Slide 1: Exchange filing cover letter
Date: August 09, 2024 To, BSE Limited National Stock Exchange of India Limited Phiroze Jeejeebhoy Towers, Exchange Plaza, C-1, Block G, Dalal Street, Mumbai – 400 001 Bandra Kurla Complex, Bandra (E) Mumbai – 400 051 Scrip Code: 544055 Scrip Code: MUTHOOTMF Dear Sir/Madam, Sub: Investor Presentation
Slide 2: Investor Presentation FY 2024
Investor Presentation FY 2024
Slide 3: Disclaimer
Disclaimer By accessing this presentation, you agree to be bound by the following terms and conditions. This presentation (which may reflect some price-sensitive information in terms of SEBI regulations and Companies Act, 2013, as amended from time to time) has been prepared by Muthoot Microfin Ltd
Slide 4: Presentation Roadmap
Presentation Roadmap 01 Group/Company Overview 02 Business Updates 03 Financial Performance 04 Investment Rationale 3
Slide 5: Presentation Roadmap: Group/Company Overview
Presentation Roadmap 01 Group/Company Overview 02 Business Updates 03 Financial Performance 04 Investment Rationale 4
Slide 6: MPG - History of over 137 years and 80 years of experience
MPG - History of over 137 years of history and 80 years of experience in Financial Services business Muthoot Pappachan Group (MPG) is a Well Diversified Business Conglomerate Our Promoters Other Automotive Businesses Hospitality Thomas Muthoot Managing Director, MML ` Real Estate Information Technol
Slide 7: Brand Recall and Synergies with the Muthoot Pappachan Group
Brand Recall and Synergies with the Muthoot Pappachan Group MPG’s Stronghold is the bottom of the pyramid underserved customers Target Customer segment of group Client base 3.35 Mn 5 Mn 0.5 Mn 35K MML is the first level of Customer can progressively graduate to gold loans, entry into formal financia
Slide 8: Strong Corporate Governance and Support from Promoters & Investors
Strong Corporate Governance and Support from Promoters & Investors Shareholding as of 31st Mar’24 Board of Directors Institutions Thomas John Promoter Directors Thomas George (Foreign), 3.52% Promoter Thomas Muthoot Muthoot Muthoot, holding Managing Director Promoter, Non Executive Promoter, Non Exe
Slide 9: Experienced and Professional Management
Experienced and Professional Management Key Management Personnel & Senior Management Personnel Employee Mix1 Regional Office Field Monitors- other departments 272 895 Head Office Field Monitors- 308 Operation team Sadaf Sayeed, Chief Executive Officer 318 Exp: 24+ years, 14 years with MPG Past Exp:
Slide 10: Journey So Far
Journey So Far 2015 t Company was acquired RBI granted NBFC-MFI by promoters of “Muthoot status with effect from Pappachan Group” March 25, 2015 2019 CRISIL upgraded the rating to A (Stable) for bank facilities and debt instruments Raised 2500 Mn from Creation 2O2T — grerterPacitec 2022 — cerssrPrai
Slide 11: Presentation Roadmap: Business Updates
Presentation Roadmap 01 Group/Company Overview 02 Business Updates 03 Financial Performance 04 Investment Rationale 10
Slide 12: Operational Performance – FY'24
AUM Branches INR 121,935 Mn 1,508 (+32.4% YoY, 92,083 Mn) Disbursements (+28.7% YoY, Active Clients 1,172) INR 106,616 Mn 3.35 Mn (+31.6% YoY, (+20.9% YoY, 81,044 Mn) 2.77 Mn) GNPA 2.29% Employees (-0.68% YoY, 2.97%) 13,866 NNPA Collection (+35.6% YoY, 0.35% Loan Count 10,227) Efficiency (-0.25% YoY
Slide 13: Financial Performance – Q4 FY'24
Income PAT INR 6,534 Mn NIM PPOP INR 1,198 Mn (+45.8% YoY, 13.5% (+26.7% YoY, 4,482 Mn) INR 2,441 Mn 946 Mn) (+0.65% YoY, (+62.7% YoY, 12.9%) 1,501 Mn) Opex/GLP Ratio ROE 5.95% 17.5% Disbursements ROA (-8.8% YoY, 26.3%) (-0.07% YoY, 6.02%) 4.05% INR 28,879 Mn (-0.32% YoY, (+18.0% YoY, 4.37%) 24,475
Slide 14: Financial Performance – FY'24
Income PAT INR 22,855 Mn INR 4,496 Mn PPOP NIM (+58.0% YoY, (+174.3% YoY, 14,463 Mn) INR 7,638 Mn 1,639 Mn) 12.7% (+75.1% YoY, (+0.84% YoY, 4,362 Mn) 11.9%) ROA 4.19% (+2.01% YoY, Opex/GLP Ratio COF 2.18%) 11.17% ROE Equity 5.97% (+0.23% YoY, 20.30% INR 28,044 Mn (-0.19% YoY, 10.94%) 6.16%) (+72.5%
Slide 15: Key Operational & Financial Highlights
Key Operational & Financial Highlights Operation & Financial Performance Q4 FY24 YoY Growth QoQ Growth Strong growth in the Company with use of Technology Assets Under Management (in mns) 1,21,935 32.42% 6.42% • The company showcase strong growth with acquisition of more Branches (Count) 1,508 28.67
Slide 16: Consistent Growth
Consistent Growth AUM (Mn) Disbursement (Mn) Client Count (Mn) 1,21,935 28,879 Client (Mn) Avg OS/Client ('000) 1,08,671 1,14,581 1,00,376 34 35 36 92,083 27,004 33 33 25,921 24,812 3.2 3.3 3.4 24,475 2.8 3.0 Q4 FY'23 Q1 FY'24 Q2 FY'24 Q3 FY'24 Q4 FY'24 Q4 FY'23 Q1 FY'24 Q2 FY'24 Q3 FY'24 Q4 FY'24 Q
Slide 17: Resilient Business Model – Proven over time
Resilient Business Model – Proven over time Rising Strong: Navigating Macro Disruptions, Ready for Post-COVID Recovery Impact of TN Flood on portfolio TN Floods & PB *Aff. POS *Aff. NATCAT NATCAT Karza Mukti - Districts • Faster recovery pattern proven Covid Covid (Mn) Loans Cover Cover % Wave 1- 20
Slide 18: Systemic Diversification with focused business in Target States
Systemic Diversification with focused business in Target States Number of Branches per State Exposure of Q4 FY'24 Portfolio Concentration (Region-wise Trend) Districts No. of % of Total Core states of Muthoot (% of GLP) WEST 11% 11% 12% 12% 12% ▲ Districts Districts <0.5% 292 83% 12% 13% 13% Target
Slide 19: Digitization driving Collections
Digitization driving Collections Customer App Installation (Lks)1 Digital Collection (Mn) Digital Collection Share%2 4.47 21,128 26.44% 26.28% 26.33% 25.92% 24.62% 3.09 20.31% 10,955 1.94 1.28 4,887 5,633 5,980 4,628 0.71 0.54 FY'23 Q1 FY'24 Q2 FY'24 Q3 FY'24 Q4 FY'24 FY'24 FY'23 Q1 FY'24 Q2 FY'24 Q
Slide 20: Key Metrics
Key Metrics Branch Count RO Count AUM Per Branch (Mn) 8,539 78.6 81.6 81.1 80.5 80.9 7,996 1,424 1,508 7,493 1,340 6,274 6,696 1,172 1,230 Q4 FY'23 Q1 FY24 Q2 FY24 Q3 FY24 Q4 FY24 Q4 FY'23 Q1 FY24 Q2 FY24 Q3 FY24 Q4 FY24 Q4 FY'23 Q1 FY24 Q2 FY24 Q3 FY24 Q4 FY24 AUM Per RO (Mn) Client Per Branch Clie
Slide 21: Asset Quality Update
Asset Quality Update GNPA NNPA & Provision Coverage Stage 1 (0-30) GNPA Ratio NNPA Ratio Provision Coverage 96.4% 96.6% 7.39% 86% 86% 88.1% 88.0% 8.00% 88% 85% 7.00% 6.26% 86% 6.00% 81% 82% 84% 80% 82% 5.00% 76% 80% 4.00% 2.97% 2.75% 78% 3.00% 2.37% 2.29% 2.29% 76% 2.00% 1.51% 1.55% 74% 1.00% 0.60%
Slide 22: Presentation Roadmap: Financial Performance
Presentation Roadmap 01 Group/Company Overview 02 Business Updates 03 Financial Performance 04 Investment Rationale 21
Slide 23: Robust fiscal year performance in terms of Income/Profitability (1/2)
Robust fiscal year performance in terms of Income/Profitability (1/2) Revenue from Operations Total income (in Mns) 22,855 20.8% 19.0% 17.0% 15.5% 14,463 8,429 6,963 FY 21 FY 22 FY 23 FY 24 FY 21 FY 22 FY 23 FY 24 PPOP (in Mns) PAT (in Mns) 4,496 7,638 4,362 1,639 1,759 1,413 474 71 FY 21 FY 22 FY 2
Slide 24: Robust fiscal year performance in terms of Income/Profitability (2/2)
Robust fiscal year performance in terms of Income/Profitability (2/2) Cost Ratio’s Cost to Income Net Interest Margin Opex Ratio Provisioning Cost 64.4% 65.0% 12.7% 11.9% 51.4% 10.3% 45.5% 8.9% 6.9% 5.8% 6.2% 6.0% 3.0% 3.0% 2.3% 1.7% FY 21 FY 22 FY 23 FY 24 FY 21 FY 22 FY 23 FY 24 Profitability Rati
Slide 25: Quarterly Performance
Quarterly Performance Total Income (in Mns) NIM (in Mns) PPOP (in Mns) 6,534 5,761 5,848 4,001 2,441 4,482 4,801 3,379 3,431 1,893 1,823 2,721 2,801 1,501 1,480 Q4 FY23 Q1 FY24 Q2 FY24 Q3 FY24 Q4 FY24 Q4 FY23 Q1 FY24 Q2 FY24 Q3 FY24 Q4 FY24 Q4 FY23 Q1 FY24 Q2 FY24 Q3 FY24 Q4 FY24 PAT (in Mns) PAT/RO
Slide 26: FY23 & FY24: P&L Statement
FY23 & FY24: P&L Statement (in Mns) Financial Comparison Q4 FY 24 Q3 FY 24 QoQ (%) Q4 FY 23 YoY (%) FY 24 FY 23 YoY (%) Income Revenue from operations 6,468.07 5,810.45 11.32% 4,438.41 45.73% 22,701.80 14,287.64 58.89% Other income 66.18 37.82 74.99% 43.30 52.83% 153.10 175.80 -12.91% Total income 6
Slide 27: FY23 & FY24: Balance Sheet
FY23 & FY24: Balance Sheet (in Mns) Financial Assets FY'24 FY'23 Financial Liabilities FY'24 FY'23 Cash and cash equivalents 9,576.6 7,594.6 Total outstanding dues of creditors 138.8 119.3 Bank balances other than cash 6,210.6 3,909.6 Debt securities 9,624.4 13,701.5 Other receivables 2,574.8 722.1
Slide 28: Balance Sheet Metric
Balance Sheet Metric Networth (Mns) CRAR 28,044 28.8% 29.0% 22.6% 21.9% 16,258 13,366 8,899 FY 21 FY 22 FY 23 FY 24 FY 21 FY 22 FY 23 FY 24 Debt/Equity Cost of Borrowing 3.99 11.2% 11.1% 2.94 2.99 2.98 10.9% Incremental Cost of Borrowing: 10.4% 10.39% FY 21 FY 22 FY 23 FY 24 FY 21 FY 22 FY 23 FY 24
Slide 29: Funding profile
Funding profile Liquidity-Current Position (in Mns) Lender wise Outstanding FY 24 12,469 9,830 Domestic DFI's, HNIs/Retail, 5.91% 8,724 10.07% Financial Institutions/SFB, Foreign DFI, 5.85% 6.47% Foreign Banks, 9.45% Liquid funds in hand Structured Borrowings unutilised Term Funding Sanctions unutil
Slide 30: Liquidity – Static Liquidity Position
Liquidity – Static Liquidity Position Static ALM Maturity Profile 41,876.8 40,343.5 3,900.8 3,668.8 34,533.8 3,238.4 29,546.8 2,555.9 19,772.8 1,889.7 16,661.1 16,010.9 19,623.5 18,090.2 1,447.3 1,533.8 13,103.2 1,301.8 7,403.7 6,925.1 6,781.7 6,346.8 5,975.8 668.5 664.7 639.1 632.2 563.4 527.0 619.
Slide 31: Performance & Annual Guidance
Performance & Annual Guidance Actual Guidance Particulars Comments FY'23 FY'24 FY'24 AUM-Growth 46.5% 32.4% 30%-33% NIM will improve with Capital infusion and improvement COF. Incremental COF is at NIM 11.9% 12.7% 12.7%-12.9% 10.39%. In comparison to our budgeted count of 1400 branches, we currently
Slide 32: FY25 Performance Guidance: Key Indicators
FY25 Performance Guidance: Key Indicators Particulars Guidance FY'25 AUM-Growth 24% - 25% NIM 12.7% - 12.9% Operating Cost 5.7% - 5.8% Credit Cost 1.7% - 1.9% RoA 4.3% - 4.5% RoE 20% - 21% 31
Slide 33: Presentation Roadmap: Investment Rationale
Presentation Roadmap 01 Group/Company Overview 02 Business Updates 03 Financial Performance 04 Investment Rationale 32
Slide 34: Robust Risk Management via use of Technology
Robust Risk Management via use of Technology Risk Management Framework Dedicated Credit Managers at all Efficient and Independent Internal Unique credit score developed along Collections branches Audit & Compliance team with Equifax 1,664 Area Credit Managers and Credit Managers supervised by 378 Au
Slide 35: Internal Controls
Internal Controls Field Monitoring Comprehensive Field Visit Policy. Loan Appraisal System driven field visit target setting & measurement Aadhar based E-Signing Liveliness Mobile app-based visit recording with Geo-tagging. In Application check list to certifying compliance. GRT’s St
Slide 36: Digital Eco-system
Digital Eco-system Client App Login CB UPI Enquiry Mandate SMS BBPS Credit Suvidha Loan Score Run WhatsApp Penny Drop BHIM Verification Voice Tele Verification Web App Dynamic QR Document E-Sign Bank A/C Credit Mobile UPI App Payments Express loan processed through Customer application without Bra
Slide 37: Technology Interventions
Technology Interventions Nominee ID Master Centre Geo Systematic FOIR Client Geo Verification tagging based exposure Tagging Realtime KYC Penny drop Digital access to Electronic Fund E-signing Verification verification documents Transfer Real time CB Automated Score card- Multiple payment Real time
Slide 38: Crafted and Curated for customer empowerment
Crafted and Curated for customer empowerment Diverse product portfolio tailored for customer needs Individual Loan Flexible repayment frequency and loan tenure Ticket Size – 60K – 300K | Tenure – 24 – 36 Months Ticket size based on credit performance Retail Muthoot Small & Growing Business (MS
Slide 39: Our Community Connect Activities
Our Community Connect Activities 38
Slide 40: Past Five Years Performance Track Record
Past Five Years Performance Track Record AUM (Mn) Disbursements (Mn) Borrowers (Mn) CAGR 26% CAGR 27% CAGR 16% 1,21,935 1,06,616 3.35 81,045 2.77 92,083 2.05 1.88 1.86 62,550 46,470 48,386 49,867 40,829 26,367 FY-20 FY-21 FY-22 FY-23 FY-24 FY-20 FY-21 FY-22 FY-23 FY-24 FY-20 FY-21 FY-22 FY-23 FY-24
Slide 41: Glossary
Glossary Particulars Definition Cost of borrowing represents annually weighted average interest cost on borrowings, weights being annual average borrowings. Borrowings include debt securities, subordinated liabilities, and Cost of Borrowing(%) borrowings (other than debt securities) Cost to Income r
Slide 42: Thank you
Thank you