Sbfc Finance Limited · NSE:SBFC
Sbfc Finance — Q4 FY2024 Earnings Presentation
32 slides from Sbfc Finance's earnings presentation, Apr 27, 2024
Slide 1: Cover letter to stock exchanges
27th April, 2024 To To National Stock Exchange of India Limited, BSE Limited, Exchange Plaza, Plot No. C/1, G Block, Phiroze Jeejeebhoy Towers, Bandra-Kurla Complex, Bandra (East), 21st Floor, Dalal Street, Mumbai – 400051 Mumbai – 400001 NSE Symbol: SBFC BSE Scrip Code: 543959 Dear Sir(s), Sub: Inv
Slide 2: Investor Presentation Q4 FY 2024
Investor Presentation Q4 FY 2024
Slide 3: Safe Harbor
Safe Harbor This presentation and the accompanying slides (‘Presentation”), which have been prepared by SBFC Finance Limited (the "Company"), have been prepared solely for information purposes and do not constitute any offer, recommendation or invitation to purchase or subscribe for any securities,
Slide 4: SBFC – FY24 Performance
SBFC – FY24 Performance Size and Growth Distribution Granular Book Asset Quality Liability Profile Profitability 6,822 % 183 98.8% 2.43% 2,518 237 AUM GNPA PAT # Branches % Secured Tangible Net worth YoY +38% YoY -14 bps YoY +58% % 5,704 3,758 9.69* | 0.92* 1.36% CRAR 40.5% 4.14% Secured MSME AUM Em
Slide 5: Executive Summary – Q4 FY24
Executive Summary – Q4 FY24 Asset Under Management Disbursement1 Branches 6822 724 183 +38% +9% +15% +2% +31 +6 Gross NPA Yield / Spread Opex to AAUM 2.43% 17.6% / 8.3% 5.01% -14 bps +5 bps +112 / +76 bps +44 / +52 bps -57 bps -47 bps PAT RoAAUM RoATE 73 4.56% 11.90% +72% +15% +83 bps +25 bps +6 bps
Slide 6: About the company, Management and Shareholders, Business
About the company Management and Shareholders Business Technology Credit Collections Financials Corporate Social Responsibility 5
Slide 7: Executive Summary
Executive Summary 183 branches Team: Experienced, cycle-tested, professional management with strong corporate 149 Cities governance backed by marquee investors 16 States 2 UTs Focused Segment: Offering Secured MSME loan to small businesses with focus on ₹5 lakh - ₹30 lakh ticket size Opportunity: Ma
Slide 8: SBFC Focus Segment – customers borrowing ₹0.05 to ₹0.3 cr
SBFC Focus Segment – customers borrowing ₹0.05 to ₹0.3 cr Large segment within MSME of ₹2.5 lakh cr and growing at CAGR 24% Segment Market Size1 (₹ tn) CAGR2 (%) % of Market >₹1 cr 3.6 13.1% 42% ₹0.5 – 1 cr 1.1 17.0% 13% ₹0.3 – 0.5 cr 0.9 20.4% 10% Focus ₹0.05– 0.3 cr 2.5 23.7% 30% Segment <₹0.05 cr
Slide 9: Our Journey
Equity Listing on NSE and BSE Credit rating upgraded to ‘AA -’1 Included in MSCI Global Small Our Journey Cap Index 1,00,000 customers 6822 150 Branches 150 cr PAT Credit rating upgraded to ‘A +’ 4943 50,000 customers 100 AUM of INR Branches Investment by 237 1000cr 3192 Clermont and Arpwood group 1
Slide 10: Management
Management Experienced, cycle-tested, professional management Aseem Dhru Mahesh Dayani Narayan Barasia Pankaj Poddar MD & CEO Chief Business Officer Chief Financial Officer Chief Risk Officer Sanket Agrawal Sumeet Ghai Ganesh Vaidya VM Maneesh Sai Prashant Menon Chief Strategy Officer and IR Chief H
Slide 11: Board of Directors
Board of Directors Strong corporate governance backed by long term investors Rajesh Agrawal Surekha Marandi Neeraj Swaroop Jt. Managing Director, Ex Executive Director, Chairman of the Board Ajanta Pharma RBI Independent Ravi Venkatraman Koni Uttam Nayak Ex Executive Director & Ex Senior Vice Presid
Slide 12: Shareholding
Shareholding Category of Shareholders % Share Shareholding Pattern Promoters Clermont Group 55.21% 12.95% Arpwood Group 5.45% 13.52% Other Major Shareholders 12.86% 60.66% SBI Mutual Fund 7.22% Amansa 4.13% Malabar Funds 4.12% Steadview Capital 1.86% Aditya Birla 1.53% Promoters Foreign Portfolio In
Slide 13: Business Momentum
Simplify graphic Business Momentum Delivering rapid growth in recent years YoY : 38% QoQ : 9% CAGR: 46% 6822 6266 1% 6822 2% 15% 1% 15% 15% 4943 4943 3% 3% 17% 17% 3192 84% 7% 83% 20% 84% 79% 79% 73% Mar-22 Mar-23 Mar-24 Q4 FY 23 Q3 FY 24 Q4 FY 24 Secured MSME LAG Others Secured MSME LAG Others All
Slide 14: Business Momentum – Secured MSME
Business Momentum – Secured MSME Growth in both Volume & Value AUM ATS in ₹ Lakhs Disbursement Value Disbursement Volume YoY: 46% YoY: 15% YoY: 20% QoQ: 9% QoQ: 2% QoQ: -1% 5704 7605 7493 5246 724 713 6230 3920 9.38 9.66 632 10.14 Q4 FY 23 Q3 FY 24 Q4 FY 24 Q4 FY 23 Q3 FY 24 Q4 FY 24 Q4 FY 23 Q3 FY
Slide 15: Business Momentum – Co-origination
Business Momentum Co-origination – Validates our profitable origination Co-origination Disbursement (₹ Cr) Co-origination AUM (₹ Cr) %1 22% 19% 22% 16% 18% 20% 1,116 162 962 137 135 613 Q4 FY 23 Q3 FY 24 Q4 FY 24 Q4 FY 23 Q3 FY 24 Q4 FY 24 1Percentage is on Total Secured MSME Loans 14
Slide 16: Business Momentum – Branch distribution
Business Momentum No concentration risk & well distributed growth Present in 16 states, 2 UTs covering 149 cities via 183 branches Driven by steady rise in AUM per branch # Branches 40 29 114 183 <12 months >12 & <36 months >36 months 4 1 3 11 60 ₹ Cr 3 49 25 50 45 6 11 43 7 38 40 31 31 86 12 4 30 2
Slide 17: Technology Landscape
Technology Landscape Lead Generation Customer Credit Underwriting Pre-Disbursal Loan Disbursal Loan Servicing Onboarding • Digital Form • PD with customer • E-Nach • Digital Disbursal • Customer App • Feet on Street • OKYC/EKYC • CAM Summary • E-Sign IMPS/RTGS/NEFT • CRM Platform • Mobile App • PAN
Slide 18: Credit Underwriting
Credit Underwriting Tailored to service underserved, underbanked informal customers Most small businesses in India SBFC's business model, backed by experience in this segment have challenges • Credit officer spends time to understand income & cash flow (documented + non-documented) at family Partial
Slide 19: Credit Underwriting
Credit Underwriting Quality borrowers with credit score above 700 Over 84% AUM from customers with CIBIL >7001,2 Granular loan book with high quality collateral1 0/-1 7.4% 7.5% 7.9% <650 4.3% 2.1% 1.2% 8.5% 7.7% 6.6% 94% 43.6% > 650 & < 700 AUM secured by self occupied LTV residential / commercial p
Slide 20: Credit Indicators
Credit Indicators Gross NPA %1 Net NPA %2 1.58% 2.57% 2.43% 2.38% 1.36% 1.36% PCR 39.3% 43.5% 44.7% Q4 FY 22-23 Q3 FY 23-24 Q4 FY 23-24 Q4 FY 22-23 Q3 FY 23-24 Q4 FY 23-24 1+ DPD %3 Collections Efficiency %4 5.61% 5.59% 97.28% 97.47% 98.30% 5.11% Q4 FY 22-23 Q3 FY 23-24 Q4 FY 23-24 Q4 FY 22-23 Q3 FY
Slide 21: ECL Provisions Summary
ECL Provisions Summary As on March 31, 2024 Stage 1 Stage 2 Stage 3 Total Gross Loans Outstanding 5,543 260 144 5,947 ECL Provision 33 13 64 110 Net Loans Outstanding 5,510 247 80 5,837 ECL Provision % 0.59% 5.02% 44.74% 1.86% As on December 31, 2023 Stage 1 Stage 2 Stage 3 Total Gross Loans Outstan
Slide 22: Collections Approach
Rework icons Collections Approach In-house, on-ground collections teams – 97% collected digitally On-ground Teams Scalable Structure Adaptable collection strategy as per loan stage Loan Stage Branch staff Branch area- from local area + limited radius Normal • Call center autodial quick attention to
Slide 23: Financial Performance – Quarterly Trends in KPIs
Financial Performance Quarterly Trends in KPIs AUM Yield Spread YoY : 38% (₹cr) QoQ : 9% 6822 17.62%1 6266 8.31%1 17.18% 4943 7.79% 17.17% 7.56% 16.50% 7.86% Q4 FY 23 Q3 FY 24 Q4 FY 24 Q4 FY 23 Q3 FY 24 Q4 FY 24 Q4 FY 23 Q3 FY 24 Q4 FY 24 Opex to AAUM Gross NPA RoAAUM 11.84% 10.77% 11.90% RoATE 2.57
Slide 24: Financial Performance – Annual Trends in KPIs
Financial Performance Annual Trends in KPIs AUM Yield Spread YoY : 38% (₹cr) 7.70%1 6822 17.08%1 4943 7.48% 7.57% 16.95% 16.88% 16.12% 7.47% FY 23 FY 24 FY 23 FY 24 FY 23 FY 24 Opex to AAUM Gross NPA RoAAUM 11.12% 11.28%* RoATE 2.57% 4.14% 5.77% 2.43% 3.75% 5.34% FY 23 FY 24 FY 23 FY 24 FY 23 FY 24
Slide 25: Sources of Borrowing
Sources of Borrowing Lenders to the Company Diversified Borrowing Mix Public Sector Banks 11.6% 1.0% 8.0% 0.8% 18.5% 32.0% Private Sector 8.6% Banks 30.3% 17.0% 0.3% 37.3% 8.7% Financial 5.3% 9.7% 10.9% Institutions (FIs) NCD Private Sector Bank NCD Private Sector Bank Financial Institutions Public
Slide 26: ALM – March 2024
ALM – March 2024 Surplus 594 469 Upto 3 months 1,063 998 871 Upto 6 months 1,869 1,740 Upto 1 Year 969 2,709 3,933 Upto 3 Years 444 4,377 4,279 Upto 5 Years 2,480 6,759 7,264 5+ Years 7,264 Liablilities Asset All figures in ₹ Cr 25
Slide 27: Profit & Loss Account for Q4 FY24
Summary Financial Statements – Profit & Loss Account for Q4 FY24 Quarter Ended Growth (%) Particulars H1 FY24 March 2024 December 2023 March 2023 Q-o-Q Y-o-Y Performance Interest Income on Loans 248 225 173 10.3% 43.2% Interest Income other than on Loans 10 12 16 Fee & Other Income 22 27 20 Total In
Slide 28: Profit & Loss Account for FY24
Summary Financial Statements – Profit & Loss Account for FY24 Financial Year Ended Growth (%) Particulars H1 FY24 March 2024 March 2023 Y-o-Y Performance Interest Income on Loans 866 595 45.5% Interest Income other than on Loans 52 59 Fee & Other Income 102 86 Total Income 1,020 740 37.7% Finance Co
Slide 29: ROE Tree
ROE Tree Ratios FY24 FY23 Interest Income on Loans/ Average Loan Book 17.1% 16.1% Fee & Other Income/ Average AUM 1.8% 2.2% Finance costs/ Average Borrowings 9.4% 8.7% Spread 7.7% 7.5% Net Interest Margin/ Average AUM 9.9% 9.5% Operating Expenses/ Average AUM 5.3% 5.8% Credit Cost/ Average AUM 0.8%
Slide 30: Balance Sheet
Balance Sheet Financial Year Ended Particulars March March 2024 2023 Assets Cash and Bank Balances 466 400 Derivative Instrument - - Receivables 15 11 Loan Assets 5,836 4,415 Investments 427 607 Other financial assets 7 4 Current & Deferred tax assets (Net) 6 - Property, Plant and Equipment 38 34 In
Slide 31: Corporate Social Responsibility
Corporate Social Responsibility Skill Development – NAPS / NATS Program Education - School Infrastructure Transformation 101 students, including 53 Girls, benefitted from 92 Locations 33% Females infrastructure upgrade (Fixture, Furniture, Paintings, Electrical work) at Shri Swaminarayan Vidyalaya,
Slide 32: THANK YOU!
THANK YOU! 31 PRIVATE & CONFIDENTIAL