CSL Finance Limited · NSE:CSLFINANCE
CSL Finance — Q4 FY2019 Earnings Presentation
27 slides from CSL Finance's earnings presentation, March 2019
Slide 1: FY19 Q4 - Update
FY19 Q4 - Update March 2019 © 2019 CS L F I N A N CE L I M I T E D , A L L R I GH T S R E S E R V E D
Slide 2: Table of Contents
Table of Contents Company Snapshot 3 Business Strategy 4 Key Management Team 5 Our Presence 7 Product Portfolio 8 SWOT Analysis 16 Financial Snapshot 17 ALM Breakup 22 Debt Profile 23 Treasury Update 24 Operational Update 25 Our Strategy 26 © 2019 CSL Finance Limited, All Rights Reserved. 2
Slide 3: Company Snapshot
Company Snapshot Listed on Bombay Delhi based NBFC with Wholesale housing book of 99% of loan Stock Exchange AUM of Rs 323.51 Cr INR 268 Cr & SME Retail book is secured book of INR 55 Cr. 18 Branches spread Raised 51 Cr from Marquee High CAR BBB rating across North and West India investors in Sep 20
Slide 4: Business Strategy
Business Strategy Portfolio Quality Focussed Approach Pragmatic build up of portfolio Prudent risk management and in chosen geographies through continuous monitoring of portfolio cluster approach Costs Flexibility Optimisation of Flexible offerings in line with operating profits customer needs throu
Slide 5: Key Management Team
Key Management Team Rohit Gupta ( Managing Director) Naresh Varshney ( CFO) Rohit is a CA with over 25 years of diverse Naresh is a CA with more than 25 years of diverse experience in the fields of merchant banking, experience in the field of financial services, corporate finance, financial restruct
Slide 6: Key Management Team
Key Management Team Purnima Banka ( Treasury Head) Hariom Kumar (HR Head) Purnima is a MBA Finance with over 7 years of Hariom is MBA with over 15 years of vast diverse experience in the field of Corporate experience in the Human resources field. Previously Banking & Corporate finance, Treasury he h
Slide 7: Our Presence
Our Presence Jalandhar Ludhiana Dehradun Patiala Yamuna Ambala Nagar Hissar Panipat Faridabad New Delhi States Present Delhi NCR Sikar Haryana Jaipur Ajmer Punjab Jodhpur Uttrakhand Rajasthan Gujarat Mehsana Ahmedabad Baroda Surat Map not to scale, for representation purposes only © 2019 CSL Finance
Slide 8: Product Portfolio
PRODUCT PORTFOLIO Product Category Book Size (Rs Cr) FY19 Customer Segment Corporate Lending Standard and Structured loans given to corporates into Wholesale Large 147.01 Group housing projects Loans given to corporate dealing in Builder Floor Wholesale Small 80.42 construction and site redevelopmen
Slide 9: AUM Composition
AUM Composition FY 18 FY 19 6% SME Retail Book SME Retail Book 17% 94% Wholesale Book 83% Wholesale Book © 2019 CSL Finance Limited, All Rights Reserved. 9
Slide 10: Wholesale Lending Book
Wholesale Lending Book Assets Under Management (AUM) Figures in INR Crores Business Approach Vintage presence in selected geographies results in better domain knowledge than peers. 295 Market Penetration with conscious selection of 279.05 customers. 275 279.41 277.48 265.19 268.25 Focus on customer
Slide 11: Wholesale Book – Risk Management Framework
Wholesale Book – Risk Management Framework Presence in select pockets of NCR Excellent understanding of the market dynamics and risks Presence in select 1 Customer selection based on end use demand markets Last mile financing – significantly reduces project risk Deal with reputed developer
Slide 12: Wholesale Book – Product Breakup
Wholesale Book – Product Breakup Wholesale Credit - Large (Rs Cr) Wholesale Credit - Small (Rs Cr) 100.00 200 180.12 173.8 80.42 75.44 78.83 155.47 151.97 147.03 147.01 80.00 160 121.96 56.36 60.00 120 102.65 44.75 40.00 28.01 32.60 80 23.58 20.00 40 0.00 0 Q1FY18 Q2FY18 Q3FY18 Q4FY18 Q1FY19 Q2FY19
Slide 13: SME Retail Book
SME Retail Book Assets Under Management (AUM) Figures in INR Crores Business Approach 60 Focus on increasing market presence in current 55 55.26 geographies of north and west India. 50 To increase market presence with hub and spoke model 45 43.23 within existing 18 branches 40 35 Continuous focus on
Slide 14: SME Retail Book- Industry Composition
SME Retail Book- Industry Composition Industry wise Composition (INR Cr) Salaried Individual 1.78 Kirana Merchant 4.54 Manufacturing 2.95 Auto Workshops 1.47 Services Healthcare 1.4 9.53 Schools Trading & Others 17.47 10.81 Dairy 5.29 © 2019 CSL Finance Limited, All Rights Reserved. 14
Slide 15: SME Retail Book – Operational Update
SME Retail Book – Operational Update • AUM for SME Retail book in FY19 is INR 55 Cr & Net NPA is maintained at 0.58% during FY19 in the SME book • Average Q-o-Q growth in FY19 has been 36% • Increasing business focus on scaling of the SME book • SME Retail business is now directly reporting to the M
Slide 16: SWOT Analysis
SWOT Analysis Strength Weakness • Better understanding of market dynamics and risks through • Small size of the balance sheet selected geographical business resulting in strong credit appraisal and collection techniques • Limited product offerings • Tailored product offerings with average security c
Slide 17: Financial Snapshot
Financial Snapshot INR Cr Metrics FY19 Q4 FY18 Q4 FY19 FY18 Revenue 15.60 13.23 59.69 41.47 NII* 10.80 9.75 42.91 33.19 PAT 6.48 5.01 25.15 18.07 Net worth 214.76 183.83 214.76 183.83 AUM 323.51 281.31 323.51 281.31 CAR 66% 65% 66% 65% * Does not include professional fees and other charges © 2018 CS
Slide 18: Financial Update
Financial Update • CSL recorded an increase of 44% in revenues in FY19 vis-à-vis FY18 • Operating profit increased by 27% Q-o-Q in Q4 FY19 • Fee income has significantly increased to INR 4.74 Cr showing a Y-o-Y growth of 142% • AUM growth was restricted to 15%, due to liquidity squeeze and volatile
Slide 19: Financial Metrics
Financial Metrics 1 Total Income Operating Expenses (Rs Cr) 20 3.50 15.81 15.6 3.00* 3.02* 14.62 2.93* 3.00 15 13.23 13.67 10.81 2.50 2.27* 9.22 2.21* 10 8.2 2.00 2.00 1.83 1.50 5 1.50 1.00 0 Q1FY18 Q2FY18 Q3FY18 Q4FY18 Q1FY19 Q2FY19 Q3FY19 Q4FY19 Q1FY18 Q2FY18 Q3FY18 Q4FY18 Q1FY19 Q2FY19 Q3FY19 Q4F
Slide 20: Financial Metrics (contd..)
Financial Metrics (contd..) 2 Net Interest Income (Rs.Cr) AUM – End of Quarter (Rs Cr) 12 10.81 11.05 10.8 350 313 322 324 10.25 302 9.75 300 281 10 9.32 260 7.54 250 8 205 6.58 186 200 6 150 4 100 2 50 0 0 Q1FY18 Q2FY18 Q3FY18 Q4FY18 Q1FY19 Q2FY19 Q3FY19 Q4FY19 Q1FY18 Q2FY18 Q3FY18 Q4FY18 Q1FY19 Q2
Slide 21: Financial Metrics (contd..)
Financial Metrics (contd..) 3 Borrowings (Rs Cr) Net worth (Rs Cr) 140 129.71 123.98 121.94 250 115.98 214.76 120 198.77 205.5 102.32 183.83 193.85 89.62 200 172.89 177.99 100 80 68.78 150 58.05 119.69 60 100 40 50 20 0 0 Q1FY18 Q2FY18 Q3FY18 Q4FY18 Q1FY19 Q2FY19 Q3FY19 Q4FY19 Q1FY18 Q2FY18 Q3FY18 Q
Slide 22: ALM Breakup
ALM Breakup Maturity Pattern of Assets & Liabilities as on 31st March,2019 (Rs Cr) 250 200 150 Assets 100 Liablities 50 0 Upto 1 year 1-5 years Over 5 years Note: • First bucket of upto 1 year includes CC limit and WCDL of INR 67 Cr which are renewable every year • Last bucket of over 5 years includ
Slide 23: Debt Profile
Debt Profile Loan Amount Lender’s Name Facility Type Sanction Period (in INR CR) AU small Finance Bank Revolving Credit Mar’17 10 AU Small Finance Bank Term Loan June’17 10 State bank of India Term Loan Sep’17 18 State bank of India Cash Credit Sep’17 20 State bank of India Working capital Sep’17 37
Slide 24: Treasury Update
Treasury Update • The company has a diverse set of lenders like SBI, AU Finance, TFCI , Tata Capital etc. with an average cost of borrowings of 10.65% • In Sep’18, there was a liquidity crisis due to default by IL&FS and lenders have been cautious in lending to the NBFC industry • Company was holdin
Slide 25: Operational Update
Operational Update • Rigorous review of the wholesale accounts has been completed keeping in the view of dynamic market environment • Zero Delinquency maintained in wholesale book while there was minimal NPA of 0.58% on SME book • Shifting focus to the SME Retail book from Wholesale lending book • F
Slide 26: Our Strategy
Our Strategy • Given the challenges faced in debt finance for NBFCs, we do not plan any significant branch expansion in the coming year • We aim to consolidate the existing branches and build a hub-n-spoke operating model aiming to increase our market penetration • Our focus is to improve branch thr
Slide 27: Thank You
Thank You Corporate Office: Investor Contact: 716-717, 7th floor, Tower B, Purnima Banka World Trade Tower, Sector16, Phone: 0120 4290650-52-53-54-55 Noida- 201301 Email: investor@cslfinance.in Email: purnima.banka@cslfinance.in Registered Office: 410-412, 18/12, 4th floor, WEA, Arya Samaj Road, Kar