Paisalo Digital Ltd. · NSE:PAISALO
Paisalo Digital — Q2 FY2024 Earnings Presentation
37 slides from Paisalo Digital's earnings presentation, November 2023
Slide 1: Corporate Presentation Q2 FY 2024
CORPORATE PRESENTATION Q2 FY 2024
Slide 2: Safe Harbor Statement
Safe Harbor Statement PAISALO DIGITAL LIMITED NSE : PAISALO BSE : PAISALO BLOOMBERG : PAISALO:IN This document contains certain forward – looking statements based on current expectations of Paisalo Digital Limited ’s management. Actual Results may vary significantly from the forward - looking statem
Slide 3: Presentation path
01 Paisalo Digital Limited Overview 02 Financial Summary Presentation path 03 Transformation Update 04 Financial Performance 05 Why Paisalo 06 Board of Directors
Slide 4: Overview
1 OVERVIEW PA I S A L O D I G I TA L L I M I T E D
Slide 5: Executive Summary
2 Executive Summary Engaged in the business of providing convenient and easy loans to the financially excluded at bottom of India's economic pyramid Lending business with an AUM of `38,174 Mn Already serviced more than 2.3 million+ customers An experienced team of 2057 managing 1714 touch points in
Slide 6: Key strategic differentiators
3 Key strategic differentiators 1. Leader with a huge Early Mover 2. A Unique and Scalable business advantage in “Co-Lending” model 3. In-house Proprietary Digital 4. Serviced 2.3 Mn+ customers Platform uses Data, AI and ML 5. Paisalo has strong Brand 6. Team of 2057 managing 1714 Recognition in are
Slide 7: Uniquely Positioned for Growth
4 Uniquely Positioned for Growth 1. Leader with a huge Early Mover 2. Offering easiest and cheapest advantage in “Co-Lending” product in its market segment 3. Access to almost unlimited capital, 4. Negligible ‘Liquidity Risk’ relative to size 5. Negligible ‘Credit Risk’ 6. Negligible ‘ALM Risk’
Slide 8: What do we Stand For
5 8 What do we Stand For 1. Disruption 2. High Tech : High Touch Revolutionizing and Disrupting Rural Credit Engage and transact without friction to deliver a sustainable business model 3. Innovation 4. Business Construct Focus on continuous innovation to transform Deliver a sustainable NNPA of <2%
Slide 9: Financial Summary Q2 FY 2024
6 7 FINANCIAL SUMMARY Q2 FY 2024
Slide 10: Paisalo Snapshot Q2 FY 2024
7 Paisalo Snapshot Q2 FY 2024 AUM Revenue Networth `38,174 mn `2,809 mn `12,413 mn YoY Growth +28% YoY Growth +21% YoY Growth +11% A good quarter for the company across balance sheet growth, portfolio quality and profitability.
Slide 11: Paisalo Snapshot Q2 FY 2024
8 Paisalo Snapshot Q2 FY 2024 PAT `859 mn CAR NNPA YoY Growth +90% 39.74 % 0.01 % A good quarter for the company across balance sheet growth, portfolio quality and profitability.
Slide 12: Paisalo Snapshot Q2 FY 2024
9 Paisalo Snapshot Q2 FY 2024 Highest ever AUM of `38,174 mn. AUM as at Q2 FY 2024 was up 28.24% at `38,174 mn as against Q2 FY 2023 at `29,767 mn. Total geographic footprint stood at to 1714 touchpoints across 18 states, in the quarter. In Q2, the company added 337 new touch points. The company con
Slide 13: Paisalo Snapshot Q2 FY 2024
10 Paisalo Snapshot Q2 FY 2024 Paisalo has written off bad debts totalling to INR 36 mn and has recovered old written off bad debts worth INR 260 mn in Q2 FY 2024. This has impact of INR 224 mn positive to bottom line. The Tangible Networth is INR 12,413 mn versus Bank Borrowings (secured) INR 13,74
Slide 14: Paisalo Snapshot Q2 FY 2024
11 Paisalo Snapshot Q2 FY 2024 Employees head count stood at 2057 as at Q2 FY 2024. The Board of Directors paid a Dividend of 10% on fully paid equity share of Re. 1/- each, for FY 2023 A good quarter for the Company across all financial and portfolio metrics.
Slide 15: Transformation
TRANSFORMATION IPD le
Slide 16: Purpose of business transformation
13 At Paisalo we believe that the purpose of any business transformation is that it should result in stronger growth momentum, better customer experience, additional cross sell, lower credit risk, lower ALM risk and improved liquidity.
Slide 17: Pursuing business transformation with these objectives
14 We are pursuing our business transformation with these objectives. As articulated in previous Quarters all Phase 1 features of the stack are live.
Slide 18: Phase 2: 3000 disbursement per day
15 Phase 2: 3000 disbursement per day Phase 2 is on track; We achieved 3000 disbursements per day in the month of March 2023 (as intimated in presentation of Q4 FY 2023), we will be continuing to focus on stabilising at 3000 disbursements per day (under Phase 2 of the business transformation) for th
Slide 19: Financials Performance
16 FINANCIALS PERFORMANCE
Slide 20: Financials
17 FINANCIALS (`in Millions, *Cumulative) PARTICULARS Q2 FY 2023* Q3 FY 2023* Q4 FY 2023* Q1 FY 2024 Q2 FY 2024* AUM `29,767 `30,107 `34,928 `36,444 `38,174 Disbursements `10,810 `16,239 `25,996 `7,648 `14,773 Revenue `2,329 `3,552 `4,732 `1,362 `2,809 PBT `613 `984 `l,262 `520 `1,156 PAT `451 `730
Slide 21: Financials
18 FINANCIALS (`in Millions, *Cumulative) PARTICULARS FY 2021 FY 2022 FY 2023 Q1 FY 2024 Q2 FY 2024* AUM `23,178 `26,973 `34,928 `36,444 `38,174 Interest Income `3,115 `3,922 `4,732 `1,362 `2,809 NIM 4.05 % 4.03 % 5.50 % 5.80% 6.20% PAT `609 `793 `936 `384 `859 Cash Accrual `646 `819 `950 `392 `875
Slide 22: Financials
19 FINANCIALS (`in Millions) PARTICULARS FY 2021 FY 2022 FY 2023 Q1 FY 2024 Q2 FY 2024 Tangible Net Worth (TNW) `8,619 `10,241 `11,610 `11,954 `12,413 Bank Borrowings (BB) `7,412 `79,588 `13,018 `12,890 `13,740 Total Outside Liabilities (TOL) `14,814 `15,989 `18,567 `18,818 `20,447 BB / TNW (Times)
Slide 23: AUM and Revenue
20 AUM REVENUE `in Millions `in Millions, *cumulative `38,174 Q2 FY 2024 `2,809* `36,444 Q1 FY 2024 `1,362 `34,928 FY 2023 `4,732 `26,973 FY 2022 `3,922 `23,178 FY 2021 `3,115
Slide 24: Net Worth and CAR
21 NET WORTH CAR `in Millions `12,413 Q2 FY 2024 39.74% `11,954 Q1 FY 2024 40.41% `11,610 FY 2023 40.34% `10,241 FY 2022 42.92% `8,619 FY 2021 44.47%
Slide 25: ROE and ROA
22 ROE ROA 13.70% Q2 FY 2024 5.14% 12.65% Q1 FY 2024 4.88% 7.90% FY 2023 3.02% 7.78% FY 2022 3.09% 7.07% FY 2021 2.66%
Slide 26: Shareholding Pattern | Credit Rating
23 Shareholding Pattern | Credit Rating AS AT Q2 FY 2024 PAISALO DIGITAL LIMITED NSE : PAISALO BSE : PAISALO BLOOMBERG : PAISALO:IN 32.97% 21.95% 45.08% PROMOTER & FIIS AND DIIS PUBLIC PROMOTERS GROUP ‘AA (Stable Outlook)’ ’A1+’ (for Commercial Paper)
Slide 27: Why Paisalo?
24 Why PAISALO?
Slide 28: Pyramid of development: strengthening the bottom layer
25 In the pyramid of development the bottom most layer needs to be strengthened through financial inclusion of purchasing power of the poor.
Slide 29: Problem?
26 Problem? - Low availability of small loans from Financial Institutions - High operational cost of banks, inhibits lending volumes on small loans - High borrowing rate of NBFCs, restricts focus on small loans
Slide 30: Solution
27 Solution Bank’s low cost of funds, and Paisalo’s low cost of operations Results in lowest borrowing cost offering to the bottom of pyramid customer
Slide 31: How?
28 How? 01 Bank to contribute 80% of loan value under the 02 Paisalo to contribute 20% of loan value under the 03 Risk and reward sharing in 80:20 ratio under the co–lending model co–lending model model PAISALO to source and service customers PAISALO and Bank’s Agreement is in conformity with prescr
Slide 32: Paisalo Co-Lending: Most Efficient Offering
29 Paisalo Co-Lending : Most Efficient Offering MORE CONVENIENT Competitor 2 PAISALO Co-Lending MORE EXPENSIVE LESS EXPENSIVE Product Competitor 3 Competitor 1 Competitor 4 LESS CONVENIENT
Slide 33: Market Opportunity
Market Opportunity 30 Individual Income Number of Income Tax Payee Tax Pan Holders 1.3 Billion 62 Million 75 Million 440 Million 365 Million Indian Population Individual Credit Target Market History Population `25,000 `8,000 Bn Estimated Ticket Size Estimated Annual Market Size
Slide 34: Board of Directors
31 Board of Directors Mr. Sunil Agarwal Mr. Harish Singh Mr. Anoop Krishna Managing Director & CEO Executive Director & CFO Executive Director 30 years of experience, incorporated Executive Director MBA, Chartered Veteran Banker with over 30 years Paisalo and took it from Private Entity to Accountan
Slide 35: Board of Directors
32 Board of Directors Mr. Santanu Agarwal Mr. Vijuy Ronjan Mr. Naresh Kumar Deputy Managing Director Independent Director Independent Director Santanu, B.Com LLB, played a pivotal role in 30 years+ experience in the field of Banking, 30 years+ experience in the field of Corporate and digital transfo
Slide 36: Board of Directors
33 Board of Directors Mr. Gauri Shankar Mr. Raman Aggarwal Mrs. Nisha Jolly Independent Director Independent Director Independent Director 30 years+ experience in the field of Banking, Co-Chairman of Finance 30 years+ of experience in the field of Banking, held position of CEO and Managing Director
Slide 37: Thank You
THANK YOU Phone : +91 11 43-51-8888 Email : ir@paisalo.in Website : www.paisalo.in