Muthoot Capital Services Ltd. · NSE:MUTHOOTCAP
Muthoot Capital Services — Q2 FY24 Earnings Presentation
40 slides from Muthoot Capital Services's earnings presentation, Oct 27, 2023
Slide 1: Exchange filing cover letter for investor presentation
MCSL/SEC/23-24/208 October 27, 2023 BSE Limited National Stock Exchange of India Limited Phiroze Jeejeebhoy Towers Exchange Plaza, C-1, Block G, Dalal Street, Bandra Kurla Complex, Mumbai - 400 001 Bandra (E), Mumbai - 400 051 Scrip Code – 511766 Trading Symbol - MUTHOOTCAP Scrip Code (Debenture and
Slide 2: Investor Presentation 30th September 2023
Investor Presentation 30th September 2023
Slide 3: Contents
Contents QO Operational Highlights 03-08 O Performance Analysis 09-17 OSales and Collection Analysis 18-22 OAsset Analysis 23-32 OLiability Analysis 33-38 fri muthoot CAPITAL
Slide 4: Operational Highlights
Operational Highlights CAPITAL
Slide 5: Operational Highlights
Operational Highlights AUM PAT New customer Borrowing Cost Q2 FY 24: ₹ 1771 Cr Q2 : ₹ 83.14 Crs Q2 : 9.80 % Q2 : 39,093 Disbursement Q2 FY 24: ₹ 328 Cr No: Of live Shareholders Fund customers No: Of States Q2 : ₹ 590 Crs 3,92,747 20 Balance sheet Size Q2 FY 24: ₹ 2244 Cr Total Borrowings as on Q2 FY
Slide 6: Geographically spread across States
Geographically spread across 20 States 5
Slide 7: Highest Ever Profitability
Highest Ever Profitability PAT ROA ₹ 101 Cr 17.17% 210% YoY 391% YoY Improved Asset Quality GNPA NNPA 11.67 % 3.88 % -51% YoY -14% YoY 6
Slide 8: Hawk Eye View
Hawk Eye View Debt Equity Ratio CRAR Average LTV 2.69 Times 35.41% 80.56% EPS ROE ROA 50.59 60.59% 17.17 % 7
Slide 9: GNPA and NNPA
GNPA and NNPA GNPA NNPA 25.00% 5.00% 4.73% 22.82% 4.52% 22.14% 21.08% 4.50% 20.55% 20.00% 4.00% 3.88% 3.50% 2.94% 15.00% 3.00% 2.58% 2.57% 11.67% 2.50% 10.81% 10.00% 2.00% 1.50% 5.00% 1.00% 0.50% 0.00% 0.00% Mar-23 Jun-23 Sep-23 Mar-23 Jun-23 Sep-23 GNPA Inc Interest Accrued GNPA -POS NNPA Inc Inter
Slide 10: Performance Analysis
Performance Analysis fri muthoot CAPITAL
Slide 11: Financial Performance – Quarterly & Half Yearly
FINANCIAL PERFORMANCE – QUARTERLY & HALF YEARLY ₹. In Crores Parameters Q2 FY 24 Q2 FY 23 QoQ H1 FY24 H1 FY23 HoH Disbursement 328.00 298.40 10% 529.20 626.10 -15% Asset Under Management - AUM 1,771.00 2,073.22 -15% 1,771.00 2,073.22 -15% Net Interest Income - NII 58.84 74.65 -21% 119.60 148.29 -19%
Slide 12: Statement of Sources and Application of Funds
STATEMENT OF SOURCES AND APPLICATION OF FUNDS ₹. In Crores Sources 30-Sep-23 30-Jun-23 30-Sep-22 Application 30-Sep-23 30-Jun-23 30-Sep-22 Share Capital 16.4 16.4 16.4 Fixed Assets 2.1 2.0 1.7 Reserve & Surplus 574.0 490.8 427.5 Investments 221.3 118.9 103.3 Shareholders' Funds 590.4 507.3 443.9 Def
Slide 13: Disbursements, Average LTV and AUM
Disbursements (in ₹ crores) Average LTV 81.20% 80.56% 327.7 412.4 80.1% 80.00% 298.4 279.8 328.5 78.40% 200.7 77.20% Q1 23 Q2 23 Q3 23 Q4 23 Q1 24 Q2 24 Q1 23 Q2 23 Q3 23 Q4 23 Q1 24 Q2 24 AUM 2650.0 2088.0 2088.0 2102.0 1996.0 1771.0 In Q2 Company has done ARC of ₹ 235 Crs. The portfolio has been d
Slide 14: Capital Adequacy, Loan Loss Provision and Profit after Tax
Capital Adequacy Ratio (%) Loan Loss Provision & Write-Offs (in ₹ crores) 15.0 35.4% 9.4 8.9 10.0 27.9% 29.9% 23.8% 23.9% 5.0 20.3% 2.7 1.6 .0 Q1 23 Q2 23 Q3 23 Q4 23 Q1 24 Q2 24 -5.0 -1.1 -10.0 Q1 23 Q2 23 Q3 23 Q4 23 Q1 24 Q2 24 -7.4 Profit after Tax (in ₹ crores) 83.1 19.7 25.6 14.3 18.3 18.0 Q1
Slide 15: ROE, ROA and Earnings per Share
ROA (%) ROE (%) 70.0 60.6 20.0 17.2 60.0 50.0 15.0 40.0 30.0 18.3 22.1 10.0 14.5 17.8 14.5 3.7 4.9 20.0 2.8 3.5 3.6 5.0 10.0 0.0 0.0 Q1 23 Q2 23 Q3 23 Q4 23 Q1 24 Q2 24 Q1 23 Q2 23 Q3 23 Q4 23 Q1 24 Q2 24 Earnings per Share (in ₹ ) 50.6 15.8 9.0 11.1 12.0 10.8 Q1 23 Q2 23 Q3 23 Q4 23 Q1 24 Q2 24 14
Slide 16: Debt Equity Ratio and Net Worth
Net Worth (in ₹ Crores ) Debt Equity Ratio 700. 4.50 590. 4 3.94 507. 2 600. 489. 3 3.87 4.00 463.60 3.71 443.94 3.65 425.66 500. 3.32 400. 3.50 300. 3.00 2.69 200. 2.50 100. . 2.00 Q1 23 Q2 23 Q3 23 Q4 23 Q1 24 Q2 24 Q1 23 Q2 23 Q3 23 Q4 23 Q1 24 Q2 24 Quarter Q1 FY 23 Q2 FY 23 Q3 FY 23 Q4 FY 23 Q1
Slide 17: Spread Analysis
Spread Analysis 12.00% 22.50% 10.00% 22.00% 8.00% 21.50% 6.00% 21.00% 4.00% 20.50% 2.00% 20.00% 0.00% 19.50% -2.00% 19.00% Q1FY23 Q2FY23 Q3FY23 Q4FY23 Q1FY24 Q2FY24 Direct exp 7.76% 8.01% 7.78% 8.50% 9.15% 9.60% Other opex 7.27% 6.55% 7.93% 7.84% 7.40% 7.05% Loan, Loss Provisions 1.82% 1.70% 0.30% -
Slide 18: Analysis of Cost & Yield
Analysis of Cost & Yield Cost of Funds Yield 25.00% 19.85% 19.44% 19.53% 20.00% 18.88% 19.17% 19.28% 17.50% 16.78% 15.11% 15.00% 9.54% 9.48% 9.70% 9.80% 10.00% 8.83% 9.10% 8.74% 9.00% 9.18% 5.00% 0.00% F Y 21 F Y 22 F Y 23 Q1 F Y 23 Q2 F Y 23 Q3 F Y 23 Q4 F Y 23 Q1 F Y 24 Q2 F Y 24 17
Slide 19: Sales & Collection Analysis
Sales & Collection Analysis 18
Slide 20: Mode Wise Collection Over Last 15 Months
MODE WISE COLLECTION OVER LAST 15 MONTHS (HYP) ₹. In Crores 119 118 114 115 116 117 113 112 118 96 103 100 99 98 95 100% 63% 61% 62% 62% 62% 66% 62% 63% 65% 58% 62% 61% 61% 61% 60% 90% 80% 70% 60% 50% 40% 42% 40% 39% 39% 39% 39% 38% 38% 38% 38% 38% 37% 37% 30% 35% 34% 20% 10% 0% Jul-22 Aug-22 Sep-22
Slide 21: Collection Performance Monitoring
Collection Performance Monitoring CORPORATE LOAN ₹. In Crores Month Monthly Collections Monthly Billing % of collection Oct-22 7.04 7.03 100% Nov-22 7.26 7.26 100% Dec-22 9.44 9.43 100% Jan-23 11.74 11.74 100% Feb-23 16.04 16.03 100% Mar-23 10.69 10.68 100% Apr-23 12.94 12.94 100% May-23 11.59 11.58
Slide 22: Bucket 0 – Collections Efficiency % Trend
BUCKET 0 – COLLECTIONS EFFICIENCY% TREND BKT 0 -CE % 100% 99% 99% 98% 97% 97% 97% 97% 97% 97% 97% 96% 96% 96% 97% 96% 96% 96% 96% 95% 95% 95% 95% 95% 94% 93% 92% 21
Slide 23: 90+ NPA (POS) Trend
90+ - NPA-(POS) TREND POS in ₹ Cr 600 513.42 518.46 509.32 501.67 495.75 486.14 486.56 484.14 500 471.96 466.67 455.69 435.59 430.68 427.43 424.02 416.71 410.48 400 300 194.44 200 100 0 FY23 Q1 FY 24 Q2 FY 24 In Q2 Company has done ARC of ₹ 235 Crs. The portfolio has been derecognized from the books
Slide 24: Asset Analysis
Asset Analysis fri muthoot CAPITAL
Slide 25: Liquidity Projections
Liquidity Projections ₹. In Crores Particulars Oct-23 Nov-23 Dec-23 Q3 FY 2024 Opening Balance 295.78 210.65 313.37 295.78 Inflows New Funding / Bank Borrowings - 100.00 50.00 150.00 New funding through PTC / NCD - 120.00 - 120.00 WCDL/CC Rollover 175.00 170.00 240.00 585.00 EMI Repayments incl. sol
Slide 26: MCSL Geographic Overview – Retail Loans
MCSL GEOGRAPHIC OVERVIEW – RETAIL LOANS 100% 900.00 12.46% Total Zone Zone 90% 25.78% 22.50% 20.73% 0.00% 0.00% 800.00 Active 821.53 Zone AUM wise wise 80% 700.00 Clients 70% (crs) AUM % NPA % 600.00 60% South 1,95,117 821.53 52.56% 52.65% 500.00 50% 100.00% 100.00% West 25,051 94.11 6.02% 12.48% 87
Slide 27: Retail Portfolio Split as on 30th Sep 2023
Retail Portfolio Split as on 30th Sep 2023 Segment No: of loans AUM No of Transaction Type AUM 2W 3,74,154 1,548.05 Transactions 4W 862 12.22 Securitized (part of own book) 9 314.46 Others 1,054 2.66 Direct Assignment 7 3.89 Overall 3,76,070 1,562.93 Own Portfolio excl securitized 1,244.58 AUM 1,562
Slide 28: Zonewise Disbursement
ZONEWISE DISBURSEMENT Q1 FY24 Q2 FY24 ₹ Cr 177.51 ₹ Cr 279.94 Share of Branch and Dealer of zone-wise disbursement 0.01 12% 12% Branch Branch 45% Co Lending Co Lending 59% 29% Dealer Dealer 42% Business Asso 27
Slide 29: Portfolio Analysis – (POS) Retail Loans
PORTFOLIO ANALYSIS –(POS) RETAIL LOANS ₹. In Crores Portfolio Analysis Segment – wise Analysis 12.44% 150.00% 194.44 1548.05 14.88 100.00% NPA 87.53% 90.81% 50.00% Regular 1368.49 0.00% 12.47% 9.19% Two Wheeler Four Wheeler & Others 87.56% NPA Regular Source - wise Analysis Bucket – wise Analysis 12
Slide 30: Partnerships
Partnerships ₹. In Crores Grand Partners Category 0 1 to 30 31 to 60 61 to 90 Total Wheels EMI Co Lending 166.20 41.70 10.26 - 218.16 UP Money Co Lending 28.31 - - - 28.31 Credit Wise Capital Co Lending 76.42 0.01 - - 76.43 Manba Finance Co Lending 6.72 - - - 6.72 Business Deccan Finance 3.97 - - -
Slide 31: NPA Movement (Excluding DA) Sep-23
NPA Movement (Excluding DA) Sep -23 ₹. In Crores Particulars POS ₹. In Crores Opening Balance 419.88 Mar-23 Jun-23 Sep-23 Add: New slippage during the Quarter 32.58 GNPA 464.49 454.72 206.22 ECL Provision 387.12 378.34 143.23 Less: Normalised and closed during the Quarter 12.25 NNPA 77.37 76.38 62.9
Slide 32: Asset Quality and Provision Coverage
Asset Quality and Provision Coverage ₹. In Crores 25.00% 25.00% 22.14% 22.82% As on As on As on 19.47% 20.06% As Per IND AS 20.00% 20.00% 30.09.2023 30.06.2023 30.03.2022 Own Book Portfolio 1,767.16 1992.29 2,097.98 15.00% 15.00% Own book NPA 11.67% 22.82% 22.14% 11.67% Total NPA 11.67% 22.82% 22.14
Slide 33: ALM as on 30/09/2023
ALM as on 30/09/2023 ₹. In Crores ALM SEPTEMBER 2023 Particulars 1M 2M 3M 4M to 6M 7M to 12M 1 to 3 Yrs 3 to 5 Yrs Above 5 Yrs Total A. OUTFLOWS Capital, Reserves & Surplus 0.00 0.00 0.00 0.00 0.00 0.00 0.00 591.18 591.18 Deposits 0.92 1.18 0.56 1.85 3.48 11.57 6.01 0.00 25.59 Bank Borrowings 179.73
Slide 34: Liability Analysis
Liability Analysis 33
Slide 35: Shareholding Pattern as on 30/9/23
Shareholding Pattern as on 30/9/23 Banks/ Financial Institutions FII & FPI 1% 1% NRI 1% Other Corporate Body Public 7% 27% Promoter & Promoter Group 63% Banks/ Financial Institutions FII & FPI NRI Other Corporate Body Promoter & Promoter Group Public 34
Slide 36: Sources of Borrowing
Sources of Borrowing ₹ 45 Crs ₹ 1.40 Crs Additional Facilities sanctioned in Sep-23 Additional Facilities received Collections of Public during the quarter Deposit/Sub debts 9.80% Commercial Paper - ₹ 45 Crs In Q2 FY24 Public Deposits collected Cost of borrowing for ₹ 1.40 Crs of which ₹ 0.57 Crs. i
Slide 37: Incremental Borrowings in Q2 – Interest Rate Changes
36 INCREMENTAL BORROWINGS IN Q2 – INTEREST RATE CHANGES Bank Name Amount Previous ROI Present ROI Previous MCLR Present MCLR City Union Bank 6.00 9.35% 9.35% 8.15% 8.15% Tamilnad Mercantile Bank 35.00 10.50% 9.95% 8.50% 8.45% Limited IDBI Bank 20.00 9.30% 9.45% 8.20% 8.35% Dhanalakshmi Bank 60.00 9.
Slide 38: Borrowing Profile – by instrument
Borrowing Profile – by instrument ₹. In Crores Q2 FY ’23 Q1 FY ’24 Q2 FY ’24 Particulars Amount Cost* Amount Cost* Amount Cost* Bank Loan 961.84 8.51% 1000.05 9.98% 962.56 10.10% Sub debt 13.61 12.05% 7.21 9.96% 6.73 9.96% Public Deposit 43.84 7.51% 32.02 6.78% 25.59 6.73% NCD 50.00 9.47% 84.00 10.0
Slide 39: Expected Credit Loss (ECL)
Expected Credit Loss (ECL) ₹. In Crores IRACP Excess Particulars AUM ECL Provision Provision /(Deficit) ECL% IRACP % Performing Assets S1 and S2 Hypothecation Loans 1,387.17 20.34 5.55 14.79 1.47% 0.40% S1 and S2 other loans 173.77 0.83 0.70 0.14 0.48% 0.40% Non-Performing Assets S3 Hypothecation lo
Slide 40: Thank You !
Thank You ! 39
Muthoot Capital Services — Q2 FY24 Earnings Presentation on 6ix