Muthoot Microfin Ltd · NSE:MUTHOOTMF
Muthoot Microfin — Q3 FY2025 Earnings Presentation
48 slides from Muthoot Microfin's earnings presentation, Feb 6, 2025
Slide 1: Stock exchange disclosure letter
February 06, 2025 To, BSE Limited National Stock Exchange of India Limited Corporate Relationship Department, Exchange Plaza, 5th Floor, 2nd Floor, New Trading Wing, Plot No. C/1, G Block, Rotunda Building, Bandra Kurla Complex, Bandra (E), P.J. Towers, Dalal Street, Mumbai 400001 Mumbai 400 051 Scr
Slide 2: Investor Presentation Q3 FY'25
Investor Presentation Q3 FY’25
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: MPG - Legacy of 138+ years of history
MPG - Legacy of 138+ years of history Muthoot Pappachan Group (MPG) is a Well Diversified Business Conglomerate Our Promoters Automotive Other bussiness Hospitality Thomas Muthoot Chairman & Non-Executive Director, MML Real Estate Information Technology Infrastructure Thomas John Muthoot ThomasMuthoo
Slide 5: Journey So Far
Journey So Far 2024 • Raised USD 128Mn via ECB. • Entered Telangana and Andhra Pradesh State • L a u n c h e d t h e ‘Mahila Mitra’ app • AUM Crossed ₹50,000 M n 2023 • Raised ₹1.9 B n f r o m GPC t h r o u g h preferential allotm ent The IPO of M u t h o o t Microfin was launched in Dec-23, 2021 wi
Slide 6: Client Base
Brand Recall and Synergies with the Muthoot Pappachan Group Target Customer Client Base segment of group 3.42Mn 5Mn 0.5Mn 35K MML is the first level of Customer can progressively graduate to gold loans, entry into formal financial vehicle finance and affordable housing institution for BoP clients Histor
Slide 7: Strong Corporate Governance and Support from Promoters & Investors
Strong Corporate Governance and Support from Promoters & Investors Shareholding as of 31st Dec'24 Promoter Group Directors Institutions Foreign, 3.04% Institutions Domestic, 2.45% Thomas Muthoot Thomas George Muthoot Thomas Muthoot John Chairman & Non-Executive Non Executive Director Executive Direc
Slide 8: Key Managerial Personnel
Key Managerial Personnel Field Monitors- Other Departments Regional Office Key Management Personnel and Senior Management Personnel Employee Mix1 1,193 272 Head Office Field Monitors- Operation Team 314 378 Area Office Managers 436 15,691 Loan Officer 9,197 Branch Management Staff 3,901 Awards & Recognition
Slide 9: Operational Highlights – Q3FY'25
Operational Highlights – Q3FY’25 Active Clients AUM 3.42 Mn GNPA (+4.5% YoY) 1,24,049 Mn (-0.4% QoQ) (+8.3% YoY) Branches 3.03% (-0.9% QoQ) (+74 bps YoY) 1,651 Nos (+33 bps QoQ) (+15.9% YoY) (+3.6% QoQ) CE² Disbursement 93% NNPA¹ 20,351 Mn (-5.8% YoY) (-21.5% YoY) Employees (-2.6% QoQ) 1.27% (-23.9%
Slide 10: Financial Highlights – Q3FY'25
Financial Highlights – Q3FY’25 Income Cost to Income Ratio INR 6,814 Mn 43.20% Equity PPOP (+17.7% YoY) (-546 bps YoY) (+2.8% QoQ) (-125 bps QoQ) INR 30,090 Mn INR 2,523 Mn (+12.4% YoY) (+39.6% YoY) (+0.3% QoQ) (+6.7% QoQ) NIM COF INR 4,202 Mn PAT 11.07% CAR (+23.1% YoY) (-14 bps YoY) (+5.5% QoQ) IN
Slide 11: Financial Highlights – 9M FY'25
Financial Highlights – 9M FY’25 Income Cost to Income Ratio INR 20,082 Mn 43.27% ROA PPOP (+24.7% YoY) (-389 bps YoY) (16,102 Mn) (47.16%) 1.93% INR 7,373 Mn (-232 bps YoY) (+43.1% YoY) (4.25%) (5,151 Mn) NIM NIM % INR 12,301 Mn PAT 1 13.07% ROE (+28.5% YoY) (+44 bps YoY) (9,575 Mn) INR 1,786 Mn (12
Slide 12: Key Operational & Financial Highlights
Key Operational & Financial Highlights Operation & Financial Performance Q3FY25 Q3FY24 YoYGrowth Q2FY25 QoQ Growth Assets Under Management (in mns) 1,24,048.9 1,14,581.4 8.26% 1,25,185.1 -0.91% Branches (Count) 1,651 1,424 15.94% 1,593 3.64% AUM remained flat sequentially at Rs124,049 mn. The comp
Slide 13: Consistent Growth
Consistent Growth AUM (Mn) 0.9% QoQ Disbursement (Mn) 23.9% QoQ Clients (Mn) 0.6% QoQ Client (Lks) Avg OS/Client ('000) 1,25,185 3.40 3.44 3.42 1,24,049 28,879 3.35 1,21,935 1,22,103 25,921 26,738 3.28 22,043 1,14,581 20,351 35 36 36 36 36 Q3 FY’24 Q4 FY’24 Q1 FY’25 Q2 FY’25 Q3 FY’25 Q3 FY’24 Q4 FY’
Slide 14: Resilient Business Model – Proven over time
Resilient Business Model – Proven over time Kerala Floods Karnataka Crisis Covid Wave 1 Covid Wave 2 TN Floods & PB Karza Mukti Heat wave, Flood & Election TN, BH, WB & OD 2019 2020 2020 2021 2024 2024 Floods & Fengal cyclone 2024 1,22,103 1,25,185 1,24,049 1,21,935 1,08,671 92,083 74,495 62,550 48,
Slide 15: Strategic re-alignment through Diversification
Strategic re-alignment through Diversification Portfolio Concentration (Region-wise Trend) Consistent Rural Penetration (AUM) Number of Branches Per State 12% 12% 96.7% 96.4% 97.2% 96.4% 12% 12% 13% 96.3% West East 14% 15% 15% 14% 14% North 23% 23% 23% 24% 24% South Q3 Q4 Q1 Q2 Q3 FY’24 FY’24 FY’25
Slide 16: Top 5 States Performance
98.4% 6,915 96.9% 5,710 TN TN 96.4% 6,666 95.5% 4,697 99.8% 4,416 97.8% 3,443 KL KL 98.1% 4,246 99.1% 3,140 Q4 FY 24 Q4 FY 24 98.8% 3,440 97.1% 2,474 BH BH 94.3% 2,705 Top 5 States Performance 88.4% 2,156 Q1 FY 25 Q1 FY 25 CE% 99.8% 2,546 98.7% 2,097 KA KA 97.6% 2,680 Q2 FY 25 Q2 FY 25 93.3% 1,412 D
Slide 17: CE Performance- Overall & X Bucket Collection
CE Performance- Overall & X Bucket Collection Overall CE% Overall CE% - Q3 Monthwise 99.1% 99.8% 98.7% 98.8% 98.8% 97.8% 97.2% 96.5% 98.1% 95.4% 93.9% 97.8% 93.5% 93.2% 97.6% 91.4% 90.5% 97.1% 89.3% 88.6% 96.9% 88.1% 96.4% 84.9% 84.1% 82.9% 95.7% 95.5% 94.3% 93.3% 93.2% 92.8% 92.7% 89.3% 89.2% 88.4%
Slide 18: Asset Quality 1/6
Asset Quality 1/6 Loan Assets (Gross) Particulars Q3FY25 9MFY25 Slab Loan Assets (Gross) ECL ECL (%) (%) Opening ECL (A) 2,617.29 1,878.55 Stage 1 90,343.04 538.52 92.95% 0.60% Additions (B) Stage 2 3,907.78 352.20 4.02% 9.01% - Provisions as per ECL 1,459.70 2,687.67 Stage 3 2,945.82 1,729.80 3.03%
Slide 19: Asset Quality - Natural Calamity Claim & Insurance Settlement 2/6
Asset Quality - Natural Calamity Claim & Insurance Settlement 2/6 Q1 FY'25 Q2 FY'25 Q3 FY'25 NATCAT Insurance Settlement StateName Count Settlement % Count Settlement % Count Settlement % TAMILNADU 2 100.0% - - 50,928 33.0% 120.0% 69,900 94.8% 99.2% RAJASTHAN 2 100.0% 6,321 100.0% 1,456 57.0% 73.4K
Slide 20: Asset Quality 3/6
Asset Quality 3/6 GNPA, NNPA & Provision Coverage Stage 1 (0-30) GNPA Ratio NNPA Ratio (Net of total provision) NNPA Ratio (Net of Stage III provision) Provision Coverage (Net of total provision) 96.4% 96.6% 96.1% Provision Coverage (Net of Stage III provision) 94.2% 7.39% 92.9% 6.26% 96.4% 85.1% 89
Slide 21: Asset Quality 4/6
Asset Quality 4/6 Q3 FY-25 Q2 FY-25 Borrowers % - Dec-24 Borrower Vintage Borrower Vintage Lender Group 0-2 Y 2-4 Y 4-6 Y >6 Y Total % 0-2 Y 2-4 Y 4-6 Y >6 Y Total % Unique 14.0% 5.6% 6.1% 9.1% 34.8% 12.7% 5.6% 5.8% 8.8% 32.9% Own+1 13.0% 5.0% 3.9% 5.0% 26.8% 11.7% 5.0% 4.0% 5.1% 25.8% Own+2 11.3% 3
Slide 22: Asset Quality 5/6
Asset Quality 5/6 Q3 FY-25 Q2 FY-25 Borrowers % Dec-24 Borrower Vintage Borrower Vintage Indebtedness 0-2 Y 2-4 Y 4-6 Y >6 Y Total % 0-2 Y 2-4 Y 4-6 Y >6 Y Total % Upto 50K 15.5% 6.4% 7.6% 10.9% 40.3% 14.1% 6.2% 7.3% 10.5% 38.1% 50k - 1Lk 17.4% 5.7% 3.0% 3.9% 30.0% 15.4% 6.0% 3.2% 4.1% 28.6% 1Lk - 1
Slide 23: Asset Quality 6/6
Asset Quality 6/6 MML+ 4 & above Borrowers % - Dec-24 Q3 FY-25 Q2 FY-25 Borrower Vintage Borrower Vintage Indebtedness 0-2 Y 2-4 Y 4-6 Y >6 Y Total % 0-2 Y 2-4 Y 4-6 Y >6 Y Total % Upto 50K 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 50k - 1Lk 0.6% 0.2% 0.0% 0.1% 0.9% 0.5% 0.2% 0.0% 0.1% 0.7%
Slide 24: Impact of Score Card
Score Card Impact (New Sourcing) Impact of Score Card No. of loans (Lks) % of amount Disbursed Unique credit score devloped along with Equifax Risk Category From Inception Q2-FY'25 Q3-FY'25 From Inception Q2-FY'25 Q3-FY'25 Very Low 14.89 1.06 0.82 70.56% 68.98% 77.53% Low 5.97 0.49 0.24 27.08% 30.08
Slide 25: Rejection Trend
Rejection Trend 47% 42% Q3_FY'25 Major Contributors to CB 40% 40% 41% 39% Rejections 37% 11.0% • Overall rejection rate has varied 34% 33% between 34% and 47%, with a 29% 30% 28% 30% 3.2% noticeable increase in Q3 FY'25, 26% reaching 47%. 15% FOIR • The primary factors driving the rise in CB rejecti
Slide 26: Digitization driving Collections
Digitization driving Collections Customer App Installation (Cum. Mn)¹ Digital Collection (Mn) Digital Collection Share%² 1.58 1.63 1.66 1.70 1.73 5,633 5,980 6,388 5,690 5,713 26% 26% 27% 24% 25% Q3 FY’24 Q4 FY’24 Q1 FY’25 Q2 FY’25 Q3 FY’25 Q3 FY’24 Q4 FY’24 Q1 FY’25 Q2 FY’25 Q3 FY’25 Q3 FY’24 Q4 FY
Slide 27: Key Metrics
Key Metrics Branch Count RO Count AUM per Branch (Mn) 1,424 1,508 1,562 1,593 1,651 7,996 8,539 8,571 9,246 9,591 80.5 80.9 78.2 78.6 75.1 Q3 FY’24 Q4 FY’24 Q1 FY’25 Q2 FY’25 Q3 FY’25 Q3 FY’24 Q4 FY’24 Q1 FY’25 Q2 FY’25 Q3 FY’25 Q3 FY’24 Q4 FY’24 Q1 FY’25 Q2 FY’25 Q3 FY’25 AUM per RO (Mn) Client per
Slide 28: Diversified Products
Diversified Products Q3 FY'24 Q4 FY'24 Q1 FY'25 Q2 FY'25 Q3 FY'25 Product Mix AUM INR (Mn) % of Total INR (Mn) % of Total INR (Mn) % of Total INR (Mn) % of Total INR (Mn) % of Total LIVELIHOOD SOLUTIONS 1,11,150 97.01% 1,17,887 96.68% 1,17,893 96.55% 1,21,004 96.66% 1,19,656 96.46% LIFE BETTERMENT S
Slide 29: Customer Retention
Customer Retention Client Addition Client Vintage Clients (’000) 715 Q3 FY'25 66% 8% 26% 569 Q2 FY'25 67% 8% 24% Q1 FY'25 68% 9% 23% 3,278 3,424 Q4 FY'24 67% 11% 22% Q3 FY'24 66% 13% 21% - - 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% Q3 FY'24 Addition Attrition Q3 FY'25 <3 Years 3-5 Years >5 Years
Slide 30: Performance & Annual Guidance
Performance & Annual Guidance Guidance* Actual Particulars Revised Guidance FY 25 9M FY 25 5% to 7% AUM-Growth 10%-12% 1.7% Growth moderate due to the overall Macro environment NIM 12.7% - 12.9% 13.1% To remain in line with the Guidance Operating Cost 6.0% 6.1% To remain in line with the Guidance 7.
Slide 31: P&L Statement
P&L Statement (Rs in Millions) Financial Comparison Q3 FY 25 Q3 FY 24 YoY (%) Q2 FY 25 QoQ (%) 9M FY 25 9M FY 24 YoY (%) Income Revenue from operations 6,807.8 5,767.6 18.04% 6,624.1 2.77% 20,066.6 16,057.1 24.97% Other income 6.6 23.4 -71.63% 6.2 7.31% 15.6 44.9 -65.28% Total income 6,814.5 5,791.0
Slide 32: 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) 20.8% 20.7% 22,553 20.6% 19.0% 20,082 17.0% 16,102 14,463 8,429 FY 22 FY 23 FY 24 9M FY 24 9M FY 25 FY 22 FY 23 FY 24 9M FY 24 9M FY 25 PPOP (in Mns) PAT (in Mns) 7,638 7,373 4,496 3,2
Slide 33: 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 65.0% 12.7% 12.6% 13.1% 11.9% 51.4% 45.5% 47.2% 10.3% 43.3% 6.9% 6.2% 6.0% 5.9% 6.1% 5.4% 2.3% 3.0% 1.7% 1.4% FY 22 FY 23 FY 24 9M FY 24 9M FY 25 FY 22 F
Slide 34: Robust Quarterly performance in terms of Income/Profitability (1/2)
Robust Quarterly performance in terms of Income/Profitability (1/2) Total Income (in Mns) NIM (in Mns) PPOP (in Mns) 6,814 6,630 4,202 2,441 2,523 4,000 3,826 3,983 2,364 6,534 2,195 6,382 3,413 1,807 5,791 Q3 FY24 Q4 FY24 Q1 FY25 Q2 FY25 Q3 FY25 Q3 FY24 Q4 FY24 Q1 FY25 Q2 FY25 Q3 FY25 Q3 FY24 Q4 FY
Slide 35: Robust Quarterly performance in terms of Income/Profitability (2/2)
Robust Quarterly performance in terms of Income/Profitability (2/2) Cost Ratio’s Cost to Income Net Interest Margin Opex Ratio Provisioning Cost 48.7% 13.5% 13.3% 13.3% 13.3% 12.5% 45.3% 44.5% 7.9% 43.2% 6.0% 6.0% 6.0% 6.1% 6.1% 41.8% 5.1% 2.3% 2.5% 1.7% Q3 FY'24 Q4 FY'24 Q1 FY'25 Q2 FY'25 Q3 FY'25
Slide 36: Balance Sheet
Balance Sheet (Rs in Millions) Financial Assets 9M FY 25 FY 24 Financial Liabilities 9M FY 25 FY 24 Cash and cash equivalents 7,884.4 9,576.7 Total outstanding dues of creditors 242.3 259.4 Bank balances other than cash 6,004.2 6,210.6 Debt securities 6,177.3 9,986.2 Receivables 872.2 2,574.8 Borrow
Slide 37: Balance Sheet Metric
Balance Sheet Metric Networth (Mns) CRAR 30,090 30.5% 28,044 28.8% 29.0% 21.9% 16,258 13,366 FY 22 FY 23 FY 24 9M FY 25 FY 22 FY 23 FY 24 9M FY 25 Debt/Equity Cost of Borrowing 11.2% 3.99 11.1% 10.9% 2.99 2.98 Incremental Cost 2.77 of Borrowing: 10.4% 10.31% FY 22 FY 23 FY 24 9M FY 25 FY 22 FY 23 FY
Slide 38: Funding profile
Funding profile Liquidity-Current Position (in Mns) Lender wise Outstanding 9M FY25* 12,670 Retail, 3.3% SFB, 1.2% Domestic DFI, 9.8% NBFC, 4.4% Foreign DFI, 6.3% Foreign Banks, 13.4% 7,884 7,150 Liquid funds in hand DA/PTC Sanction Pending Term Funding Sanctions unutilised Public Sector Banks, Priv
Slide 39: Liquidity – Static Liquidity Position
Liquidity – Static Liquidity Position Static ALM (in Mns) Maturity ALM (in Mns) 40,184.7 43,958.1 39,699.5 43,659.6 32,303.0 34,935.7 28,414.9 23,982.8 18,896.0 19,367.5 21,209.9 21,508.5 16,873.9 16,024.6 14,556.7 16,949.7 16,464.4 11,481.2 12,195.6 14,689.1 10,253.6 6,693.9 6,644.7 6,521.7 7,277.9
Slide 40: Strategic initiatives & Risk mitigants
Strategic initiatives & Risk mitigants Sourcing Collection Process Quality Collection TAT improvement Focus on Score card Team initiatives customer retention NATCAT Insurance Dynamic voice drop Socio-economic Process for on-time payment profiling being Optimisation implemented E-Clinic Analytics Dig
Slide 41: 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 branches Audit & Compliance team Collections with Equifax 1,818 Credit Managers supervised by Area Credit Managers and 434 Au
Slide 42: 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 43: Suvidha Loan Digital Eco-system
Digital Eco-system Suvidha Loan Client Web App Login Whatspp App CB Enquiry Credit UPI Score Run SMS Mandate Penny Drop Verification Tele Dynamic Verification BBPS QR Document E-Sign Bank AC Credit UPI BHIM Payments Voice Suvidha Disb Suvidha Note : Express loan processed from Inception: 232.44 Crs
Slide 44: Technology Interventions
Technology Interventions Customer Group Group Loan Sanction Centre Onboarding Training Confirmation & Disbursement Meeting Score card-based N o m i n e e KYC System supported Mu l t i p l e p a ym e n t E-signing exposure Verification g r o u p evaluation channels Real t i m e CB System supported Ma
Slide 45: 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 Micro Small & Medium Enterprize (MSM
Slide 46: Past Five Years Performance Track Record
Past Five Years Performance Track Record AUM (Mn) Disbursements (Mn) Borrowers (Mn) CAGR 26% CAGR 27% CAGR 16% 121,935 106,616 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 Br
Slide 47: Glossary
Glossary Particulars Definition Cost of borrowing represents annually weighted average interest cost on borrowings, weights being annual average borrowings. Borrowings include debt securities, Cost of Borrowing(%) subordinated liabilities, and borrowings (other than debt securities) Cost to Income r
Slide 48: Thank You
Thank You For further information please contact: Mr. Rajat Gupta AVP – Investor Relations Email: Rajat.Gupta@Muthootmicrofin.com Ph. No: +91-98218 49374 About Muthoot Muthoot Pappachan Mahila Mitra App Microfin Group