CSL Finance Limited · NSE:CSLFINANCE
CSL Finance — Q3 FY2019 Earnings Presentation
24 slides from CSL Finance's earnings presentation, January 2019
Slide 1: FY19 Q3 - Update
FY19 Q3 - Update January 2019 © 2019 CSL FINANCE LIMITED, ALL RIGHTS RESERVED
Slide 2: Table of Contents
Table of Contents Company Snapshot 3 Business Strategy 4 Product Portfolio 5 Our Presence 6 Operational Overview 8 Financial Update 10 Financial Metrics 21 © 2019 CSL Finance Limited, All Rights Reserved. 2
Slide 3: Company Snapshot
Company Snapshot Delhi based NBFC with Listed on Bombay 99% of loan BBB rating AUM of Rs.322.29 Cr Stock Exchange book is secured from CARE 18 Branches spread High CAR Low cost of Raised 51 Cr from Marquee across North and West of 63.76% operations investors in Sep 2017 India © 2019 CSL Finance Limi
Slide 4: Business Strategy
Business Strategy Portfolio Quality Focussed Approach Systematic build up of portfolio Prudent risk management and in chosen geographies relentless monitoring of portfolio Costs Flexibility Focus on low operational Flexible offerings in line with and borrowing costs customer needs Niche Segments Cus
Slide 5: Product Portfolio
Product Portfolio Product Portfolio Wholesale Mortgage – Large (Group Housing) Wholesale Mortgage – Small (Builder Floor Financing) Wholesale Wholesale Mortgage - LAP Financing (Corporates , Individuals and Education Sector) Secured Business Loans Retail Unsecured Business Loans Financing © 2019 CSL
Slide 6: Our Presence
Our Presence Existing Branches Jalandhar Ludhiana Dehradun Patiala Yamuna Ambala Nagar Panipat Faridabad New Delhi Sikar Jaipur Ajmer Jodhpur Kota Mehsana Ahmedabad Baroda Surat Map not to scale, for representation purposes only © 2019 CSL Finance Limited, All Rights Reserved. 6
Slide 7: Risk Management Framework
Risk Management Framework § Presence in select pockets of NCR § Excellent understanding of the market dynamics and risks Presence in select 1 markets § Selective focus on market segments with good end-use demand § Last mile financing – significantly reduces project risk § Deal with reputed developer
Slide 8: Operational Update
Operational Update We have 18 operational branches for SME Loans covering 6 states NCR, Haryana, Punjab, Rajasthan, Uttarakhand and Gujarat The company has a total employee strength of 135 The new loan origination platform FinnOne Neo is under implementation and will go live in this quarter Our new
Slide 9: Strategy In Current Environment
Strategy In Current Environment We are well funded with our Capital Adequacy Ratio at 63.76% In the current environment of scarce liquidity our focus will be § Increase our SME portfolio & Small Builder Loans (Redevelopment of existing houses) § Rollout of the school loan product across all our SME
Slide 10: Financial Update
Financial Update Total Revenue increased by 46.27% to Rs 15.81 Cr in Q3 FY2018-19 as compared to Rs 10.81 Cr in Q3 FY2017-18 Net Profit increased by 29.79% to Rs 6.61 Cr in Q3 FY2018-19 as compared to Rs 5.09 Cr in Q3 FY2017-18 AUM increased by 23.85% to Rs 322.29 Cr in Q3 FY2018-19 as compared to R
Slide 11: Liquidity Profile & Capital Adequacy Ratio
Liquidity Profile & Capital Adequacy Ratio Cash & Cash Equivalents (incl. undrawn line of credit) (In Rs. Capital Adequacy Ratio Cr) 25.00 90% 84.4% 21.31 80% 20.00 18.74 68.4% 70% 64.3% 65.4% 64.3% 63.5% 63.8% 15.99 14.41 60% 15.00 12.06 50% 10.00 40% 30% 4.97 5.00 20% 1.93 10% 0.00 0% Q1FY18Q2FY18
Slide 12: ALM Breakup
ALM Breakup Maturity Pattern of Assets & Liabilities as on 31.12.2018 (In Rs. Cr) 250 209.9 198.9 200 150 107.7 Assets 100 Liablities 77.2 46.3 50 26.8 0 Upto 1 year 1-5 years Over 5 years Note: Last bucket of over 5 years includes Net worth of INR 205.51 Cr © 2019 CSL Finance Limited, All Rights Re
Slide 13: Monthly Disbursements
Monthly Disbursements Monthly Disbursement (In Rs Cr) 45 39.97 40 3.28 35.92 34.45 35 32.26 33.04 4.59 4.6 3.77 3.93 30 23.61 25 21.64 3.65 20 16.81 16.87 3.46 36.69 15 2.37 29.85 4.25 31.33 28.49 29.11 10 18.18 19.96 14.44 12.62 5 0 Apr/18 May/18 Jun/18 Jul/18 Aug/18 Sep/18 Oct/18 Nov/18 Dec/18 WHO
Slide 14: Monthly Collections
Monthly Collections Monthly Collection (In Rs Cr) 40 36.06 35 32.74 1.32 30.59 1.17 30 0.68 27.44 26.33 24.1 0.94 24.11 23.97 25 1.43 0.8 0.82 1.26 20 15.88 34.74 15 29.91 31.57 0.73 26.5 24.9 23.3 23.29 22.71 10 15.15 5 0 Apr/18 May/18 Jun/18 Jul/18 Aug/18 Sep/18 Oct/18 Nov/18 Dec/18 WHOLESALE SME
Slide 15: Credit Business Mix
Credit Business Mix Product Category Book Size (Rs Cr) Corporate Lending Loans to Group Housing Projects consisting both of Wholesale Mortgage – Large 147.03 standard loans and structured collateralised loans Wholesale Mortgage – Small 78.83 Builder Floor & Site Redevelopment Loans Mezzanine loans g
Slide 16: Wholesale Credit – Leveraging our Relationships
Wholesale Credit – Leveraging our Relationships Assets Under Management (AUM) Figures in INR Crores Business Approach 300.00 Better domain knowledge due to controlled 277.48 279.41 279.05 geographical presence 275.00 265.19 Selective focus on market segments with good end-use demand 248.56 250.00 Hi
Slide 17: Wholesale Credit – Product Breakup
Wholesale Credit – Product Breakup Wholesale Credit - Large (Rs Cr) Wholesale Credit - Small (Rs Cr) 100.00 200 180.12 173.8 75.44 78.83 155.47 151.97 147.03 80.00 150 121.96 56.36 60.00 102.65 44.75 100 32.60 40.00 28.01 23.58 50 20.00 0.00 0 Q1FY18 Q2FY18 Q3FY18 Q4FY18 Q1FY19 Q2FY19 Q3FY19 Q1FY18
Slide 18: Wholesale Large & Small Portfolio
Wholesale Large & Small Portfolio Affordable Housing Last Mile Financing - Rs.94.96 Cr (29.46% of AUM) Rs.52.07 Cr (16% of AUM) More than 80% completion of construction • Under policies of state and central government like Deen Dayal Upadhyay Scheme, • Projects have traversed the high risk phases Ha
Slide 19: AUM Composition
AUM Composition AUM Composition WS Large Affordable SME Housing 13.41% 16.16% WS LAP 16.50% WS Large Last Mile financing 29.47% WS Small 24.46% © 2019 CSL Finance Limited, All Rights Reserved. 19
Slide 20: Retail Credit Expanding Footprint
Retail Credit Expanding Footprint Assets Under Management (AUM) Business Approach Figures in INR Crores 45 43.23 Building a focussed retail presence. Started with select 40 markets in NCR, Haryana, Punjab and Rajasthan; further expanded into Gujarat 35 33.76 Currently 18 operational branches 30 25 F
Slide 21: Financial Metrics
Financial Metrics 1 Total Income Operating Expenses (Rs Cr) 18 3.50 15.81 3.00* 3.02* 16 14.62 3.00 13.23 13.67 14 2.28* 10.81 2.50 2.21* 12 1.98 9.22 1.84 10 8.2 2.00 1.50 8 1.50 6 1.00 4 2 0.50 0 0.00 Q1FY18 Q2FY18 Q3FY18 Q4FY18 Q1FY19 Q2FY19 Q3FY19 Q1FY18 Q2FY18 Q3FY18 Q4FY18 Q1FY19 Q2FY19 Q3FY19
Slide 22: Financial Metrics (contd..)
Financial Metrics (contd..) 2 Borrowings (Rs Cr) Net Interest Income (Rs Cr) 140 129.71 123.98 15.00 115.98 120 102.32 10.81 11.05 89.62 9.75 10.25 100 9.32 10.00 80 68.78 7.54 58.05 6.58 60 5.00 40 20 0 0.00 Q1FY18 Q2FY18 Q3FY18 Q4FY18 Q1FY19 Q2FY19 Q3FY19 Q1FY18 Q2FY18 Q3FY18 Q4FY18 Q1FY19 Q2FY19
Slide 23: Financial Metrics (contd..)
Financial Metrics (contd..) 3 Capital Adequacy Ratio (%) Net Interest Margin (%) 100% 84% 30% 64% 68% 65% 64% 63% 64% 19% 17% 19% 20% 16% 15% 15% 50% 14% 10% 0% 0% Q1FY18 Q2FY18 Q3FY18 Q4FY18 Q1FY19 Q2FY19 Q3FY19 Q1FY18 Q2FY18 Q3FY18 Q4FY18 Q1FY19 Q2FY19 Q3FY19 Number of Employees Number of Branches
Slide 24: Thank You
Thank You Corporate Office: Investor Contact: 716-717, 7th floor, Tower B, Akash Gupta World Trade Tower, Sector16, Phone: 0120 4290650-52-53-54-55 Noida- 201301 Email: akash.gupta@cslfinance.in Registered Office: 8/19, GF, WEA, Pusa lane, Karol Bagh, New Delhi - 110005 © 2019 CSL Finance Limited, A