Sbfc Finance Limited · NSE:SBFC
Sbfc Finance — Q2 FY2025 Earnings Presentation
31 slides from Sbfc Finance's earnings presentation, Oct 26, 2024
Slide 1: Exchange filing letter: Investor Presentation
Date: 26th October, 2024 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 Equity Scrip Code: 543959 Sub: Inves
Slide 2: Investor Presentation Q2 FY 2025
Investor Presentation Q2 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: SBFC – H1 FY25 Performance
SBFC – H1 FY25 Performance Size and Growth Distribution Granular Book Asset Quality Liability Profile Profitability 7,715 % 192 99% 2.69% 2,707 163 AUM GNPA PAT # Branches % Secured Tangible Net worth YoY +33% YoY +32 bps YoY +63% % 6,365 4,062 9.36* | 0.91* 1.63% CRAR 38.6% 4.56% Secured MSME AUM E
Slide 5: Executive Summary – Q2 FY25
Executive Summary – Q2 FY25 Asset Under Management Disbursement1 Branches 7,715 672 192 +33% +8% -4% +26% +21 +6 Gross NPA Yield / Spread Opex to AAUM 2.69% 17.69% / 8.37% 4.60% +32 bps +9 bps +85 / +85 bps +11 / +14 bps -92 bps -20 bps PAT RoAAUM RoATE 84 4.56% 12.67% +60% +7% +72 bps +0 bps +227 b
Slide 6: About the company
About the company Management and Shareholders Business Technology Credit Collections Financials 5
Slide 7: Executive Summary
Executive Summary 192 branches Team: Experienced, cycle-tested, professional management with strong corporate 155 Cities governance 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
Equity Listing on NSE and BSE CARE, ICRA Ratings India ratings upgraded us to ‘AA -’ Upgraded us to ‘AA-’ Our Journey Included in MSCI Global Small Cap Index in July 2024, September 2024 1,50,000 customers 1,00,000 customers 7715 150 Branches 150 cr PAT Credit rating upgraded to ‘A +’ 6822 50,000 cu
Slide 10: Management
Management Experienced, cycle-tested, professional management Aseem Dhru Mahesh Dayani Narayan Barasia Pankaj Poddar Sanket Agrawal MD & CEO Chief Business Officer Chief Financial Officer Chief Risk Officer Chief Strategy Officer and IR Sumeet Ghai Ganesh Vaidya VM Maneesh Sai Prashant Menon Namrata
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# Promoter 14.43% Clermont Group 55.05% 16.26% 55.05% Other Major Shareholders 4.56% SBI Mutual Fund 8.59% Amansa Capital 4.12% Malabar Funds 4.11% Aditya Birla Sun Life 2.52% Promoters Foreign Portfolio Investors Mutual Funds, AIF, I
Slide 13: Business Momentum
Simplify graphic Business Momentum Delivering Consistent AUM Growth YoY : 33% QoQ : 8% 7715 CAGR: 46% 7167 1% 6822 1% 16% 1% 16% 15% 5803 2% 4943 15% 3% 18% 3192 83% 7% 83% 20% 84% 83% 79% 73% Mar-22 Mar-23 Mar-24 Q2 FY 24 Q1 FY 25 Q2 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: 33% YoY: 0% YoY: -4% QoQ: 7% QoQ: 26% QoQ: 22% 6365 701 7065 7080 5954 672 5806 4787 534 9.92 9.20 9.49 Q2 FY 24 Q1 FY 25 Q2 FY 25 Q2 FY 24 Q1 FY 25 Q2 FY 25 Q2 FY 24 Q1 FY 25 Q2 FY 25 AUM Secured MSME Al
Slide 15: Business Momentum – Co-origination
Business Momentum Co-origination – Validates our profitable origination Co-origination Disbursement (₹ Cr) Co-origination AUM (₹ Cr) %1 23% 20% 17% 18% 21% 21% 1,322 160 1,230 114 843 107 Q2 FY 24 Q1 FY 25 Q2 FY 25 Q2 FY 24 Q1 FY 25 Q2 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 155 cities via 192 branches Driven by steady rise in AUM per branch # Branches 27 40 125 192 <12 months >12 & <36 months >36 months 3 1 4 60 ₹ Cr 12 54 3 50 26 50 6 11 43 9 37 40 10 6 13 4 30 27 22
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% 7.0% 7.9% 1.2% 1.0% <650 2.1% 7.7% 6.6% 6.1% 94% 41.5% > 650 & < 700 AUM secured by self occupied LTV residential / commercial pro
Slide 20: Credit Indicators
Credit Indicators Gross NPA %1 Net NPA %2 2.60% 2.69% 2.37% 1.63% 1.51% 1.33% PCR 44.6% 42.6% 40.2% Q2 FY 23-24 Q1 FY 24-25 Q2 FY 24-25 Q2 FY 23-24 Q1 FY 24-25 Q2 FY 24-25 1+ DPD %3 Collections Efficiency %4 97.49% 97.89% 98.04% 6.37% 6.33% 5.27% Q2 FY 23-24 Q1 FY 24-25 Q2 FY 24-25 Q2 FY 23-24 Q1 FY
Slide 21: ECL Provisions Summary
ECL Provisions Summary As on September 30, 2024 Stage 1 Stage 2 Stage 3 Total Gross Loans Outstanding 6,322 212 181 6,715 ECL Provision 35 11 73 119 Net Loans Outstanding 6,287 201 108 6,596 ECL Provision % 0.56% 5.18% 40.17% 1.78% As on June 30, 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) 17.58% 17.69% 8.37% 7167 7715 8.23% 5803 7.52% 16.84% Q2 FY 24 Q1 FY 25 Q2 FY 25 Q2 FY 24 Q1 FY 25 Q2 FY 25 Q2 FY 24 Q1 FY 25 Q2 FY 25 Opex to AAUM Gross NPA RoAAUM 10.40% 12.30% 12.67% RoATE 5.52% 2.60% 2.69% 4.56% 4.56% 2.37% 4.
Slide 24: Financial Performance – Half-yearly Trends in KPIs
Financial Performance Half-yearly Trends in KPIs AUM Yield Spread (₹cr) 8.31% 7715 17.64% 8.06% 6822 17.41% 5803 7.29% 16.71% H1 FY 24 H2 FY 24 H1 FY 25 H1 FY 24 H2 FY 24 H1 FY 25 H1 FY 24 H2 FY 24 H1 FY 25 Opex to AAUM Gross NPA RoAAUM 11.10%* 11.34% 12.49% RoATE 4.44% 4.56% 5.47% 3.78% 5.24% 2.43%
Slide 25: Sources of Borrowing
Sources of Borrowing Lenders to the Company Diversified Borrowing Mix Public Sector Banks 1.0% 11.0% 15.5% 19.4% 34.8% Private Sector Banks 19.2% 15.4% 33.4% 0.6% 2.9% Financial 7.0% 8.7% 4.2% Institutions (FIs) 13.2% 6.0% 7.7% NCD Private Sector Bank NCD Private Sector Bank Financial Institutions P
Slide 26: ALM – September 2024
ALM – September 2024 Surplus 553 564 Upto 3 months 1,117 989 945 Upto 6 months 1,934 1,768 Upto 1 Year 1,005 2,773 4,220 Upto 3 Years 477 4,697 4,459 Upto 5 Years 2,797 7,256 7,635 5+ Years 7,635 Liablilities Asset All figures in ₹ Cr 25
Slide 27: Summary Financial Statements – P&L for Q2 FY25
Summary Financial Statements – Profit & Loss Statement for Q2 FY25 Quarter Ended Growth (%) Particulars H1 FY24 September 2024 June 2024 September 2023 Q-o-Q Y-o-Y Performance Interest Income on Loans 281 263 205 6.8% 37.1% Interest Income other than on Loans 8 8 15 Fee & Other Income 25 27 27 Total
Slide 28: Summary Financial Statements – P&L for H1 FY25
Summary Financial Statements – Profit & Loss Statement for H1 FY25 Half Year Ended Growth (%) Annual Particulars H1 FY24 September 2024 September 2023 Y-o-Y March 2024 Performance Interest Income on Loans 544 393 38.4% 866 Interest Income other than on Loans 16 31 52 Fee & Other Income 52 53 102 Tot
Slide 29: ROE Tree
ROE Tree Ratios Q2 FY25 Q1 FY25 Q2 FY24 H1 FY25 H1 FY24 Interest Income on Loans/ Average Loan Book 17.69% 17.58% 16.84% 17.64% 16.71% Fee & Other Income/ Average AUM 1.39% 1.53% 1.93% 1.46% 1.99% Borrowing Cost/ Average Borrowings 9.32% 9.35% 9.32% 9.33% 9.42% Spread 8.37% 8.23% 7.52% 8.31% 7.29% N
Slide 30: Balance Sheet
Balance Sheet As On Particulars September June 2024 2024 Assets Cash and Bank Balances 259 303 Receivables 27 29 Loan Assets 6,596 6,111 Investments 281 268 Other financial assets 56 7 Current & Deferred tax assets (Net) 6 - Property, Plant and Equipment etc. 302 301 Other non-financial assets 6 12
Slide 31: THANK YOU!
THANK YOU! 30 PRIVATE & CONFIDENTIAL