP 298.8 74.5 1.7 - - 301.23% - Top up 5,937.7 5,291.1 4,619.4 3,475.2 70.86% 1
Slide 57: P & L Statement
P & L Statement Particulars (Rs. mn) Q3 FY24 Q2 FY24 Q1 FY24 Q3 FY23 YoY (%) QoQ (%) 9M FY24 9M FY23 YoY (%) FY23 Interest income 2,999.5 2,734.4 2,310.6 1,802.3 66.43% 9.69% 8,044.5 4,738.0 69.79% 6,611.0 Interest expended 1,963.8 1,760.1 1,457.9 1,026.1 91.38% 11.57% 5,181.8 2,716.0 90.79% 3,922.8
Slide 58: Summarized Balance Sheet
Summarized Balance Sheet Particulars (Rs. mn) Dec-23 Sep-23 Jun-23 Dec-22 YoY(%) QoQ (%) Mar-23 I. Assets Financial Assets a) Cash and bank balances 5,607.9 4,836.2 3,387.8 1,388.8 303.78% 15.96% 4,895.4 b) Loans 95,962.8 89,008.0 79,328.1 59,812.4 60.44% 7.81% 66,813.5 c) Investments 2,532.3 2,537.
Slide 59: Provision Analysis
Provision Analysis Particulars (Rs. in mn) Q3 FY24 Q2 FY24 Q1 FY24 Q3 FY23 YoY (%) QoQ (%) FY23 Gross Stage 3 975.0 969.1 798.0 696.4 40.00% 0.61% 624.3 ECL provision-Stage 3 248.8 230.7 197.5 169.8 46.56% 7.87% 158.8 Net Stage 3 726.2 738.5 600.5 526.6 37.89% -1.66% 465.5 Gross Stage 3 (%) 1.01% 1.
Slide 60: Key Metrics
Key Metrics P&L Metrics (Rs. mn) Q3 FY24 Q2 FY24 Q1 FY24 Q3 FY23 YoY (%) QoQ (%) 9M FY24 9M FY23 YoY (%) FY23 Interest Income 2,999.5 2,734.4 2,310.6 1,802.3 66.43% 9.69% 8,044.5 4,738.0 69.79% 6,611.0 Less: Interest Expenses 1,963.8 1,760.1 1,457.9 1,026.1 91.38% 11.57% 5,181.8 2,716.0 90.79% 3,922
Slide 61: Shriram Automall India Limited (SAMIL)
Associate Shriram Automall India Limited (SAMIL) 61
Slide 62: Associate
Associate Shriram Automall India Limited (SAMIL), an ISO 9001:2015 certified company, is India's Largest Phygital Pre-owned Marketplace connecting pre-owned vehicles and equipment buyers and sellers. SAMIL began its journey in 2011 by setting up India's first professionally managed and organized
Slide 63: Consolidated Numbers
Consolidated Numbers 63
Slide 64: Financial Performance (Consolidated)
Financial Performance (Consolidated) Particulars (Rs. mn) Q3 FY24 Q2 FY24 Q1 FY24 Q3 FY23* YoY (%) QoQ (%) 9M FY24 9M FY23 YoY (%) FY23 Interest income 92,222.0 88,087.8 82,446.1 77,563.2 18.90% 4.69% 262,755.9 224,124.2 17.24% 303,440.0 Interest expended 39,472.9 38,394.9 36,645.9 32,449.7 21.64% 2
Slide 65: Summarized Balance Sheet (Consolidated)
Summarized Balance Sheet (Consolidated) Particulars (Rs. Mn) Dec-23 Sep-23 Jun-23 Dec-22 YoY (%) QoQ (%) Mar-23 I. Assets Financial Assets a) Cash and bank balances 131,636.7 111,592.9 153,431.8 168,826.0 -22.03% 17.96% 163,069.5 b) Loans 2,074,769.9 1,960,676.9 1,867,850.4 1,710,557.8 21.29% 5.82%
Slide 66: About Us
About Us About Shriram Finance Ltd. Shriram Finance Limited is the flagship company of the Shriram group which has significant presence in Consumer Finance, Life Insurance, General Insurance, Housing Finance, Stock Broking and Distribution businesses. Shriram Finance Limited is one of India’s larges
Slide 67: For any Investor Relations queries please contact
Contact Us For any Investor Relations queries please contact Sanjay K. Mundra Shriram Finance Limited Email: smundra@shriramfinance.in Tel. No. +91-22-4095 9507 67
Slide 68: Thank You
Thank You 68