Bajaj Finserv Limited · NSE:BAJAJFINSV
Bajaj Finserv — Bajaj Finance — Q2 FY2013 Earnings Presentation
19 slides from Bajaj Finserv's earnings presentation, Oct 19, 2012
Slide 1: Bajaj Finance Limited Q2'13 presentation
Bajaj Finance Limited Q2’13 presentation 19th October 2012
Slide 2: Bajaj Group structure
Bajaj Group structure Bajaj Holdings and Investment Limited (Listed) 1 2 31.49% 39.15% Bajaj Auto Bajaj Finserv Limited Limited (Listed) (Listed) Auto Business Arm Financial Services Arm 60.95% 74% 74% 100% Bajaj Finance Bajaj Allianz life Bajaj Allianz Limited Bajaj Financial Insurance Company Gene
Slide 3: Bajaj Finserv group – Executive summary
Bajaj Finserv group – Executive summary • A 25 year old non bank finance company • 2nd largest policy acquirer amongst • Diversified consumer, SME & commercial private insurers.1.05 mn policies in FY12 lender in India. • 4th largest private sector life insurer in • Credit rating of AA+ with (+) outl
Slide 4: Lending Industry - Opportunity
Lending Industry - Opportunity India vs. Advanced Economies – Banking Assets (US$ Bn) India vs. Advanced Economies – Consumer Debt/GDP (%) United States 15304 United States 91% Japan 13560 Japan 78% China 9289 China 12% United Kingdom United Kingdom Germany Germany France France Spain Spain Italy It
Slide 5: Executive summary…
Executive summary… • A 25 year old non bank with a demonstrated track record of profitability. • Focused on Consumer, SME and Commercial lines of businesses spread across nine product lines. • Strategic business unit organization design supported by horizontal common utility support functions to dri
Slide 6: Executive summary…
Executive summary… SME lines of business : Small Business Loans Against • Focused on high net worth SMEs with an average annual Loans * Property * sales of $5 million with established financials & FY12 : $2.6 bn FY12 : $4.0 bn demonstrated borrowing track records. • Offer a range of working capital
Slide 7: Products and Key characteristics
Products and Key characteristics Consumer SME Commercial High 36-180M Consumer Durable Mortgage – Construction Financing LAP & HL Equipment Finance SME Business Commercial 2 Wheeler & 3 Loan Against Infrastructure Medium Product Wheeler Finance Securities Finance 12-36M Personal Loan Consumer Small
Slide 8: Strong distribution reach
Strong distribution reach 1$ = ` 50 Geographic presence Business Line FY09 FY10 FY11 FY12 FY13* Sales Finance 87 79 79 82 82 2W - Hubs 55 54 54 54 54 2W - Spokes 200 150 150 150 150 Small Businesses 15 15 23 31 31 Distribution Business Line FY09 FY10 FY11 FY12 FY13* Sales Finance – 4,500+ 2,000+ 2,5
Slide 9: Management discussion
Management discussion • FY13 continue to remain strong in the second quarter as well aided by strong volume momentum and strong credit performance across Consumer and SME product lines. • Two Wheeler business continues to grow in a healthy manner. Its market share has improved from ~24% of Bajaj Aut
Slide 10: Management discussion
Management discussion • Infra commercial businesses are being de-grown due to stress in the market. Construction Equipment business YoY disbursals have slowed by 61% due to the deteriorating portfolio and company‟s negative outlook on the sector currently. Overall equipment demand has also slowed co
Slide 11: Key performance highlights for the quarter
Key performance highlights for the quarter 1$ = ` 50 • Clients acquired during Q2 FY13 22% to 6,00,792 from 4,91,695 in Q2 FY12. • Deployments during Q2 FY13 29% to $867 mn from $670 mn in Q2 FY12. • Total income for Q2 FY13 49% to $147 mn from $99 mn in Q2 FY12. • Profit after tax for Q2 FY13
Slide 12: Summary financial statement
Summary financial statement $ in million (1$ = ` 50) Financials snapshot Q2’13 Q2’12 YoY H1’13 H1’12 YoY FY12 FY11 YoY Deployments 867 670 29% 1,812 1,388 31% 3,159 1,887 67% Assets under finance (AUF) 2,943 1,867 58% 2,943 1,867 58% 2,457 1,454 69% Assets under management (AUM) 3,074 2,014 53% 3,07
Slide 13: Financial performance trends Q2-FY13
Financial performance trends Q2-FY13 1$ = ` 50 # of Loans Disbursed ( ‘000) Disbursements ($ mn) 22% YoY 29% YoY 930 946 867 684 752 842 601 670 492 502 486 586 774 804 431 714 334 342 539 708 158 198 160 167 170 131 156 134 141 153 Q2'12 Q3'12 Q4'12 Q1'13 Q2'13 Q2'12 Q3'12 Q4'12 Q1'13 Q2'13 2 Wheel
Slide 14: Financial performance trends Q2-FY13
Financial performance trends Q2-FY13 1$ = ` 50 NII ($ mn) Operating Expenses % of NII 36% YoY 48% 88 88 47% 46% 46% 45% 79 78 65 Q2'12 Q3'12 Q4'12 Q1'13 Q2'13 Q2'12 Q3'12 Q4'12 Q1'13 Q2'13 Loss provision ($ mn) Net NPA & Provisioning coverage 20% YoY 0.4% 0.3% 91% 92% 11 90% 0.3% 0.3% 9 89% 88% 8 0.
Slide 15: Financial performance trends Q2-FY13
Financial performance trends Q2-FY13 1$ = ` 50 Pre-tax profit ($ mn) Capital adequacy 47% YoY 18.9% 17.3% 17.5% 17.7% 16.8% 41 3.1% 35 38 2.8% 2.5% 2.3% 3.3% 32 26 15.8% 14.5% 15.0% 14.5% 14.4% Q2'12 Q3'12 Q4'12 Q1'13 Q2'13 Q2'12 Q3'12 Q4'12 Q1'13 Q2'13 Tier-I Tier-II Earnings per share - Basic ( $
Slide 16: Credit Quality of Bajaj Finance customers across products – Portfolio composition
Credit Quality of Bajaj Finance customers across products – Portfolio composition Consumer durable loan portfolio Two wheeler loan portfolio 97.7% 2.50% 20.00% 83.5% 0.27% 98.3% 2.00% 0.34% 15.00% 88.9% 1.50% 0.34% 10.00% 0.52% 1.00% 5.00% 0.50% 0.00% 0.00% Dec'10 Mar'11 Jun'11 Sep'11 Dec'11 Mar'12
Slide 17: Credit Quality of Bajaj Finance customers across products – Portfolio composition
Credit Quality of Bajaj Finance customers across products – Portfolio composition Loan against property portfolio Home loan portfolio 0.50% 0.50% 99.6% 0.40% 0.40% 0.30% 0.30% 0.20% 0.20% 99.9% 99.9% 100% 0.10% 0.10% 0.00% 0.00% Dec'10 Mar'11 Jun'11 Sep'11 Dec'11 Mar'12 Jun'12 Sep'12 Dec'10 Mar'11 J
Slide 18: Disclaimer
Disclaimer This presentation has been prepared by Bajaj Finance Limited (the “Company”) solely for your information and for your use. This presentation is for information purposes only without specific regards to specific objectives, financial situations or needs of any particular person and does no
Slide 19: Thank you
Bajaj Finance Limited Q2’13 presentation Thank you 19th October 2012