CSL Finance Limited · NSE:CSLFINANCE
CSL Finance — Q3 FY2021 Earnings Presentation
32 slides from CSL Finance's earnings presentation, December 2020
Slide 1: FY21 Q3 Investor Update December 2020
FY21 Q3 Investor Update December 2020 © CSL Finance Ltd, All Rights Reserved 1
Slide 2: Disclaimer
Disclaimer This presentation may contain certain words or phrases that are forward - looking statements, which are tentative, based on current expectations and on certain assumptions of the management of CSL Finance Limited (“CSL”). Actual results may vary from the forward-looking statements contain
Slide 3: Table of Contents
Company Snapshot 4 Leadership Team 5 Our Presence 8 Product Portfolio 10 Table of Contents Future Strategy 11 Q3 Key Business Highlights 12 Treasury Update 15 Wholesale Lending Book 16 SME Retail Book 21 AUM Composition 22 Financial Snapshot 25 Expected Credit Loss 27 Gross Non-Performing Assets 28
Slide 4: Company Snapshot
Company Listed on Bombay Stock Delhi Based NBFC with Wholesale Loan book of INR 98% of loan book is secured Snapshot Exchange AUM of INR 335 Cr as on 271 Cr & SME Retail book of 31st Dec 20 INR 64 Cr 16 Branches spread across Raised INR 51 Cr from High CAR of 75% BBB rating from CARE North and West
Slide 5: Leadership Team
Leadership Team Rohit Gupta Naresh Varshney Chandan Kumar Divya Sharma Managing Director – Founder & Chief Financial Officer Wholesale Credit Head Legal Head Promoter CA with over 25 years of experience Over 10 years of experience and Advocate & LLM, over 6 years of Over 27 years of experience Ex: R
Slide 6: Core Values
Core Values Customer Passion for Centricity Excellence Our products and services are designed We strive to achieve the best in all our keeping in view our customer’s interest endeavours, bringing the best in our above everything else. Our relationship products, people and ultimately adding managemen
Slide 7: Milestone
Milestone Diversified into Secured Got NBFC 2003 Lending to small / midsized 2010 registration from companies SME/Retail loan foray: Opened Seven branches Reserve Bank of India 2015 2016 Raised of Rs 120 Cr. for the first time as debt Crossed INR 100 Cr in loans 2017 Fresh equity of 53.50. Cr raised
Slide 8: Our Presence
Gujarat Mehsana Ahmedabad Baroda Our Presence Surat Punjab Haryana Jalandhar Ambala Patiala Panipat Ludhiana Hissar Rajasthan Delhi NCR Jaipur New Delhi Ajmer Uttarakhand Bhilwara Dehradun Jodhpur Sikar © CSL Finance Ltd, All Rights Reserved 8
Slide 9: Loan Assets Distribution Across States
Punjab Uttrakhand Gujarat 2% 1% 4% Haryana 5% Loan Assets Distribution Across Rajasthan States 5% Delhi NCR 83% Delhi NCR Rajasthan Haryana Gujarat Punjab Uttrakhand Note: Delhi NCR – 83% is a breakup of Wholesale AUM of 81% which is our niche segment for this category of loans and Retail AUM of 2.0
Slide 10: Wholesale (WS) Lending and Retail Lending Product Portfolio
Book Value Category Product Description (INR Cr) WS Large 136 Structured loans to developers of Mid Income/Affordable Group Housing Projects Wholesale (WS) Lending WS Small 81 House construction loans given to single plotted Product Portfolio projects Q3 FY21 WS LAP 27 Loan against SORP/SOCP propert
Slide 11: Future Strategy
• Company is using Finnone Neo as its LOS & LMS software. It is further exploring new automation tools to reduce turnaround time and data capture • Company is aiming to increase the loan duration from 18-24 months to have better cash management in terms of collections and disbursements • Continuous
Slide 12: Key Business Highlights
During Q3 FY21, strong collections in Wholesale segment was observed; collections were at 150% of the scheduled repayments due to revival in sales in affordable and housing segments Key Business Highlights Collection Efficiency of SME portfolio has been observed at 78% for this Q3 FY21. Post opening
Slide 13: Key Business Highlights
SME segment AUM has de-grown due to negligible disbursements from Mar 2020 till Sep 2020. In the last nine months about 70 accounts of an AUM of INR 3.78 Cr has Key Business been foreclosed Highlights Due to the uncertainty in the month of April’20, the company focused on cost cutting and laid of un
Slide 14: Key Business Highlights
Because of Covid , we expect overall credit losses of 4-8% on the existing Retail Lending Key Business portfolio which has already been provided for in the last three quarters of FY21 Highlights GNPA has risen to 1.53% in Dec 20 from 0.08% of the overall portfolio due to NPA's observed in retail sch
Slide 15: Treasury Update
The company has adequate liquidity of INR 36.22 Cr including Cash & Cash Equivalents and undrawn Credit facilities Post raising INR 40 Cr debt in the form of NCD in last quarter, we have further availed a term loan of INR 3 Crore from SIDBI Treasury Update Weighted average cost of borrowings has com
Slide 16: Wholesale Lending Book
WHOLESALE LENDING BOOK Small builder floors 10% The Real Estate industry in NCR Region has seen 30% 23% Affordable group housing strong trends in Sales & Collections in 3rd quarter, specially in the Affordable Housing Segment and that is also evident from our collections Loan against property 10% 27
Slide 17: Wholesale Lending Book: Mid-Income Group Housing
WHOLESALE LENDING BOOK: MID-INCOME GROUP HOUSING Figures in Cr POS as per POS as on Pre-payment Account Average Ticket for No. of Cases Sanction % to AUM Repayment 31.12.20 Received Conduct Size Schedule Completed (100%) 5 42.25 8.84 14% 23.21 14.37 Satisfactory Less than 50 lacs Nearing Completion
Slide 18: Wholesale Lending Book: Affordable Group Housing
WHOLESALE LENDING BOOK: AFFORDABLE GROUP HOUSING Figures in Cr POS as per POS as on Pre-payment %age Sold No. of Cases Sanction % to AUM Repayment Account Conduct Average Ticket Size 31.12.20 Received Schedule More than 90% 4 80.00 33.33 46% 45.89 12.56 Satisfactory Less than 25 lacs 61% to 90% 1 3.
Slide 19: Wholesale Lending Book: Small Builders
WHOLESALE LENDING BOOK: SMALL BUILDERS Figures in Cr POS as per POS as on Pre-payment Account Project Completion No. of Cases Sanction % to AUM Repayment 31.12.20 Received Conduct Schedule 100% 10 47.80 35.12 43% 39.60 4.49 Satisfactory More than 50% 11 39.35 30.97 38% 35.72 4.75 Satisfactory Less t
Slide 20: Wholesale Lending Book – Risk Management Framework
WHOLESALE LENDING BOOK– RISK MANAGEMENT FRAMEWORK Presence in select Constant monitoring Excellent screening, credit markets /review appraisal Presence in selected pockets of Delhi NCR Robust due diligence Dedicated resources for asset monitoring Excellent understanding of the market Exten
Slide 21: SME Retail Book
SME RETAIL BOOK • SME retail book includes both secured and unsecured loans with an AUM of INR 64Cr Industry-wise AUM Composition Industry-wise AUM Composition as on 31st December 2020 • Disbursements in this segment has risen to INR 3.34 CR by the end of Q3 FY21 vis-a- 13% 22% vis INR 5 lacs in Q2
Slide 22: AUM Wholesale Lending Segment
Wholesale Large (in cr) 136 133 AUM 119 Wholesale Lending Segment 114 Q4 FY 2020 Q1 FY 2021 Q2 FY 2021 Q3 FY 2021 Wholesale Small (in cr) Wholesale LAP (in cr) 66 97 94 54 90 81 19 15 Q4 FY 2020 Q1 FY 2021 Q2 FY 2021 Q3 FY 2021 Q4 FY 2020 Q1 FY 2021 Q2 FY 2021 Q3 FY 2021 © CSL Finance Ltd, All Right
Slide 23: AUM Retail Lending Segment
SME Secured (in Cr) 65 64 AUM Retail Lending Segment 59 59 Q4 FY 2020 Q1 FY 2021 Q2 FY 2021 Q3 FY 2021 SME Unsecured (in Cr) 7 7 6 5 Q4 FY 2020 Q1 FY 2021 Q2 FY 2021 Q3 FY 2021 © CSL Finance Ltd, All Rights Reserved Page 23
Slide 24: Loan Matrix
LOAN MATRIX SME Loan Matrix Average Ticket Size (in lacs) Average LTV % Average Tenure (Yr) 7 7 7 33% 6 6 6 31% 31% Jun-20 Sep-20 Dec-20 Jun-20 Sep-20 Dec-20 Jun-20 Sep-20 Dec-20 Wholesale Loan Matrix Average Ticket Size (in Cr) Average LTV (%) Average Tenure (Yr) 47% 7 35% 3 3 3 32% 6 6 Jun-20 Sep-
Slide 25: Financial Snapshot - Q3 FY21 vs Q3 FY20
FINANCIAL SNAPSHOT- Q3 FY21 vs Q3 FY20 Rs 13.29 Cr Q3 FY21 Net Interest Income 1.38% Q3 FY20 Rs 13.11 Cr Q3 FY21 Rs 14.90 Cr Total Income 4.08% Rs 15.53 Cr Q3 FY20 Rs 4.86 Cr Q3 FY21 Profit After Tax 29.32%* Q3 FY20 Rs 6.87 Cr * Because of the adoption of VSV scheme, the company had to additionally
Slide 26: Financial Snapshot - Q3 FY21 vs Q3 FY20
FINANCIAL SNAPSHOT- Q3 FY21 vs Q3 FY20 Rs 250.42 Cr Q3 FY21 Net Worth 8.53% Rs 230.74 Cr Q3 FY20 Q3 FY21 Rs 334.69 Cr AUM 5.17% Rs 318.24 Cr Q3 FY20 74.82% Capital Adequacy Ratio 2.32% Q3 FY21 72.50% Q3 FY20 © CSL Finance Ltd, All Rights Reserved Page 26
Slide 27: ECL Provisioning Expected Credit Losses
ECL Provisioning Classification of Assets basis the ECL computation as per Ind-AS: Particulars 31-12-2020 30-09-2020 30-06-2020 Gross Stage 3 (GNPA) 5,10,51,855 25,18,018 1,21,12,081 % portfolio in Stage 3 1.53% 0.08% 0.40% ECL provision Stage 3 2,63,61,764 24,60,746 1,19,26,901 Net Stage 3 2,46,90,
Slide 28: Gross Non-Performing Assets
Gross Non Performing Assets 4.50% 4.00% 3.84% Gross Non- 3.50% 3.00% 2.50% Performing 2.00% 1.50% 1.53% Assets 1.00% 0.69% 0.24% 0.40% 0.50% 0.01% 0.07% 0.00% 0.00% Q4 FY 20 Q1 FY 21 Q2 FY 21 Q3 FY 21 GNPA % Net NPA % As on 31-Dec-2020 Gross NPA 5.10 Cr Total ECL Provision 7.52 Cr Note: Our GNPA % h
Slide 29: Financial Metrics
Financial Metrics Total Income ( Rs Cr.) Operating Expenses without ESOP (Rs cr.) 3.5 3.32 15.20 15.12 3 2.82 15.10 2.64 2.60 15.00 2.5 14.90 14.90 14.90 2 14.80 14.77 1.5 14.70 1 14.60 0.5 14.50 0 Q4 FY20 Q1 FY21 Q2 FY21 Q3 FY21 Q4 FY20 Q1 FY21 Q2 FY21 Q3 FY21 Net Profit (Rs cr.) Pre Provisioning P
Slide 30: Financial Metrics
Financial Metrics Net Interest Income (in Cr) AUM End of Quarter ( in Cr) 13.80 13.60 340.00 335.00 335.00 13.60 330.00 13.40 13.29 318.00 13.20 320.00 13.00 12.84 310.00 302.00 12.80 12.71 300.00 12.60 12.40 290.00 12.20 280.00 Q4 FY20 Q1 FY21 Q2 FY21 Q3 FY21 Q4 FY20 Q1 FY21 Q2 FY21 Q3 FY21 Disburs
Slide 31: Financial Metrics
Financial Metrics Borrowings (in Cr) Net Worth (in Cr) 120 255 250.42 96 250 100 86 88 245 245 80 240 57 240 60 235 232 40 230 20 225 0 220 Q4 FY20 Q1 FY21 Q2 FY21 Q3 FY 21 Q4 FY20 Q1 FY21 Q2 FY21 Q3 FY 21 Cash & Cash equivalents including Capital Adequacy Ratio (%) undrawn CC limits (in Cr) 80 79 4
Slide 32: Corporate Office and Investor Contact
Corporate Office: Investor Contact: 716-717, 7th floor, Tower B, Gunjan Khera World Trade Tower, Phone: 0120 4290650-52-53-54-55 Sector16, Email: investor@cslfinance.in Noida- 201301 Email: gunjan.khera@cslfinance.in Registered Office: 410-412, 18/12, 4th floor, WEA, Arya Samaj Road, Karol Bagh, New