Poonawalla Fincorp Limited · NSE:POONAWALLA
Poonawalla Fincorp — Q4 FY2022 Earnings Presentation
54 slides from Poonawalla Fincorp's earnings presentation, May 12, 2022
Slide 1: Exchange filing cover letter: Investors/Analysts' Presentation
12 May 2022 BSE Limited National Stock Exchange of India Limited Corporate Relationship Department The Listing Department, 25th Floor, Phiroze Jeejeebhoy Towers, Exchange Plaza, Dalal Street, Fort, Bandra- Kurla Complex, Bandra (East), Mumbai - 400 001. Mumbai - 400 051. BSE Scrip Code: 524000 NSE S
Slide 2: Poonawalla Fincorp Limited Investor Presentation Q4FY22
Poonawalla Fincorp Limited (Formerly known as Magma Fincorp Limited) Investor Presentation Q4FY22
Slide 3: Agenda
Agenda 1 Overview 3-10 2 Executive Summary & Business Update 11-21 3 Business and Financial Highlights: Consolidated 22-30 4 Business and Financial Highlights: Subsidiary / MHDI 31-43 5 Board Members | Shareholding Pattern 44-46 2
Slide 4: We started our journey when there were industry headwinds of pandemic but we thrived
We started our journey when there were industry headwinds of pandemic but we thrived by focussing on the basics, thereby delivering on our stated objectives. We strengthened during covid and are now better placed by building digitized processes, granular portfolio and inherent resilience.
Slide 5: Poonawalla Fincorp – At a glance (Consol.)
Poonawalla Fincorp – At a glance (Consol.) What defines us AUM Disbursement “Young and resilient NBFC which rebooted itself in the most trying times of pandemic” ₹ 16,579 Cr ₹ 9,494 Cr +17% YoY +158% YoY “Catering to the financing needs of young India, both consumer and small business” RoA Net stage
Slide 6: Having weathered the headwinds we now have structural tailwinds
And having weathered the headwinds we now have structural tailwinds which are helping us accelerate.
Slide 7: The Acceleration is Driven by…
The Acceleration is Driven by… Large millennial and Formalization of Growing acceptance of Rising smartphone GenZ base MSMEs credit penetration Housing for all and other Resilience shown by Visible Demonstration Industry initiatives by Govt. MSMEs effect Consolidation 6
Slide 8: We have a True Retail Lending strategy
We have a True Retail Lending strategy. • Focusing on granular portfolio • Healthy mix of asset classes • Risk based pricing • Focus on asset quality
Slide 9: Uniquely Positioned
Uniquely Positioned Inherent Strengths… Brand Strength Digital Focus and Technology Led Retail Franchise ▪ Flagship financing arm of Cyrus ▪ Agility in partnering with ecosystem ▪ Focused on retail and small business segment Poonawalla Group ▪ Reduction in turn-around-time (TAT) with diversified pro
Slide 10: Management Vision 2025
Management Vision 2025 FY22 performance in line with the long-term guidance Vision 2025 Our journey till FY22 is on track To be amongst Top 3 NBFCs in consumer and Entered digital loan consumption space & Top 3 NBFC for consumer & small small Topbusiness 3 NBFC finance achieved leadership position i
Slide 11: Proposed Capital Raise of upto ₹ 1,000 cr in PHFL
Proposed Capital Raise of upto ₹ 1,000 cr in PHFL The Board of Directors of the Company at its meeting held on May 12, 2022, has accorded an in-principle approval to raise funds in Poonawalla Housing Finance Limited. ▪ Onboard investor/s with a view of long-term business partnership Nature of ▪ Rais
Slide 12: Agenda: Executive Summary & Business Strategy
Agenda 2 Executive Summary & Business Strategy 11-21 11
Slide 13: Consolidation isn't a new concept but needs to be done for the right reasons
Consolidation isn’t a new concept but needs to be done for the right reasons and in the right manner to set up the organisation for sustainable growth. We have built a strong foundation that is propelling us into the growth orbit.
Slide 14: Consolidate. Grow. Lead.
Consolidate. Grow. Lead. FY2022 FY2023 FY2025 Consolidate Growth trajectory Market Leadership • Realign and revamp products portfolio • Build scale with new products and • Lead in chosen products and and branches expand cross-sell / up-sell geographies • Build digital and data analytics • Lead in pr
Slide 15: Executive Summary - Consolidated
Executive Summary - Consolidated Consolidation phase is now propelling us into growth orbit for FY23 Strong business momentum ▪ Sequential QoQ rise in disbursement for all product verticals | Disbursement in Q4FY22 was 1.8x of that in Q3FY22 ▪ Highest ever monthly disbursement in Mar22 | New product
Slide 16: Executive Summary - Consolidated
Executive Summary - Consolidated Consolidation phase is now propelling us into growth orbit for FY23 Borrowing book at competitive rates ▪ 215 bps reduction in avg. Cost of Borrowing (CoB) between Q1FY22 and Q4FY22 | 62 bps reduction in Q4FY22 ▪ Adequate liquidity buffer of ₹ 3,890 cr as on 31st Mar
Slide 17: Business Transformation Yielding Results
Business Transformation Yielding Results Digital | Distribution | People Digital transformation ▪ Significant increase in digital NACH mandate and digital collections ▪ 100% digital onboarding of channel partners initiated with <1 day turnaround time ▪ 100% digital journey for unsecured products wit
Slide 18: Building a Tech Led Play
Building a Tech Led Play Customers Partners Self service online web application Extended API Infrastructure Contact center led digital onboarding CRM Extension Contactless customer service through Bots Market Place Partnerships Digitized Operating Layer with controls inbuilt Sales Team Digitization
Slide 19: Deep Investments in Technology
Deep Investments in Technology Core Cloud Micro Services Cloud based based applications architecture Omni channel presence Building an integrated getting powered one stop solution for our through the data customers and partners science engine Infosec API Factory Cyber resilience API based competenci
Slide 20: Digital to the Core
Digital to the Core Digitalizing end to end journey Digital KYC Smart Contract & Digital EMIs Sales & Onboarding ▪ CKYC Digital ▪ E-Application & E-Sign TAT ▪ EKYC Onboarding & ▪ E-Agreement Reduction ▪ VKYC Digital NACH ▪ E-NACH Digital Collections Unified Payments Platform ▪ Bharat Bill Pay, UPI ▪
Slide 21: Digital to the Core
Digital to the Core Digitalizing end to end journey 24X7 Digital Service Portal & Mobile App Multilingual ▪ WhatsApp, Chat & Email Bot ▪ Digital Lodgment & Workflow Increase Portal Digital ▪ IVR Bot, AV Bot (Voice biometric) Usage Integrations Interactions ▪ WhatsApp for interactions ▪ Enable Top QR
Slide 22: Product Suite
Product Suite Tailored for the target segment identified Existing products Upcoming products Pre-owned Cars Digital Business Loans Supply Chain Finance Affordable Home Loan Digital Personal Loan Merchant Cash Advance Affordable LAP Digital Loan to Professionals Consumer Finance Medical Equipment Loa
Slide 23: Agenda: Business and Financial Highlights: Consolidated
Agenda 3 Business and Financial Highlights: Consolidated 22-30 22
Slide 24: Q4FY22 Performance Highlights - Consolidated
Q4FY22 Performance Highlights - Consolidated On path to achieve 2025 vision AUM CoB NIM RoA 16,579 7.4% 9.5% 3.1% YoY QoQ* YoY QoQ YoY QoQ YoY QoQ -209 bps -110 bps +33 bps +77 bps +16.5% +8.9% - +53 bps Disbursement GS3 NS3 PAT 3,336 2.7% 1.1% 119 YoY QoQ YoY QoQ YoY QoQ Q4FY21 PAT QoQ +133.9% +80.
Slide 25: FY22 Performance Highlights - Consolidated
FY22 Performance Highlights - Consolidated On path to achieve 2025 vision AUM CoB NIM RoA 16,579 8.6%* 8.9% 2.5% YoY YoY YoY YoY +16.5% -109 bps +65 bps - Disbursement GS3 NS3 PAT 9,494 2.7% 1.1% 375 YoY YoY YoY FY21 PAT +158.0% -103 bps -8 bps -559 Amounts in ₹ cr | Figures are for consolidated ent
Slide 26: Business Update
Business Update Portfolio attuned for growth and superior risk-adjusted returns Pre-Owned Car Digital BL | Digital PL | Digital LTP ▪ Highest ever monthly disbursement in Mar22 ▪ Highest ever monthly disbursement in Mar22 ▪ Entered leaderboard ▪ Entered leaderboard for LTP ▪ Q4FY22 disbursement up 4
Slide 27: Performance Parameters – Q4FY22
Performance Parameters – Q4FY22 Robust Growth | Significant Reduction in CoB, GS3 and NS3 Disbursement AUM AUM Mix Focussed Discontinued Hard Collateral Movable Collateral Unsecured 3,336 16,579 14,424 15,275 15,228 10% 10% 13% 2,580 14,225 16% 19% 2,974 4,375 3,626 1,733 1,845 5,163 1,426 5,930 59%
Slide 28: Asset Quality
Asset Quality Reduction in Stage 2 & Stage 3 assets | Collection efficiency | Restructured Book PFL PHFL Consolidated Mar-21 Dec-21 Mar-22 Mar-21 Dec-21 Mar-22 Mar-21 Dec-21 Mar-22 Stage 1 Assets 81.8% 82.4% 86.7% 89.7% 87.3% 90.8% 83.6% 83.7% 87.8% Stage 2 Assets 13.9% 13.5% 10.1% 8.7% 10.8% 8.3% 1
Slide 29: ALM statement and Liquidity – PFL Standalone
ALM statement and Liquidity – PFL Standalone Ample liquidity | Well positioned for rise in rates Structural Liquidity Statement as on 31st Mar 22 17,087 17,087 Cumulative inflows (₹ in Cr) Cumulative outflows(₹ in Cr) 15,648 14,475 11,165 9,125 9,557 6,850 5,671 5,829 4,715 710 1,119 148 0-1m 1-3m 3
Slide 30: Profit & Loss Statement – Consolidated
Profit & Loss Statement – Consolidated Amounts in ₹ cr As % of average AUM Particulars Q4FY21 Q3FY22 Q4FY22 FY21 FY22 Q4FY21 Q3FY22 Q4FY22 FY21 FY22 1 NIM (including fee income) 337 334 371 1,252 1,325 9.2% 8.8% 9.5% 8.2% 8.9% Opex2 145 196 214 542 742 4.0% 5.1% 5.5% 3.6% 5.0% Pre Provision Operatin
Slide 31: Profit & Loss Statement – Standalone
Profit & Loss Statement – Standalone Amounts in ₹ cr As % of average AUM Particulars Q4FY21 Q3FY22 Q4FY22 FY21 FY22 Q4FY21 Q3FY22 Q4FY22 FY21 FY22 NIM (including fee income) 256 270 288 1,002 1,058 9.2% 9.8% 10.4% 8.4% 9.8% Opex1 115 154 169 440 595 4.1% 5.6% 6.1% 3.7% 5.5% Pre Provision Operating P
Slide 32: Agenda: Subsidiary / MHDI
Agenda 4 Business and Financial Highlights: Subsidiary / MHDI 31-43 31
Slide 33: Poonawalla Housing Finance Limited
Poonawalla Housing Finance Limited (Formerly known as Magma Housing Finance Limited) (Subsidiary)
Slide 34: Poonawalla Housing Finance – At a glance
Poonawalla Housing Finance – At a glance ➢ Poonawalla Housing Finance Limited (PHFL), subsidiary of PFL, is a AUM Disbursement national scale affordable segment HFC with 128 branches across 20 states across India ₹ 5,060 cr ₹ 1,970 cr ➢ AUM crossed ₹ 5,000 crores milestone during Q4FY22 +27% YoY +57
Slide 35: Historical Performance - PHFL
Historical Performance - PHFL Poised for sustainable growth – Directly sourced, Granular, Home loan focus book Disbursement AUM Live Customers (in 000s) Direct Ratio (Units) 1,970 46 5,060 78% 80% 77% 75% 1,315 1,251 3,978 33 1,085 3,283 27 44% 2,429 18 562 12 1,808 FY18 FY19 FY20 FY21 FY22 FY18 FY1
Slide 36: Executive Summary - PHFL
Executive Summary - PHFL Key Highlights FY22 Highest ever AUM of ₹ 5,060 cr as on Mar22; Lowest ever Gross Stage 3 Assets of 0.96%; 27% YoY 63 bps YoY Highest ever disbursement of ₹ 1,970 cr in FY22; Geo expansion to 128 branches in 20 states as on Mar22 57% YoY Significant reduction in averag
Slide 37: Q4FY22 Performance Highlights - PHFL
Q4FY22 Performance Highlights - PHFL On path to achieve 2025 vision AUM CoB NIM RoA 5,060 7.1% 6.9% 2.5% YoY QoQ YoY QoQ YoY* QoQ YoY QoQ +27.2% +10.6% -232 bps -113 bps -153 bps +126 bps - +56 bps Disbursement GS3 NS3 PAT 797 0.96% 0.6% 29 YoY QoQ YoY QoQ YoY QoQ Q4FY21 PAT QoQ +64.7% +49.0% -63 bp
Slide 38: FY22 Performance Highlights - PHFL
FY22 Performance Highlights - PHFL On path to achieve 2025 vision AUM CoB NIM RoA 5,060 8.7%# 6.1%* 1.8% YoY YoY YoY YoY -92 bps +27.2% -72 bps +149 bps Disbursement GS3 NS3 PAT 1,970 0.96% 0.6% 77 YoY YoY YoY YoY +57.5% -63 bps 610.7% -17 bps Amounts in ₹ cr; CoB: Cost of borrowing | #: Normalized
Slide 39: Performance Parameters - PHFL
Performance Parameters - PHFL AUM crossed 5,000 cr milestone | Significant reduction in CoB, GS3 and NS3 Disbursement AUM AUM Mix HL LAP CF 797 5,060 4,574 0.5% 0.4% 0.3% 0.3% 0.2% 535 4,287 484 4,047 41% 39% 38% 36% 36% 390 3,978 248 59% 61% 62% 64% 63% Q4FY21 Q1FY22 Q2FY22 Q3FY22 Q4FY22 Mar-21 Jun
Slide 40: ALM statement and Liquidity – PHFL
ALM statement and Liquidity – PHFL Well Matched ALM Profile | Adequate Liquidity Structural Liquidity Statement as on 31-Mar-22 Cum Inflow Cum. Outflow 7,148 5,348 4,950 3,606 3,499 2,649 1,463 847 591 1,014 207 141 530 392 0-1 Month 1-3 Month 3-6 Month 6 Month-1Year 1 Year-3 Year 3 Year-5 Year > 5
Slide 41: Profit & Loss Statement – PHFL
Profit & Loss Statement – PHFL Amounts in ₹ cr As % of average AUM Particulars Q4FY21 Q3FY22 Q4FY22 FY21 FY22 Q4FY21 Q3FY22 Q4FY22 FY21 FY22 1 NIM (including fee income) 81 63 82 247 263 8.4% 5.7% 6.9% 6.8% 6.1% Opex 30 42 45 102 147 3.1% 3.8% 3.8% 2.8% 3.4% Pre Provision Operating Profit 51 20 37 1
Slide 42: Magma HDI General Insurance Limited
Magma HDI General Insurance Limited
Slide 43: Executive Summary - MHDI
Executive Summary - MHDI Extensive network of IRDAI approved intermediaries ~10,000 across the country One of the highest GDPI growth of 37% for FY2021-22 vis-a-vis 12% & 11% growth for private sector and Industry respectively Moved up by 2 positions in Industry ranking vis-à-vis private sector gene
Slide 44: Profit & Loss Statement (Ind AS) - MHDI
Profit & Loss Statement (Ind AS) - MHDI Amounts in ₹ cr Particulars Q4FY21 Q3FY22 Q4FY22 FY21 FY22 Gross Written Premium 438 488 604 1,349 1,815 Net Written Premium 237 321 351 798 1122 Net Earned Premium 192 232 256 762 914 Net Claims Incurred 150 151 167 607 628 Net Commission -17 -4 -5 -55 -22 Ma
Slide 45: Agenda: Board Members | Shareholding pattern
Agenda 5 Board Members | Shareholding pattern 44-46 44
Slide 46: Board of Directors – Poonawalla Fincorp
Board of Directors – Poonawalla Fincorp Experienced & Diversified Board Mr. Adar Poonawalla Mr. Abhay Bhutada Mr. Amar Deshpande Mr. Sajid Fazalbhoy Mr. Atul Kumar Gupta Chairman & Managing Director Non-Executive Director Non-Executive Director Non-Executive Director Non-Executive Director Ms. Vijay
Slide 47: Shareholding pattern & Holding structure - PFL
Shareholding pattern & Holding structure - PFL Rising Sun Holdings Private Limited (owned and controlled by Mr. Adar Poonawalla) Shareholding (31st Mar22) 61.5% FII, 6.6% Poonawalla Fincorp Limited Public, 13.5% 99.2% 36.4% Domestic Promoters, Investors, 61.5% Magma HDI General 18.4% Poonawalla Hous
Slide 48: Disclaimer
Disclaimer This presentation has been prepared by Poonawalla Fincorp Limited (the “Company”), for general information purposes only, without regard to any specific objectives, suitability, financial situations and needs of any particular person and does not constitute any recommendation or form part
Slide 49: Disclaimer (Continued)
Disclaimer (Continued) The information contained in these materials has not been independently verified. None of the Company, its directors, promoter or affiliates, nor any of its or their respective employees, advisers or representatives or any other person accepts any responsibility or liability w
Slide 50: Annexure
Annexure
Slide 51: Balance Sheet Statement – Consolidated
Balance Sheet Statement – Consolidated Amounts in ₹ cr Particulars 31-Mar-21 31-Mar-22 Cash & Bank balances 775 597 Receivables 13 14 Loans (Net of provision) 11,361 14,851 Investments 177 0 Other Financial Assets 259 235 Non Financial Assets 627 746 Total Assets 13,212 16,443 Borrowings 10,433 9,90
Slide 52: Balance Sheet Statement – Standalone
Balance Sheet Statement – Standalone Amounts in ₹ cr Particulars 31-Mar-21 31-Mar-22 Cash & Bank balances 612 537 Receivables 13 14 Loans (Net of provision) 8,565 10,678 Investments 429 820 Other Financial Assets 134 144 Non Financial Assets 588 616 Total Assets 10,342 12,810 Borrowings 7,915 6,726
Slide 53: Balance Sheet Statement – PHFL
Balance Sheet Statement – PHFL Amounts in ₹ cr Particulars 31-Mar-21 31-Mar-22 Cash & Bank balances 164 61 Loans (Net of provision) 2,807 4,177 Other Financial Assets 130 86 Non Financial Assets 33 62 Total Assets 3,134 4,387 Borrowings 2,542 3,198 Other Liabilities 95 108 Share Capital 166 252 Rese
Slide 54: Thank You
THANK YOU POONAWALLA FINCORP