Manappuram Finance Limited · NSE:MANAPPURAM
Manappuram Finance — Q3 FY21 Earnings Presentation
39 slides from Manappuram Finance's earnings presentation, January 2021
Slide 1: Manappuram Finance Limited Investor Presentation
Manappuram Finance Limited Investor Presentation January 2021 Gold Loans Microfinance Housing Finance Vehicle Finance
Slide 2: Q3 FY21 Results: Consolidated Result Highlights
Q3 FY21 RESULTS: CONSOLIDATED RESULT HIGHLIGHTS AUM Net Profit Rs 276,425 Mn Rs 4,831.9 Mn Networth ROA 6.1% (+ 2.7% QoQ) ( +19.2% QoQ) Rs 68,696 Mn ROE 29.0% (+14.7 % YoY) ( +16.6 % YoY) Capital Adequacy # Borrowing Cost # GNPA # BV / Share Rs 81.2 25.8% 8.95% 1.26% **EPS Rs 22.9 Dividend / Share S
Slide 3: Q3 FY21 Results: Key Performance Highlights
Q3 FY21 RESULTS: KEY PERFORMANCE HIGHLIGHTS • Consolidated AUM continues to grow steadily at +14.7% YoY and +2.7 % QoQ, with gold loan product driving Overall growth Highlights • Net income of Rs 483 cr in 3QFY21, which signifies 6.1% consolidated ROA, 29% consolidated ROE (v/s 5.1% RoA / 26% RoE in
Slide 4: Agenda
Agenda Section 1 IMPACT OF COVID Section 2 QUARTERLY FINANCIAL UPDATE Section 3 COMPETITIVE STRENGTHS Section 4 COMPANY OVERVIEW ANNEXURE
Slide 5: Collections have returned to pre-COVID levels across all business lines
Collections(1) have returned to pre-COVID levels across all business lines MFI 69% 75% 90% 91% 93% 99% 55% (19.4% AUM) 2% 17% April May June July Aug Sep Oct Nov Dec 86% 89% 93% 106% 110% 112% Vehicle 75% 59% 43% Loans (3.6% AUM) April May June July Aug Sep Oct Nov Dec 85% 91% 95% 92% 94% 97% Afford
Slide 6: Agenda
Agenda Section 1 IMPACT OF COVID Section 2 QUARTERLY FINANCIAL UPDATE Section 3 COMPETITIVE STRENGTHS Section 4 COMPANY OVERVIEW ANNEXURE
Slide 7: Trend in AUM Growth & Profitability
Q3 FY21 RESULTS: TREND IN AUM GROWTH & PROFITABILITY TOTAL AUM (Rs Bn) 269 276 252 253 241 227 194 202 172 178 166 158 147 137 Q2 FY18 Q3 FY18 Q4 FY18 Q1 FY19 Q2 FY19 Q3 FY19 Q4 FY19 Q1 FY20 Q2 FY20 Q3 FY20 Q4 FY20 Q1 FY21 Q2 FY21 Q3 FY21 NET PROFIT (Rs Mn) 4,832 3,978 3,982 4,054 3,475 3,680 2,556
Slide 8: Consolidated Profit & Loss Statement
Q3 FY21 RESULTS: CONSOLIDATED PROFIT & LOSS STATEMENT Particulars (Rs Mn) 9M FY21 9M FY20 YOY % Q3 FY21 Q3 FY20 YOY % Q2 FY21 QOQ % FY20 Closing AUM (Rs Bn) 276 241 14.7% 276 241 14.7% 269 2.7% 252 Income from Operations 47,219.2 39,699.1 18.9% 16,438.1 14,361.9 14.5% 15,655.8 5.0% 54,653.2 Finance
Slide 9: Consolidated Balance Sheet
Q3 FY21 RESULTS: CONSOLIDATED BALANCE SHEET Particulars (Rs Mn) Dec 2020 Dec 2019 Sep 2020 Cash & Bank Balances 27,236.1 21,959.9 46,998.6 Investments 3,475.5 1,123.4 614.7 Loans & Advances 2,68,926.5 2,21,898.8 2,60,618.8 Fixed Assets 3,020.8 3,609.7 3,046.7 Other Assets 11,699.1 12,741.6 11,333.8
Slide 10: Consolidated Result Highlights
Q3 FY21 RESULTS: CONSOLIDATED RESULT HIGHLIGHTS CONSOLIDATED AUM (Rs Bn) NET PROFIT (Rs Mn) CAGR: 16.6 % CAGR: 17.9 % 269 276 252 252 253 14,618 194 137 158 9,389 7,559 6,764 3,982 3,680 4,054 4,832 FY17 FY18 FY19 FY20 Q4 Q1 Q2 Q3 FY17 FY18 FY19 FY20 Q4 Q1 Q2 Q3 FY20 FY21 FY21 FY21 FY20 FY21 FY21 FY
Slide 11: Consolidated Result Highlights
Q3 FY21 RESULTS: CONSOLIDATED RESULT HIGHLIGHTS NETWORTH (Rs Mn) BOOK VALUE PER SHARE (Rs) CAGR: 14.3 % 64,508 68,696 CAGR: 14.3 % 57,451 57,461 60,368 76.2 81.2 45,247 68.0 68.0 71.4 38,132 33,633 53.7 39.9 45.3 FY17 FY18 FY19 FY20 Q4 Q1 Q2 Q3 FY17 FY18 FY19 FY20 Q4 Q1 Q2 Q3 FY20 FY21 FY21 FY21 FY2
Slide 12: Consolidated AUM Update
Q3 FY21 RESULTS: CONSOLIDATED AUM UPDATE CONSOLIDATED AUM (Rs Mn) Particulars (Rs Mn) FY17 FY18 FY19 FY20 Q4FY20 Q1FY21 Q2FY21 Q3FY21 Gold Loans 111,245.3 117,349.8 129,615.2 169,671.8 169,671.8 177,367.9 1,97,360.2 2,02,115.8 Microfinance 17,959.4 24,372.0 38,407.8 55,026.4 55,026.4 50,383.1 49,710
Slide 13: Manappuram Finance: Borrowing Profile
Q3 FY21 RESULTS: MANAPPURAM FINANCE: BORROWING PROFILE BORROWING AS ON 31st Dec, 2020 = Rs 190,301 Mn CREDIT RATING Rs 164,822 Mn Rs 201,638 Mn Rs 190,301 Mn 1% 0% 0% Manappuram Finance: Domestic Rating : 7% 8% Long Term: AA (Stable) by CRISIL Long Term: AA+ (Stable) by Bricwork 24% 13% Long Term: A
Slide 14: Manappuram Finance: Standalone Result Analysis
Q3 FY21 RESULTS: MANAPPURAM FINANCE: STANDALONE RESULT ANALYSIS GOLD LOAN AUM (Rs Bn) OPEX TO AUM % CAGR: 11.1 % 202 8.9% 197 8.3% 170 170 177 7.0% 7.2% 6.8% 130 5.4% 5.5% 5.5% 111 117 FY17 FY18 FY19 FY20 Q4 Q1 Q2 Q3 FY17 FY18 FY19 FY20 Q4 Q1 Q2 Q3 FY20 FY21 FY21 FY21 FY20 FY21 FY21 FY21 NET PROFIT
Slide 15: Manappuram Finance: Standalone Result Analysis
Q3 FY21 RESULTS: MANAPPURAM FINANCE: STANDALONE RESULT ANALYSIS NETWORTH (Rs Mn) NPA ANALYSIS % CAGR: 12.8 % 60,718 64,735 53,559 53,559 56,453 2.0% 43,922 1.3% 1.3% 38,126 0.9% 0.9% 1.1% 33,112 0.7% 0.5% 1.7% 0.7% 0.7% 0.8% 0.3% 0.3% 0.5% 0.5% FY17 FY18 FY19 FY20 Q4 Q1 Q2 Q3 FY17 FY18 FY19 FY20 Q4
Slide 16: Manappuram Finance: Gold AUM Update
Q3 FY21 RESULTS: MANAPPURAM FINANCE: GOLD AUM UPDATE PAN INDIA PRESENCE GOLD AUM - REGIONWISE BREAKUP Jammu & Kashmir, 10 Himachal Pradesh, 13 Chandigarh, 4 Delhi, 59 13% Uttarakhand, 8 58% Punjab, 75 15% Uttar Pradesh, 140 14% Haryana, 64 Assam, 18 Bihar, 24 Rajasthan, 96 Tripura, 2 South North Wes
Slide 17: Manappuram Finance: Gold AUM Update
Q3 FY21 RESULTS: MANAPPURAM FINANCE: GOLD AUM UPDATE GOLD HOLDING (TONNES) GOLD AUM PER BRANCH (Rs Mn) 72.4 72.4 CAGR: 9.2 % 56.0 57.4 67.5 69.0 68.8 68.2 48.1 48.1 50.3 61.1 64.0 38.4 33.8 35.3 FY17 FY18 FY19 FY20 Q4 Q1 Q2 Q3 FY17 FY18 FY19 FY20 Q4 Q1 Q2 Q3 FY20 FY21 FY21 FY21 FY20 FY21 FY21 FY21 C
Slide 18: Online Gold Loan: Business Update
Q3 FY21 RESULTS: ONLINE GOLD LOAN: BUSINESS UPDATE ONLINE GOLD LOANS SUPERIOR FOR CUSTOMERS AVERAGE TICKET SIZE (Rs ‘000) • First NBFC to launch Online Gold Loan (OGL) in September 2015 56.48 55.53 50.20 50.20 51.24 • Facility enables customers to avail a gold loan anytime, from anywhere 45.51 44.61
Slide 19: Asirvad Microfinance: Key Highlights
Q3 FY21 RESULTS: ASIRVAD MICROFINANCE: KEY HIGHLIGHTS Particulars (Rs Mn) 9M FY21 9M FY20 YOY % Q3 FY21 Q3 FY20 YOY % Q2 FY21 QOQ % FY20 Closing AUM 53,577.1 50,221.4 6.7% 53,577.1 50,221.4 6.7% 49,710.3 7.8% 55,026.4 Income from Operations 7,742.8 7,724.4 0.2% 2,558.8 2,773.7 -7.7% 2,550.5 0.3% 10,
Slide 20: Asirvad Microfinance: Result Analysis
Q3 FY21 RESULTS: ASIRVAD MICROFINANCE: RESULT ANALYSIS AUM (Rs Mn) RETURN RATIOS % 55,026 55,026 CAGR: 32.3 % 50,383 49,710 53,577 24.1% 38,408 25.5% 13.9% 25.0% 24,372 -3.5% -1.0% -0.9% 6.8% 17,959 4.8% 4.6% -0.2% 2.5% 4.9% 1.3% -0.4% -0.2% FY17 FY18 FY19 FY20 Q4 Q1 Q2 Q3 FY17 FY18 FY19 FY20 Q4 Q1
Slide 21: Asirvad Microfinance: AUM Update
Q3 FY21 RESULTS: ASIRVAD MICROFINANCE: AUM UPDATE PAN INDIA PRESENCE MFI AUM - STATEWISE BREAKUP Uttarakhand, 8 Others, 11% Chandigarh, 1 Uttar Pradesh, 67 Maharashtra, 3% Tamil Nadu, 22% Bihar, 95 Odisha, 4% Punjab, 31 Sikkim, 1 Rajasthan, 5% Assam, 14 Jharkhand, 5% Haryana, 24 West Bengal, West Be
Slide 22: Asirvad Microfinance: Liabilities Overview
Q3 FY21 RESULTS: ASIRVAD MICROFINANCE: LIABILITIES OVERVIEW BORROWING MIX COST OF FUNDS Rs 37,344 mn Rs 41,519 mn Rs 39,278 mn 9% 5% 1% 12.3% 11.8% 3% 11.6% 11.6% 11.2% 11.1% 1% 11.0% 10.7% 22% 3% 1% 19% 27% 4% 13% 15% 14% Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 11% FY19 FY20 FY20 FY20 FY20 FY21 FY21 FY21 CREDIT RA
Slide 23: Housing Finance: Business Update
Q3 FY21 RESULTS: HOUSING FINANCE: BUSINESS UPDATE AUM EVOLUTION (Rs Mn) AUM MIX (%) ATS (INRL) Yield CAGR: 19.3 % 6,296 6,296 6,273 6,206 6,334 25% 26% 26% 26% 26% 6.2 18% 5,188 3,747 24% 30% 30% 31% 32% 3,104 6.3 17% 51% 44% 44% 43% 42% 10.7 14% FY17 FY18 FY19 FY20 Q4 FY20 Q1 FY21 Q2 FY21 Q3 FY21 F
Slide 24: Vehicle and Equipment Finance: Business Update
Q3 FY21 RESULTS: VEHICLE AND EQUIPMENT FINANCE: BUSINESS UPDATE AUM EVOLUTION (Rs Mn) AUM MIX (%) ATS (INRL) Yield 13,443 13,443 12,703 CV TW PV CAGR: 44.8 % 11,146 10,623 9,880 8% 9% 10% 12% 11% 5.6 18% 23% 24% 23% 21% 19% 6,254 0.5 24% 3,058 69% 68% 67% 70% 66% 7.2 18% FY17 FY18 FY19 FY20 Q4 FY20Q
Slide 25: Agenda
Agenda Section 1 IMPACT OF COVID Section 2 QUARTERLY FINANCIAL UPDATE Section 3 COMPETITIVE STRENGTHS Section 4 COMPANY OVERVIEW ANNEXURE
Slide 26: Competitive strengths
Competitive strengths 1 Superior process and product innovation 2 Pan India MFI business with granular asset base and strong risk practices 3 Prudent liabilities strategy 4 Well governed with independent board and deep management bench 26
Slide 27: Superior process and product innovation: operational risk management
1 Superior process and product innovation Strong operational risk management sets Manappuram apart STRICT CUSTODIAL RISK COMPLEX APPRAISAL PROCESS HIGH BRANCH LEVEL SECURITY MANAGEMENT • Complex appraisal process accounting • Pioneer in installing cellular vaults • 100% insurance for gold held in fo
Slide 28: Innovated 3 month product resulting in lower credit losses
1 Superior process and product innovation Innovated 3 month product resulting in lower credit losses 12 month tenor 3 month tenor Actual loan tenor (days) Gold value 100 100 3 month LTV (%) 75 75 60 product de- 47 risks impact Gold loan 75 75 from Interest rate (%) 24 24 fluctuation in Interest cost
Slide 29: Pan India MFI business with granular asset base and strong risk practices
2 Pan India MFI business with granular asset base and strong risk practices Operational Risk Geographic concentration Branch and Division level Employee level ✓ Lower ATS vs. industry ➢ Portfolio outstanding ➢ Monthly internal audits at all branches ➢ Mandatory rotation for all employees at branch a
Slide 30: Prudent Liabilities strategy with reducing CoF
3 Prudent Liabilities strategy with reducing CoF Access to diversified sources of funding (Consolidated) Cost of borrowing (Consol) Rs 197,813 Mn Rs 247,346 Mn Rs 233,744 Mn 1% 0% 0% 6% 7% 20% 11% 12% 2% 13% 28% 9.8% 9.8% 9.3% 9.2% 31% 26% 29% 27% 39% 26% 24% Q3 FY20 Q2 FY21 Q3 FY21 Q2 Q1 Q2 Q3 FY20
Slide 31: Well governed with independent board and deep management bench
4 Well governed with independent board and deep management bench Key managerial personal Board of Directors • Postgraduate in Science • Fellow member of the • Former Chairman: HDFC • B.Com Kerala University, • Masters degree in • Managing committee Institute of Chartered Bank, Unit Trust of India &
Slide 32: Agenda
Agenda Section 1 IMPACT OF COVID Section 2 QUARTERLY FINANCIAL UPDATE Section 3 COMPETITIVE STRENGTHS Section 4 COMPANY OVERVIEW ANNEXURE
Slide 33: Company Overview
Company Overview Leading diversified NBFC in India Group structure • Incorporated in 1992, Manappuram is Non-Banking Financial Company (NBFC) Products under standalone entity Manappuram Finance offering a diversified product portfolio including gold loans, microfinance loans, vehicle and equipment f
Slide 34: Key milestones
Key milestones 1992-2000 2006-2010 2016-2019 • Incorporated at Thrissur • Fullerton India/Temasek sanctions credit limit of • Acquires 100% ownership of Manappuram Insurance • First public issue of shares for INR17.5m with listing on INR500m, enhances the limit to INR4.8bn within a year Brokers Bomb
Slide 35: Agenda
Agenda Section 1 IMPACT OF COVID Section 2 QUARTERLY FINANCIAL UPDATE Section 3 COMPETITIVE STRENGTHS Section 4 COMPANY OVERVIEW ANNEXURE
Slide 36: Understanding our Evolution Phase 1: FY08 - FY12
UNDERSTANDING OUR EVOLUTION PHASE 1: FY08 - FY12 STRONG GROWTH WITNESSED…. 2908 3000 ▪ Higher Loan To Value (LTV) up to 85% 150 2064 116 ▪ Lower Cost of Funds due to Eligibility under Priority Sector 2250 100 Lending 75 1500 1005 ▪ Supported by Buoyant Economic Growth 50 645 436 750 ▪ Long Tenure Pr
Slide 37: Understanding our Evolution Phase 2: FY12 - FY14
UNDERSTANDING OUR EVOLUTION PHASE 2: FY12 - FY14 REGULATORY OVERHANG IMPACT…. Regulatory Changes by RBI- 140 ▪ Mar - 2012 : Removal of Priority Sector Lending Status 120 116 100 – led to Higher Borrowing Cost. 100 75 82 80 60 ▪ Mar - 2012 : Cap on LTV to not exceed more than 60% 40 - 20 0 ▪ Weakened
Slide 38: Understanding our Evolution Phase 3: FY15 Onwards
UNDERSTANDING OUR EVOLUTION PHASE 3: FY15 ONWARDS ON A REVIVAL PATH….. Sept – 2013 : Regulatory Changes by RBI- 170 ▪ Increased the loan-to-value (LTV) ratio for gold loans to 75 per cent - 150 130 116 111 117 100 92 101 ▪ Resulting into Level Playing Field for NBFCs vis-a-vis 100 82 the commercial
Slide 39: For Further Queries
FOR FURTHER QUERIES: DISCLAIMER : Mrs. Bindu A. L This presentation and the contents therein are for information purposes only and CFO does not and should not construed to be any investment or legal advice. Any action Contact No : +914873050000 taken or transaction pursued based on the basis of the