Sbfc Finance Limited · NSE:SBFC
Sbfc Finance — Q4 FY2025 Earnings Presentation
32 slides from Sbfc Finance's earnings presentation, Apr 26, 2025
Slide 1: Cover letter to stock exchanges
Date: 26th April, 2025 National Stock Exchange of India Limited, BSE Limited, Exchange Plaza, Plot No. C/1, G Block, Phiroze Jeejeebhoy Towers, Bandra-Kurla Complex, 21st Floor, Dalal Street, Bandra (East), Mumbai – 400051. Mumbai – 400001. NSE Symbol: SBFC BSE Scrip Code: 543959 Sub: Investor Prese
Slide 2: Investor Presentation Q4 FY 2025
Investor Presentation Q4 FY 2025
Slide 3: Safe Harbor
Safe Harbor This presentation and the accompanying slides (‘Presentation”), which have been prepared by SBFC Finance Limited (the "Company"), have been prepared solely for information purposes and do not constitute any offer, recommendation or invitation to purchase or subscribe for any securities,
Slide 4: Executive Summary
Executive Summary Strong Profitability 1 Profit after tax grew 46% to ₹345 crore for the year Disciplined Growth 2 AUM grew 28% YoY to ₹8,747 crore Resilient Credit Quality 3 Gross NPA at 2.74% and Cost of Credit below 1% Improving Operating Efficiency 4 Cost-to-AUM ratio improved to 4.65%, from 5.3
Slide 5: Executive Summary – Q4 FY25
Executive Summary – Q4 FY25 YoY QoQ Asset Under Management Disbursement1 Branches 8,747 766 205 +28% +7% +6% +10% +22 +8 Gross NPA Yield/Spread Opex to AAUM 2.74% 17.88% / 8.53% 4.62% +31 bps +4 bps +26 / +26 bps +7 / +3 bps -39 bps +0 bps PAT RoAAUM RoATE 94 4.52% 13.14% +29% +7% -4 bps +3 bps +124
Slide 6: SBFC – FY25 Performance
SBFC – FY25 Performance Size and Growth Distribution Granular Book Asset Quality Liability Profile Profitability 8,747 % 205 100% 2.74% 2,930 345 AUM GNPA PAT # Branches % Secured Tangible Net worth YoY +28% YoY +31 bps YoY +46% % 7,249 4,294 9.49* | 0.94* 1.51% CRAR 36.1% 4.53% Secured MSME AUM Emp
Slide 7: Executive Summary
Executive Summary Team: Experienced, cycle-tested, professional 205 branches management with strong corporate governance 164 Cities backed by marquee investors 16 States 2 UTs Focused Segment: Offering Secured MSME loan to small businesses with focus on ₹5 lakh - ₹30 lakh ticket size Opportunity: Ma
Slide 8: SBFC Focus Segment – Customers Borrowing ₹5 Lakh to ₹30 Lakh
SBFC Focus Segment – Customers Borrowing ₹5 Lakh to ₹30 Lakh Large segment within MSME of ₹3.2 lakh cr and growing at CAGR 24% Segment Market Size1 (₹ tn) CAGR2 (%) % of Market >₹1 cr 4.2 13.7% 40% ₹0.5 – 1 cr 1.3 17.2% 13% ₹0.3 – 0.5 cr 1.1 20.7% 10% Focus ₹0.05– 0.3 cr 3.2 24.4% 31% Segment <₹0.05
Slide 9: Our Journey
Our Journey CARE, ICRA Ratings Upgraded us to ‘AA-’ Equity Listing on NSE in Q2 FY25. and BSE. India 1,50,000 customers ratings upgraded us to ‘AA -’ Included in MSCI Global Small 8,747 Cap Index 1,00,000 customers 150 Branches 150 cr PAT 6,822 Credit rating upgraded to ‘A +’ 50,000 4,943 customers
Slide 10: Management
Management Experienced, cycle-tested, professional management Aseem Dhru Mahesh Dayani Narayan Barasia Pankaj Poddar Sanket Agrawal MD & CEO ED & CBO Chief Financial Officer Chief Risk Officer Chief Strategy Officer, Analytics & IR Sumeet Ghai Ganesh Vaidya VM Maneesh Sai Prashant Menon Namrata Sajn
Slide 11: Board of Directors
Board of Directors Strong corporate governance backed by long term investors Neeraj Swaroop Rajesh Agrawal Surekha Marandi Chairman of the Board Jt. Managing Director, Ex Executive Director, Ex CEO – SCB, Singapore Ajanta Pharma RBI Independent Ravi Venkatraman Koni Uttam Nayak Ex Executive Director
Slide 12: Shareholding
Shareholding Shareholding Pattern Category of Shareholders % Share# 13.32% Promoter Clermont Group 53.33% 17.67% 53.33% Other Major Shareholders 6.53% SBI Mutual Fund 8.53% Amansa Capital 4.08% Malabar Funds 4.04% Aditya Birla Sun Life 3.22% Promoters Foreign Portfolio Investors Mutual Funds, AIF, I
Slide 13: Business Momentum
Simplify graphic Business Momentum Delivering Consistent AUM Growth YoY : 28% QoQ : 7% CAGR: 33% 8,747 8,148 8,747 1% 17% 6,822 16% 6,822 17% 1% 1% 15% 15% 4,943 3% 18% 83% 83% 83% 84% 84% 79% Mar-23 Mar-24 Mar-25 Q4 FY 24 Q3 FY 25 Q4 FY 25 Secured MSME LAG Others Secured MSME LAG Others All figures
Slide 14: Business Momentum – Secured MSME
Business Momentum – Secured MSME AUM ATS in ₹ Lakhs Disbursement Value Disbursement Volume YoY: 27% YoY: 6% YoY: 6% QoQ: 7% QoQ: 10% QoQ: 8% 7,249 6,781 766 7,926 724 7,493 7,326 699 5,704 9.66 9.54 9.66 Q4 FY 24 Q3 FY 25 Q4 FY 25 Q4 FY 24 Q3 FY 25 Q4 FY 25 Q4 FY 24 Q3 FY 25 Q4 FY 25 AUM Secured MSM
Slide 15: Business Momentum – Co-origination
Business Momentum Co-origination – Validates our profitable origination Co-origination Disbursement (₹ Cr) Co-origination AUM (₹ Cr) %1 22% 18% 16% 20% 21% 20% 1,481 162 1,407 124 122 1,116 Q4 FY 24 Q3 FY 25 Q4 FY 25 Q4 FY 24 Q3 FY 25 Q4 FY 25 1Percentage is on Total Secured MSME Loans 14
Slide 16: Business Momentum – No concentration risk
Business Momentum No concentration risk & well distributed growth Present in 16 states, 2 UTs covering 164 cities via 205 branches Driven by steady rise in AUM per branch ₹ Cr # Branches 29 53 123 205 <12 months >12 & <36 months >36 months 1 1 4 13 70 3 59 31 60 56 7 11 12 49 50 10 6 13 4 40 31 23 1
Slide 17: Technology Landscape
Technology Landscape Lead Generation Customer Credit Underwriting Pre-Disbursal Loan Disbursal Loan Servicing Onboarding • Digital Form • PD with customer • E-Nach • Digital Disbursal • Customer App • Feet on Street • OKYC/EKYC • CAM Summary • E-Sign IMPS/RTGS/NEFT • CRM Platform • Mobile App • PAN
Slide 18: Credit Underwriting
Credit Underwriting Tailored to service underserved, underbanked informal customers Most small businesses in India SBFC's business model, backed by experience in this segment have challenges • Credit officer spends time to understand income & cash flow (documented + non-documented) at family Partial
Slide 19: Credit Underwriting
Credit Underwriting Quality borrowers with credit score above 700 Over 85% AUM from customers with CIBIL >7001 Granular loan book with high quality collateral1 0/-1 7.5% 6.7% 7.9% 1.2% 0.8% <650 2.1% 7.7% 6.6% 5.6% 93% 42.6% > 650 & < 700 AUM secured by self occupied LTV residential / commercial pro
Slide 20: Credit Indicators
Credit Indicators Gross NPA %1 Net NPA %2 2.70% 2.74% 2.43% 1.63% 1.51% 1.36% PCR 44.7% 40.2% 45.7% Q4 FY 24 Q3 FY 25 Q4 FY 25 Q4 FY 24 Q3 FY 25 Q4 FY 25 1+ DPD %3 Collections Efficiency %4 7.09% 6.52% 98.30% 97.88% 97.74% 5.59% Q4 FY 24 Q3 FY 25 Q4 FY 25 Q4 FY 24 Q3 FY 25 Q4 FY 25 Note: 1. Gross NP
Slide 21: ECL Provisions Summary
ECL Provisions Summary As on March 31, 2025 Stage 1 Stage 2 Stage 3 Total Gross Loans Outstanding 7,195 238 209 7,642 ECL Provision 28 14 96 138 Net Loans Outstanding 7,167 224 113 7,504 ECL Provision % 0.38% 6.08% 45.69% 1.80% As on December 31, 2024 Stage 1 Stage 2 Stage 3 Total Gross Loans Outsta
Slide 22: Collections Approach
Rework icons Collections Approach In-house, on-ground collections teams – 98% collected digitally On-ground Teams Scalable Structure Adaptable collection strategy as per loan stage Loan Stage Branch staff Branch area- from local area + limited radius Normal • Call center autodial quick attention to
Slide 23: Financial Performance – Quarterly Trends in KPIs
Financial Performance Quarterly Trends in KPIs AUM Yield Spread (₹cr) 8.53% 8,148 8,747 17.88% 8.50% 6,822 17.81% 8.27% 17.62% Q4 FY 24 Q3 FY 25 Q4 FY 25 Q4 FY 24 Q3 FY 25 Q4 FY 25 Q4 FY 24 Q3 FY 25 Q4 FY 25 Opex to AAUM Gross NPA RoAAUM Cost/Income 42.17% 39.86% 39.67% 11.90% 12.75% 13.14% RoATE 2.
Slide 24: Financial Performance – Annual Trends in KPIs
Financial Performance Annual Trends in KPIs AUM Yield Spread (₹cr) 8,747 17.75% 8.42% 6,822 7.70% 17.08% FY 24 FY 25 FY 24 FY 25 FY 24 FY 25 Opex to AAUM Gross NPA RoAAUM Cost/Income 45.74% 39.98% 11.28%* 12.72% RoATE 5.34% 2.74% 4.53% 2.43% 4.65% 4.14% FY 24 FY 25 FY 24 FY 25 FY 24 FY 25 *The compa
Slide 25: Sources of Borrowing
Sources of Borrowing Lenders to the Company Diversified Borrowing Mix Public Sector Banks 10.9% 12.0% Private Sector 18.5% 40.3% 18.5% 41.1% Banks 5.3% 3.0% Financial Institutions (FIs) 8.0% 10.9% 17.0% 14.5% Bank Rupee Loan ECB & FCNR Bank Rupee Loan ECB & FCNR Foreign Banks NCD Securitisation NCD
Slide 26: ALM – March 2025
ALM – March 2025 Surplus 742 737 Upto 3 months 1,479 1,150 1,110 Upto 6 months 2,260 1,945 1,214 Upto 1 Year 3,159 4,646 484 Upto 3 Years 5,130 5,407 1,675 Upto 5 Years 7,082 8,721 5+ Years 8,721 Liablilities Asset All figures in ₹ Cr 25
Slide 27: Profit & Loss Statement for Q4 FY25
Summary Financial Statements – Profit & Loss Statement for Q4 FY25 Quarter Ended Growth (%) Particulars March December March Q-o-Q Y-o-Y 2025 2024 2024 Interest Income on Loans 322 301 248 7.0% 30.1% Interest Income other than on Loans 7 6 10 Fee & Other Income 32 26 22 Total Income 361 333 280 8.3%
Slide 28: Profit & Loss Statement for FY25
Summary Financial Statements – Profit & Loss Statement for FY25 Financial Year Ended Growth (%) Particulars March March Y-o-Y 2025 2024 Interest Income on Loans 1,167 866 34.8% Interest Income other than on Loans 29 52 Fee & Other Income 110 102 Total Income 1,306 1,020 28.1% Finance Cost 419 351 Op
Slide 29: ROE Tree
ROE Tree Ratios Q4 FY25 Q3 FY25 Q4 FY24 FY25 FY24 Interest Income on Loans/ Average Loan Book 17.88% 17.81% 17.62% 17.75% 17.08% Fee & Other Income/ Average AUM 1.52% 1.31% 1.36% 1.44% 1.77% Borrowing Cost/ Average Borrowings 9.35% 9.31% 9.35% 9.33% 9.38% Spread 8.53% 8.50% 8.27% 8.42% 7.70% Net Int
Slide 30: Balance Sheet
Balance Sheet As On Particulars March March 2025 2024 Assets Cash and Bank Balances 429 466 Receivables 15 15 Loan Assets 7,504 5,836 Investments 327 427 Other financial assets 3 7 Current & Deferred tax assets (Net) 3 6 Property, Plant and Equipment etc. 309 301 Other non-financial assets 5 5 Total
Slide 31: Corporate Social Responsibility – Building Livelihood
Corporate Social Responsibility – Building Livelihood SBFC Shiksha – Enabling Holistic Education SBFC Aarogya – Essential eyecare services Enhanced infrastructure in a rural school to support students Enabled screenings at well-equipped centers for children from remote with: schools • Smart classroo
Slide 32: THANK YOU!
THANK YOU! 31 PRIVATE & CONFIDENTIAL