Muthoot Capital Services Ltd. · NSE:MUTHOOTCAP

Muthoot Capital Services — Q4 FY2019 Earnings Presentation

36 slides from Muthoot Capital Services's earnings presentation, Apr 24, 2019

  1. Slide 1: Board Presentation dated 24th April 2019

    Board Presentation dated 24th April 2019 Year ended 31st March 2019 BLUE SOCH. Helping millions shape their tomorrow 1

  2. Slide 2: Agenda

    • Performance Analysis 3 • Sales and Collection Analysis 10 • Asset Analysis 16 • Liability Analysis 19 • Analysis – 5 Quarters 25 33 • Management Discussion & Analysis BLUE SOCH. Helping millions shape their tomorrow 2

  3. Slide 3: Snapshot

    Performance Sales & Collection Asset Liability Analysis Management Analysis Analysis Analysis 5 Quarters Discussion & Analysis Analysis No of States / UT Additional Sanctions New Customers – Disb – ₹ 605.7 Cr currently operating in ₹ 190 Cr.(FY 505Cr.) 75,346 ( FY 329,301) ( FY 2135.1 Cr) – 20 SNAPS

  4. Slide 4: Quarterly and Yearly Trend

    Performance Sales & Collection Asset Liability Analysis Management Analysis Analysis Analysis Analysis 5 Quarters Discussion & Analysis Quarterly Trend Yearly Trend ₹. In Crores Financial Statement Metrics Q4 FY 19 Q3 FY 19 Q-o-Q Q4 FY 18 Y-o-Y FY 19 FY 18 Y-o-Y Disbursement : Hyp Loans 444.0 493.1

  5. Slide 5: Statement of Sources and Application of Funds

    Performance Sales & Collection Asset Liability Analysis Management Analysis Analysis Analysis Analysis 5 Quarters Discussion & Analysis STATEMENT OF SOURCES AND APPLICATION OF FUNDS ₹. In Crores As At As At Sources Applications 31-Mar-18 31-Dec-18 31-Mar-19 31-Mar-18 31-Dec-18 31-Mar-19 Share Capita

  6. Slide 6: Disbursement, Gross AUM and Revenue

    Performance Sales & Collection Asset Liability Analysis Management Analysis Analysis Analysis Analysis 5 Quarters Discussion & Analysis Gross AUM Revenue Disbursement Q3 FY 19 : ₹ 502.1 Cr 21% Q3 FY 19 : ₹ 2595.5 Cr 6% Q3 FY 19 : ₹ 142.3 Cr 4% Q4 FY 19 : ₹ 605.7 Cr Q4 FY 19 : ₹ 2741.0 Cr Q4 FY 19 :

  7. Slide 7: Asset Quality and Provision Coverage

    Performance Sales & Collection Asset Liability Analysis Management Analysis Analysis Analysis Analysis 5 Quarters Discussion & Analysis ASSET QUALITY AND PROVISION COVERAGE ₹. In Crores 7.0% 50% As on As on As on 45% 6.0% 6.2% 31.03.2018 31.12.2018 31.03.2019 40% 5.2% 5.4% Own Book 5.0% 4.6% 35% 4.8

  8. Slide 8: Other Expenses - Split

    Performance Sales & Collection Asset Liability Analysis Management Analysis Analysis Analysis Analysis 5 Quarters Discussion & Analysis ₹. In Crores OTHER EXPENSES - SPLIT Q4 FY 19 Q3 FY 19 Q-o-Q Q4 FY 18 Y-o-Y FY 19 FY 18 Y-o-Y Collection Cost as % of Collection Collection Charges: 18.7 17.1 9.4% 1

  9. Slide 9: Main Factors Impacting Profitability - Delinquencies

    Performance Sales & Collection Asset Liability Analysis Management Analysis Analysis Analysis 5 Quarters Discussion & Analysis Analysis ₹. In Crores MAIN FACTORS IMPACTING PROFITABILITY - DELINQUENCIES Particulars For FY 18 Q1 FY 19 Q2 FY 19 Q3 FY 19 Q4 FY 19 FY 19 Unrealized Income 1.7 1.5 1.6 1.0

  10. Slide 10: Zonewise Disbursement (Hyp Loans) - Y-o-Y

    Performance Sales & Asset Liability Analysis Management Analysis Collection Analysis Analysis 5 Quarters Discussion & Analysis Analysis ZONEWISE DISBURSEMENT (HYP LOANS) – Y- o -Y ₹. In Crores BRANCH DEALER TOTAL Overall Share FY 18 FY 19 FY 18 FY 19 FY 18 FY 19 FY 19 FY18 Zone Count Value Count Val

  11. Slide 11: Zonewise Disbursement (Hyp Loans) - Q-o-Q

    Performance Sales & Asset Liability Analysis Management Analysis Collection Analysis Analysis 5 Quarters Discussion & Analysis Analysis ZONEWISE DISBURSEMENT (HYP LOANS) – Q- o -Q ₹. In Crores BRANCH DEALER TOTAL Overall Share Q4 FY ’18 Q4 FY ’19 Q4 FY ‘18 Q4 FY ‘ 19 Q4 FY ‘18 Q4 FY ‘ 19 Q4 FY ‘19 Q

  12. Slide 12: Collection Performance Monitoring (Hyp)

    Performance Sales & Collection Asset Liability Analysis Management Analysis Analysis Analysis Analysis 5 Quarters Discussion & Analysis COLLECTION PERFORMANCE MONITORING (HYP) ₹. In Crores Bucket-wise Flow Collection Performance 25% 488 453 386 416 3.0% 364 20% 2.0% 2.0% 3.6% 3.1% 15% 98.0% 98.0% 97

  13. Slide 13: Portfolio Trend - Hypothecation Loans

    Performance Sales & Asset Liability Analysis Management Analysis Collection Analysis Analysis 5 Quarters Discussion & Analysis Analysis PORTFOLIO TREND – HYPOTHECATION LOANS ₹. In Crores Own Month book 30+ 90+ 30+% 90+% 30.0% AUM 25.0% 01-Apr-18 1 617.9 187.8 87.9 11.6% 5.6% 01-May-18 1 686.9 203.6

  14. Slide 14: NPA Movement - Hyp Loan - Q4 FY 2019

    Performance Sales & Asset Liability Analysis Management Analysis Collection Analysis Analysis 5 Quarters Discussion & Analysis Analysis NPA MOVEMENT – HYP LOAN – Q4 FY 2019 ₹. In Crores Particulars HP Nos Principal Provision Unrealized Balance as on 31.12.2018 67 426 122.8 52.2 15.4 Add: Slipped to

  15. Slide 15: NPA Movement - Hyp Loan - Across 9 Quarters

    Performance Sales & Collection Asset Liability Analysis Management Analysis Analysis Analysis Analysis 5 Quarters Discussion & Analysis NPA MOVEMENT – HYP LOAN – ACROSS 9 QUARTERS ₹. In Crores Particulars Q4’ 17 Q1 ‘18 Q2 ‘18 Q3 ‘18 Q4 ‘18 Q1 ‘19 Q2 ’19 Q3 ’19 Q4’19 Opening Balance 78.1 74.2 96.9 94

  16. Slide 16: Hyp Portfolio Split as on March 31st 2019

    Performance Sales & Collection Asset Liability Analysis Management Analysis Analysis Analysis Analysis 5 Quarters Discussion & Analysis HYP PORTFOLIO SPLIT AS ON MARCH 31ST 2019 ₹. In Crores PTC transactions DCB (Pratab) 26.7 IDFC & HLF (Rancisis ) 80.4 28% DCB (Carolina) 71.4 656.8 Kotak Mahindra (

  17. Slide 17: MCSL Geographic Overview - Hyp

    Performance Sales & Collection Asset Liability Analysis Management Analysis Analysis Analysis Analysis 5 Quarters Discussion & Analysis MCSL GEOGRAPHIC OVERVIEW - HYP ₹. In Crores MAR 31 2019 Zone Active % of Zone Regular NPA Total wise Clients NPA AUM % South India 5 23 750 1 667.4 87.0 1 754.3 74.

  18. Slide 18: Portfolio Analysis

    Performance Sales & Collection Asset Liability Analysis Management Analysis Analysis Analysis Analysis 5 Quarters Discussion & Analysis PORTFOLIO ANALYSIS ₹. In Crores Portfolio Analysis Segment – wise Analysis 5.0% 116.3 2336.1 6.8 95.0% 95.0% 90.5% 5.0% 9.5% 2 226.6 Two Wheeler Three Wheeler & Oth

  19. Slide 19: Sources of Borrowing

    Performance Sales & Collection Asset Liability Analysis Management Analysis Analysis Analysis Analysis 5 Quarters Discussion & Analysis SOURCES OF BORROWING ₹505 Cr ₹912.4 Cr ₹30.4 Cr Additional bank sanctions Securitization/ DA done in Collections of Sub-debt during the year FY 2018-19 (net of MRR)

  20. Slide 20: Shareholding Pattern

    Performance Sales & Collection Asset Liability Analysis Management Analysis Analysis Analysis Analysis 5 Quarters Discussion & Analysis SHAREHOLDING PATTERN 31 Mar 2017 31 Mar 2018 31 Mar 2019 Banks/ Post QIP NRI, 0.3% FII & FPI, Financial Banks/ Financial Banks/ Financial 0.0% Other Institutio Corp

  21. Slide 21: Capitalization

    Performance Sales & Collection Asset Liability Analysis Management Analysis Analysis Analysis Analysis 5 Quarters Discussion & Analysis CAPITALIZATION Movement of Market Price per Share (MPS) vs. The Company’s market capitalization has Book Value per Share (BPS) shown significant growth during the y

  22. Slide 22: Borrowing Profile - by Instrument

    Performance Sales & Collection Asset Liability Analysis Management Analysis Analysis Analysis Analysis 5 Quarters Discussion & Analysis BORROWING PROFILE – by Instrument ₹. In Crores Q4 FY ’18 Q3 FY ’19 Q4 FY ’19 Particulars Amount Cost* Amount Cost* Amount Cost* Bank Loan 1149.1 9.3% 1475.5 9.8% 14

  23. Slide 23: Borrowing Profile - by Investor Profile

    Performance Sales & Collection Asset Liability Analysis Management Analysis Analysis Analysis Analysis 5 Quarters Discussion & Analysis BORROWING PROFILE – by Investor Profile ₹. In Crores Q4 FY ’18 Q3 FY ’19 Q4 FY ‘19 Particulars Amount Cost Amount Cost Amount Cost Banks 1447.4 9.3% 1825.2 9.7% 180

  24. Slide 24: Highlights - Securitisation / Direct Assignment Transaction

    Performance Sales & Collection Asset Liability Analysis Management Analysis Analysis Analysis Analysis 5 Quarters Discussion & Analysis HIGHLIGHTS – SECURITISATION / DIRECT ASSIGNMENT TRANSACTION Augmented Growth Capital saving: • Done 13 Securitization / 8 Direct Assignment An off balance sheet tra

  25. Slide 25: Spread Analysis

    Performance Sales & Collection Asset Liability Analysis Management Analysis Analysis Analysis Analysis 5 Quarters Discussion & Analysis SPREAD ANALYSIS ₹. In Crores Analysis on Avg loan Mar-18 Jun-18 Sep-18 Dec-18 Mar-19 book size Amount % Amount % Amount % Amount % Amount % Avg Loan Book Size * 174

  26. Slide 26: Analysis of Cost & Yield

    Performance Sales & Collection Asset Liability Analysis Management Analysis Analysis Analysis Analysis 5 Quarters Discussion & Analysis ANALYSIS OF COST & YIELD EFFECTIVE RATE SI.No. Description of Loan Q3 FY ‘18 Q4 FY ’18 Q1 FY ‘19 Q2 FY ’19 Q3 FY ’19 Q4 FY ’19 1 Hypothecation 24.8% 26.0% 24.3% 24.

  27. Slide 27: Analysis of Cost & Yield

    Performance Sales & Collection Asset Liability Analysis Management Analysis Analysis Analysis Analysis 5 Quarters Discussion & Analysis ANALYSIS OF COST & YIELD Cost of Funds, Yield & Spread Composition of Yield 30.0% Collateral Deposits 7.9% Hypothecation 23.9% 24.7% Loan Buyout 14.3% 25.0% 23.6% 2

  28. Slide 28: Expense as a % of Revenue - Q-o-Q

    Performance Sales & Collection Asset Liability Analysis Management Analysis Analysis Analysis Analysis 5 Quarters Discussion & Analysis EXPENSE AS A % OF REVENUE – Q-o-Q 16.5% 15.2% 16.3% 13.4% 18.0% 7.2% 9.1% 8.4% 9.0% 9.8% 7.9% 9.5% 10.4% 8.7% 8.9% 23.4% 21.6% 20.7% 22.5% 22.9% 32.7% 27.2% 30.0% 2

  29. Slide 29: Average LTV, Ticket Size, IRR and Processing Fee

    Performance Sales & Collection Asset Liability Analysis Management Analysis Analysis Analysis Analysis 5 Quarters Discussion & Analysis Average LTV Average Ticket Size 76.6% 75.9% 77.7% 77.2% 78.1% 52 993 52 726 55 722 58 270 58 920 Q4 18 Q1 19 Q2 19 Q3 19 Q4 19 Q4 18 Q1 19 Q2 19 Q3 19 Q4 19 Average

  30. Slide 30: Disbursement, Loan Book Size and Revenue

    Performance Sales & Collection Asset Liability Analysis Management Analysis Analysis Analysis Analysis 5 Quarters Discussion & Analysis Disbursement Count (Hypo Loan) Disbursement - Hypo Loan (in ₹ crores) 90 960 85 036 84 293 84 626 493 75 346 482 470 448 444 Q4 18 Q1 19 Q2 19 Q3 19 Q4 19 Q4 18 Q1

  31. Slide 31: Net Interest Income, OPEX, Provisions and Profit

    Performance Sales & Collection Asset Liability Analysis Management Analysis Analysis Analysis Analysis 5 Quarters Discussion & Analysis Net interest income (in Crores) OPEX as a % of NII 93.7 101.2 92.0 57.6% 86.0 86.9 49.7% 49.9% 51.9% 52.1% Q4 18 Q1 19 Q2 19 Q3 19 Q4 19 Q4 18 Q1 19 Q2 19 Q3 19 Q4

  32. Slide 32: ROA, ROE, EPS, Capital Adequacy

    Performance Sales & Collection Asset Liability Analysis Management Analysis Analysis Analysis Analysis 5 Quarters Discussion & Analysis ROA and ROE Earning per Share (in ₹) 22.4% 20.8% 20.3% 18.9% 16.1% 13.0 12.5 14.2 4.9% 4.1% 4.3% 12.2 11.1 3.8% 3.4% Q4 18 Q1 19 Q2 19 Q3 19 Q4 19 Q4 18 Q1 19 Q2 19

  33. Slide 33: Management Discussion: Diversity in Funding, Borrowing Mix

    Performance Sales & Collection Asset Liability Analysis Management Analysis Analysis Analysis Analysis 5 Quarters Discussion & Analysis • In FY 19 got fresh sanctions of ₹ 1447.8 crs (₹ 1326.7crs in FY 18) from various sources Diversity in • Increasing confidence that the lenders / investors have in

  34. Slide 34: Management Discussion: Disbursement, Collection, NPA

    Performance Sales & Collection Asset Liability Analysis Management Analysis Analysis Analysis Analysis 5 Quarters Discussion & Analysis • After a robust Q1, growth slowed , starting with the Kerala floods in the festive season and then due to various news flows on NBFC segment & the Apex Court verdi

  35. Slide 35: Staff Attrition, Cost Control and Repayment Mode

    Performance Sales & Collection Asset Liability Analysis Management Analysis Analysis Analysis Analysis 5 Quarters Discussion & Analysis • Monthly staff attrition was higher at 3.5 % in Q4 FY ‘19 v/s 3.3% in Q3 FY 19 - The concept of Marketing Staff attrition & agents is also working well. In North &

  36. Slide 36: Thank You

    irl muthoot Believe in Blue THANK YOU fr CAPITAL

Muthoot Capital Services — Q4 FY2019 Earnings Presentation on 6ix