CSL Finance Limited · NSE:CSLFINANCE
CSL Finance — Q2 FY2019 Earnings Presentation
20 slides from CSL Finance's earnings presentation, November 2018
Slide 1: FY19 Q2 - Update
FY19 Q2 - Update November 2018 © 2018 CSL FINANCE LIMITED, ALL RIGHTS RESERVED
Slide 2: Table of Contents
Table of Contents Company Snapshot 3 Business Strategy 4 Product Portfolio 5 Our Presence 6 Operational Overview 8 Financial Update 10 Financial Metrics 17 © 2018 CSL Finance Limited, All Rights Reserved. 2
Slide 3: Company Snapshot
Company Snapshot Delhi based NBFC with Listed on Bombay 99.54% of loan BBB rating AUM of Rs.313 Cr Stock Exchange book is secured from CARE 18 Branches spread High CAR Low cost of Raised 51 Cr from Marquee across North and West of 63.47% operations investors in Sep 2017 India © 2018 CSL Finance Limi
Slide 4: Business Strategy
Business Strategy Portfolio Quality Focussed Approach Systematic build up of portfolio Prudent risk management and in chosen geographies relentless monitoring of portfolio Costs Flexibility Focus on low operational Flexible offerings in line with and borrowing costs customer needs Niche Segments Cus
Slide 5: Product Portfolio
Product Portfolio Product Portfolio Wholesale Mortgage – Large (Group Housing) Wholesale Mortgage – Small (Builder Floor Financing) Wholesale Wholesale Mortgage - LAP Financing (Corporates , Individuals and Education Sector) Secured Business Loans Retail Unsecured Business Loans Financing © 2018 CSL
Slide 6: Our Presence
Our Presence Existing Branches Jalandhar Ludhiana Dehradun Patiala Yamuna Ambala Nagar Panipat Faridabad New Delhi Sikar Jaipur Ajmer Jodhpur Kota Mehsana Ahmedabad Baroda Surat Map not to scale, for representation purposes only © 2018 CSL Finance Limited, All Rights Reserved. 6
Slide 7: Risk Management Framework
Risk Management Framework § Presence in select pockets of NCR § Excellent understanding of the market dynamics and risks Presence in select 1 markets § Selective focus on market segments with good end-use demand § Last mile financing – significantly reduces project risk § Deal with reputed developer
Slide 8: Operational Update
Operational Update The company has opened 6 new branches in this quarter. We now have 18 operational branches covering 6 states NCR, Haryana, Punjab, Rajasthan, Uttarakhand and Gujarat The company added 96new employees in this quarter taking the total employee strength increased to 135 The new loan
Slide 9: Strategy In Current Environment
Strategy In Current Environment We are well funded with our Capital Adequacy Ratio at 63.47% In the current environment of scarce liquidity our focus will be Increase our SME portfolio & Redevelopment Builder Floor Loans Rollout of the school loan product across all our SME branches The rundown of t
Slide 10: Financial Update
Financial Update Total Revenue increased by 58.57% to Rs 14.62 Cr in Q2 FY2018-19 as compared to Rs 9.22 Cr in Q2 FY2017-18 Net Profit increased by 44.36% to Rs 5.89 Cr in Q2 FY2018-19 as compared to Rs 4.08 Cr in Q2 FY2017-18 AUM increased by 52.94% to Rs 313.17 Cr in Q2 FY2018-19 as compared to Rs
Slide 11: Liquidity Profile & Capital Adequacy Ratio
Liquidity Profile & Capital Adequacy Ratio Cash and Cash Equivalents (including undrawn line of credit) 25.00 21.31 18.74 20.00 14.41 15.00 12.06 10.00 4.97 5.00 1.93 0.00 Q1FY18 Q2FY18 Q3FY18 Q4FY18 Q1FY19 Q2FY19 Capital Adequacy Ratio 90.00% 84.44% 80.00% 68.40% 64.25% 65.35% 64.25% 63.47% 70.00%
Slide 12: Monthly Collections & Disbursements
Monthly Collections & Disbursements Monthly Disbursement (Rs Cr) 50 39.97 40 34.45 32.36 30 21.64 20 16.81 16.87 10 0 Apr-18 May-18 Jun-18 Jul-18 Aug-18 Sep-18 Monthly collection (Rs Cr) 35 32.74 30.59 30 27.44 26.33 24.1 25 20 16.97 15 10 5 0 Apr-18 May-18 Jun-18 Jul-18 Aug-18 Sep-18 © 2018 CSL Fin
Slide 13: Credit Business Mix
Credit Business Mix Product Category Book Size (Rs Cr) Corporate Lending Loans to Group Housing Projects consisting both of Wholesale Mortgage – Large 152 standard loans and structured collateralised loans Wholesale Mortgage – Small 75 Builder Floor & Site Redevelopment Loans Mezzanine loans given t
Slide 14: Wholesale Credit – Leveraging our Relationships
Wholesale Credit – Leveraging our Relationships Assets Under Management (AUM) Figures in INR Crores Business Approach 300.00 Better domain knowledge due to controlled geographical presence 275.00 277.48 279.41 Selective focus on market segments with good end-use 265.19 demand 250.00 248.56 High degr
Slide 15: Wholesale Credit – Product Breakup
Wholesale Credit – Product Breakup Wholesale Credit - Large (Rs Cr) Wholesale Credit - Small (Rs Cr) 200 180.12 80.00 75.44 173.8 155.47 151.97 56.36 150 121.96 60.00 44.75 102.65 100 40.00 32.60 28.01 23.58 50 20.00 0 0.00 Q1FY18 Q2FY18 Q3FY18 Q4FY18 Q1FY19 Q2FY19 Q1FY18 Q2FY18 Q3FY18 Q4FY18 Q1FY19
Slide 16: Retail Credit Expanding Footprint
Retail Credit Expanding Footprint Assets Under Management (AUM) Business Approach Figures in INR Crores 35 33.76 Building a focussed retail presence. Started with select markets in NCR, Haryana, Punjab and Rajasthan; 30 further expanded into Gujarat 25 24.24 Currently 18 operational branches 20 Focu
Slide 17: Financial Metrics
Financial Metrics 1 Total Income Operating Expenses (Rs Cr) 16 14.62 3.5 13.67 3* 13.23 14 3 12 10.81 2.28* 2.21* 2.5 9.22 1.98 10 8.2 1.84 2 8 1.5 1.5 6 4 1 2 0.5 0 0 Q1FY18 Q2FY18 Q3FY18 Q4FY18 Q1FY19 Q2FY19 Q1FY18 Q2FY18 Q3FY18 Q4FY18 Q1FY19 Q2FY19 Pre Provisioning Profit Before Tax (Rs Cr) Net P
Slide 18: Financial Metrics (contd..)
Financial Metrics (contd..) 2 Borrowings (Rs Cr) Net Interest Income (Rs Cr) 140 129.71 15.00 115.98 120 102.32 10.81 89.62 9.75 10.25 100 9.32 10.00 80 68.78 7.54 58.05 6.58 60 5.00 40 20 0 0.00 Q1FY18 Q2FY18 Q3FY18 Q4FY18 Q1FY19 Q2FY19 Q1FY18 Q2FY18 Q3FY18 Q4FY18 Q1FY19 Q2FY19 AUM – End of Quarter
Slide 19: Financial Metrics (contd..)
Financial Metrics (contd..) 3 Capital Adequacy Ratio (%) Net Interest Margin (%) 100% 84% 30% 64% 68% 65% 64% 63% 19% 17% 19% 20% 16% 15% 15% 50% 10% 0% 0% Q1FY18 Q2FY18 Q3FY18 Q4FY18 Q1FY19 Q2FY19 Q1FY18 Q2FY18 Q3FY18 Q4FY18 Q1FY19 Q2FY19 Number of Employees Number of Branches 175 20 18 135 18 140
Slide 20: Thank You
Thank You Corporate Office: Investor Contact: 716-717, 7th floor, Tower B, Akash Gupta World Trade Tower, Sector16, Phone: 0120 4290650-52-53-54-55 Noida- 201301 Email: akash.gupta@cslfinance.in Registered Office: 8/19, GF, WEA, Pusa lane, Karol Bagh, New Delhi - 110005 © 2018 CSL Finance Limited, A