Sbfc Finance Limited · NSE:SBFC
Sbfc Finance — Q1 FY2025 Earnings Presentation
28 slides from Sbfc Finance's earnings presentation, Jul 27, 2024
Slide 1: Exchange cover letter for investor presentation
Date: 27th July, 2024 National Stock Exchange of India Limited, BSE Limited, Exchange Plaza, Plot No. C/1, G Block, Phiroze Jeejeebhoy Towers, Bandra‐Kurla Complex, 21st Floor, Dalal Street, Bandra (East), Mumbai – 400051. Mumbai – 400001. NSE Symbol: SBFC BSE Equity Scrip Code: 543959 (BSE NCD Scri
Slide 2: Investor Presentation Q1 FY 2025
Investor Presentation Q1 FY 2025
Slide 3: Safe Harbor
Safe Harbor This presentation and the accompanying slides (‘Presentation”), which have been prepared by SBFC Finance Limited (the "Company"), have been prepared solely for information purposes and do not constitute any offer, recommendation or invitation to purchase or subscribe for any securities,
Slide 4: SBFC – Q1 FY25 Performance
SBFC – Q1 FY25 Performance Size and Growth Distribution Granular Book Asset Quality Liability Profile Profitability 7,167 % 186 99% 2.60% 2,604 79 AUM GNPA PAT # Branches % Secured Tangible Net worth YoY +35% | QoQ +5% YoY +6 bps | QoQ +17 bps YoY +68% | QoQ + 7% % 5,954 3,944 9.20* | 0.89* 1.51% CR
Slide 5: About the company
About the company Management and Shareholders Business Technology Credit Collections Financials 4
Slide 6: Executive Summary
Executive Summary 186 branches Team: Experienced, cycle-tested, professional management with strong corporate 152 Cities governance backed by marquee investors 16 States 2 UTs Focused Segment: Offering Secured MSME loan to small businesses with focus on ₹5 lakh - ₹30 lakh ticket size Opportunity: Ma
Slide 7: SBFC Focus Segment – customers borrowing ₹0.05 to ₹0.3 cr
SBFC Focus Segment – customers borrowing ₹0.05 to ₹0.3 cr Large segment within MSME of ₹2.5 lakh cr and growing at CAGR 24% Segment Market Size1 (₹ tn) CAGR2 (%) % of Market >₹1 cr 3.6 13.1% 42% ₹0.5 – 1 cr 1.1 17.0% 13% ₹0.3 – 0.5 cr 0.9 20.4% 10% Focus ₹0.05– 0.3 cr 2.5 23.7% 30% Segment <₹0.05 cr
Slide 8: Our Journey
Equity Listing on NSE and BSE CARE Ratings India ratings upgraded us to ‘AA -’1 Upgraded us to ‘AA-’ Our Journey Included in MSCI Global Small Cap Index in July 2024 7167 1,00,000 customers 6822 150 Branches 150 cr PAT Credit rating upgraded to ‘A +’ 4943 50,000 customers 79 100 Branches AUM of INR
Slide 9: Management
Management Experienced, cycle-tested, professional management Aseem Dhru Mahesh Dayani Narayan Barasia Pankaj Poddar MD & CEO Chief Business Officer Chief Financial Officer Chief Risk Officer Sanket Agrawal Sumeet Ghai Ganesh Vaidya VM Maneesh Sai Prashant Menon Chief Strategy Officer and IR Chief H
Slide 10: Board of Directors
Board of Directors Strong corporate governance backed by long term investors Rajesh Agrawal Surekha Marandi Neeraj Swaroop Jt. Managing Director, Ex Executive Director, Chairman of the Board Ajanta Pharma RBI Independent Ravi Venkatraman Koni Uttam Nayak Ex Executive Director & Ex Senior Vice Presid
Slide 11: Shareholding
Shareholding Shareholding Pattern Category of Shareholders % Share# Promoter 13.85% Clermont Group 55.19% 16.24% 55.19% Other Major Shareholders 4.72% SBI Mutual Fund 9.01% Amansa Capital 4.12% Malabar Funds 4.12% Aditya Birla Sun Life 2.27% Promoters Foreign Portfolio Investors Mutual Funds, AIF, I
Slide 12: Business Momentum
Simplify graphic Business Momentum Delivering Consistent Growth YoY : 35% QoQ : 5% 7167 CAGR: 46% 6822 1% 1% 6822 16% 15% 1% 5327 15% 3% 4943 16% 3% 17% 3192 83% 7% 84% 20% 84% 81% 79% 73% Mar-22 Mar-23 Mar-24 Q1 FY 24 Q4 FY 24 Q1 FY 25 Secured MSME LAG Others Secured MSME LAG Others All figures in
Slide 13: Business Momentum – Secured MSME
Business Momentum – Secured MSME AUM ATS in ₹ Lakhs Disbursement Value Disbursement Volume YoY: 38% YoY: -18% YoY: -13% QoQ: 4% QoQ: -26% QoQ: -23% 724 7493 5704 5954 655 6655 5806 534 4328 9.84 9.66 9.20 Q1 FY 24 Q4 FY 24 Q1 FY 25 Q1 FY 24 Q4 FY 24 Q1 FY 25 Q1 FY 24 Q4 FY 24 Q1 FY 25 AUM Secured MS
Slide 14: Business Momentum – Co-origination
Business Momentum Co-origination – Validates our profitable origination Co-origination Disbursement (₹ Cr) Co-origination AUM (₹ Cr) %1 18% 22% 20% 16% 20% 21% 162 1,230 1,141 116 107 692 Q1 FY 24 Q4 FY 24 Q1 FY 25 Q1 FY 24 Q4 FY 24 Q1 FY 25 1Percentage is on Total Secured MSME Loans 13
Slide 15: Business Momentum
Business Momentum No concentration risk & well distributed growth Present in 16 states, 2 UTs covering 152 cities via 186 branches Driven by steady rise in AUM per branch # Branches 33 33 120 186 <12 months >12 & <36 months >36 months 4 1 3 11 60 ₹ Cr 3 49 50 25 50 6 11 8 39 40 35 31 96 12 4 30 27 2
Slide 16: Technology Landscape
Technology Landscape Lead Generation Customer Credit Underwriting Pre-Disbursal Loan Disbursal Loan Servicing Onboarding • Digital Form • PD with customer • E-Nach • Digital Disbursal • Customer App • Feet on Street • OKYC/EKYC • CAM Summary • E-Sign IMPS/RTGS/NEFT • CRM Platform • Mobile App • PAN
Slide 17: Credit Underwriting
Credit Underwriting Tailored to service underserved, underbanked informal customers Most small businesses in India SBFC's business model, backed by experience in this segment have challenges • Credit officer spends time to understand income & cash flow (documented + non-documented) at family Partial
Slide 18: Credit Underwriting
Credit Underwriting Quality borrowers with credit score above 700 Over 85% AUM from customers with CIBIL >7001,2 Granular loan book with high quality collateral1 0/-1 7.5% 7.3% 7.9% <650 2.1% 1.2% 1.1% 7.7% 6.6% 6.4% 94% 41.4% > 650 & < 700 AUM secured by self occupied LTV residential / commercial p
Slide 19: Credit Indicators
Credit Indicators Gross NPA %1 Net NPA %2 2.54% 2.43% 2.60% 1.55% 1.51% 1.36% PCR 39.6% 44.7% 42.6% Q1 FY 23-24 Q4 FY 23-24 Q1 FY 24-25 Q1 FY 23-24 Q4 FY 23-24 Q1 FY 24-25 1+ DPD %3 Collections Efficiency %4 98.30% 97.89% 6.37% 97.17% 5.51% 5.59% Q1 FY 23-24 Q4 FY 23-24 Q1 FY 24-25 Q1 FY 23-24 Q4 FY
Slide 20: ECL Provisions Summary
ECL Provisions Summary As on June 30, 2024 Stage 1 Stage 2 Stage 3 Total Gross Loans Outstanding 5,833 231 162 6,226 ECL Provision 34 12 69 115 Net Loans Outstanding 5,799 219 93 6,111 ECL Provision % 0.58% 5.37% 42.63% 1.85% As on March 31, 2024 Stage 1 Stage 2 Stage 3 Total Gross Loans Outstanding
Slide 21: Collections Approach
Rework icons Collections Approach In-house, on-ground collections teams – 98% collected digitally On-ground Teams Scalable Structure Adaptable collection strategy as per loan stage Loan Stage Branch staff Branch area- from local area + limited radius Normal • Call center autodial quick attention to
Slide 22: Financial Performance
Financial Performance Quarterly Trends in KPIs AUM Yield Spread YoY : 35% (₹cr) QoQ : 5% 6822 7167 17.62% 17.58% 8.31% 8.26% 5327 7.09% 16.56% Q1 FY 24 Q4 FY 24 Q1 FY 25 Q1 FY 24 Q4 FY 24 Q1 FY 25 Q1 FY 24 Q4 FY 24 Q1 FY 25 Opex to AAUM Gross NPA RoAAUM 11.99% 11.90% 12.30% RoATE 5.42% 2.54% 2.60% 4
Slide 23: Sources of Borrowing
Sources of Borrowing Lenders to the Company Diversified Borrowing Mix Public Sector Banks 1.0% 8.8% 12.5% 19.5% 8.3% Private Sector 37.7% Banks 0.6% 30.0% 7.4% 16.6% 3.2% Financial 25.0% 7.5% 4.9% 9.5% Institutions (FIs) 7.5% NCD Private Sector Bank NCD Private Sector Bank Financial Institutions Pub
Slide 24: ALM – June 2024
ALM – June 2024 Surplus 498 428 Upto 3 months 926 865 597 Upto 6 months 1,462 1,677 Upto 1 Year 879 2,556 3,886 Upto 3 Years 494 4,380 4,152 Upto 5 Years 2,675 6,827 7,232 5+ Years 7,232 Liablilities Asset All figures in ₹ Cr 23
Slide 25: Summary Financial Statements – Profit & Loss Statement
Summary Financial Statements – Profit & Loss Statement Quarter Ended Growth (%) Particulars H1 FY24 June 2024 March 2024 June 2023 Q-o-Q Y-o-Y Performance Interest Income on Loans 263 248 188 Interest Income other than on Loans 8 10 16 Fee & Other Income 27 22 26 Total Income 298 280 230 6.5% 29.4%
Slide 26: ROE Tree
ROE Tree Ratios Q1 FY25 Q4 FY24 Q1 FY24 FY 24 FY 23 Interest Income on Loans/ Average Loan Book 17.58% 17.62% 16.56% 17.08% 16.12% Fee & Other Income/ Average AUM 1.53% 1.36% 2.06% 1.77% 2.16% Finance costs/ Average Borrowings 9.33% 9.32% 9.49% 9.40% 8.67% Spread 8.26% 8.31% 7.09% 7.70% 7.48% Net In
Slide 27: Balance Sheet
Balance Sheet As On Particulars June March 2024 2024 Assets Cash and Bank Balances 303 466 Receivables 29 15 Loan Assets 6,111 5,836 Investments 268 427 Other financial assets 7 7 Current & Deferred tax assets (Net) - 6 Property, Plant and Equipment etc. 301 301 Other non-financial assets 12 5 Total
Slide 28: THANK YOU!
THANK YOU! 27 PRIVATE & CONFIDENTIAL