Sbfc Finance Limited · NSE:SBFC
Sbfc Finance — Q3 FY2025 Earnings Presentation
30 slides from Sbfc Finance's earnings presentation, Jan 25, 2025
Slide 1: Cover letter to stock exchanges
Date: 25th January, 2025 National Stock Exchange of India Limited, BSE Limited, Exchange Plaza, Plot No. C/1, G Block, Phiroze Jeejeebhoy Towers, Bandra-Kurla Complex, 21st Floor, Dalal Street, Bandra (East), Mumbai – 400051. Mumbai – 400001. NSE Symbol: SBFC BSE Equity Scrip Code: 543959 Sub: Inves
Slide 2: Investor Presentation Q3 FY 2025
Investor Presentation Q3 FY 2025
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: Executive Summary – Q3 FY25
Executive Summary – Q3 FY25 YoY QoQ Asset Under Management Disbursement1 Branches 8,148 699 197 +30% +6% -2% +4% +20 +5 Gross NPA Yield/Spread Opex to AAUM 2.70% 17.81% / 8.50% 4.62% +32 bps +1 bp +63 /+66 bps +12 / +13 bps -86 bps +2 bps PAT RoAAUM RoATE 88 4.49% 12.75% +38% +5% +18 bps -7 bps +198
Slide 5: Executive Summary
Executive Summary Team: Experienced, cycle-tested, professional 197 branches management with strong corporate governance 157 Cities 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 6: SBFC Focus Segment – Customers Borrowing ₹5 Lakh to ₹30 Lakh
SBFC Focus Segment – Customers Borrowing ₹5 Lakh to ₹30 Lakh Large segment within MSME of ₹3.2 lakh cr and growing at CAGR 24% Segment Market Size1 (₹ tn) CAGR2 (%) % of Market >₹1 cr 4.2 13.7% 40% ₹0.5 – 1 cr 1.3 17.2% 13% ₹0.3 – 0.5 cr 1.1 20.7% 10% Focus ₹0.05– 0.3 cr 3.2 24.4% 31% Segment <₹0.05
Slide 7: Our Journey
Our Journey CARE, ICRA Ratings Upgraded us to ‘AA-’ Equity Listing on NSE in Q2 FY25. and BSE. India 1,50,000 customers ratings upgraded us to ‘AA -’ Included in MSCI Global Small 8,148 Cap Index 1,00,000 customers 150 Branches 6,822 150 cr PAT Credit rating upgraded to ‘A +’ 4,943 50,000 customers
Slide 8: Management
Management Experienced, cycle-tested, professional management Aseem Dhru Mahesh Dayani Narayan Barasia Pankaj Poddar Sanket Agrawal MD & CEO Chief Business Officer Chief Financial Officer Chief Risk Officer Chief Strategy Officer & IR Sumeet Ghai Ganesh Vaidya VM Maneesh Sai Prashant Menon Namrata S
Slide 9: Board of Directors
Board of Directors Strong corporate governance backed by long term investors Neeraj Swaroop Rajesh Agrawal Surekha Marandi Chairman of the Board Jt. Managing Director, Ex Executive Director, Ex CEO – SCB, Singapore Ajanta Pharma RBI Independent Ravi Venkatraman Koni Uttam Nayak Ex Executive Director
Slide 10: Shareholding
Shareholding Shareholding Pattern Category of Shareholders % Share# 14.23% Promoter Clermont Group 54.75% 16.46% 54.75% Other Major Shareholders 4.92% SBI Mutual Fund 8.55% Amansa Capital 4.09% Malabar Funds 4.09% Aditya Birla Sun Life 2.57% Promoters Foreign Portfolio Investors Mutual Funds, AIF, I
Slide 11: Business Momentum
Simplify graphic Business Momentum Delivering Consistent AUM Growth YoY : 30% QoQ : 6% 8,148 7,715 1% CAGR: 46% 1% 6,822 16% 16% 1% 6,266 15% 2% 15% 4,943 3% 18% 3,192 83% 7% 83% 20% 84% 83% 79% 73% Mar-22 Mar-23 Mar-24 Q3 FY 24 Q2 FY 25 Q3 FY 25 Secured MSME LAG Others Secured MSME LAG Others All f
Slide 12: Business Momentum – Secured MSME
Business Momentum – Secured MSME AUM ATS in ₹ Lakhs Disbursement Value Disbursement Volume YoY: -2% YoY: -4% YoY: 29% QoQ: 7% QoQ: 4% QoQ: 3% 7,605 713 699 7,326 6,781 672 7,080 6,365 5,246 9.38 9.49 9.54 Q3 FY 24 Q2 FY 25 Q3 FY 25 Q3 FY 24 Q2 FY 25 Q3 FY 25 Q3 FY 24 Q2 FY 25 Q3 FY 25 AUM Secured MS
Slide 13: Business Momentum – Co-origination
Business Momentum Co-origination – Validates our profitable origination Co-origination Disbursement (₹ Cr) Co-origination AUM (₹ Cr) %1 19% 17% 18% 18% 21% 21% 1,407 135 1,322 124 114 962 Q3 FY 24 Q2 FY 25 Q3 FY 25 Q3 FY 24 Q2 FY 25 Q3 FY 25 1Percentage is on Total Secured MSME Loans 12
Slide 14: Business Momentum
Business Momentum No concentration risk & well distributed growth Present in 16 states, 2 UTs covering 157 cities via 197 branches Driven by steady rise in AUM per branch ₹ Cr # Branches 29 45 123 197 <12 months >12 & <36 months >36 months 1 1 4 56 12 60 3 54 7 29 11 50 43 45 10 40 10 6 13 4 30 24 1
Slide 15: 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 16: 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 17: Credit Underwriting
Credit Underwriting Quality borrowers with credit score above 700 Over 85% AUM from customers with CIBIL >7001 Granular loan book with high quality collateral1 0/-1 7.5% 6.8% 7.9% 1.2% 0.9% <650 2.1% 7.7% 6.6% 5.8% 94% 41.6% > 650 & < 700 AUM secured by self occupied LTV residential / commercial pro
Slide 18: Credit Indicators
Credit Indicators Gross NPA %1 Net NPA %2 2.69% 2.70% 2.38% 1.63% 1.63% 1.36% PCR 43.5% 40.2% 40.2% Q3 FY 23-24 Q2 FY 24-25 Q3 FY 24-25 Q3 FY 23-24 Q2 FY 24-25 Q3 FY 24-25 1+ DPD %3 Collections Efficiency %4 6.52% 97.47% 98.04% 97.88% 6.33% 5.61% Q3 FY 23-24 Q2 FY 24-25 Q3 FY 24-25 Q3 FY 23-24 Q2 FY
Slide 19: ECL Provisions Summary
ECL Provisions Summary As on December 31, 2024 Stage 1 Stage 2 Stage 3 Total Gross Loans Outstanding 6,701 199 191 7,091 ECL Provision 38 11 77 126 Net Loans Outstanding 6,663 188 114 6,965 ECL Provision % 0.56% 5.61% 40.22% 1.77% As on September 30, 2024 Stage 1 Stage 2 Stage 3 Total Gross Loans Ou
Slide 20: Collections Approach
Rework icons Collections Approach In-house, on-ground collections teams – 98% 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 21: Financial Performance
Financial Performance Quarterly Trends in KPIs AUM Yield Spread (₹cr) 17.81% 8,148 17.69% 8.37% 8.50% 7,715 6,266 7.84% 17.18% Q3 FY 24 Q2 FY 25 Q3 FY 25 Q3 FY 24 Q2 FY 25 Q3 FY 25 Q3 FY 24 Q2 FY 25 Q3 FY 25 Opex to AAUM Gross NPA RoAAUM Cost/Income 45.35% 39.63% 39.86% 10.77% 12.67% 12.75% RoATE 5.
Slide 22: Financial Performance – Trends in KPIs 9M
Financial Performance Trends in KPIs – 9M AUM Yield Spread (₹cr) 17.70% 8,148 8.38% 6,266 16.88% 7.49% 9M FY 24 9M FY 25 9M FY 24 9M FY 25 9M FY 24 9M FY 25 Opex to AAUM Gross NPA RoAAUM Cost/Income 47.17% 40.10% 10.96%* 12.58% RoATE 2.70% 5.48% 2.38% 4.54% 4.67% 3.97% 9M FY 24 9M FY 25 9M FY 24 9M
Slide 23: Sources of Borrowing
Sources of Borrowing Diversified Borrowing Mix Lenders to the Company 1.0% 10.1% 19.0% Public Sector 17.4% Banks 32.5% 14.3% 18.8% 37.5% Private Sector 2.6% Banks 0.0% 13.4% 3.6% 6.4% 5.5% 10.6% 7.3% NCD Private Sector Bank NCD Private Sector Bank Financial Financial Institutions Public Sector Banks
Slide 24: ALM – December 2024
ALM – December 2024 Surplus 646 683 Upto 3 months 1,329 1,145 999 Upto 6 months 2,144 1,893 1,135 Upto 1 Year 3,028 4,566 200 Upto 3 Years 4,766 4,896 1,681 Upto 5 Years 6,577 8,161 5+ Years 8,161 Liablilities Asset All figures in ₹ Cr 23
Slide 25: SBFC – 9M FY25 Performance
SBFC – 9M FY25 Performance Size and Growth Distribution Granular Book Asset Quality Liability Profile Profitability 8,148 % 197 99% 2.70% 2,820 251 AUM GNPA PAT # Branches % Secured Tangible Net worth YoY +30% YoY +32 bps YoY +53% % 6,781 4,125 9.43* | 0.94* 1.63% CRAR 38.4% 4.54% Secured MSME AUM E
Slide 26: Summary Financial Statements – P&L for Q3 FY25
Summary Financial Statements – Profit & Loss Statement for Q3 FY25 Quarter Ended Growth (%) Particulars December September December Q-o-Q Y-o-Y 2024 2024 2023 Interest Income on Loans 301 281 225 7.2% 34.0% Interest Income other than on Loans 6 8 12 Fee & Other Income 26 25 27 Total Income 333 314 2
Slide 27: Summary Financial Statements – P&L for 9M FY25
Summary Financial Statements – Profit & Loss Statement for 9M FY25 Nine Month Ended Growth (%) Annual Particulars December December March Y-o-Y 2024 2023 2024 Interest Income on Loans 845 618 36.7% 866 Interest Income other than on Loans 22 42 52 Fee & Other Income 78 80 102 Total Income 945 740 27.
Slide 28: ROE Tree
ROE Tree Ratios Q3 FY25 Q2 FY25 Q3 FY24 9M FY25 9M FY24 Interest Income on Loans/ Average Loan Book 17.81% 17.69% 17.18% 17.70% 16.88% Fee & Other Income/ Average AUM 1.31% 1.39% 1.83% 1.41% 1.93% Borrowing Cost/ Average Borrowings 9.31% 9.32% 9.34% 9.32% 9.39% Spread 8.50% 8.37% 7.84% 8.38% 7.49% N
Slide 29: Balance Sheet
Balance Sheet As On Particulars December September 2024 2024 Assets Cash and Bank Balances 448 259 Receivables 14 27 Loan Assets 6,965 6,596 Investments 257 281 Other financial assets 4 56 Current & Deferred tax assets (Net) 8 6 Property, Plant and Equipment etc. 307 302 Other non-financial assets 7
Slide 30: Thank You!
THANK YOU! 29 PRIVATE & CONFIDENTIAL