Authum Investment & Infrastucture Ltd · NSE:AIIL
Authum Investment & Infrastucture — Authum Investment & Infrastructure — Investor Presentation (October 2024)
36 slides from Authum Investment & Infrastucture's investor presentation, Oct 21, 2024
Slide 1: Stock exchange cover letter: Business Update and Corporate Presentation
October 21, 2024 To, Department of Corporate Relationship National Stock Exchange of India Limited BSE Ltd. Exchange Plaza, C-1, Block G, Phiroze Jeejeebhoy Towers, Bandra Kurla Complex, Dalal Street, Fort, Mumbai – 400 001. Bandra (E), Mumbai – 400051 Scrip Code: 539177 NSE Symbol – AIIL The Calcut
Slide 2: Making the Big Leap
MAKING THE BIG LEAP AUTHUM INVESTMENT & INFRASTRUCTURE LIMITED October 21, 2024
Slide 3: Table of Contents
PART ONE Overview 03 PART TWO Summary: Investment Business 07 PART THREE TABLE OF Summary: Credit Business 12 CONTENTS PART FOUR Q2 FY2025 Financial Synopsis 14 PART FIVE Strategic Way Forward 21 PART SIX Governance & Management 26 2
Slide 4: Overview
PART ONE OVERVIEW
Slide 5: Who we are
Who we are Background Footprint Leadership Incorporated in 1982 Headquarters: Mumbai Enterprising Promoter Group with strong track record of Value Creation Acquired by Alpana Sanjay Dangi in FY2020. No. of Branches: ~25 Professional team with deep domain expertise Authum is a registered NBFC with co
Slide 6: Business Evolution and Net-worth Accretion
Business Evolution and Net-worth Accretion (in Rs. crore) 14,000 5 12,862 12,000 10,000 10,345 4 8,000 3 6,000 4,000 3,416 3,121 2,000 2 1 1,432 - FY 2021 FY 2022 FY 2023 FY 2024 H1, FY25 Net Worth 1 Acquisition of Authum 2 Investment Business: Scale-up 3 Acquisition of RCFL & RHFL 4 Credit Business
Slide 7: Authum's growth across the years
Authum’s growth across the years ( Rs. crore) Particulars (Liabilities) Sep-24 Jun-24 Mar-24 Mar-23 Particulars (Assets) Sep-24 Jun-24 Mar-24 Mar-23 Investments 10,317 8,899 8,779 3,543 Net worth 12,862 # 10,931 10,345 3,416 Credit & Credit 2,353 1,916 1,681 2,253 Substitutes Borrowings & other Cash
Slide 8: Summary: Investments Business
PART TWO Summary: Investments Business
Slide 9: Value Creation Framework
Value Creation Framework Strong fundamentals Mid and Large Cap We invest mostly in large and mid-cap companies which are We invest in companies with strong fundamentals, either market leaders or have a potential to become market attractive valuation and high potential for re-rating. leaders in 5-7 y
Slide 10: MOIC and IRRs of Exited Investments in Q2 FY2025
MOIC and IRRs of Exited Investments in Q2, FY2025 5.00 4.92 160% 150%+ 150%+ 150%+ 150%+ 4.50 140% 4.00 120% 3.50 107% 100% 3.00 80% 2.57 2.50 60% 2.04 2.00 47%+ 40% 1.78 37% 38% 1.52 32% 1.50 1.41 20% 1.30 1.23 13%+ 1.06 1.05 1.00 0% Rank 1 Rank 2 Rank 3 Rank 4 Rank 5 Rank 6 Rank 7 Rank 8 Rank 9 Ot
Slide 11: MOIC of existing portfolio (notional basis)
MOIC of existing portfolio (notional basis, assuming portfolio is divested on September 30, 2024) 5.00 4.50 4.10 4.00 3.47 3.50 3.00 2.59 2.42 2.50 2.00 1.69 1.52 1.49 1.55 1.50 1.03 1.00 0.79 0.50 - Rank 1 Rank 2 Rank 3 Rank 4 Rank 5 Rank 6 Rank 7 Rank 8 Rank 9 Other MOIC Note 1: Top 9 investments
Slide 12: Key Update: Strategic Investment in Prataap Snacks
Key Update: Strategic Investment in Prataap Snacks Deal Company Future Growth and Overview Overview Profitability Improvement ✓ 42.31% stake in Prataap Snacks acquired on ✓ Prataap Snacks is one of India’s leading ✓ Product Premiumisation September 27, 2024, from Sequoia Capital for a manufacturers
Slide 13: Summary: Credit Business
PART THREE Summary: Credit Business
Slide 14: Credit Business Overview
Credit Business Overview Loan book movement (Rs. crore) Fresh deployment (Rs. crore) 2,500 2,253 2,353 1200 91 - 1,916 1007 2,000 1000 1,682 1,500 1,551 800 919 602 592 600 555 1,000 2,162 473 444 400 332 500 607 553 470 200 92 75 - Mar-23 Mar-24 Jun-24 Sep-24 0 Q2FY24 Q3FY24 Q4FY24 Q1FY25 Q2FY25 Le
Slide 15: Q2 FY2024-25 Financials Synopsis
PART FOUR Q2 FY2024-25 Financials Synopsis
Slide 16: Balance Sheet Highlights: Liabilities
Balance Sheet Highlights Liabilities (~Rs. crore) Liabilities: Details Sep-24 Jun-24 Mar-24 Mar-23 A. Networth 12,862 10,931 10,345 3,416 B. Borrowings & Payables 1,125 923 1,276 3,484 -PTC borrowings 375 503 492 1.040 -Dissenting creditors 178 178 177 734 -Third-party credit line 314 37 352 768 -Re
Slide 17: Balance Sheet Highlights: Assets
Balance Sheet Highlights Assets (~Rs. Cr) Assets: Details Sep-24 Jun-24 Mar -24 Mar-23 A. Investments 10,317 8,899 8,779 3,543 B. Loans / credit substitute 2,353 1,916 1,681 2,253 -Legacy book from RCFL 470 553 607 2,162 -PTC assets 332 444 473 - -Fresh business o/s 1,551 919 602 91 C. Other assets
Slide 18: P&L Statement Highlights
P&L Statement Highlights (Rs. Cr) FY 2023 FY 2024 4500 3000 84 106 140 112 47 3600 1331 2000 2700 4286 4,304 102 58 2,748 1800 1000 1,707 900 281 542 0 0 Revenue Finance Exceptional Net Other Tax PAT Revenue Finance Exceptional Net Other Tax PAT cost Income provisions expenses cost Income provisions
Slide 19: Revenues Mix
Revenues Mix (Cr) 5,000 4,746 4,451 ( Rs. Cr) 4,000 Revenues Detail (Cr) FY2023 FY2024 Q1 FY2025 Q2 FY2025 3,000 Investment Income 339 1,959 1,225 998 Interest Income 107 513 86 114 2,000 1,314 1,011 Change in provision & bad debts recovery -23 1,860 1 -127 1,000 Exceptional Income 4,286 58 - - - FY
Slide 20: Expenses Mix
Expenses Mix (Rs. Cr) (%) 450 393 Expenses split (%) FY2023 FY2024 Q1FY25 Q2FY25 400 350 Finance costs 71% 29% 14% 35% 112 300 Other expense 29% 71% 86% 65% 225 250 Total 100% 100% 100% 100% 200 150 281 160 100 69 51 50 30 59 21 65 37 - 10 14 FY 2023 FY 2024 Q1FY25 Q2FY25 Finance Costs Other expense
Slide 21: Assets Breakdown
Assets Breakdown Particulars Amount Remarks ✓ Investments in equity shares ✓ ~Rs. 10,317 cr ✓ Market value of listed shares: ~7,304 cr ✓ Book value: unlisted / MFs: ~3,013 cr ✓ Loans & credit substitutes: ✓ Rs. 2,021 cr ✓ ~25% is from legacy RCFL / RHFL and standard the rest is from fresh disbursal
Slide 22: Strategic Way Forward
PART FOUR STRATEGIC WAY FORWARD
Slide 23: Strategic Way Forward
Strategic Way Forward FY26-27 FY25-26 Financial FY24-25 powerhouse poised for Platformize & significant FY23-24 Professionalize value creation Allocate for scale Capital with a favourable Diversify risk-reward Self sustaining platforms to create multiple growth engines revenue and overall franchisee
Slide 24: Proposed Capital Allocation to Business Divisions in the Coming Years
Proposed Capital Allocation to Business Divisions in the Coming Years Existing: Existing: Future: Future: Source of Funds Equity / other investments Loans & credit substitutes Capital raises Fresh borrowings ✓ Dividend income ✓ Principal repayments ✓ Balance sheet strength ✓ Capital gains ✓ Interest
Slide 25: Platforms: Integrated Credit and Alternative Assets Business
Platforms: Integrated Credit and Alternative Assets Business ✓ Collections of existing Book ✓ Best in Class Debt Buy Out Platform ✓ Redeploy in Structured Credit / Real Estate ✓ Across Retail & Corporate Capabilities ✓ Low Cost of Operations / Yield @16 % ✓ Differentiate on Superior Resolution ✓ Mod
Slide 26: Authum 3.0: Value Creation through Diversification
Authum 3.0: Value Creation through Diversification As at March 31, 2022 As at March 31, 2024 As at September 30, 2024: ARC Committed Investment: Platform ~Rs. 250 crore Book size: Rs. 1,681 crore Credit & Fresh credit Book size: Rs.1,551 crore Alternatives Portfolio Business Legacy Book size: Rs.470
Slide 27: Governance & Management
PART SIX GOVERNANCE & MANAGEMENT
Slide 28: Governance at Authum
Governance at Authum Promoters Board Management Balance Sheet ✓ Enterprising and first-generation ✓ Strong Board of Directors ✓ Top quality management team with ✓ Fortress Balance Sheet with Rs. bold entrepreneurs encompassing various backgrounds specialization in the areas of build 12,862 crore, ne
Slide 29: Leadership Team: Non-Executive & Independent Directors
Leadership Team: Non-Executive & Independent Directors Mr. Rahul Bagaria Independent Director Mr. Haridas Bhat Independent Director B.com & CA with over a decade of Industry CA with around 4 decades of Industry experience. experience. Currently a Partner with Bagaria & Co. Previously associated with
Slide 30: Leadership Team: Promoter Director and Executive Director
Leadership Team: Promoter Director and Executive Director Promoter Management Enterprising and First Generation Bold Entrepreneurs with exemplary track record of value creation. Strong capital position with Net worth of Rs. 12,862 crore, minimal leverage and market capitalization of ~Rs. 31,000 cror
Slide 31: Leadership Team: Management Team
Leadership Team: Management Team Mr. Rohit Bhanja Chief Executive Officer – Retail B.com & MBA with over 2 decades of Industry Exp. Previously associated with Reliance Group & Tata Steel Ltd. Experience across sales & product management roles in both Secured and Unsecured loans. From high ticket cor
Slide 32: Leadership Team: Management Team
Leadership Team: Management Team Mr. Amit Kumar Jha Chief Financial Officer B.COM & CA with around 2 decades of Industry Exp. Previously associated with Deloitte Haskins, HSBC Bank, Karvy Financial Services, SBFC, Cox & Kings Financial, Edelweiss Finance. Experience in financial controllership, tax
Slide 33: Leadership Team: Management Team
Leadership Team: Management Team Mr. Deepak Dhingra Chief Risk Officer B.COM.,CA & PGD in Treasury and Forex Management with over 24 years of Industry Exp. Previously associated with Incred Capital Financial Service Private Ltd ,Tata Group, Reliance Group. Experience in Planning & Cost Control, Work
Slide 34: Leadership Team: Management Team
Leadership Team: Management Team Mr. Savneet Chopra Head – Operations & Customer Service B.SC & PGDBM with over 2 decades of Industry Exp. Previously associated with Reliance Group, Aircel, Vodafone, Wipro, Philips India. Experience across Operations, Sales, Marketing & Product. Mr. Nimesh Chonkar H
Slide 35: Disclaimer
DISCLAIMER Certain statements made in this document may constitute forward -looking statements. These forward -looking statements are subject to certain risks and uncertainties which are customary to investment and lending business. Authum Investment & Infrastructure Limited will not be in any way r
Slide 36: Thank You
Thank You 40
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