Poonawalla Fincorp Limited · NSE:POONAWALLA
Poonawalla Fincorp — Magma Fincorp — Q4 FY21 Earnings Presentation
95 slides from Poonawalla Fincorp's earnings presentation, May 31, 2021
Slide 1: Cover letter to stock exchanges
31 May 2021 Corporate Relationship Department BSE Limited 25th Floor, P.J. Towers, Dalal Street, Fort, Mumbai – 400 001 Company Code - 524000 The Manager Listing Department, National Stock Exchange of India Limited “Exchange Plaza” Bandra- Kurla Complex, Bandra (E), Mumbai – 400 051 Symbol - MAGMA S
Slide 2: Investor Presentation – Q4 & FY21
Embarking on a new journey under the Poonawalla Group and professional leadership Magma Fincorp Limited Investor Presentation – Q4 & FY21
Slide 3: Table of Contents
Table of Contents Executive Company 1 Magma 2.0 2 Overview 3 summary – Q421 and FY21 Business and 4 Financial Update 5 Subsidiaries 6 Business enablers Shareholding 7 Leadership team 8 structure 9 Annexures 2
Slide 4: 1. Magma 2.0
1. Magma 2.0 3
Slide 5: Transaction Update – Preferential issue to Rising Sun Holdings Private Limited
Transaction Update – Preferential issue to Rising Sun Holdings Private Limited • Magma Fincorp is now a subsidiary of Rising Sun Holdings Private Limited (owned and controlled by Mr. Adar Poonawalla), subsequent to equity raise of ₹3,456 Cr on 06-May-2021 • Mr. Adar Poonawalla has been appointed as
Slide 6: Transaction benefits to trickle down to Magma Housing Finance
Transaction benefits to trickle down to Magma Housing Finance • Magma Fincorp has infused ₹500 Crore of equity into Magma HFC on 31-May-2021, shoring up the net-worth of the HFC to around ₹1,000 Crore • Statutory approvals have been received for change of name to Poonawalla Housing Finance Limited •
Slide 7: Magma HDI to benefit from dual transactions at parent level and external fund raise
Magma HDI to benefit from dual transactions at parent level and external fund raise Magma HDI has announced fund raise transaction of ₹525 crores* at pre-money valuation of ₹1,200 crores Fresh capital of ₹250 crores by ICICI Venture, Secondary sale of ₹275 crores by existing promoters (Magma Fin
Slide 8: Magma 2.0 – Embarking on a new journey: New MD's message
Magma 2.0 – Embarking on a new journey New MD’s message “I am excited to take over as the Managing Director of Magma Fincorp and embark on a new journey of Magma 2.0. At the outset, we have outlined the core strategic pillars of Magma 2.0, laying out a clear and focused direction for the Company:
Slide 9: Core strategic pillars of Magma 2.0
Magma 2.0 – Embarking on a new journey Core strategic pillars of Magma 2.0 Significant benefits arising Digital focus; best-in- from large capital base Magma 2.0 class technology and leading to reduced cost of Capital and Technology analytics funds and rerating Parentage 1 7 2 6 Professional managem
Slide 10: Significant benefits arising from large capital base
Significant benefits arising from large capital base leading to reduced cost of funds and rerating • The Transaction has bestowed Magma with a significant amount of capital (₹3,456 crores) and the backing of a strong parent, which would have a strong positive impact on all stakeholders such as emplo
Slide 11: Professionally run organization with certain leadership changes
Professionally run organization with certain leadership changes • Mr. Abhay Bhutada has been appointed as the Managing Director* of the Company • The CEO shall be joining by 1st week of July 2021 • To augment the leadership team, highly experienced professionals have been identified for various seni
Slide 12: Product design to be focused towards 'select' customers
Product design to be focused towards ‘select’ customers • Large equity base and reduced cost of funds to facilitate loans at competitive yields − Higher quality customer, structural improvement in asset quality and reduction in credit costs are key benefits • Pivot in product strategy towards ‘selec
Slide 13: Product Strategy
Product Strategy New Product Suite Additional Current Product Immediate Products / Services * Used Car Loan Used Car Loan Co-Branded Credit Card Business Loans Business Loans Consumer Durables Affordable Home Loan Affordable Home Loan EMI Card Small Ticket LAP Small Ticket LAP Medical Equipment Used
Slide 14: Focus customer of Magma 2.0
Focus customer of Magma 2.0 What are How do we Who are What do they their solve these they? do? problems? problems? • MIG and above with • Entrepreneurs of • Access to right • Multi-tiered some credit history small enterprises financial products at customer • Urban and semi- • Professionals the righ
Slide 15: Multi-tiered customer proposition
Multi-tiered customer proposition PRICE - Competitive and Transparent Shall offer products at competitive and transparent pricing to ensure we are always in the top consideration set TURNAROUND – Best in class Shall offer the best turnarounds with lean & agile backend operations by leveraging techno
Slide 16: Rationalization of branches and enhanced use of technology
Rationalization of branches and enhanced use of technology to optimize distribution • Current widespread distribution presence through 297 branches spread across 21 states • Focus on rationalizing the branch network, through the lens of: − New location strategy − Capability required for distribution
Slide 17: Accelerated write-offs and prudent provision buffer (1/2)
Accelerated write-offs and prudent provision buffer (1/2) • The Company has adopted one of the most conservative policy in the industry for technical write-offs effective Q4 FY21 • Such policy change has resulted in one-time write-off impact of ₹274 Cr in Q4 FY21 Product segment Product(s) Earlier w
Slide 18: Accelerated write-offs and prudent provision buffer (2/2)
Accelerated write-offs and prudent provision buffer (2/2) • Further, considering the unknown character of COVID, the Company has additionally created management overlay provisions of ₹621 Cr in Q4 FY21 for COVID wave two • The Company holds cumulative provisions to the tune of ₹1,192 Cr as of Mar-21
Slide 19: Robust risk framework
Robust risk framework Strong & Independent Risk Function Function wise risk bank creation Further evaluate the risk after Identify and define potential risks that may determining the risk's overall likelihood negatively influence the organization. IDENTIFY ASSESS of occurrence combined with its over
Slide 20: Digital focus; best-in-class technology and analytics
Digital focus; best-in-class technology and analytics • The Company is looking to expand its tech capabilities through an additional technology center in Pune which will form the backbone for all the technology related requirements and support for the Company • The Company would also set up a strong
Slide 21: Phased Strategy Execution
Phased Strategy Execution Consolidate-Grow-Lead 1-9 months 9-18 months 18-36 months Consolidate Grow Lead • People • Introduce new products and expand • Leadership in products that we offer cross sell • Products • Leadership in geographies where we • Build branch lite model operate • Branches • Enha
Slide 22: New management's 2025 vision for Magma 2.0
New management’s 2025 vision for Magma 2.0 To be among Top 3 NBFCs for consumer and small/medium business finance Accelerated growth with calibrated underwriting approach; ~3x of current AUM T Top-notch cost of funds in the industry; 200-250 bps reduction Best in class provisioning to avoid any surp
Slide 23: 2. Company overview
2. Company overview 22
Slide 24: Magma – Quick Snapshot
Magma – Quick Snapshot More than three Diversified ₹14,225 Cr ₹5,650 Crore decades product offerings Of presence Retail finance(1) AUM (2) Net-worth (3) in financial and General services Insurance ~2.3 MN 21 states 7,600+ 66.8% Active Pan India presence Employees Tier-1 CRAR (%) (3) customers Notes:
Slide 25: Pan India presence
Pan India presence 297 Branches as on 31-Mar-21 Zone-wise Breakup Rural-Urban Breakup Wide retail presence through hub and spoke model West, 19% Urban, 4 33% Himachal Pradesh, 3 Delhi, Rural, North, 25% Uttarakhand, 3 East, 36% Punjab, 9 18% Uttar Pradesh, 39 Semi Haryana, 19 Bihar, 17 Urban, 42% So
Slide 26: Magma Culture Code
Magma Culture Code INTEGRITY COLLABORATION RESPECT Do the right thing Invite ideas and inspiration Treat people from all equally 25
Slide 27: 3. Executive summary – Q421 and FY21
3. Executive summary – Q421 and FY21 26
Slide 28: Key performance achievements – Q421 and FY21
Key performance achievements – Q421 and FY21 Disbursements Cost of funds NIM Q421: 18% QoQ Q421: 62 bps YoY Q421: 186 bps YoY Q421: 9% YoY FY21: 36 bps YoY FY21: 62 bps YoY Operating expenses Opex ratio (Opex to AUM)% Operating profit Q421: 11.0% YoY Q421: 1 bps YoY Q421: 39% YoY FY21: 19.8% YoY FY2
Slide 29: Key Financial Metrics
Key Financial Metrics Parameter Q4 FY21 Q3 FY21 Q4 FY20 FY21 FY20 AUM ₹14,225 crore ₹15,006 crore ₹16,134 crore ₹14,225 crore ₹16,134 crore NIM 9.2% 8.5% 7.4% 8.2% 7.6% Opex Ratio1 4.0% 3.3% 4.0% 3.6% 4.1% NCL1, 3 28.8% 4.8% 3.4% 9.6% 3.0% Profit / (Loss) Before ₹(864) crore ₹17 crore ₹(4) crore ₹(7
Slide 30: 4. Business and Financial Update
4. Business and Financial Update 29
Slide 31: 4a) Business update
4a) Business update 30
Slide 32: Disbursements and AUM
Disbursements and AUM Disbursement trend (YoY) – ₹ Cr Disbursement trend (QoQ) – ₹ Cr 8,757 7,180 6,716 7,287 6,428 1,312 1,426 1,208 3,680 830 216 FY16 FY17 FY18 FY19 FY20 FY21 Q4 FY20 Q1 FY21 Q2 FY21 Q3 FY21 Q4 FY21 AUM trend (YoY)(1) – ₹ Cr AUM trend (QoQ) – ₹ Cr 18,183 17,029 16,101 15,801 16,13
Slide 33: Diversified AUM mix
Diversified AUM mix AUM mix - Product wise AUM mix – State wise AUM mix - On-book vs Off-book As of March 31, 2021 As of March 31, 2021 As of March 31, 2021 Uttar Pradesh On-book Off-book 13% Haryana 8% Cars, 11% Maharashtra 8% Affordable Housing, 31% CV / CE, Rajasthan 7% Top 10 States 11% 12% and
Slide 34: 4b) Asset Quality
4b) Asset Quality 33
Slide 35: Management commentary
Management commentary • 97% of Magma’s portfolio receivables are either secured by collateral or have a sovereign guarantee cover • As of Dec-20, Magma had built adequate provisions in line with the industry to absorb any shocks from first wave of COVID, pursuant to which the coverage ratios stood h
Slide 36: Stage wise provision
Stage wise provision 31-Mar-20 31-Dec-20 31-Mar-21 Provision Provision Provision Stage wise On Book as % of On Book as % of On Book as % of Provision Provision Provision Assets On Book Assets On Book Assets On Book Assets Assets Assets Stage 1 11,968 132 1.1% 10,864 146 1.3% 10,537 417 4.0% Stage 2
Slide 37: Asset Quality
Asset Quality MFL MHFL Consol Particulars Mar-20 Dec-20 Mar-21 Mar-20 Dec-20 Mar-21 Mar-20 Dec-20 Mar-21 Gross Stage 1 and Stage 2 Assets 10,972 9,737 9,286 2,368 2,720 2,865 13,333 12,446 12,140 Stage 1 & 2 Coverage Ratio (%) 2.5% 3.5% 8.5% 0.6% 1.2% 2.8% 2.2% 3.0% 7.2% Gross Stage 3 Assets 875 874
Slide 38: Restructured portfolio
Restructured portfolio Pre-restructuring Post-restructuring (as on 31-Mar-2021) (current outstanding considered Restructuring for comparison) Bucket status by DPD Reported / ECL bucket MFL MHF Total MFL MHF Total MFL MHF Total Stage 1 123 39 162 366 120 486 107 - 107 Stage 2 275 84 359 75 11 86 310
Slide 39: Credit Loss (NCL) Analysis (1/2)
Credit Loss (NCL) Analysis (1/2) Particulars Q4 FY20 Q3 FY21 Q4 FY21 Net ECL Provision* 74 128 1,005 Credit Guarantee Cost 7 5 4 Loss on Settlement/ Repo 56 50 44 NCL 137 182 1,053^ *100% Provision Bucket / Write-off (PL Impact) 41 50 334 Particulars Mar-20 Dec-20 Mar-21 Gross Stage 3 Assets 914 927
Slide 40: Credit Loss (NCL) Analysis (2/2)
Credit Loss (NCL) Analysis (2/2) Particulars Q4 FY21 FY21 Net ECL Provision / Write-off 110 410 Credit Guarantee Cost 4 16 Loss on Settlement/ Repo 44 143 Credit Loss (before one-time additional charge) 158 569 Impact of change in Write-off policy 274 274 Management Overlay Provisions for COVID wave
Slide 41: 4c) Liquidity and Liability
4c) Liquidity and Liability 40 40
Slide 42: Management commentary
Management commentary • Post the substantial equity infusion of ₹3,456 Cr, Magma has a robust liquidity and liability profile as of 15- May-2021, which lays a solid foundation for the strong growth trajectory going forward: Overall available liquidity of ₹5,058 crore Net-worth of ₹5,650 Cr with
Slide 43: Strengthened Liability Profile
Strengthened Liability Profile Funding mix – By instrument On Balance Sheet Debt 11,987 11,691 11,622 10,985 10,433 7,139 3% 30% 29% 29% 30% 29% 18% 6% 7% 10% 12% 12% 68% 57% 57% 54% 51% 51% 7% 7% 7% 8% 8% 11% Mar-20 June-20 Sep-20 Dec-20 Mar-21 15-May-21* Perpetual & Sub Debt Term Loan incl. PTC NC
Slide 44: Robust Liquidity and Leverage
Robust Liquidity and Leverage Robust Liquidity Leverage Ratio 11,987 11,691 11,622 • ₹2,895 crore new drawdown in FY21 (₹986 crore 10,985 10,433 in Q4 FY21 • Overall available liquidity of ₹2,002 crore as on 31- 4.4 4.2 4.1 4.8 7,139 3.8 Mar-21 • Overall available liquidity of ₹5,058 crore as on 1.3
Slide 45: Structural Liquidity for MFL
Structural Liquidity for MFL Estimated position as at 15-May-21 1449% 6,037 5,591 5,452 4,636 1018% 4,724 4,738 2,919 457% 372% 44% 50% 46% -15% 1 month 2 month 3 month 6 month 1 year 3 year 5 year Cumulative mismatch (₹ cr.) Cumulative mismatch (%) Working capital limits are considered as repayable
Slide 46: Robust capitalization profile
Robust capitalization profile Net Worth Capital Adequacy^ 69.8% 5,650 2.9% 153 2,744 2,748 54 54 5,497 66.8% 2,194 24.9% 25.9% 1,972 54 2.9% 20.3% 47 17.3% 4.1% 2.9% 2,690 2,694 4.5% 1,925 2,140 23.0% 20.7% 17.4% 12.8% Mar-18 Mar-19 Mar-20 Mar-21 15-May-21 * Mar-18 Mar-19 Mar-20 Mar-21 15-May-21 * R
Slide 47: 4d) Financial statements
4d) Financial statements 46 46
Slide 48: Consolidated Profit & Loss Statement
Consolidated Profit & Loss Statement* Particulars Q4 FY21 Q3 FY21 Q4 FY20 FY21 FY20 Net Interest Income 322 319 293 1,218 1,215 Other Income 14 6 7 34 49 Net Revenue 337 326 301 1,252 1,264 # Expenses 145 126 163 542 676 Operating Profit 191 199 137 710 588 # Net Credit Loss 158 182 137 569 506 Prof
Slide 49: ROA Tree (MFL Consolidated)
ROA Tree (MFL Consolidated) Particulars Q4 FY21 Q3 FY21 Q4 FY20 FY21 FY20 Net Interest Income 8.8% 8.4% 7.2% 8.0% 7.3% Other Income 0.4% 0.2% 0.2% 0.2% 0.3% Net Revenue 9.2% 8.5% 7.4% 8.2% 7.6% # Expenses 4.0% 3.3% 4.0% 3.6% 4.1% Operating Profit 5.2% 5.2% 3.4% 4.7% 3.5% # Net Credit Loss 4.3% 4.8%
Slide 50: Consolidated Balance Sheet
Consolidated Balance Sheet Particulars 31-Mar-21 31-Dec-20 31-Mar-20 Cash and Cash Equivalents 775 902 708 Loans and Advances 11,361 12,605 13,555 Other Assets 623 747 784 Fixed Assets 453 169 193 Total Assets 13,212 14,423 15,240 Borrowings 10,433 10,985 11,987 Other Liabilities 585 580 504 Share C
Slide 51: 5. Subsidiaries
5. Subsidiaries 50
Slide 52: Magma Housing Finance (Subsidiary)
Magma HousingBusiness FinanceStrategy - Asset Backed Finance (ABF) (Subsidiary) 51
Slide 53: MHF – Emerging as a strong Affordable Housing Finance Entity
MHF – Emerging as a strong Affordable Housing Finance Entity Disbursements (₹ Cr) 462 978 874 475 561 1,085 1,315 1,251 7 Construction 3 0.2% Finance 38 481 381 30% Loan Against Property 142 130 400 454 8 431 5% 9% 42 87 28% 827 867 69% Home Loan 353 50% 233 223% 647 221 382 313 41% 187 167 201 FY14
Slide 54: Pan India distribution presence
Pan India distribution presence Asset Light Branch Network 97 Branches as on 31st March, 2021 Deep presence in select geographies pan India through Wide retail presence through hub and spoke model hub and spoke model, Technology enabled solutions leading to industry best productivity, national cover
Slide 55: Relationship based direct sourcing
Relationship based direct sourcing Sourcing Mix AUM 475 561 1,085 1,315 1,251 1,804 1,809 2,429 3,283 3,978 Go Direct 75% Go Home Loan 59% 20 0.5% 25% 1,616 41% 67% 94 6% 75% 947 2,342 52% 59% 33% 763 42% FY17 FY18 FY19 FY20 FY21 FY17 FY18 FY19 FY20 FY21 Direct Sourcing Channel sourcing HL LAP CF Va
Slide 56: MHF - Value in Consistent Performance
MHF - Value in Consistent Performance Parameter FY17* FY18* FY19* FY20* FY21* AUM ₹1,790 cr ₹1,809 cr ₹2,430 cr ₹3,283 cr ₹3,978 cr Gross Stage 3 4.7% 5.4% 1.8% 1.6% 1.6% Net Stage 3 3.7% 3.3% 1.2% 0.97% 0.77% Disbursement IRR 14.0% 13.3% 13.1% 13.8% 13.6% Opex Ratio 2.8% 2.9% 3.9% 3.6% 2.8% Normali
Slide 57: Management commentary on Q4 Provisions and Write-offs
Management commentary on Q4 Provisions and Write-offs • As of Dec-20, Magma HFC had built adequate provisions in line with the industry to absorb any shocks from first wave of COVID, pursuant to which the coverage ratios stood healthy at 1.2% for Stage 1 and 2 assets and 34.6% for Stage 3 assets wit
Slide 58: Momentum towards Best-in-Class Asset Quality (1/2)
Momentum towards Best-in-Class Asset Quality (1/2) Gross Stage 3 Assets Net Stage 3 Assets 5.4% 4.7% 3.6% 3.3% 1.8% 1.6% 1.6% 1.2% 0.97% 0.77% Mar-17 Mar-18 Mar-19 Mar-20 Mar-21 Mar-17 Mar-18 Mar-19 Mar-20 Mar-21 Best in Class upper quartile portfolio quality in Affordable Housing Finance 57
Slide 59: Momentum towards Best-in-Class Asset Quality (2/2)
Momentum towards Best-in-Class Asset Quality (2/2) Particulars Mar-20 Jun-20 Sep-20 Dec-20 Mar-21 Gross Stage 1 and Stage 2 Assets 2,368 2,494 2,682 2,720 2,865 Stage 1 and Stage 2 Provisions 13 20 27 33 81 Stage 1 and Stage 2 Coverage Ratio (%) 0.6% 0.8% 1.0% 1.2% 2.8% Gross Stage 3 Assets 39 40 43
Slide 60: Credit Loss (NCL) Analysis
Credit Loss (NCL) Analysis Particulars Q4 FY21 FY21 Net ECL Provision 9 32 Write-off as per previous policy# 18 47 Normalized NCL 27 79 Change in Write-off policy 6 6 Management Overlay Provisions for COVID wave two 44 44 Additional one-time charge 50 50 Total NCL 77 129 Values in ₹ crore # Write-of
Slide 61: MHFL Standalone Profit & Loss Statement
Magma Housing Finance Ltd. (MHFL) Standalone Profit & Loss Statement* Particulars Q4 FY21 Q3 FY21 Q4 FY20 FY21 FY20 Net Interest Income 78 75 37 240 169 Other Income 3 2 2 5 8 Net Revenue 80 77 39 246 177 Expenses 30 26 24 102 101 Operating Profit 50 51 15 144 76 Net Credit Loss 27 37 16 79 22 Profi
Slide 62: Magma HFC under the aegis of Poonawalla Group
Magma HFC under the aegis of Poonawalla Group • Under the aegis of new Promoter, Magma Fincorp has infused ₹500 Cr of equity into Magma HFC on 31-May-2021 • Equity capital and the Poonawalla Group parentage shall bring significant benefits for Magma HFC: As of 31-May-2021, Net-worth around ₹1,000
Slide 63: Structural Liquidity for MHFL
Structural Liquidity for MHFL Estimated position as at 31-May-21 1,083 999 863% 843 715 740 681 486% 411% 456 138% 32% 25% 32% -15% 1 month 2 month 3 month 6 month 1 year 3 year 5 year Cumulative mismatch (₹ cr.) Cumulative mismatch (%) Working capital limits are considered as repayable in 6 - 12 mo
Slide 64: Magma HDI Business
Magma HDI Business Strategy- SME and General Others Insurance 63
Slide 65: Magma HDI General Insurance – Quick snapshot
Magma HDI General Insurance – Quick snapshot Amongst Top 5 Amongst Top 4 One of the highest companies in terms of companies with least Investment Leverage Motor Own Damage number of complaints ratio of 6.6 as at Claims Settlement intimated per 10,000 9mFY21 amongst the (95%) within 30 days at polici
Slide 66: Magma HDI - Built on strong risk foundation
Magma HDI - Built on strong risk foundation 1,349 GWP 1,294 1,026 4% Co. Growth Rate 26% 555 560 430 427 423 83% 96 Industry Growth 19% 12% 9% 14% 33% 17% 13% 12% 6% Rate FY13 FY14 FY15 FY16 FY17 FY18 FY19 FY20 FY21 Consolidation Initial Ramp Up Responsible Growth Phase The Company has achieved robu
Slide 67: Magma HDI – Diversified distribution & Portfolio mix
Magma HDI – Diversified distribution & Portfolio mix Distribution Mix & Growth FY20 Growth FY21 GWP Corporate Agent -28% Corporate Agent 131 3% 8% 10% Agency & Others -5% Agency & Others 566 14% Sales-Health 1210% Sales-Health 8 19% 15% e-Sales 185% e-Sales 36 Corporate Biz 37% 22% 42% Corporate Biz
Slide 68: Magma HDI - Enhancing distribution through partnerships
Magma HDI - Enhancing distribution through partnerships Offices & Channel Partners FY18 FY19 FY20 FY21 Number of Branches 125 169 170 133 Agents + POS* + MISP# 2,790 5,028 6,558 7,614 Corporate Agents 5 7 13 11 OEM Tie-ups 1 1 6 14** Number of Districts where policies are issued : 593 Number of Distri
Slide 69: Magma HDI – Strong growth in Retail Health & Fire
Magma HDI – Strong growth in Retail Health & Fire Motor GWP and Share Retail Run Rate Diversification towards Non-Motor 304 320 1029 969 258 747 170 413 86 101 107 73% 80% 72% 57 74% FY18 FY19 FY20 FY21 Q1FY21 Q2FY21 Q3FY21 Q4FY21 GWP Share Qtrly Retail Business Mthly Retail Run Rate Commercial GWP
Slide 70: Magma HDI – Continuous accretion in Investment book
Magma HDI – Continuous accretion in Investment book Combined Ratio Movement Investment Book & Leverage ratio Y-o-Y Q-o-Q Investment Corpus Leverage Ratio @ 6.9 120.7% 120.0% 120.7% 118.6% 112.1% 5.4 36.4% 40.4% 37.9% 40.4% 4.7 41.5% 4.4 84.3% 79.6% 83.6% 78.2% 2,994 70.6% 2,285 1,137 1,462 FY19* FY2
Slide 71: Magma HDI - Profit & Loss Statement (Ind AS)
Magma HDI - Profit & Loss Statement (Ind AS) Ind AS Particulars Q4 FY21 Q4 FY20 Q3 FY21 FY21 FY20 Gross Written Premium 438 345 358 1349 1294 Net Written Premium 237 200 226 798 790 Net Earned Premium 192 194 192 762 708 Net Claims Incurred 150 162 149 607 598 Net Commission (17) (12) (12) (55) (63)
Slide 72: Magma HDI - Profit & Loss Statement (I GAAP)
Magma HDI - Profit & Loss Statement (I GAAP) Particulars Q4 FY21 Q4 FY20 Q3 FY21 FY21 FY20 Gross Written Premium 438 345 358 1,349 1,294 Net Written Premium 237 200 226 798 790 Net Earned Premium 192 194 192 762 708 Net Incurred Claims 150 162 149 607 597 Net Commission (17) (12) (12) (55) (63) Comm
Slide 73: Magma HDI Fund raise transaction to provide growth fillip
Magma HDI Fund raise transaction to provide growth fillip • Accelerate growth ~ newly acquired OEM tie-ups & further investments in distribution including geographical reach Distribution • Investment in health business ~ diversify from current dependence on Motor • Growth in business of parent ~ opp
Slide 74: 6. Business enablers
6. Business enablers 73
Slide 75: 6a) Risk management
6a) Risk management 74 74
Slide 76: Enterprise wide, independent risk management framework
Enterprise wide, independent risk management framework, An integrated approach covering entity wide risks Board of Directors Risk Management Committee ALCO Audit Committee ITSC Independent Risk Management Unit 1st line of defense 2nd line of defense 3rd line of defense Operational and Business Credi
Slide 77: Risk strategy to deal with COVID-19 situation
Enterprise wide, independent risk management framework, Risk strategy to deal with COVID-19 situation Covid-19, a health and economic crisis which started during the end of FY20, continued to impact much of the FY21. Risk has fine tuned its strategy and taken multiple initiatives to keep up with the
Slide 78: 6b) Technology
6b) Technology 77 77
Slide 79: Digital Lender for Bharat
Digital Lender for Bharat Business Growth Opex Reduction Improved Biz Team productivity: End-to-End Digital Improved Biz efficiency: Straight-Through-Processing Loan Processing, Automated workflows, Credit Rule for Instant Loan Approvals Engine based decisions, eSign Improved Ops efficiency: Introduce
Slide 80: 6c) Employees 'First'
6c) Employees ‘First’ 79 79
Slide 81: Business enabler for sustained growth - People
Business enabler for sustained growth - People Promoting ethical practices, through awareness and culture building. Talent management framework with objective of building internal talent pipeline and strengthening retention through Talent Councils. Empowering business leaders with structured Perform
Slide 82: 7. Leadership team
7. Leadership team 81
Slide 83: Board of Directors
Board of Directors Adar Poonawalla Sanjay Chamria Abhay Bhutada Mayank Poddar Non-Executive Executive Managing Non-Executive Chairman & Vice-Chairman & Director* Promoter Director Promoter Director Promoter Director Vijayalakshmi R Sunil Sajid Fazalbhoy Iyer Chandiramani Non-Executive Non-Executive
Slide 84: Management Team
Management Team Abhay Bhutada Managing Director Manish Jaiswal Rajive Kumaraswami Harshvardhan Chamria Rajneesh Mishra Kailash Baheti Girish Poddar MD & CEO - HFC, MD & CEO - MHDI Chief Digital Officer Chief People Officer Chief Financial Officer Chief Risk Officer CEO - SME Previously, Head, Previo
Slide 85: 8. Shareholding structure
8. Shareholding structure 84
Slide 86: Magma Fincorp Shareholding Structure
Magma Fincorp Shareholding Structure Shareholder # Shares Stake (%) Promoters 55,94,71,721 73.3% Non-Promoters^ Amansa Holdings Private Limited ($) 2,06,56,242 2.7% Reliance Mutual Fund (*) 1,92,85,290 2.5% Leapfrog Financial Inclusion India Holdings Ltd 1,32,18,519 1.7% International Finance Corpor
Slide 87: 9. Annexures
9. Annexures Business Strategy- Asset Backed Finance (ABF) 86
Slide 88: MFL Standalone Profit & Loss Statement
Magma Fincorp Ltd. (MFL) Standalone Profit & Loss Statement* Particulars Q4 FY21 Q3 FY21 Q4 FY20 FY21 FY20 Net Interest Income 244 243 255 974 1,051 Other Income 12 5 5 28 41 Net Revenue 256 247 260 1,002 1,093 # Expenses 115 100 140 440 575 Operating Profit 140 147 120 562 518 # Net Credit Loss 131
Slide 89: MFL Standalone Balance Sheet
Magma Fincorp Ltd. (MFL) Standalone Balance Sheet Particulars 31-Mar-21 31-Dec-20 31-Mar-20 Cash and Cash Equivalents 612 629 648 Loans and Advances 8,565 9,894 11,183 Other Assets 1,022 864 948 Fixed Assets 142 152 176 Total Assets 10,342 11,538 12,955 Borrowings 7,915 8,484 10,109 Other Liabilitie
Slide 90: Rewards & Recognition
Rewards & Recognition Corporate Social Responsibility • Magma won 15 awards since 2015, the latest recognition was received in October at the 9th Asian Leaders Awards ’2020 – Gold for Best Education/Scholarship Program (M-Scholar) • Magma’s Highway Heroes entered LIMCA Book of Records for our Highwa
Slide 91: Community Commitment: CSR
Community Commitment: CSR COVID-19 Relief Magma M- Scholar • Contributed INR 4 Cr to PMCARES fund. • Distribution of Dry Ration, PPE Kit, Sanitizer, Mask to several thousand migrant workers during COVID, etc. • Magma M Scholar offers Scholarship to meritorious Magma Highway Heroes students from poor
Slide 92: Glossary (1/2)
Glossary (1/2) ABF Asset Backed Finance AHF Affordable Housing Finance ALM Asset Liability Management API Application Programming Interface ATS Average Ticket Size AUM Assets Under Management: On-Book & Off-Book Loan Assets Average AUM (AAUM) Average of opening and closing AUM BVPS Book Value per sh
Slide 93: Glossary (2/2)
Glossary (2/2) IRDAI Insurance Regulatory and Development Authority LAP Loan against property LIG Low Income Group MHDI Magma HDI General Insurance Company Limited (Joint Venture) MHF Magma Housing Finance Limited (100% Subsidiary) MIG Middle Income Group MISP Motor Insurance Service Provider Mortga
Slide 94: Disclaimer
Disclaimer This presentation has been prepared by Magma Fincorp Limited (the “Company”), for general information purposes only, without regard to any specific objectives, suitability, financial situations and needs of any particular person and does not constitute any recommendation or form part of a
Slide 95: Disclaimer (Contd.)
Disclaimer (Contd.) The information contained in these materials has not been independently verified. None of the Company, its directors, promoter or affiliates, nor any of its or their respective employees, advisers or representatives or any other person accepts any responsibility or liability what