Csl Finance Limited · NSE:CSLFINANCE
Csl Finance — Q3 FY2025 Earnings Presentation
39 slides from Csl Finance's earnings presentation, Feb 11, 2025
Slide 1: Investor Presentation cover letter to stock exchanges
CIN: L74899DL1992PLC051462 February 11, 2025 National Stock Exchange of India BSE Limited Limited Corporate Relationship Department Exchange Plaza, C-1, Block-G, Bandra Phiroze, Jeejeebhoy Towers, Dalal Street, Kurla Complex, Bandra (E), Mumbai - Mumbai-400001 400051 BSE Scrip Code: 530067 NSE Symbo
Slide 2: Q3FY25 Investor Presentation February 2025
Q3FY25 Investor Presentation February 2025
Slide 3: Quarterly Business Update
C S L FI NAN C E L IM I TE D 2 Quarterly Inside this Business Update section Business Growth YoY Loan Book Size Asset Quality Asset Quality: Stage Analysis P&L Highlights Treasury Update Quarterly Financial Snapshot Operational Updates New Product Updates: Suvidha Loans Lending Partners 5Y Financial
Slide 4: Business Growth YoY
C S L FI NAN C E L IM I TE D 3 Business Growth YoY 22% Q3’25 14% Q3’25 Consistent Q3’25 Performance ₹1,150 Cr ₹280 Cr 98% Q3’24 Assets Under Q3’24 Disbursement Q3’24 Collection ₹944 Cr Management ₹246 Cr 99% Efficiency 5% Q3’25 -0% Q3’25 10% Shift in Favour of Q3’25 Wholesale ₹35.4 Cr ₹16.8 Cr 37:63
Slide 5: Loan Book Size
C S L FI NAN C E L IM I TE D 4 Loan Book Size Disbursements Collections Loan Book Collection Efficiency (₹ crore) (₹ crore) (₹ crore) (%) 14% -5% 35% -3% 22% 6% YOY Change QOQ Change YOY Change QOQ Change YOY Change QOQ Change 322 277 294 99 99 98 98 98 280 232 258 225 246 49 59 42 104 167 29 155 1,
Slide 6: Asset Quality
C S L FI NAN C E L IM I TE D 5 Asset Quality Gross NPA NET NPA Provision Coverage Ratio Write-offs & Recoveries (%) (%) (%) (₹ crore) -2 BPS -16 BPS 0 BPS -9 BPS YOY Change QOQ Change YOY Change QOQ Change 0.54 0.32 291 300 3.4 0.44 0.45 270 0.26 262 0.40 0.25 2.7 0.38 0.23 0.23 224 2.7 1.6 0.9 0.9
Slide 7: Asset Quality: Stage Analysis
C S L FI NAN C E L IM I TE D 6 Asset Quality: Stage Analysis Classification of Assets Basis the ECL Computation as Per Ind-AS: PARTICULARS Q3FY24 Q2FY25 Q3FY25 Gross Stage 3 (GNPA) 3.67 5.64 4.22 % portfolio in Stage 3 0.40% 0.54% 0.38% ECL provision Stage 3 1.60 2.37 1.73 Net Stage 3 2.07 3.27 2.49
Slide 8: P&L Highlights
C S L FI NAN C E L IM I TE D 7 P&L Highlights Net Interest Income Total Income Profit After Tax Yields (₹ crore) (₹ crore) (₹ crore) (%) 5% -4% 18% -1% -0% -6% YOY Change QOQ Change YOY Change QOQ Change YOY Change QOQ Change 37.0 54.3 18.1 18.0 18.3 18.3 18.1 53.7 18.5 17.7 17.7 36.3 17.5 17.9 17.1
Slide 9: Treasury Update
C S L FI NAN C E L IM I TE D 8 Treasury Update Leverage Liquidity 1 The Company has higher 3 Credit Rating for the (Time) (₹ crore) liquidity of ₹63.5 crore Company has been coupled with ₹125.0 crore reaffirmed as of undrawn credit facilities A- | Stable from Acuite as on 31st December 2024. Ratings
Slide 10: Quarterly Financial Snapshot
C S L FI NAN C E L IM I TE D 9 Quarterly Financial Snapshot (₹ crore) PARTICULARS Q3FY24 Q2FY25 Q3FY25 Disbursements 245.89 293.93 280.11 Revenue 45.66 54.31 53.70 Interest Income 39.46 49.10 50.52 PBT 23.75 24.72 22.55 PAT 16.72 17.85 16.77 Bad debts written off 0.79 3.39 2.74 Bad debts recovered 0
Slide 11: Operational Updates
C S L FI NAN C E L IM I TE D 10 Operational Updates LOAN BOOK • As a result of all these factors, AUM growth • Liquidity as of Q3 stands higher, with ₹125 • ~₹270 Cr in cumulative debt was raised • AUM growth rate has decelerated due to stood at 22% YOY and 6% QOQ. The AUM Cr in undrawn limits. this
Slide 12: Lending Partners
C S L FI NAN C E L IM I TE D 11 Lending Partners Ban ks & SFBs NBFC Kotak Mahindra Investments Limited Newly added Newly added
Slide 13: 5Y Financial Snapshot
C S L FI NAN C E L IM I TE D 12 5Y Financial Snapshot PARTICULARS FY20 FY21 FY22 FY23 FY24 Disbursements 270.10 433.32 491.10 758.72 1,052.04 Revenue 60.85 61.67 74.62 117.54 166.58 Interest Income 58.42 59.18 67.66 108.54 153.72 PBT 31.74 39.36 44.98 61.47 85.60 PAT 22.47 27.53 33.68 45.52 63.36 Ba
Slide 14: About CSL Finance
C S L FI NAN C E L IM I TE D 13 About Inside this CSL Finance section Introduction CSL’s Business Model Key Differentiators of CSL Business Verticals & Products SME Retail Wholesale
Slide 15: Introduction
C S L FI NAN C E L IM I TE D 14 Introduction The Company is a one-stop destination for Small and Medium-Sized Enterprises (SMEs) and real estate and non-real estate corporates to CSL Finance Limited is a Non-Banking Finance avail a variety of secured loan 37% products. CSL's experienced SME Retail C
Slide 16: CSL's Business Model
C S L FI NAN C E L IM I TE D 15 CSL’s Business Model 01 02 03 04 05 Domain Focused Customer- Technology- Healthy Expertise Strategy Centric Driven Businesses Build deep Operate within circle Prioritise customer Harness technology to Lend to healthy understanding of our of competence, and comfort, ta
Slide 17: Key Differentiators of CSL
C S L FI NAN C E L IM I TE D 16 Key Differentiators of CSL SME Retail Lending Wholesale Lending 1. Target market: serving the 5. Small and flexible ticket sizes 1. Niche and focused real estate 5. Proactive project monitoring unbanked & underserved wholesale book post funding 6. Focused on secured l
Slide 18: Business Verticals & Products
C S L FI NAN C E L IM I TE D 17 Business Verticals & Products Wholesale SME Retail WS WS WS Other SME SME Mid- Large Small Term Loan Retail Sized Lap Structured loans for Construction loan Loan against SORP/SOCP Micro/Small Loans to Kirana Stores, Loan against Mid Income/ Affordable given against si
Slide 19: SME Retail
C S L FI NAN C E L IM I TE D 18 SME Retail Using alternative data Target market: Swift loans Small & instead of conventional Unbanked & underserved scorecards to underwrite loans Business and ease of application flexible ticket sizes Vertical Promoting Focused on Quality collateral Achieving efficie
Slide 20: SME Retail (1/6)
C S L FI NAN C E L IM I TE D 19 SME Retail (1/6) Products Jyoti Shakti Samadhan ₹7-10 Lakhs ₹10-25 Lakhs ₹25-50 Lakhs Loan Amount Loan Amount Loan Amount 7 10 10 Max Tenure (In Years) Max Tenure (In Years) Max Tenure (In Years) Target Customer Target Customer Target Customer Provide working capital
Slide 21: SME Retail (2/6)
C S L FI NAN C E L IM I TE D 20 SME Retail (2/6) Products Nirman Sarthak Sakshar ₹7-50 Lakhs ₹7-25 Lakhs ₹7-50 Lakhs Loan Amount Loan Amount Loan Amount 10 10 10 Max Tenure (In Years) Max Tenure (In Years) Max Tenure (In Years) Target Customer Target Customer Target Customer Balance Transfer of LAP
Slide 22: SME Retail (3/6)
C S L FI NAN C E L IM I TE D 21 SME Retail (3/6) Presence 31% 27% 13 Branches 12 Branches Clustered Rajasthan Gujarat Approach to expanding branch network, based on understanding & comfort 12% 12% in each micro-market 3 Branches 7 Branches Punjab Haryana 37% <1 year 2% 7% 1 Branch 3 Branches New Del
Slide 23: SME Retail (4/6)
C S L FI NAN C E L IM I TE D 22 SME Retail (4/6) Automating Workflow to Improve Efficiency Loan Origination Loan Evaluation Loan Disbursement Loan Collection • Customer on-boarding & authentication • Multi Bureau checks + CIBIL Auto • 100% cashless, E-disbursement of • Digital mobile App for field o
Slide 24: SME Retail (5/6)
C S L FI NAN C E L IM I TE D 23 SME Retail (5/6) Relying on a banking Migrated to a bespoke customer onboarding & loan Roadmap: customer onboarding & loan underwriting platform with multiple API integrations. • Implementation of a new LMS underwriting platform for the Wholesale Vertical Recent achie
Slide 25: SME Retail (6/6)
C S L FI NAN C E L IM I TE D 24 SME Retail (6/6) SME Active Accounts Average Loan-to-value Average Ticket Size Average Tenure (#) (%) (₹ Lakh) (Year) 2,951 7 7 7 2,902 34 34 34 34 34 13 14 14 12 2,814 2,789 10 2,587 6 6 Q3FY24 Q4FY24 Q1FY25 Q2FY25 Q3FY25 Q3FY24 Q4FY24 Q1FY25 Q2FY25 Q3FY25 Q3FY24 Q4F
Slide 26: Wholesale
C S L FI NAN C E L IM I TE D 25 Wholesale Niche, focused, real estate wholesale book Robust collection Focused on secured framework via escrow lending book (100% of accounts the book) Business Vertical Built on in-depth Strength in affordable expertise of NCR and all housing segment its micro-market
Slide 27: Wholesale (1/2)
C S L FI NAN C E L IM I TE D 26 Wholesale (1/2) Robust Risk Management Framework Better Customer Selection: Credit Appraisal & Constant Strong Sourcing Excellent Screening Monitoring • Presence in strategically selected micro- • Robust due diligence • Dedicated, on-ground resourced for markets of NC
Slide 28: Wholesale (2/2)
C S L FI NAN C E L IM I TE D 27 Wholesale (2/2) Active Accounts Average Loan-to-value Average Ticket Size Average Tenure (#) (%) (₹ crore) (Year) 36 36 13 12 3 3 3 3 3 87 81 11 11 79 10 72 72 34 34 33 Q3FY24 Q4FY24 Q1FY25 Q2FY25 Q3FY25 Q3FY24 Q4FY24 Q1FY25 Q2FY25 Q3FY25 Q3FY24 Q4FY24 Q1FY25 Q2FY25 Q
Slide 29: Building for Leadership
C S L FI NAN C E L IM I TE D 28 Building for Leadership Building for Well Managed Tomorrow ALM Conservative Leverage Standards
Slide 30: Building for Tomorrow
C S L FI NAN C E L IM I TE D 29 Building for Tomorrow Professionals Governance Risk-management DNA Poised For Growth • Professional leadership & CXOs • Independent BOD • Never growth at cost of risk- Multiple growth levers aligning: • Deep domain expertise & experience • 8 years of uninterrupted Div
Slide 31: Well Managed ALM
C S L FI NAN C E L IM I TE D 30 Well Managed ALM Cumulative Inflow -Outflow 43 45 48 48 349 417 0 (₹ Crore) 598 525 297 160 160 108 72 78 75 86 56 53 30 18 >1 month >2-3 month >3-6 month >6-12 months 1-3 Years 3-5 Years Over 5 Years Inflow (₹ Crore) Outflow (₹ Crore)
Slide 32: Conservative Leverage Standards
C S L FI NAN C E L IM I TE D 31 Conservative Leverage Standards CONSERVATIVE LEVERAGE THRESHOLD 50 0 1.5-2X in Wholesale & <4X in SME Retail 90 % Total Equity Leverage Ratio Capital Adequacy Ratio 450 473 80 % 73% 79% 40 0 65% 66% 70 % 64% 350 362 60 % ₹54 50% 51% 320 30 0 Crore 50 % Equity 250 Fund
Slide 33: Leadership
C S L FI NAN C E L IM I TE D 32 Leadership Board of Management Directors Team
Slide 34: Board of Directors
C S L FI NAN C E L IM I TE D 33 Board of Directors Rohit Gupta Rachita Gupta Ashok Kathuria Parmod Bindal Subhash Chand Kwatra Ayush Mittal Managing Director Whole-time Director Director Independent Director Independent Director Independent Director Mr Rohit Gupta has over nearly Ms Rachita is a com
Slide 35: Management Team
C S L FI NAN C E L IM I TE D 34 Management Team Work Experience Years at CSL Rohit Gupta Rachita Gupta Chandan Kumar Naresh Varshney Deepak Sood Amit Kaul Atul Agrawal Managing Director Whole Time Director Head – Strategy & Chief Financial President – SME President – IT President – Business Officer
Slide 36: Strategy
C S L FI NAN C E L IM I TE D 35 Strategy Strategic Key Priorities Takeaways
Slide 37: Strategic Priorities
C S L FI NAN C E L IM I TE D 36 Strategic Priorities Rationalisation Optimising branch Leveraging technology to Focusing on core Leveraging Credit of portfolio performance strengthen operations competencies rating upgrade • The Company aims to rationalise its • The Company is working towards • The C
Slide 38: Key Takeaways
C S L FI NAN C E L IM I TE D 37 Key Takeaways 1 2 3 4 5 Well A- STABLE: Geared for Growing mix of SME Strong Risk Capitalised Credit Rating Growth Retail: Wholesale Management DNA CSL is a well-capitalised CSL’s credit rating has With a significant Growing mix of SME Retail, The Company puts risk le
Slide 39: Safe Harbour
C S L FI NAN C E L IM I TE D Safe Harbour This presentation may contain certain words or phrases that are forward - looking statements, which are tentative, based on current expectations and on certain assumptions of the management of CSL Finance Limited (“CSL”). Actual results may vary from the for