Bajaj Finance Limited · NSE:BAJFINANCE
Bajaj Finance — Q1 FY13 Earnings Presentation
19 slides from Bajaj Finance's earnings presentation, Jul 17, 2012
Slide 1: Bajaj Finance Limited Q1'13 presentation
Bajaj Finance Limited Q1’13 presentation 17th July 2012
Slide 2: Bajaj Group structure
Bajaj Group structure Bajaj Holdings and Investment Limited (Listed) 1 2 31.49% 39.15% Bajaj Auto Bajaj Finserv Limited Limited (Listed) (Listed) Auto Business Arm Financial Services Arm 60.98% 74% 74% 100% Bajaj Finance Bajaj Allianz life Bajaj Allianz Limited Bajaj Financial Insurance Company Gene
Slide 3: Bajaj Finserv group – Executive summary
Bajaj Finserv group – Executive summary • A 25 year old non bank finance company • 2nd largest policy acquirer amongst • Diversified consumer, SME & commercial private insurers.10.5 lac policies in FY12 lender in India. • 4th largest private sector life insurer in • Credit rating of AA+ with (+) out
Slide 4: Lending Industry - Opportunity
Lending Industry - Opportunity India vs. Advanced Economies – Banking Assets (US$ Bn) India vs. Advanced Economies – Consumer Debt/GDP (%) United States 15304 United States 91% Japan 13560 Japan 78% China 9289 China 12% United Kingdom United Kingdom Germany Germany France France Spain Spain Italy It
Slide 5: Executive summary…
Executive summary… • A 25 year old non bank with a demonstrated track record of profitability. • Focused on Consumer, SME and Commercial lines of businesses spread across nine product lines. • Strategic business unit organization design supported by horizontal common utility support functions to dri
Slide 6: Executive summary…
Executive summary… SME lines of business : Small Business Loans Against • Focused on high net worth SMEs with an average annual Loans * Property * sales of `25 crores with established financials & FY12 : `13K Crs FY12 : ` 20K Crs demonstrated borrowing track records. • Offer a range of working capit
Slide 7: Products and Key characteristics
Products and Key characteristics Consumer SME Commercial High 36-180M Consumer Durable Mortgage – Construction Financing LAP & HL Equipment Finance SME Business Commercial 2 Wheeler & 3 Loan Against Infrastructure Medium Product Wheeler Finance Securities Finance 12-36M Personal Loan Consumer Small
Slide 8: Strong distribution reach
Strong distribution reach Geographic presence Business Line FY09 FY10 FY11 FY12 FY13* Sales Finance 87 79 79 82 82 2W - Hubs 55 54 54 54 54 2W - Spokes 200 150 150 150 150 Small Businesses 15 15 23 31 31 Distribution Business Line FY09 FY10 FY11 FY12 FY13* Sales Finance – Dealer 4,500+ 2,000+ 2,500+
Slide 9: Management discussion
Management discussion • Strong start to FY13 aided by strong volume momentum and strong credit performance across Consumer and SME product lines. • Consumer businesses continued to outperform due to high replacement demand for ACs, benign competitive environment and growing need of finance to stimul
Slide 10: Management discussion
Management discussion • Interest cost for the company continues to remain significantly lower amongst NBFC peers due to its conservative ALM in earlier years. The cost of funds curve for the company is trending to a steady/declining mode. During this quarter, the company received new term loan sanct
Slide 11: Key performance highlights for the quarter
Key performance highlights for the quarter • Clients acquired during Q1 FY13 38% to 7,52,231 from 5,43,092 in Q1 FY12. • EMI cards sourced during Q1 FY13 are 3,12,534. • Deployments during Q1 FY13 32% to ` 4,728 Crores from ` 3,588 Crores in Q1 FY12. • Total income for Q1 FY13 56% to ` 703 Cro
Slide 12: Summary financial statement
Summary financial statement ` in Crores Financials snapshot Q1’13 Q1’12 YoY FY12 FY11 YoY Deployments 4,728 3,588 32% 15,797 9,435 67% Assets under finance 13,750 8,528 61% 12,283 7,272 69% Assets under management (AUM) 14,485 9,025 60% 13,107 7,573 73% Total Interest & fee Income 703 452 56% 2,172
Slide 13: Financial performance trends Q1-FY13
Financial performance trends Q1-FY13 # of Loans Disbursed ( ‘000) Disbursements (` Crores) 38% YoY 32% YoY 4649 4728 684 752 4208 3588 3352 543 492 502 3868 3539 4021 486 586 3022 2697 404 334 342 139 158 198 160 167 655 781 669 707 566 Q1'12 Q2'12 Q3'12 Q4'12 Q1'13 Q1'12 Q2'12 Q3'12 Q4'12 Q1'13 2 W
Slide 14: Financial performance trends Q1-FY13
Financial performance trends Q1-FY13 NII (` Crores) Operating Expenses % of NII 41% YoY 48% 439 47% 46% 396 46% 46% 389 311 326 Q1'12 Q2'12 Q3'12 Q4'12 Q1'13 Q1'12 Q2'12 Q3'12 Q4'12 Q1'13 Loss provision (` Crores) Net NPA & provisioning coverage 6% YoY 0.5% 0.5% 95% 41 40 91% 34 36 89% 32 0.4% 0.3%
Slide 15: Financial performance trends Q1-FY13
Financial performance trends Q1-FY13 Pre-tax profit (` Crores) Capital adequacy 53% YoY 18.6% 18.9% 17.3% 17.5% 16.8% 206 3.3% 3.1% 177 2.8% 2.5% 2.3% 161 135 129 15.3% 15.8% 14.5% 15.0% 14.5% Q1'12 Q2'12 Q3'12 Q4'12 Q1'13 Q1'12 Q2'12 Q3'12 Q4'12 Q1'13 Tier-I Tier-II Total CAR Earnings per share - B
Slide 16: Credit Quality of Bajaj Finance customers across products – Portfolio composition
Credit Quality of Bajaj Finance customers across products – Portfolio composition Consumer durable loan portfolio Two wheeler loan portfolio 97.8% 97.8% 2.5% 97.9% 81.2% 20.0% 2.0% 0.23% 0.27% 15.0% 89.3% 88.4% 1.5% 0.38% 10.0% 0.55% 1.0% 5.0% 0.5% 0.0% 0.0% Sep'10 Dec'10 Mar'11 Jun'11 Sep'11 Dec'11
Slide 17: Credit Quality of Bajaj Finance customers across products – Portfolio composition
Credit Quality of Bajaj Finance customers across products – Portfolio composition Loan against property portfolio Home loan portfolio 0.3% 0.4% 99.7% 99.7% 0.3% 0.2% 99.9% 0.2% 99.9% 99.9% 0.1% 0.1% 100.0% 100% 0.0% 0.0% Sep'10 Dec'10 Mar'11 Jun'11 Sep'11 Dec'11 Mar'12 Jun'12 Sep'10 Dec'10 Mar'11 Ju
Slide 18: Disclaimer
Disclaimer This presentation has been prepared by Bajaj Finance Limited (the “Company”) solely for your information and for your use. This presentation is for information purposes only without specific regards to specific objectives, financial situations or needs of any particular person and does no
Slide 19: Thank you
Bajaj Finance Limited Q1’13 presentation Thank you 17th July 2012