Muthoot Capital Services Ltd. · NSE:MUTHOOTCAP

Muthoot Capital Services — Q2 FY2017 Earnings Presentation

36 slides from Muthoot Capital Services's earnings presentation, Oct 24, 2016

  1. Slide 1: Board Presentation dated 24th October 2016

    Board Presentation dated 24th October 2016 Quarter ended 30th September 2016 1

  2. Slide 2: Performance Analysis

    PERFORMANCE ANALYSIS CAPITAL

  3. Slide 3: Financial Statement – Q2 FY16 vs Q2 FY17

    FINANCIAL STATEMENT – Q2 FY 16 ₹. In Crores V/sFinancial Q2 FY 17 Snapshot Quarter Ended Variance % Sep-’15 Sep-’16 Disbursement : Hyp Loans 193. 49 273. 30 79. 81 41.2% Other Loans 17. 26 31. 31 14. 05 81.4% Total Disbursements 210. 75 304. 61 93. 86 44.5% AUM at the end of the period 919. 44 *1081

  4. Slide 4: Financial Statement – Q1 FY17 vs Q2 FY17

    FINANCIAL STATEMENT – Q1 FY 17 V/s Q2 FY 17 Quarter Ended ₹. In Crores Financial Snapshot Variance % Jun-’16 Sep-’16 Disbursement : Hyp Loans 232. 67 273. 30 40. 63 17.5% Other Loans 23. 52 31. 31 7. 79 33.1% Total Disbursements 256. 19 304. 61 48. 42 18.9% AUM at the end of the period 1090. 34 *108

  5. Slide 5: Summary Financial Statement

    SUMMARY FINANCIAL ₹. In Crores STATEMENT Financial Snapshot Half Year Ended Y-o-Y Year ended Sep-’15 Sep-’16 Mar-’16 Disbursement : Hyp Loans 359. 21 505. 99 40.9% 780. 03 Other Loans 47. 60 54. 83 15.2% 147. 94 Total Disbursements 406. 81 560. 82 37.9% 927. 97 AUM at the end of the period 919. 44 *

  6. Slide 6: Statement of Sources and Application

    STATEMENT OF SOURCES AND APPLICATION As At As At ₹. In Crores Sources Applications 30-Sep-15 31-Mar-16 30-Sep-16 30-Sep-15 31-Mar-16 30-Sep-16 Share Capital 12. 47 12. 47 12. 47 Fixed assets 1. 93 1.83 2. 18 Reserves & Surplus 130. 75 135.42 147. 96 Investments* 18. 72 19.41 19. 96 Bank Borrowings 6

  7. Slide 7: Performance Highlights – Q2 FY17

    PERFORMANCE HIGHLIGHTS – Q2 FY ‘17 ₹ in crores ₹ in crores ₹ in crores ₹ in crores ₹ in crores In ₹ ₹ in crores Disbursements Loan Book Size Revenue Loan Loss Prov PAT EPS NPA** ROA ROE 304.6 *1170.0 70.1 4.1 8.1 6.5 66.6 3.2% 20.6% 26% 45% 28% 24% 25% 31% 10% 11% 26% 31% 11% 11% 3% 17% 210.8 919.44

  8. Slide 8: Main Factors Impacting Profitability - Delinquencies

    MAIN FACTORS IMPACTING PROFITABILITY - DELINQUENCIES ₹. In Crores Particulars Q1 FY ‘16 Q2 FY ‘16 Q3 FY ‘16 Q4 FY ’16 For FY ‘16 Q1 FY ‘17 Q2 FY ’17 Unrealized Income 2.90 0.31 0.39 - 0.48 3.12 1.33 -0.20 Loss on sale + Provision for diminution in value of repo. assets 2 .16 1.49 2.52 3.30 9.07 2.81

  9. Slide 9: Sales Analysis

    SALES ANALYSIS CAPITAL

  10. Slide 10: Statewise Disbursement (Hyp Loans) - H1 FY16 vs H1 FY17

    STATEWISE DISBURSEMENT (HYP LOANS) - H1- FY ‘16 V/s H1- FY ‘17 ₹.in Crores DEALER BRANCH TOTAL Contributi H1 – FY ‘16 H1 – FY ‘17 H1 – FY ‘16 H1 – FY ’17 H1 – FY ‘16 H1 – FY ‘17 STATE % of on (%) Count Value Count Value Count Value Count Value Count Value Count Value Growth H1 FY ‘17 ANDHRA PRADESH

  11. Slide 11: Collection Analysis

    | COLLECTION ANALYSIS | CAPITAL

  12. Slide 12: Collection Performance Monitoring

    COLLECTION PERFORMANCE MONITORING ₹ in Crores (HYP) BUCKETWISE FLOW COLLECTION PERFORMANCE 60% 221 203 186 201 6.9% 178 6.9% 9.7% 50% 7.8% 7.7% 40% 92.2% 92.3% 90.3% 93.1% 93.1% 30% Q2 FY '16 Q3 FY '16 Q4 FY '16 Q1 FY '17 Q2 FY' 17 Soft Bucket Hard bucket Coll(> 90 DPD) 20% 10%  In absolute terms t

  13. Slide 13: Collection – Bucket Wise Flow

    COLLECTION – BUCKET WISE FLOW Bucket flow NPA roll Month 0 1 to 30 31 -60 61 -90 91- 120 back Sep’15 5% 35% 45% 49% 45% 7% Oct’15 4% 35% 47% 48% 47% 4% Nov’15 5% 35% 48% 50% 47% 4% Dec’15 3% 29% 40% 42% 38% 6% Jan’16 4% 32% 43% 43% 38% 7% Feb’16 3% 29% 38% 38% 35% 8% Mar’16 2% 23% 26% 29% 31% 6% Apr

  14. Slide 14: Portfolio Trend

    PORTFOLIO TREND Month HYP AUM 30+ 90+ 30+% 90+% PORTFOLIO TREND 01-Oct-15 841.17 149.20 93.30 17.74% 11.09% 30.0% 01-Nov-15 848.15 151.34 96.34 17.84% 11.36% 25.0% 01-Dec-15 859.96 154.52 100.32 17.97% 11.67% 20.0% 01-Jan-16 863.17 151.70 98.10 17.57% 11.37% 15.0% 01-Feb-16 878.75 150.22 97.32 17.09

  15. Slide 15: NPA Movement (Hyp Loan) – Q2 FY17

    NPA MOVEMENT ( HYP LOAN) – Q2 FY ‘17 ₹. In Crores Two Wheeler Three Wheeler Total Particulars HP Nos Principal HP Nos Principal HP Nos Principal Balance as on 30.06.2016 35 022 61.10 1 799 8.13 36 821 69.22 Add: Slippage into NPA 6 387 11.51 134 0.27 6 519 11.78 Sub total 41 409 72.61 1 933 8.40 43

  16. Slide 16: NPA Movement (Hypo Loan) – Across 5 Quarters

    NPA MOVEMENT (HYPO LOAN) – ACROSS 5 QUARTERS ₹. In Crores Particulars Q1 ‘16 Q2 ‘16 Q3 ‘16 Q4 ‘16 Q1 ‘17 Q2 ‘17 Opening Balance 32.54 59.70 59.87 62.06 54.03 69.22 Slippage due to NPA Policy change 21.38 - - - 15.91 - Fresh slippages during the period 16.75 11.94 13.59 9.59 12.63 11.78 Sub Total 70.

  17. Slide 17: Strategic Changes…

    Strategic Changes… Portfolio bifurcation  TN portfolio bifurcated to three and formed separate teams to handle each areas.  Strong regional agencies were appointed with individual target for improved reach and efficiency.  Monthly shuffling of cases to ensure no agency is holding a delinquent acc

  18. Slide 18: Way Forward… Challenges and Solutions

    WAY Challenges FORWARD…Solutions Getting quality manpower and Outsourcing as an alternative retaining them continues to be the considering the flexibility of operation biggest challenge and control Increased default ratio To introduce innovative repayment models such as paytm, direct to bank, paymen

  19. Slide 19: Analysis - Quarters

    ANALYSIS - 5 QUARTERS CAPITAL

  20. Slide 20: Analysis of Cost & Yield (Last 5 Quarters)

    ANALYSIS OF COST & YIELD (LAST 5 QUARTERS) EFFECTIVE RATE SL.No. Description of Loan Q2 FY ‘16 Q3 FY ‘16 Q4 FY ‘16 Q1 FY ‘17 Q2 FY ‘17 1 Hypothecation 26.1% 25.4% 27.3% 25.3% 26.2% 2 Loan Buyout 16.0% 15.9% 15.8% 15.7% 15.5% 3 Term Loan 16.0% 15.8% 15.7% 15.6% 4 DPN Loans 19.6% 18.8% 19.8% 21.1% 21.

  21. Slide 21: Expense as Percentage of Revenue – Q-o-Q

    EXPENSE AS PERCENTAGE OF REVENUE – Q – o-Q Employee Benefit Expense Finance Cost Other expenses (Incl Dep.) Loan Loss Provisions Tax Expenses Profit 10.9% 10.5% 10.8% 7.0% 11.5% 3.9% 6.0% 5.7% 6.5% 10.9% 6.2% 5.8% 7.4% 7.3% 5.9% 18.9% 18.7% 20.2% 19.5% 20.3% 38.4% 38.2% 39.3% 35.2% 37.6% 20.0% 19.6%

  22. Slide 22: Average Ticket Size, LTV, IRR and Processing Fee

    Average LTV Average Ticket Size(In ₹) 72.0% 72.2% 72.0% 46 932 47 938 47 910 48 280 70.4% 70.4% 46 232 Q2 16 Q3 16 Q4 16 Q1 17 Q2 17 Q2 16 Q3 16 Q4 16 Q1 17 Q2 17 Average IRR & Processing fee on disbursements 25.3% 25.2% 27.6.% 29.6% 29.7% 5.2% 5.5% 6.3% 5.1% 5.0% 20.2% 20.2% 22.4% 24.1% 23.4% Q2 16

  23. Slide 23: Loans Disbursed, Disbursement, Loan Book Size and Revenue

    No. of Loans Disbursed (Hypo Disbursement (Hypo Loan) (₹ In Loan) 48 971 48 566 56 612 Crores) 41 852 273 39 646 235 233 193 186 Q2 16 Q3 16 Q4 16 Q1 17 Q2 17 Q2 16 Q3 16 Q4 16 Q1 17 Q2 17 Loan Book Size- All Loans (₹ In Revenue (₹ In Crores) Crores) 63 64 70 57 58 1170 1039 1090 919 934 Q2 16 Q3 16

  24. Slide 24: NII, OPEX as a % of NII, Loan Loss Provision

    NII (₹ In Crores) OPEX as a % of NII 63.2% 62.0% 62.1% 64.2% 62.3% 43.7 41. 1 39.0 34. 8 35. 8 Q2 16 Q3 16 Q4 16 Q1 17 Q2 17 Q2 16 Q3 16 Q4 16 Q1 17 Q2 17 Loan Loss Provision and write offs (₹ In Crores) 7.0 4. 3 4. 6 4. 1 3. 3 Q2 16 Q3 16 *Q4 16 Q1 17 Q2 17 24 * Includes ₹ 3.04 crores being NPA wri

  25. Slide 25: PAT, EPS, Capital Adequacy Ratio, ROA and ROE

    PAT (₹ In Crores) Earning Per Share (In ₹) 8. 06 6.5 6. 87 5.5 6. 18 6. 06 5.0 4.9 4. 48 3.6 Q2 16 Q3 16 Q4 16 Q1 17 Q2 17 Q2 16 Q3 16 Q4 16 Q1 17 Q2 17 Capital Adequacy Ratio Return on Avg Loan Book & Return on Avg 17.2% Equity 17.0% 20.6% 16.3% 16.4% 17.6% 18.5% 16.6% 14.0% 15.4% 2.8% 2.6% 2.9% 1.

  26. Slide 26: Asset Analysis

    ASSET ANALYSIS CAPITAL

  27. Slide 27: MCSL Geographic Overview - HYP

    MCSL GEOGRAPHIC ₹ in Crores OVERVIEW- HYP No:of Active Portfolio Name of state hubs clients Regular NPA % of NPA South India 3 45 408 904.73 60.11 6.23% Punjab Andhra Pradesh 5 28 906 77.12 6.09 7.32% Haryana Karnataka 4 76 054 165.07 14.93 8.29% Delhi Rajasthan Kerala *9 1 77 484 519.51 18.57 3.45%

  28. Slide 28: Break Up of HYP Loan, Segment-Wise Analysis

    Break Up of HYP Loan (Values In ₹. Crores, Segment-Wise Analysis(Values In ₹ Crores, %) %) 66.5 1030.7 10.5 2.1 6.4% 94.12% 44.00% 97.76% 93.6% 976.8 5.9% 2.2% 56.0% Two Wheeler Three Wheeler Others NPA Regular NPA REGULAR Bucket-Wise Analysis (Based on Value) Source-Wise Analysis(Values In ₹ Crores

  29. Slide 29: Portfolio Split as on 30.09.2016

    PORTFOLIO SPLIT AS ON 30 .09. 2016 PORTFOLIO Managed portfolio 9% 95.73 947.55 Owned Portfolio 91% Owned Portfolio Managed portfolio 29

  30. Slide 30: Liability Analysis

    LIABILITY ANALYSIS CAPITAL

  31. Slide 31: Borrowing Profile

    BORROWING ₹ in Crores PROFILE Q2 FY ‘16 Q1 FY ‘17 Q2 FY ‘17 Particulars Amount Cost Amount Cost Amount Cost Bank Loan 629. 63 11.6% 768.10 11.1% 736.51 11.1% Sub Debt 10. 63 13.3% 31.40 11.8% 31.56 12.1% Public Deposit 120. 49 10.2% 105.50 9.9% 113.08 9.5% Loan From Directors 8. 98 12.0% 13.60 12.0%

  32. Slide 32: Management Discussion & Analysis

    MANAGEMENT DISCUSSION & ANALYSIS CAPITAL

  33. Slide 33: Management Discussion & Analysis

    MANAGEMENT DISCUSSION & ANALYSIS……  The strong momentum of the previous quarters continued ; a disbursement of ₹ 305 crs  ‘Ladies Only’ scheme disbursement - ₹ 27.77 crs in Q2 FY17 and ₹ 301.14 crs since Q3 FY 15 i.e. since launch; (delinquency of > 90 dpd being 1.95% of the total outstanding amou

  34. Slide 34: Management Discussion & Analysis

    MANAGEMENT DISCUSSION & ANALYSIS  During the quarter we had a PTC transaction of ₹ 111 crs with IFMR Capital and DCB; helped reduce dependence on Bank funding and hence reduce overall cost; also helped improve CRAR to 17.0% ;  Monthly staff attrition reduced to 2.74 % in Q2 FY ‘17 v/s full year at

  35. Slide 35: Management Discussion & Analysis… Going Forward

    MANAGEMENT DISCUSSION & ANALYSIS… GOING FORWARD  The disbursement has been in line with the budget and hope is for an even better 3rd quarter; The profitability has been in line with budget; hope to maintain this trend.  Geographical expansion –Network expansion on; Penetration in present states i

  36. Slide 36: Thank You

    [ THANK YOU CAPITAL

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