Slide 1: Investor Presentation for Q2 & H1 FY21 filing letter
Professional Risk Opinion Date: November 05, 2020 SE/2020-21/065 To, The National Stock Exchange India Ltd. The General Manager Listing Department The Corporate Relation Department Exchange Plaza BSE Limited Bandra Kurla Complex Phiroza Jeejeebhoy Towers Bandra (East) 14th Floor, Dalai Street Mumbai
Slide 2: Financial Results Quarter II - FY 2020-21
Financial Results Quarter II - FY 2020 - 21
Slide 3: Contents
Contents Financial & Business Performance MCR Economic Backdrop Q2 FY21 Investors’ Presentation 2
Slide 4: Performance – Highlights - Standalone
Performance – Highlights - Standalone Total Revenue PBT 80.00 79.65 52.00 79.00 49.72 50.00 78.00 48.00 Q2 FY21 77.00 76.00 75.36 46.00 43.55 44.00 75.00 74.00 42.00 73.00 40.00 Q2 FY21 Q2 FY20 Q2 FY21 Q2 FY20 Total Revenue PBT 130.00 128.32 62.50 62.12 H1 FY21 128.00 126.00 62.00 124.00 61.50 122.1
Slide 5: Financial Performance – Q2 FY21
Financial Performance – Q2 FY21 Rs. Crore Standalone Consolidated % Change % Change Particulars Q2 FY21 Q2 FY20 Q2 FY21 Q2 FY20 Total Revenue 79.65 75.36 6% 83.87 80.72 4% Total Expenses 29.92 31.80 -6% 36.18 37.29 -3% Profit Before Tax (PBT) 49.72 43.55 14% 47.69 43.42 10% Provision for Tax 11.72 6
Slide 6: Financial Performance – H1 FY21
Financial Performance – H2 FY21 Rs. Crore Standalone Consolidated % Change % Change Particulars H1 FY21 H1 FY20 H1 FY21 H1 FY20 Total Revenue 122.13 128.32 -5% 130.77 138.45 -6% Total Expenses 60.01 67.48 -11% 70.73 77.18 -8% Profit Before Tax (PBT) 62.12 60.84 2% 60.04 61.27 -2% Provision for Tax 1
Slide 7: Business Performance : H1 FY21
Business Performance : H1 FY21 6.00 Volume of Debt Rated (Rs lakh cr) 5.67 H1 FY21 5.01 5.00 H1 FY20 4.00 2.90 3.00 2.31 2.11 2.00 1.65 1.25 1.00 0.47 0.00 Short & Medium Term Long Term Instruments Bank Loan Ratings Total Instruments Q2 FY21 Investors’ Presentation 6
Slide 8: Contents
Contents Financial & Business Performance MCR Economic Backdrop Q2 FY21 Investors’ Presentation 7
Slide 9: Modified Credit Ratio (MCR)
Modified Credit Ratio (MCR) 1.4 Modified Credit Ratio (4 quarter rolling basis) What is MCR ? 1.2 1.17 0.94 1.0 1.08 1.09 The credit quality of the rated 1.03 1.05 1.02 0.98 0.94 entities as measured by CARE 0.8 0.81 Rating’s ‘modified credit ratio’ 0.6 (MCR) although still at the lowest levels sinc
Slide 10: Contents
Contents Financial & Business Performance MCR Economic Backdrop Q2 FY21 Investors’ Presentation 9
Slide 11: Economic Growth and Industrial Output
Economic Growth and Industrial Output GDP growth (%) IIP growth (% YoY) 9.0 0.0 8.0 8.2 Apr-20 May-20 Jun-20 Jul-20 Aug-20 8.0 7.2 -10.0 7.0 -10.8 -8.0 6.1 6.0 -20.0 -15.8 5.0 -30.0 % 4.2 4.0 -40.0 -33.4 3.0 2.0 -50.0 1.0 -60.0 0.0 -57.3 FY16 FY17 FY18 FY19 FY20 -70.0 Source: MOSPI Source: MOSPI GDP
Slide 12: Bank Credit
Bank Credit Growth in Bank credit 8.0 Growth in Credit 6.1 0.0 6.0 0.0 4.0 3.2 -0.2 2.0 1.5 0.7 -0.4 % 0.0 % -0.6 -2.0 -0.7 -2.2 -0.8 -4.0 -3.8 -4.5 -6.0 -1.0 Industry Services Retail Agriculture -1.0 -1.2 H1 FY20 H1 FY21 H1 FY20 H1 FY21 Source: RBI Source: RBI Bank credit growth negative with credi
Slide 13: Non-Performing Assets
Non-Performing Assets GNPA Ratio 12 10 11.20 8 9.30 9.30 8.50 6 7.50 % 4 2 0 Mar-16 Mar-17 Mar-18 Mar-19 Mar-20 Note: Gross NPAs as a percentage of gross advances Source: RBI Q2 FY21 Investors’ Presentation 12
Slide 14: Corporate Bond Issuances
Corporate Bond Issuances Corporate Debt Raised • During the first half of 2020-21, majority 4,50,000 of the corporate bond issuances are raised 4,00,000 by the financial sector (63% share) • Banks/term lending (32%), financial 3,82,402 3,81,270 3,50,000 3,00,000 services/investment (18%), housing 2,
Slide 15: Commercial Paper Issuances
Commercial Paper Issuances CP Issuances (Rs lakh cr) • Within the total CP issuances during 14.00 the quarter, the highest issuances 12.00 11.93 were raised by oil exploration and refineries (21%) followed by financial 10.00 services/investment (18%) and banking/term lending (9%) 7.87 Rs. Lkah crore
Slide 16: Interest Rate and GSec yields
Interest Rate and GSec yields 9.00 Repo Rate (%) & MCLR(%) 6.40 G Sec Yield (%) 8.00 6.20 6.21 6.00 7.00 7.40 5.80 5.93 % 6.00 % 5.60 5.00 5.40 4.00 4.00 5.20 3.00 5.00 Aug-20 Oct-20 Jun-20 Sep-20 May-20 Jul-20 Apr-20 Aug-20 Jun-20 Sep-20 May-20 Jul-20 Apr-20 Repo Rate (%) MCLR (1 year median) G Sec
Slide 17: Major challenges going forward
Major challenges going forward • Negative growth in GDP of -8.2% • Credit growth remaining stagnant at 3-4% for the year • Investment rate falling further this year from 26.9% to 22% • CU rate down to 47.3% in Q1 from 69.9% in March • Higher NPAs this year in the region of ~15% • OTR exercise and it
Slide 18: Thank You
Thank You Q2 FY21 Investors’ Presentation 17