Csl Finance Limited · NSE:CSLFINANCE
Csl Finance — Q4 FY24 Earnings Presentation
44 slides from Csl Finance's earnings presentation, May 15, 2024
Slide 1: Exchange filing cover letter: Investor Presentation
CIN: L74899DL1992PLC051462 May 15, 2024 National Stock Exchange of India Limited BSE Limited Exchange Plaza, C-1, Block-G, Bandra Corporate Relationship Department Kurla Complex, Bandra (E), Mumbai - Phiroze, Jeejeebhoy Towers, Dalal Street, 400051 Mumbai-400001 NSE Symbol: CSLFINANCE BSE Scrip Code
Slide 2: Q4 & FY24 Investor Presentation
May 2024 Q4 & FY24 Investor Presentation
Slide 3: FY24 Performance
CSL FINANCE LIMITED 2 FY24 Performance CSL Finance at a Glance FY24 - Financial Performance FY24 - Operational Performance
Slide 4: CSL Finance At A Glance
CSL FINANCE LIMITED 3 CSL Finance At A Glance Scale of Loan Book Asset Liability Distribution Granularization Profitability Operations Quality Profile ₹ 926 Crore 29 99% 0.44% 23 ₹ 120 Crore Up 26% in FY24 Branches Secured Loan Book GNPA Active Lender Up 38% in FY24 Loan Book Relationships Net Inter
Slide 5: FY24 - Financial Performance
CSL FINANCE LIMITED 4 FY24 - FINANCIAL PERFORMANCE LOAN BOOK & RATIONALISATION OF AUM-MIX SUPERIOR & IMPROVING COMFORTABLE LEVERAGE: AUM GROWTH IN FAVOUR OF SME VERTICAL ASSET QUALITY FURTHER HEADROOM TO GROW (#) (%) (%) (₹ Crore) 1,030 38% 1.13 ₹ 473 Cr 926 YOY Change 0.61 Net Worth 736 749 40 44 1
Slide 6: FY24 - Operational Performance
CSL FINANCE LIMITED 5 FY24 - OPERATIONAL PERFORMANCE BRANCH AUM PER BRANCH: LOAN ACCOUNTS: LENDING TEAM NETWORK SME (Excluding MSL) SME (Excluding MSL) PARTNERS STRENGTH (#) (₹ lakhs) (#) (#) (#) 3 49% 36% 8 64% YOY Change YOY Change New Lenders YOY Change Onboarded 2,814 421 29 23 1,181 26 2,076 79
Slide 7: Quarterly Business Update
CSL FINANCE LIMITED 6 Quarterly Business Update Loan Book Size Asset Quality Asset Quality: Stage Analysis P&L Highlights Treasury Update Quarterly Financial Snapshot Operational Updates Lending Partners
Slide 8: Business Growth YoY
CSL FINANCE LIMITED 7 Business Growth YoY Q4’24 Q4’24 Q4’24 ₹1,030 Cr ₹322 Cr Consistent Performance 38% Assets Under 118% Disbursement 99% 99% Management Collection Efficiency ₹749 Cr ₹147 Cr Q4’23 Q4’23 Q4’23 Q4’24 Q4’24 Q4’24 ₹32.6 Cr ₹18.6 Cr 44:56 4% Shift in Favour 40% NII 57% PAT of SME Retai
Slide 9: Loan Book Size
CSL FINANCE LIMITED 8 Loan Book Size DISBURSEMENTS COLLECTIONS LOAN BOOK COLLECTION EFFICIENCY (₹ crore) (₹ crore) (₹ crore) (%) 119% 31% 236% 66% 38% 9% YOY Change QOQ Change YOY Change QOQ Change YOY Change QOQ Change 322 277 296 104 99 99 99 99 99 29 246 32 14 29 187 163 167 149 147 915 926 82 83
Slide 10: Asset Quality
CSL FINANCE LIMITED 9 Asset Quality GROSS NPA NET NPA PROVISION COVERAGE RATIO WRITE-OFFS & RECOVERIES (%) (%) (%) (₹ crore) -17 BPS 4 BPS -10 BPS 2 BPS YOY Change QOQ Change YOY Change QOQ Change 0.75 0.9 0.9 0.43 292 0.9 0.61 270 0.8 0.8 0.55 0.7 0.35 0.32 224 0.44 206 0.6 0.40 0.25 175 0.5 0.23 0
Slide 11: Asset Quality: Stage Analysis
CSL FINANCE LIMITED 10 Asset Quality: Stage Analysis CLASSIFICATION OF ASSETS BASIS THE ECL COMPUTATION AS PER IND-AS: PARTICULARS Q4FY23 Q3FY24 Q4FY24 Gross Stage 3 (GNPA) 4.47 3.67 4.06 % portfolio in Stage 3 0.61% 0.40% 0.44% ECL provision Stage 3 1.92 1.60 1.75 Net Stage 3 2.55 2.07 2.31 ECL Pro
Slide 12: P&L Highlights
CSL FINANCE LIMITED 11 P&L Highlights NET INTEREST INCOME TOTAL INCOME PROFIT AFTER TAX YIELDS (₹ crore) (₹ crore) (₹ crore) (%) 40% -4% 39% 3% 57% 11% YOY Change QOQ Change YOY Change QOQ Change YOY Change QOQ Change 45.7 46.9 18.6 18.1 18.3 18.1 18.1 18.0 34.0 32.6 38.5 16.6 16.6 16.9 17.1 17.1 28
Slide 13: Treasury Update
CSL FINANCE LIMITED 12 Treasury Update LEVERAGE LIQUIDITY (Time) (₹ crore) 1 The Company has adequate liquidity of ₹ 67.3 crore & ₹ 11.5 crore as undrawn Credit facilities as on 31st March 2024 1.13 1.09 53.0 2 The Company has positive ALM across the buckets 1.06 11.5 20.0 67.3 Credit Rating for the
Slide 14: Quarterly Financial Snapshot
CSL FINANCE LIMITED 13 Quarterly Financial Snapshot (₹ crore) PARTICULARS Q4FY23 Q3FY24 Q4FY24 Disbursements 259.62 245.89 321.71 Revenue 33.75 45.65 46.92 Interest Income 30.90 39.46 49.06 PBT 16.21 23.76 23.39 PAT 11.85 16.77 18.57 Bad debts written off 0.40 0.79 0.93 Bad debts recovered 0.76 0.38
Slide 15: Operational Updates
CSL FINANCE LIMITED 14 Operational Updates NET INTEREST INCOME & PROFITABILITY LOAN BOOK IMPROVING BRANCH PRODUCTIVITY • Total Income has witnessed a 3% growth QOQ while NII • AUM has shown robust growth of 9% QoQ and 38% YoY, • Improving employee and branch level efficiency remains has witnessed a
Slide 16: New Product Updates: Suvidha Loans (1/2)
CSL FINANCE LIMITED 15 New Product Updates: Suvidha Loans (1/2) LOAN BOOK Overview (₹ Crore) Company has undertaken 7.5 Updates of on-ground execution • Roll-out of the new dedicated loan origination & the pilot launch of a new 5.4 disbursement platform for Suvidha Loans has been product i.e. Suvidh
Slide 17: New Product Updates: Suvidha Loans (2/2)
CSL FINANCE LIMITED 16 New Product Updates: Suvidha Loans (2/2) AVERAGE TENURE (Month) Outlook 3 3 3 3 • Focus on collection in current quarter (Q1) to accelerate market feedback & learnings • Keeping a prudent approach, we are re- engineering our system and product and Q1FY24 Q2FY24 Q3FY24 Q4FY24 t
Slide 18: Lending Partners
CSL FINANCE LIMITED 17 Lending Partners Banks & SFBs NBFC Kotak Mahindra Investments Limited
Slide 19: 5Y Financial Snapshot
CSL FINANCE LIMITED 18 5Y Financial Snapshot (₹ crore) PARTICULARS FY20 FY21 FY22 FY23 FY24 Disbursements 270.10 433.32 491.10 758.72 1,052.04 Revenue 60.85 61.67 74.62 117.54 166.58 Interest Income 58.42 59.18 67.66 108.54 153.72 PBT 31.74 39.36 44.98 61.47 85.60 PAT 22.47 27.53 33.68 45.52 63.36 B
Slide 20: About CSL Finance
CSL FINANCE LIMITED 19 About CSL Finance Introduction & Snapshot Wholesale Business Verticals & Products SME Retail
Slide 21: Introduction
CSL FINANCE LIMITED 20 Introduction CSL Finance Limited is a Non-Banking Finance ₹1,030 Crore A- Stable Company registered with the Reserve Bank of AUM Credit Rating Upgraded India and listed on the NSE and BSE. The Company is a one-stop destination for Small and Medium-Sized Enterprises (SMEs) and
Slide 22: Business Verticals & Products
CSL FINANCE LIMITED 21 Business Verticals & Products SME SME Fabricator Wholesale Retail Loan WS SME SME WS WS OTHER SME MID- FABRICATOR LARGE SMALL TERM RETAIL SIZED LOAN LOAN LAP Structured loans for Construction loan Loan against SORP/SOCP Micro/Small Loans to Kirana Loan against properties Purch
Slide 23: Wholesale Business Vertical
CSL FINANCE LIMITED 22 WHOLE- SALE BUSINESS VERTICAL Niche, focused, real estate wholesale book Focused on secured lending book (100% of the book) Built on in-depth expertise of NCR and all its micro-markets Strength in affordable housing segment Robust collection framework via escrow accounts
Slide 24: Wholesale (1/2)
CSL FINANCE LIMITED 23 BETTER CUSTOMER SELECTION: STRONG SOURCING • Presence in strategically selected micro-markets of NCR • Excellent understanding of dynamics of each micro-market • Customer selection based on end-use demand • Primarily involved in last-mile funding, thus reducing project executi
Slide 25: Wholesale (2/2)
CSL FINANCE LIMITED 24 Wholesale (2/2) ACTIVE ACCOUNTS AVERAGE LOAN-TO-VALUE AVERAGE TICKET SIZE AVERAGE TENURE (#) (%) (₹ crore) (Year) 38 72 72 12 3 3 3 3 3 71 36 11 11 11 34 34 64 33 63 10 Q4FY23 Q1FY24 Q2FY24 Q3FY24 Q4FY24 Q4FY23 Q1FY24 Q2FY24 Q3FY24 Q4FY24 Q4FY23 Q1FY24 Q2FY24 Q3FY24 Q4FY24 Q4F
Slide 26: Wholesale Large: Affordable Group Housing
CSL FINANCE LIMITED 25 Wholesale Large: Affordable Group Housing 37% Contribution to Salient Salient Features Wholesale loan book Features 1 Approved projects under the 3 Committed Affordable Housing Policy of Haryana Receivables are 3x of Government existing POS 2 Time-linked payment 4 Average tick
Slide 27: Wholesale Large: Mid-Income Group Housing
CSL FINANCE LIMITED 26 Wholesale Large: Mid-Income Group Housing 24% Contribution to Wholesale Salient Features loan book 1 Last-mile funded Mid-Income 3 Committed Receivables are Group Housing projects 3x of existing POS 2 Located in NCR region 4 Average ticket size of units is under ₹60 Lakhs COMP
Slide 28: Wholesale Small: Small Builders
CSL FINANCE LIMITED 27 Wholesale Small: Small Builders 29% Contribution to Wholesale Salient Features loan book 1 Tenure of these loans is 5 Construction cost is a small under 36 months part of these projects 2 Small Builder Floors are G+4 floor 6 Feedback loop is fast and structure buildings demand
Slide 29: SME Retail Business Vertical
CSL FINANCE LIMITED 28 SME RETAIL BUSINESS VERTICAL Target market: Unbanked & underserved Using alternative data instead of conventional scorecards to underwrite loans Swift loans and ease of application Small & flexible ticket sizes Focused on secured lending book (99%) Quality collateral (85% is S
Slide 30: SME Retail (1/5)
CSL FINANCE LIMITED 29 SME Retail (1/5) PRODUCTS MID FABRICAT0R JYOTI SAARTHAK SHAKTI SAMADHAN NIRMAN SIZE LAP LOAN Loan Amount ₹2-7.5 ₹5-10 ₹7.5- 25 ₹25-50 ₹35-50 ₹1-5 ₹0.5-5 Lakhs Lakhs Lakhs Lakhs Lakhs Crores Lakhs TENOR (In Years) 3-4 5-6 7 7-8 7 2-3 45-90 Days Target Customer Small farmers, Sa
Slide 31: SME Retail (2/5)
CSL FINANCE LIMITED 30 SME Retail (2/5) PRESENCE 31% 25% BRANCH AGEING 8 Branches 7 Branches Rajasthan Gujarat <1 year 12% 12% 24% 3 Branches 5 Branches Punjab Haryana 1- 3 years 48% 2% 7% Clustered 1 Branch 2 Branches Approach to expanding branch network, based on New Delhi Uttarakhand understandin
Slide 32: SME Retail (3/5)
CSL FINANCE LIMITED 31 SME Retail (3/5) AUTOMATING WORKFLOW TO IMPROVE EFFICIENCY LOAN LOAN LOAN LOAN ORIGINATION EVALUATION DISBURSEMENT COLLECTION • Customer on-boarding & authentication • Multi Bureau checks + CIBIL Auto analysis • 100% cashless, E-disbursement of loan • Digital mobile App for fi
Slide 33: SME Retail (4/5)
CSL FINANCE LIMITED 32 SME Retail (4/5) Relying on a banking Migrated to a bespoke customer onboarding & loan Roadmap: customer onboarding & underwriting platform with multiple API integrations. • Suvidha Loan Platform • loan underwriting platform Recent achievements: Upgrading existing LOS for LAP
Slide 34: SME Retail (5/5)
CSL FINANCE LIMITED 33 SME Retail (5/5) ACTIVE ACCOUNTS AVERAGE LOAN-TO-VALUE AVERAGE TICKET SIZE AVERAGE TENURE (#) (%) (₹ Lakh) (Year) 2,587 2,814 34 34 34 34 34 13 13 2,171 2,396 11 12 2,076 10 6 6 6 6 6 SME Q4FY23 Q1FY24 Q2FY24 Q3FY24 Q4FY24 Q4FY23 Q1FY24 Q2FY24 Q3FY24 Q4FY24 Q4FY23 Q1FY24 Q2FY2
Slide 35: Prudent Risk Management
CSL FINANCE LIMITED 34 Prudent Risk Management Well Managed ALM Conservative Leverage Standards
Slide 36: Well Managed ALM
CSL FINANCE LIMITED 35 Well Managed ALM Cumulative Inflow - Outflow 43 47 48 57 246 293 0 (₹ Crore) 480 446 257 186 121 112 67 61 60 63 41 37 24 16 >1 month >2-3 month >3-6 month >6-12 months 1-3 Years 3-5 Years Over 5 Years Inflow (₹ Crore) Outflow (₹ Crore)
Slide 37: Conservative Leverage Standards
CSL FINANCE LIMITED 36 Conservative Leverage Standards CONSERVATIVE LEVERAGE THRESHOLD 1.5-2X in Wholesale & <4X in SME Retail 50 0 9 0 % Total Equity Leverage Ratio Capital Adequacy Ratio 4 50 473 8 0 % 73% 79% 4 0 65% 66% 70 % 64% 35 0 362 6 0 % ₹54 50% 51% 320 30 0 Crore 50 % Equity 25 0 Fund rai
Slide 38: Leadership
CSL FINANCE LIMITED 37 Leadership Board of Directors Leadership Team
Slide 39: Board of Directors
CSL FINANCE LIMITED 38 Board of Directors Rohit Gupta Rachita Gupta Ashok Parmod Bindal Subhash Chand Ayussh Mittal Managing Whole-time Kathuria Independent Kwatra Independent Director Director Director Director Independent Director Director Mr Rohit Gupta has over nearly 3 decades Ms Rachita is a c
Slide 40: Management Team
CSL FINANCE LIMITED 39 Management Team Work Experience Years at CSL Rohit Gupta Rachita Gupta Amit Ranjan Naresh Varshney Amit Kaul Atul Agrawal Chandan Kumar Managing Director Whole-time Director Chief Operating Officer Chief Financial Officer President – IT President – Wholesale Credit Head Financ
Slide 41: Strategy
CSL FINANCE LIMITED 40 Strategy Strategic Priorities Key Takeaways
Slide 42: Strategic Priorities
CSL FINANCE LIMITED 41 Strategic Priorities Leveraging Optimising Focusing Rationalisation technology to Credit rating branch on adding of portfolio strengthen upgrade performance competencies operations • The Company aims to rationalise its • The Company is working towards • The Company is working
Slide 43: Key Takeaways
CSL FINANCE LIMITED 42 Well Capitalised 01 CSL is a well-capitalised lender with a superior Capital Adequacy Ratio. A- STABLE: Rated 02 CSL’s credit rating has recently upgraded to A- Stable, this will help CSL access more capital and at competitive terms. It will also open doors to a new set of len
Slide 44: Safe Harbour
CSL FINANCE LIMITED 43 Safe Harbour This presentation may contain certain words or phrases that are forward - looking statements, which are tentative, based GET IN TOUCH on current expectations and on certain assumptions of the management of CSL Finance Limited (“CSL”). Actual results may vary from