Muthoot Capital Services Ltd. · NSE:MUTHOOTCAP

Muthoot Capital Services — Q2 FY18 Earnings Presentation

37 slides from Muthoot Capital Services's earnings presentation, Nov 10, 2017

  1. Slide 1: Board Presentation, Quarter ended 30th September 2017

    Board Presentation dated 10th November 2017 Quarter ended 30th September 2017

  2. Slide 2: Performance Analysis

    PERFORMANCE ANALYSIS PAPPACHAN CAPITAL J

  3. Slide 3: Quarterly Trend and Half Yearly Trend

    ₹. In Crores Quarterly Trend Half Yearly Trend Q1 FY 18 Q2 FY 18 Q-o-Q Q2 FY 17 Y-o-Y H1 FY 17 H1 FY 18 Y-o-Y Disbursement : Hyp Loans 340.6 449.9 32% 272.4 65% 506 790.5 56% Other Loans 31.2 27.3 -13% 31.3 -13% 54.8 58.5 7% Total Disbursements 371.8 477.2 28% 303.7 57% 560.8 849.0 51% AUM at the en

  4. Slide 4: Sources and Applications of Funds

    ₹. In Crores As At As At Sources Applications 30-Sep-16 30-June-17 30-Sep-17 30-Sep-16 30-June-17 30-Sep-17 Share Capital 12.47 13.72 13.72Fixed assets 2.18 2.84 2.76 Reserves & Surplus 147.96 170.36 180.72Investments 22.20 31.31 *32.75 Bank Borrowings 736.51 919.73 1004.69Deferred Tax Assets 5.97 8

  5. Slide 5: Asset Quality

    Disbursement AUM Revenue 28% 12% 19% Q1 FY 18 : ₹ 371.8 Crores Q2 FY 18 : ₹ 477.2 Crores Q1 FY 18 : ₹ 1558.6 Crores Q2 FY 18 : ₹ 1748.6 Crores Q1 FY 18 : ₹ 79.8 Crores Q2 FY 18 : ₹ 94.9 Crores Asset Quality ₹. In Crores 57% 49% Q2 FY 17 Q1 FY 18 Q2 FY 17 :₹ 303.7 Crores Q2 FY 17 : ₹ 1170.0 Crores 35

  6. Slide 6: Collection Cost as % of Collection

    ₹. In Crores Q1 FY 18 Q2 FY 18 Q-o-Q Q2 FY 17 Y-o-Y Collection Cost as % of Collection Collection Charges: 7.83 12.42 59% 5.01 148% Collection Charges-MFL 1.18 1.30 10% 1.31 0% 4.90% Collection Charges-MMM 0.01 0.01 -37% 0.01 -47% 3.60% Collection Agency Payout 6.45 10.85 68% 3.65 198% 3.00% ECS/ NA

  7. Slide 7: Credit Cost Total

    ₹. In Crores Particulars For FY ‘16 Q1 FY ’17 Q2 FY ’17 Q3 FY ‘17 Q4 FY ‘17 For FY ‘17 Q1 FY ’18 Q2 FY ’18 Unrealized Income 3.1 1.3 -0.2 1.2 0.0 2.3 2.0 0.1 reversed Loss on sale + Provision for diminution in value 9.1 2.8 3.2 2.5 3.4 11.9 2.6 4.4 of repo. assets 3.0 0 0 0 1.7 1.7 0 0 NPA write off

  8. Slide 8: Sales Analysis

    SALES ANALYSIS PAPPACHAN CAPITAL /

  9. Slide 9: Zone-wise Disbursements

    ₹. In Crores BRANCH 45% DEALER 60% TOTAL 57% Zone H1 FY 17 H1 FY 18 H1 FY 17 H1 FY 18 H1 FY 17 H1 FY 18 Count Value Count Value Count Value Count Value Count Value Count Value South 17 459 87.5 24 021 128.2 76 122 369.3 1 01 126 531.8 93 751 457.3 1 25 147 660.0 West 2 426 10.3 2 397 10.5 4 318 18.5

  10. Slide 10: Collection Analysis

    COLLECTION ANALYSIS PAPPACHAN CAPITAL /

  11. Slide 11: Bucket Wise Flow and Collection Performance

    ₹.in Crores Bucket Wise Flow Collection Performance 60% 296 259 258 5.9% 50% 221 226 7.9% 5.4% 7.0% 5.1% 40% 30% 93.0% 94.9% 92.1% 94.6% 94.1% Q2 FY' 17 Q3 FY '17 Q4 FY '17 Q1 FY '18 Q2 FY' 18 20% Soft Bucket(1-90DPD) Hard bucket Coll(> 90 DPD) 10% ₹.in Crores 0% Q2 FY 17 Q3 FY 17 Q4 FY 17 Q1 FY 18

  12. Slide 12: Bucket Flow and NPA Roll Back

    Bucket flow NPA roll Month 0 1 to 30 31 -60 61 -90 91- 120 back Sep’16 6% 32% 37% 41% 26% 6% Oct’16 5% 27% 31% 36% 27% 6% Nov’16 15% 55% 58% 65% 58% 3% Dec’16 4% 28% 38% 46% 34% 6% Jan’ 17 5% 22% 33% 43% 35% 6% Feb’ 17 6% 23% 30% 40% 29% 7% Mar’17 3% 16% 24% 28% 16% 12% Apr’17 15% 41% 50% 35.% 12% 2

  13. Slide 13: Portfolio Trend

    ₹.in Crores 2W Own Month Book 30+ 90+ 30+% 90+% Portfolio Trend AUM 30.0% 01-Oct-16 953.5 156.4 92.0 16.4% 9.7% 25.0% 01-Nov-16 993.6 158.7 92.5 16.0% 9.3% 01-Dec-16 1 025.7 190.5 103.8 18.6% 10.1% 20.0% 01-Jan-17 956.7 211.8 109.6 22.1% 11.5% 15.0% 01-Feb-17 1 009.7 200.6 110.8 19.9% 11.0% 10.0% 01

  14. Slide 14: NPA Movement Balance as on 30.06.2017

    ₹. In Crores Particulars HP Nos Principal Unrealised Provision Balance as on 30.06.2017 53 342 96.89 11.34 22.23 Add: Slipped to NPA for the month of July 17 to Sept 17 8 105 15.42 1.61 4.22 Sub total 61 447 112.32 12.95 26.45 Less: Rolled back from NPA for July 17 to Sept 17 6 432 8.48 0.54 1.03 Re

  15. Slide 15: NPA Quarterly Movement

    ₹.in Crores Particulars Q2 ‘16 Q3 ‘16 Q4 ‘16 Q1 ‘17 Q2 ‘17 Q3 ‘17 Q4’ 17 Q1 ‘18 Q2 ‘18 Opening Balance 59.7 59.9 62.1 54.0 69.2 66.5 78.1 74.2 96.9 Slippage due to NPA Policy change - - - 15.9 - - 29.8 Fresh slippages during the period 11.9 13.6 9.6 12.7 11.8 20.1 13.9 16.1 15.4 Sub Total 71.6 73.5

  16. Slide 16: Analysis — Quarters

    ANALYSIS — 5 QUARTERS PAPPACHAN CAPITAL

  17. Slide 17: Analysis on Avg Loan Book Size

    ₹. In Crores Sep-16 Dec-16 Mar-17 Jun-17 Sep-17 Analysis on Avg loan book size Amount % Amount % Amount % Amount % Amount % Avg Loan Book Size 1022.72 1115.0 1133.0 1272.7 1360.2 Revenue from operations 69.5 27.2% 68.6 24.6% 79.4 28.0% 79.2 24.9% 94.4 27.7% Direct exp. 32.6 12.8% 32.4 11.6% 32.8 11.

  18. Slide 18: Effective Rate: Yield and Cost

    EFFECTIVE RATE SL.No. Description of Loan Q1 FY ‘17 Q2 FY ‘17 Q3 FY ‘17 Q4 FY ‘17 Q1 FY ‘18 Q2 FY ‘18 1 Hypothecation 25.3% 26.2% 24.3% 27.0% 24.3% 26.5% 2 Loan Buyout 15.7% 15.5% 15.5% 15.8% 15.6% 15.6% 3 Term Loan 15.7% 15.6% 15.3% 15.1% 14.8% 14.7% 4 DPN Loans 21.1% 21.2% 21.5% 20.6% 20.6% 19.5%

  19. Slide 19: Composition of Yield and Cost of Funds

    Composition of Yield SLR Investment 8.0% SLR Deposit 9.6% Cost of Funds, Yield & Spread DPN Loans 19.5% 30.0% Term Loan 24.7% 25.0% 24.9% 14.7% 23.1% 25.0% 22.7% Loan Buyout 15.6% Hypothecation 26.5% 20.0% 0.0% 10.0% 20.0% 30.0% 15.0% 10.8% 10.5% 10.1% 9.9% 10.9% 10.0% Composition of Cost 5.0% Bank

  20. Slide 20: Expense and Profit as Share of Revenue

    9.2% 13.9% 7.6% 11.5% 10.9% 4.2% 5.0% 6.2% 5.8% 8.1% 7.3% 11.5% 5.9% 7.1% 6.7% 20.3% 20.2% 22.4% 23.1% 28.0% 32.3% 37.6% 37.9% 35.2% 31.9% 17.4% 18.5% 19.6% 18.4% 16.3% Q2 FY '17 Q3 FY '17 Q4 FY '17 Q1 FY '18 Q2 FY '18 Employee Benefit Expense Finance Cost Other expenses (Incl Dep.) Loan Loss Provis

  21. Slide 21: Average LTV, Ticket Size and IRR

    Average LTV Average Ticket Size (in ₹) 74.8% 48 280 48 234 50 315 50 530 50 170 70.4% 71.2% 72.5% 72.7% Q2 17 Q3 17 Q4 17 Q1 18 Q2 18 Q2 17 Q3 17 Q4 17 Q1 18 Q2 18 Avg. IRR & Processing Fee on Disbursement 29.7% 28.5% 28.8% 29.6% 29.1% 6.3% 4.9% 4.9% 5.5% 5.2% 23.4% 23.6% 23.9% 24.0% 23.8% Q2 17 Q3

  22. Slide 22: Disbursement, Revenue and Loan Book Size

    Disbursement Count (Hypo Loan) Disbursement - Hypo Loan (in ₹ crores) 86 754 71 172 450 67 398 358 341 56 612 56 174 273 271 Q2 17 Q3 17 Q4 17 Q1 18 Q2 18 Q2 17 Q3 17 Q4 17 Q1 18 Q2 18 Revenue (in ₹ crores) Loan Book Size (in ₹ crores) 95 1559 1749 80 80 1440 70 70 1170 1269 Q2 17 * Q3 17 * Q4 17 *

  23. Slide 23: NII, Opex as % of NII, Loan Losses

    NII (₹ in Crores) OPEX AS % OF NII 65.0 62% 64% 59% 64% 65% 54.0 52.0 43.7 43.5 Q2 17 Q3 17 Q4 17 Q1 18 Q2 18 Q2 17 Q3 17 Q4 17 Q1 18 Q2 18 Loan Loss Prov. & Write Off (₹ in Crores) 9. 2 5. 7 6.8 5. 3 4. 1 Q2 17 Q3 17 Q4 17 Q1 18 Q2 18

  24. Slide 24: PAT, EPS, ROA, ROE and Capital Adequacy

    PAT (₹ in Crores) Earning per Share (in ₹) 11. 1 10. 4 8. 1 8.1 7.6 6. 4 6. 1 5.9 4.7 4.4 Q2 17 Q3 17 Q4 17 Q1 18 Q2 18 Q2 17 Q3 17 Q4 17 Q1 18 Q2 18 ROA & ROE Capital Adequacy Ratio 25.8% 21.9% 20.6% 15.8% 13.5% 17.0% 17.1% 17.0% 15.8% 15.4% 3.2% 3.9% 3.0% 2.3% 1.9% Q2 17 Q3 17 Q4 17 Q1 18 Q2 18 Q2

  25. Slide 25: Asset Analysis

    ASSET ANALYSIS PAPPACHAN CAPITAL /

  26. Slide 26: Zone-wise Active Clients and NPA

    ₹ in Crores Active % of Zone Clients Regular NPA NPA Punjab Haryana Delhi South India 4 09 923 1 250.43 83.33 6.2% Western India 30 174 73.96 10.23 12.2% North India 27 998 93.12 2.29 2.4% East India 9 352 36.26 .47 1.3% Telangana Goa Andhra Pradesh Overall * 4 77 447 1 453.76 96.33 6.2% Karnataka *

  27. Slide 27: Portfolio, Segment and Source Wise Analysis

    PORTFOLIO ANALYSIS SEGMENT WISE ANALYSIS 6.2% 96.3 1544.3 5.8 93.8% 93.9% 66.9% 1 453.8 6.1% 33.1% Two Wheeler Three Wheeler & Others NPA REGULAR NPA Regular SOURCE WISE ANALYSIS BUCKET WISE ANALYSIS 3.0% 6.2% 3.8% 0 1276.1 274.0 7.4% 1 93.4% 95.6% 2 6.6% 4.4% 3 79.6% Dealer Branch Above 3 NPA Regul

  28. Slide 28: Owned and Securitized Portfolio

    3% 4% 3% (In ₹ Crores) 4% 2% Owned Portfolio 1179.9 3% Sanada 16.9 3% Starling 43.2 1% Quetzal 44.7 Fire finch 37.9 Turaco 68.1 76% Andra DA 43.3 Toucan DA 51.4 Bran 64.6 Total Loan Book 1550.0

  29. Slide 29: Liability Analysis

    LIABILITY ANALYSIS PAPPACHAN CAPITAL /

  30. Slide 30: Borrowing Mix and Cost

    ₹ in Crores Q2 FY ’17 Q1 FY ‘18 Q2 FY ‘18 Particulars Amount Cost Amount Cost Amount Cost Bank Loan 736.5 11.1% 919.7 10.2% 1004.7 10.0% Debenture/ICD 3.5 12.1% 2.6 10.8% 2.2 10.5% Sub Debt 31.6 9.5% 50.6 11.8% 57.4 12.0% Public Deposit 113.1 12.0% 99.6 8.8% 93.1 8.8% Loan From Directors 13.6 11.9%

  31. Slide 31: Securitization and Direct Assignment Transactions

    Particulars 1st 2nd 3rd 4th 5th 6th 7th 8th Nature of the PTC PTC PTC PTC PTC DA DA PTC transaction Indo Star Mahindra & Capital Investor Name DCB & IFMR Mahindra DCB & IFMR DCB &IFMR Andhra Bank SBM DCB &IFMR Total Finance & and IFMR IFMR Rating Agency CRISIL CRISIL ICRA CRISIL ICRA CRISIL India Ra

  32. Slide 32: Securitization Transactions in Last Year

    ➢ Till date, over the last 1 year , the Company has done 6 Securitization /2 Direct Assignment transactions totaling to ₹ 594.8 crores (net of MRR) with following Investors, which has helped substantially grow the AUM. ➢ The weighted average interest cost of the last transaction is 9.30% (weighted a

  33. Slide 33: Management Discussion & Analysis

    MANAGEMENT DISCUSSION & ANALYSIS PAPPACHAN CAPITAL /

  34. Slide 34: Robust growth in disbursement

    ➢ The Company continued its robust growth in disbursement, having a total disbursement of ₹ 477.2 crores in Q2 FY 18 v/s ₹ 371.8 crores Q1 FY 18 and ₹ 303.7 crores in Q2 FY17 ➢ Compared to the corresponding quarter of the previous year, the growth was 65% with the dealer point growth at 66% and the

  35. Slide 35: More PTC/DA transactions and funding

    ➢ We did 1 more PTC/2 DA transactions of ₹ 65.9 crores (net of MRR) and ₹ 97.9 crores (net of MRR) respectively in this quarter with reputed banks ; CRAR at 15.4% (needs to be improved further) ; QIP a step in that direction. Till date, over the last 1 year , the Company has done 6 Securitization &

  36. Slide 36: H1 FY18 financials better than budget

    ➢ The H1 FY 18 financials are better than the budget with a PAT of ₹ 16.5 crores v/s ₹14.4 crores budgeted. This is mainly on account of lower than budgeted NPA figures (hence lower provisioning), lower Finance costs and employee costs. Other expenses were higher on account of account of significant

  37. Slide 37: Thank You

    THANK YOU PAPPACHAN ey CAPITAL J

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