Muthoot Capital Services Ltd. · NSE:MUTHOOTCAP

Muthoot Capital Services — Q4 FY2018 Earnings Presentation

35 slides from Muthoot Capital Services's earnings presentation, Apr 17, 2018

  1. Slide 1: Board Presentation dated 17th April 2018

    Board Presentation dated 17th April 2018 Quarter/ Year ended 31st March 2018 1

  2. Slide 2: Analysis sections overview

    1 2 3 Sales and Performance Collection Asset Analysis Analysis Analysis 4 5 6 Management Liability Analysis – 5 Discussion & Analysis Quarters Analysis 2

  3. Slide 3: Snapshot

    Performance Sales & Collection Asset Liability Analysis Management Analysis Analysis Analysis Analysis 5 Quarters Discussion & Analysis Additional Own book No of states Capital Adequacy – borrowings - GNPA – ₹87.9 Cr. currently operating 21.6% ₹1326.7 Cr. NNPA – ₹57.0 Cr. – 16 SNAPSHOT Year ended 31

  4. Slide 4: Quarterly and Yearly Trend Financial Metrics

    Performance Sales & Collection Asset Liability Analysis Management Analysis Analysis Analysis Analysis 5 Quarters Discussion & Analysis Quarterly Trend Yearly Trend ₹. In Crores Financial Statement Metrics Q3 FY 18 Q4 FY 18 Q-o-Q Q4 FY 17 Y-o-Y FY 17 FY 18 Y-o-Y Disbursement : Hyp Loans 485.8 482.1

  5. Slide 5: Statement of Sources and Application of Funds

    Performance Sales & Collection Asset Liability Analysis Management Analysis Analysis Analysis Analysis 5 Quarters Discussion & Analysis STATEMENT OF SOURCES AND APPLICATION OF FUNDS ₹. In Crores As At As At Sources Applications 31-Mar-17 31-Dec-17 31-Mar-18 31-Mar-17 31-Dec-17 31-Mar-18 Share Capita

  6. Slide 6: Disbursement, Gross AUM and Revenue

    Performance Sales & Collection Asset Liability Analysis Management Analysis Analysis Analysis Analysis 5 Quarters Discussion & Analysis Gross AUM Revenue Disbursement Q3 FY 18 : ₹ 526.0 Cr 13% Q3 FY 18 : ₹ 1979.5 Cr 13% Q3 FY 18 : ₹ 105.2 Cr 13% Q4 FY 18 : ₹ 594.7 Cr Q4 FY 18 : ₹ 2238.0 Cr Q4 FY 18

  7. Slide 7: Asset Quality and Provision Coverage

    Performance Sales & Collection Asset Liability Analysis Management Analysis Analysis Analysis Analysis 5 Quarters Discussion & Analysis ASSET QUALITY AND PROVISION COVERAGE ₹. In Crores 6.0% 40% As on As on As on 35% 5.0% 5.2% 5.2% 31.03.2017 31.12.2017 31.03.2018 4.60% 30% 4.3% Own Book 4.0% 3.9% 4

  8. Slide 8: Other Expenses - Split

    Performance Sales & Collection Asset Liability Analysis Management Analysis Analysis Analysis Analysis 5 Quarters Discussion & Analysis OTHER EXPENSES - SPLIT ₹. In Crores Q3 FY 18 Q4 FY 18 Q-o-Q Q4 FY 17 Y-o-Y FY 17 FY 18 Y-o-Y Collection Charges: 11.2 12.3 9.4% 7.8 56.8% 20.6 43.8 112.3% Collectio

  9. Slide 9: Main Factors Impacting Profitability - Delinquencies

    Performance Sales & Collection Asset Liability Analysis Management Analysis Analysis Analysis Analysis 5 Quarters Discussion & Analysis MAIN FACTORS IMPACTING PROFITABILITY - DELINQUENCIES ₹. In Crores Particulars For FY 16 For FY 17 Q1 FY 18 Q2 FY 18 Q3 FY 18 Q4 FY 18 For FY 18 Unrealized Income 3.

  10. Slide 10: Zonewise Disbursement (Hyp Loans) - Q-o-Q

    Performance Sales& Collection Asset Liability Analysis Management Analysis Analysis Analysis Analysis 5 Quarters Discussion & Analysis ZONEWISE DISBURSEMENT (HYP LOANS) – Q- o -Q ₹. In Crores 37% 34% 35% BRANCH DEALER TOTAL Overall Zone Q4 FY '17 Q4 FY ' 18 Q4 FY '17 Q4 FY ' 18 Q4 FY '17 Q4 FY ' 18

  11. Slide 11: Zonewise Disbursement (Hyp Loans) - Y-o-Y

    Performance Sales& Collection Asset Liability Analysis Management Analysis Analysis Analysis Analysis 5 Quarters Discussion & Analysis ZONEWISE DISBURSEMENT (HYP LOANS) – Y- o -Y ₹. In Crores 64% 56% 65% 55% BRANCH DEALER TOTAL 55% FY 17 FY 18 FY 17 FY 18 FY 17 FY 18 Growth Overall Zone Count Value

  12. Slide 12: Collection Performance Monitoring (Hyp)

    Performance Sales& Collection Asset Liability Analysis Management Analysis Analysis Analysis Analysis 5 Quarters Discussion & Analysis COLLECTION PERFORMANCE MONITORING (HYP) ₹. In Crores Bucket-wise Flow Collection Performance 25% 364 322 296 3.1% 258 259 3.6% 20% 5.9% 7.9% 5.4% 96.9% 15% 96.4% 92.

  13. Slide 13: Portfolio Trend - Hypothecation Loans

    Performance Sales& Collection Asset Liability Analysis Management Analysis Analysis Analysis Analysis 5 Quarters Discussion & Analysis PORTFOLIO TREND – HYPOTHECATION LOANS ₹. In Crores Own Month book 30+ 90+ 30+% 90+% 30.0% AUM 25.0% 01-Apr-17 1 005.5 185.9 106.4 18.5% 10.6% 01-May-17 1 054.1 213.8

  14. Slide 14: NPA Movement - Hyp Loan - Q4 FY 2018

    Performance Sales& Collection Asset Liability Analysis Management Analysis Analysis Analysis Analysis 5 Quarters Discussion & Analysis NPA MOVEMENT – HYP LOAN – Q4 FY 2018 ₹. In Crores Particulars HP Nos Principal Provision Unrealized Balance as on 31.12.2017 53 502 93.4 26.7 11.8 Add: Slipped to NP

  15. Slide 15: NPA Movement - Hyp Loan - Across 8 Quarters

    Performance Sales& Collection Asset Liability Analysis Management Analysis Analysis Analysis Analysis 5 Quarters Discussion & Analysis NPA MOVEMENT – HYP LOAN – ACROSS 8 QUARTERS ₹. In Crores Particulars Q1 ‘17 Q2 ‘17 Q3 ‘17 Q4’ 17 Q1 ‘18 Q2 ‘18 Q3 ‘18 Q4 ‘18 Opening Balance 54.0 69.2 66.5 78.1 74.2

  16. Slide 16: MCSL Geographic Overview - Hyp

    Performance Sales & Collection Asset Liability Analysis Management Analysis Analysis Analysis Analysis 5 Quarters Discussion & Analysis MCSL GEOGRAPHIC OVERVIEW - HYP ₹. In Crores Zone Active % of Zone Regular NPA Total wise Clients NPA AUM % South India 4 69 957 1541.9 73.1 1615.0 83.2% 4.7% Wester

  17. Slide 17: Portfolio Analysis

    Performance Sales & Collection Asset Liability Analysis Management Analysis Analysis Analysis Analysis 5 Quarters Discussion & Analysis PORTFOLIO ANALYSIS ₹. In Crores Portfolio Analysis Segment – wise Analysis 4.6% 90.1 1 935.5 4.7 95.4% 95.4% 71.3% 4.6% 28.7% 1 850.1 Two Wheeler Three Wheeler & Ot

  18. Slide 18: Hyp Portfolio Split as on March 31st 2018

    Performance Sales & Collection Asset Liability Analysis Management Analysis Analysis Analysis Analysis 5 Quarters Discussion & Analysis HYP PORTFOLIO SPLIT AS ON MARCH 31ST 2018 2% 2% 3% 3% ₹. In Crores 1% 1% 2% Owned Portfolio 1563.8 2% Starling ( Mahindra) 15.6 1% 1% Quetzal (DCB) 23.7 Fire finch

  19. Slide 19: Shareholding Pattern

    Performance Sales & Collection Asset Liability Analysis Management Analysis Analysis Analysis Analysis 5 Quarters Discussion & Analysis 31 Mar 2017 SHAREHOLDING PATTERN 31 Mar 2018 Banks/ Financial NRI, 0.3% Post QIP Banks/ Financial Institutions, FII & FPI, 0.0% Institutions, 14.8% 0.06% Other Corp

  20. Slide 20: Capitalization: Market Price vs Book Value per Share

    Performance Sales & Collection Asset Liability Analysis Management Analysis Analysis Analysis Analysis 5 Quarters Discussion & Analysis CAPITALIZATION Movement of Market Price per Share (MPS) vs. The Company’s market capitalization has Book Value per Share (BPS) shown significant growth during the y

  21. Slide 21: Sources of Borrowing

    Performance Sales & Collection Asset Liability Analysis Management Analysis Analysis Analysis Analysis 5 Quarters Discussion & Analysis SOURCES OF BORROWING ₹619 Cr ₹439.8 Cr ₹42.9 Cr Additional bank sanctions Securitization/ DA done in Collections of Sub-debt during the year FY 2017-18 (net of MRR)

  22. Slide 22: Borrowing Profile

    Performance Sales & Collection Asset Liability Analysis Management Analysis Analysis Analysis Analysis 5 Quarters Discussion & Analysis BORROWING PROFILE ₹. In Crores Q4 FY ’17 Q3 FY ’18 Q4 FY ‘18 Particulars Amount Cost Amount Cost Amount Cost Bank Loan 814.8 10.5% 1 066.5 9.5% 1149.1 9.3% Sub debt

  23. Slide 23: Highlights - Securitisation / Direct Assignment Transaction

    Performance Sales & Collection Asset Liability Analysis Management Analysis Analysis Analysis Analysis 5 Quarters Discussion & Analysis HIGHLIGHTS – SECURITISATION / DIRECT ASSIGNMENT TRANSACTION Augmented Growth Capital saving: • Done 6 Securitization /6 Direct Assignment An off balance sheet trans

  24. Slide 24: Spread Analysis

    Performance Sales & Collection Asset Liability Analysis Management Analysis Analysis Analysis Analysis 5 Quarters Discussion & Analysis SPREAD ANALYSIS ₹. In Crores Mar-17 Jun-17 Sep-17 Dec-17 Mar-18 Analysis on Avg loan book size Amount % Amount % Amount % Amount % Amount % Avg Loan Book Size 1133.

  25. Slide 25: Analysis of Cost & Yield

    Performance Sales & Collection Asset Liability Analysis Management Analysis Analysis Analysis Analysis 5 Quarters Discussion & Analysis ANALYSIS OF COST & YIELD EFFECTIVE RATE SL.No. Description of Loan Q4 FY ‘17 Q1 FY ‘18 Q2 FY ‘18 Q3 FY ‘18 Q4 FY ‘18 1 Hypothecation 27.0% 24.3% 26.5% 24.8% 26.0% 2

  26. Slide 26: Analysis of Cost & Yield

    Performance Sales & Collection Asset Liability Analysis Management Analysis Analysis Analysis Analysis 5 Quarters Discussion & Analysis ANALYSIS OF COST & YIELD Cost of Funds, Yield & Spread Composition of Yield 30.0% Hypothecation 26.0% Loan Buyout 16.0% 25.0% 24.9% 24.7% Term Loan 25.0% 23.5% 14.4

  27. Slide 27: Expense as a % of Revenue - Q-o-Q

    Performance Sales & Collection Asset Liability Analysis Management Analysis Analysis Analysis Analysis 5 Quarters Discussion & Analysis EXPENSE AS A % OF REVENUE – Q-o-Q 13.9% 7.6% 10.9% 14.9% 18.0% 4.2% 5.8% 7.3% 11.5% 8.2% 7.1% 6.7% 9.8% 6.7% 8.9% 22.4% 23.1% 28.0% 24.6% 21.6% 32.3% 35.2% 31.9% 30

  28. Slide 28: Average LTV, Ticket Size, IRR and Processing Fee

    Performance Sales & Collection Asset Liability Analysis Management Analysis Analysis Analysis Analysis 5 Quarters Discussion & Analysis ₹. In Crores Average LTV Average Ticket Size 74.8% 76.8% 76.6% 50 315 50 530 50 170 53 135 52 993 72.5% 72.7% Q4 17 Q1 18 Q2 18 Q3 18 Q4 18 Q4 17 Q1 18 Q2 18 Q3 18

  29. Slide 29: Loan Book Size, Disbursement and Revenue

    Performance Sales & Collection Asset Liability Analysis Management Analysis Analysis Analysis Analysis 5 Quarters Discussion & Analysis Disbursement Count (Hypo Loan) Disbursement - Hypo Loan (in ₹ crores) 86 754 91 440 90 960 71 172 67 398 450 486 482 358 341 Q4 17 Q1 18 Q2 18 Q3 18 Q4 18 Q4 17 Q1

  30. Slide 30: Net Interest Income, Opex, Provisions and PAT

    Performance Sales & Collection Asset Liability Analysis Management Analysis Analysis Analysis Analysis 5 Quarters Discussion & Analysis Net interest income (in Crores) OPEX as a % of NII 86.0 59% 64% 65% 73.1 57% 50% 65.0 54.0 52.0 Q4 17 Q1 18 Q2 18 Q3 18 Q4 18 Q4 17 Q1 18 Q2 18 Q3 18 Q4 18 Loan Los

  31. Slide 31: ROA, ROE, EPS, Capital Adequacy and Debt Equity

    Performance Sales & Collection Asset Liability Analysis Management Analysis Analysis Analysis Analysis 5 Quarters Discussion & Analysis ROA and ROE Earning per Share (in ₹) 25.8% 21.9% 22.1% 22.4% 13.5% 13.0 4.9% 10.4 3.9% 3.0% 4.0% 8.1 7.6 1.9% 4.4 Q4 17 Q1 18 Q2 18 Q3 18 Q4 18 Q4 17 Q1 18 Q2 18 Q3

  32. Slide 32: Robust Growth in Disbursement & Collection

    Performance Sales & Collection Asset Liability Analysis Management Analysis Analysis Analysis Analysis 5 Quarters Discussion & Analysis • Hyp. loans had 35% growth from Q4 FY17 to Q4 FY18 & dealer point and MFL growth was 34% & 37%. Robust Growth Industry growth also helped momentum. in Disbursement

  33. Slide 33: Diversity in Funding

    Performance Sales & Collection Asset Liability Analysis Management Analysis Analysis Analysis Analysis 5 Quarters Discussion & Analysis Diversity in • In FY 18 the Company got additional funding of a total of ₹ 1326.7 crores from various sources Funding • Increasing confidence that the lenders / inv

  34. Slide 34: Staff Attrition & Cost Control

    Performance Sales & Collection Asset Liability Analysis Management Analysis Analysis Analysis Analysis 5 Quarters Discussion & Analysis • Monthly staff attrition was higher at 3.66 % in Q3 FY ‘18 v/s 2.67% in Q3 FY 18 - The concept of Staff attrition & Marketing agents is also working well. In North

  35. Slide 35: Thank You

    irl muthoot Believe in Blue THANK YOU fr muthoot CAPITAL

Muthoot Capital Services — Q4 FY2018 Earnings Presentation on 6ix