Manappuram Finance Limited · NSE:MANAPPURAM
Manappuram Finance — Q4 FY2024 Earnings Presentation
35 slides from Manappuram Finance's earnings presentation, May 2024
Slide 1: Manappuram Finance Limited Investor Presentation Q4 FY2024
MANAPPURAM FINANCE LIMITED Investor Presentation | Q4 - FY2024
Slide 2: Table of Contents
Table Of Contents 01 Vision and 02 Financial strategy snapshot 03 Segmental 04 Creating a performance difference
Slide 3: Safe Harbour Statement
SAFE HARBOUR STATEMENT This presentation may include statements, which may constitute forward-looking statements. All statements that address expectations or projections about the future, including, but not limited to, statements about the strategy for growth, business development, market position,
Slide 4: Vision: To become financial partner of choice for under-banked customers
VISION: TO BECOME FINANCIAL PARTNER OF CHOICE FOR UNDER- BANKED CUSTOMERS ACROSS THEIR LIFECYCLE MANAPPURAM TODAY COMPANY DNA Operational rigor: Company has perfected the art of #2 lender in gold loans in India (core product), managing appraisal, custodial and valuation risks that with a trusted bra
Slide 5: Financial Highlights Q4 FY2024
FINANCIAL HIGHLIGHTS Q4 - FY2024
Slide 6: Key Performance Highlights for Q4 FY2024
KEY PERFORMANCE HIGHLIGHTS FOR Q4 FY2024 Consolidated Business • Consolidated AUM for QE Mar 24 was INR 421 bn representing a 4.2% growth sequentially and 18.7% YoY growth Performance: • Consolidated PAT for Q4 FY24 was INR 5,635 mn slightly declined QoQ but could achieve a YoY growth of 35.7% FY24
Slide 7: Consolidated Financial Overview – Q4 & FY2024
CONSOLIDATED FINANCIAL OVERVIEW – Q4 & FY2024 Particulars (Rs. Mn) Q4 FY24 Q3 FY24 Q-o-Q Q4 FY23 Y-o-Y FY24 FY23 Y-o-Y Consolidated AUM (Rs. Bn) 421 404 4.2% 354 18.7% 421 354 18.7% Net Interest Income 15,806 15,604 1.3% 11,865 33.2% 59,823 45,095 32.7% OPEX 6,497 6,419 1.2% 5,955 9.1% 25,165 22,140
Slide 8: Consolidated Operational Overview – Q4 & FY2024
CONSOLIDATED OPERATIONAL OVERVIEW – Q4 & FY2024 Particulars (Rs. Mn) Q4 FY24 Q3 FY24 Q-o-Q Q4 FY23 Y-o-Y Gold AUM (Rs. Bn) 216 208 3.9% 197 9.2% Gold Tonnage 59 58 1.1% 60 -2.2% Gold Branches (Nos) 4,044 4,044 0.0% 3,985 1.5% Gold Customers (In Mn) 2.5 2.5 1.7% 2.4 3.9% Non-Gold AUM (Rs. Bn) 206 196
Slide 9: AUM Mix for Q4 FY2024
AUM MIX FOR Q4 FY2024 Q4 FY24 Q3 FY24 Q4 FY23 7% 7% 2% 6% 2% 3% 9% 7% 10% 3% 4% 4% 51% 51% 56% 26% 26% 26% Gold MFI HFC VEF Onlending MSME Gold MFI HFC VEF Onlending MSME Gold MFI HFC VEF Onlending MSME Particulars (Rs. Mn) Q4 FY24 Q3 FY24 Q-o-Q Q4 FY23 Y-o-Y Gold 2,14,995 2,07,579 3.6% 1,97,462 8.9
Slide 10: Consolidated Profit & Loss Statement for Q4 & FY2024
CONSOLIDATED PROFIT & LOSS STATEMENT FOR Q4 & FY2024 Particulars (Rs. Mn) Q4 FY24 Q3 FY24 Q-o-Q Q4 FY23 Y-o-Y FY24 FY23 Y-o-Y Closing AUM (Rs. Bn) 421 404 4.2% 354 18.7% 421 354 18.7% Income from Operations 23,597 23,091 2.2% 17,756 32.9% 88,480 66,973 32.1% Finance expenses 7,792 7,487 4.1% 5,891 3
Slide 11: Consolidated Balance Sheet for Q4 FY2024
CONSOLIDATED BALANCE SHEET FOR Q4 FY2024 Particulars (Rs. Mn) Mar-24 Dec-23 Q-o-Q Mar-23 Y-o-Y Cash & Bank Balances 31,812 30,767 3.4% 30,351 4.8% Investments 7,263 7,219 0.6% 5,340 36.0% Loans & Advances 4,09,476 3,88,552 5.4% 3,41,945 19.7% Fixed Assets 4,737 4,700 0.8% 4,479 5.8% Other Assets 14,
Slide 12: Well Capitalized, Prudent Liabilities Strategy with Reducing CoF
WELL CAPITALIZED, PRUDENT LIABILITIES STRATEGY WITH REDUCING COF Access to diversified sources of Funding (Consolidated Rs. Mn) CO S T O F BO RRO W I NG (CO NS O LI DATE D) Borrowing Mix Q4 FY24 Q3 FY24 Q4 FY23 9.3% 8.9% 9.1% 8.9% Particulars Amount % Amount % Amount % 8.2% WCDL / CC 76,390 23% 81,9
Slide 13: Standalone Result Analysis Q4 & FY2024
STANDALONE RESULT ANALYSIS Q4 & FY2024 GOLD LOAN AUM (Rs. Bn) NET PROFIT (Rs. Mn) CAGR:4% CAGR:6% 16,979 16,578 199 207 198 200 199 207 191 190 190 13,045 12,663 170 12,303 4,199 4,286 4,283 3,809 3,091 FY20 FY21 FY22 FY23 FY24 Q4 Q1 Q2 Q3 Q4 FY20 FY21 FY22 FY23 FY24 Q4 Q1 Q2 Q3 Q4 FY23 FY24 FY24 FY
Slide 14: Standalone Result Analysis Q4 & FY2024
STANDALONE RESULT ANALYSIS Q4 & FY2024 NE T YI E LD (%) O P E X TO AUM % 25.4% 24.9% 7.2% 7.1% 7.1% 22.2% 21.9% 21.9% 22.3% 21.7% 7.0% 20.9% 21.0% 21.4% 6.9% 6.6% 6.4% 6.4% 6.4% 6.2% FY20 FY21 FY22 FY23 FY24 Q4 Q1 Q2 Q3 Q4 FY20 FY21 FY22 FY23 FY24 Q4 Q1 Q2 Q3 Q4 FY23 FY24 FY24 FY24 FY24 FY23 FY24 FY
Slide 15: Standalone Borrowing Profile for Q4 FY2024
STANDALONE BORROWING PROFILE FOR Q4 FY2024 Access to diversified sources of Funding (Rs. Mn) COST OF BORROWING % Borrowing Mix Q4 FY24 Q3 FY24 Q4 FY23 8.5% 8.7% 8.8% Particulars Amount % Amount % Amount % 8.3% 8.1% WCDL/CC 76,218 34% 81,663 38% 64,994 34% Term Loan 95,328 42% 85,505 40% 77,691 40% N
Slide 16: Segmental Performance
SEGMENTAL PERFORMANCE
Slide 17: Gold AUM Update for Q4 & FY2024
GOLD AUM UPDATE FOR Q4 & FY2024 AVG. LOAN TICKET SIZE (Rs ‘000) CUSTOMER BASE (Mn) GOLD AUM PER BRANCH (Rs. Mn) AVG. LOAN TICKET SIZE (Rs 75 2.6 2.6 ‘000) 2.65 CAGR:4% 2.6 65 56.6 57.5 58.5 57.5 58.8 57.6 57.4 58.5 2.55 2.5 55 44.6 2.4 2.4 2.45 56.4 58.6 56.2 56.7 56.5 58.6 38.5 2.4 2.3 54.1 54.0 54
Slide 18: Gold Loan Growth Levers
GOLD LOAN GROWTH LEVERS Online Gold Loan Digital Marketing Low interest rate sensitivity given small ticket size, short tenor and convenience of product Local Marketing Activities Gold Loan Celebrity Endorsement Growth Manappuram has undertaken various cost rationalization initiatives Levers Busines
Slide 19: Gold Loan Pan India Presence Q4 & FY2024
GOLD LOAN PAN INDIA PRESENCE Q4 & FY2024 North 17% West 10% State Branch State Branch Jammu & Kashmir 10 Maharashtra 210 Himachal Pradesh 13 Goa 8 Chandigarh 4 Gujarat 123 Delhi 59 Total 341 Punjab 75 Uttarakhand 8 Union Territories Haryana 64 State Branch Uttar Pradesh 140 Daman Diu 3 Rajasthan 96
Slide 20: Online Gold Loan Business
ONLINE GOLD LOAN BUSINESS AVERAGE TICKET SIZE (Rs ‘000) % SHARE OF OGL IN THE OVERALL GOLD AUM CAGR:7% 73.2 71.7 73.2 73.8 57% 55% 56% 56% 57% 69.4 69.7 71.7 54% 48% 50% 50% 63.3 44% 50.2 53.0 FY20 FY21 FY22 FY23 FY24 Q4FY23 Q1FY24 Q2FY24 Q3FY24 Q4FY24 FY20 FY21 FY22 FY23 FY24 Q4FY23 Q1FY24 Q2FY24 Q
Slide 21: Asirvad Microfinance Results for Q4 & FY2024
ASIRVAD MICROFINANCE RESULTS FOR Q4 & FY2024 Particulars (Rs. Mn) Q4 FY24 Q3 FY24 Q-o-Q Q4 FY23 Y-o-Y FY24 FY23 Y-o-Y Total Revenue from Operations 7,257 6,942 4.5% 5,183 40.0% 26,813 17,152 56.3% Finance Cost 2,599 2,430 6.9% 1,899 36.9% 9,474 6,298 50.4% Net Interest income 4,658 4,512 3.2% 3,284
Slide 22: Asirvad Microfinance Results for Q4 FY2024
ASIRVAD MICROFINANCE RESULTS FOR Q4 FY2024 CAPITAL ADEQUACY RATIO % 25.4% 24.5% 23.3% 22.8% 22.6% 23.2% 22.8% 20.8% 19.7% 19.7% FY20 FY21 FY22 FY23 FY24 Q4FY23 Q1FY24 Q2FY24 Q3FY24 Q4FY24 NPA ANALYSIS % * GNPA% NNPA% 3.7% 3.7% # COVID Impact 3.5% 2.8% 2.8% 2.9% 3.0% 2.8% 2.5% 1.6% 1.7% 1.7% 1.3% 1.4
Slide 23: Housing Finance Business Update for Q4 & FY2024
HOUSING FINANCE BUSINESS UPDATE FOR Q4 & FY2024 AUM EVOLUTION (Rs. Mn) Home Loan AUM MIX (%) CAGR:19 15,097 15,097 LAP ATS (INRL) Yield % 14,153 13,049 30% 31% 31% 31% 31% 32% 32% 34% 12,026 10,958 10,958 5.4 19.5% 8,453 6,296 6,663 70% 69% 69% 69% 69% 68% 68% 66% 5.3 17.3% FY20 FY21 FY22 FY23 FY24
Slide 24: Housing Finance Business Strategy
HOUSING FINANCE BUSINESS STRATEGY Growth drivers for future expansion • Riding on the parent’s brand equity and pan India presence for scaling up the business • Low-cost operation model based on co-location with Underwriting parent branches • Investment in training and development of human • Decentr
Slide 25: Vehicle and Equipment Finance Business Update for Q4 & FY2024
VEHICLE AND EQUIPMENT FINANCE BUSINESS UPDATE FOR Q4 & FY2024 ATS (INRL) Yield AUM EVOLUTION (Rs Mn) CV TW PV AUM MIX (%) CAGR:25% 41,109 41,109 20%10% 4.6 18% 22% 18% 17% 18% 35,974 18% 22% 18% 24% 17% 25% 17% 25% 17% 26% 17% 26% 31,432 27,792 24,308 24,308 16,432 0.8 22% 13,443 10,526 70% 65% 61%
Slide 26: Vehicle and Equipment Finance Business Strategy
VEHICLE AND EQUIPMENT FINANCE BUSINESS STRATEGY PROFIT OPTIMIZERS Increase penetration into Rural and Semi Urban locations Digital Lending Platform and automated approval process in Analytics Mobility Solution Deep Penetration TW loans Use of Analytics for On the go solution with Deeper penetration
Slide 27: Standalone MSME and Personal Loans Business Update for Q4 & FY2024
STANDALONE MSME AND PERSONAL LOANS BUSINESS UPDATE FOR Q4 & FY2024 AUM EVOLUTION (Rs Mn) AUM MIX (%) MSME Micro-Housing Secured PL Unsecured PL ATS (INRL) Yield 29,085 29,085 28,576 CAGR:83% 5% 26,388 11% 12% 11% 13% 12% 12% 9% 0.7 26% 18% 23,196 20% 17% 17% 18% 17% 18% 19% 19,447 19,447 4.1 20% 33%
Slide 28: MSME and Personal Loans Business Strategy
MSME AND PERSONAL LOANS BUSINESS STRATEGY Stronger in Rural and Semi Urban locations (tier-3 / 4); scope to increase Origination and Sourcing penetration across additional branches • Better penetration in 3-tier and 4-tier towns • Direct sourcing through field-level marketing , digital marketing and
Slide 29: Creating a Difference
CREATING A DIFFERENCE • Donated Rs 10,00,000/- to 100 children who lost one or both • Financial assistance to BPL/economically backward patients, • 50% reimbursement to BPL category (last 3 months):192 BPL parents due to covid-19 as part of Thrissur District Collector’s 37 cheques through Manappuram
Slide 30: Deep Management Bench
DEEP MANAGEMENT BENCH SENIOR MANAGEMENT TEAM Mr. V. P. Nandakumar Dr. Sumitha Nandan Mr. B.N. Raveendra Babu Managing Director and CEO Executive Director MD – Asirvad Micro Finance Ltd • Postgraduate in Science • MBBS from Rajiv Gandhi University of • Masters degree in commerce Science • Managing co
Slide 31: Senior Management Team
SENIOR MANAGEMENT TEAM KEY BUSINESS HEADS Mr. Kamal Parmar Head – Vehicle and Equipment Mr. Vijayakumar KB Mr. Ratheesh PM Finance Business Head - MSME Business Head- Micro Home Finance • Over 28 years experience with organizations such as • 20 years+ experience and worked in various • 16 years+ exp
Slide 32: Independent Board Bench
INDEPENDENT BOARD BENCH BOARD OF DIRECTORS Dr. Shailesh J Mehta Mr. Harshan Kollara Mr. Abhijit Sen Independent & Non-Executive Director Independent & Non-Executive Director Independent & Non-Executive Director • B-tech in ME from IIT- B, MSc in Operations, PhD • He holds a Masters in Economics from
Slide 33: Independent Board Bench
INDEPENDENT BOARD BENCH BOARD OF DIRECTORS Mrs. Pratima Ram Mr V. R. Ramchandran Mr. P. Manomohanan Independent & Non-Executive Director Independent & Non-Executive Director Independent & Non-Executive Director • MA from University of Virginia, USA • B. Sc.: Calicut University , B.A. LLB : Kerala Un
Slide 34: Shareholding and Stock Performance
SHAREHOLDING AND STOCK PERFORMANCE Shareholding Pattern as on 31st Mar, 2024 Stock Data 23% Market Cap as on 22 May-24 ₹ 15,045 Crs Top Shareholders holding more than 1%(other than % Stock Price as on 22 May -24 178.55 35% promoters) 1% BOFA Securities 1.36 52 Week (High/Low) ₹ 207.30 / ₹ 109.10 9%
Slide 35: Contact Details
Manappuram Finance Limited, IV / 470 (old) W638A (New), Manappuram House, Valapad, Thrissur Kerala, India, Pin code : 680567 Mrs. Bindu A.L. Mr. Susil Kumar Mishra Nikunj Seth CFO Head – Investor Relations & Treasury Het Choksey Advisors Contact No : +914873050000 Contact No : +919967405163 +91 9773