Muthoot Capital Services Ltd. · NSE:MUTHOOTCAP

Muthoot Capital Services — Q1 FY2018 Earnings Presentation

35 slides from Muthoot Capital Services's earnings presentation, Jul 26, 2017

  1. Slide 1: Board Presentation dated 26th July 2017, Quarter ended 30th June 2017

    Board Presentation dated 26th July 2017 Quarter ended 30th June 2017

  2. Slide 2: Performance Analysis

    PERFORMANCE ANALYSIS PAPPACHAN CAPITAL J

  3. Slide 3: Quarterly Trend Full Year Trend

    ₹. In Crores Quarterly Trend Full Year Trend Q4 FY 17 Q1 FY 18 Q-o-Q Q1 FY 17 Y-o-Y FY 16 FY 17 Y-o-Y Disbursement : Hyp Loans 358.1 340.6 -4.9% 232.7 46.4% 780.0 1135.0 45.5% Other Loans 65.0 31.2 -52.0% 23.5 32.8% 147.9 162.8 10.1% Total Disbursements 423.1 371.8 -11.1% 256.2 45.1 927.9 1297.8 39.

  4. Slide 4: Sources and Applications of Funds

    ₹. In Crores As At As At Sources Applications 30-June-16 31-Mar-17 30-June-17 30-June-16 31-Mar-17 30-June-17 Share Capital 12.47 12.47 13.72Fixed assets 1.88 2.59 2.84 Reserves & Surplus 139.90 165.51 170.35Investments 19.93 28.22 31.31 Bank Borrowings 768.10 814.82 919.73Deferred Tax Assets 5.98 6

  5. Slide 5: Disbursement, Revenue, Loan Book Size, NPA, PAT, EPS, ROA, ROE

    ₹ in crores ₹ in crores ₹ in crores ₹ in crores Disbursement Loan Book Size Revenue Loan Losses & Provision Q-o-Q Y-o-Y Q-o-Q Y-o-Y Q-o-Q Y-o-Y Q-o-Q Y-o-Y 371.8 371.8 1558.6 1558.6 79.8 79.8 9.2 9.2 12 24 74 45 8 43 0 31 % % % % % % % % 423.1 256.2 1439.7 1090.3 79.8 64.3 5.3 7.0 ₹ in crores ₹ in c

  6. Slide 6: Credit Cost

    ₹. In Crores Particulars For FY ‘16 Q1 FY ’17 Q2 FY ’17 Q3 FY ‘17 Q4 FY ‘17 For FY ‘17 Q1 FY ’18 Unrealized Income 3.1 1.3 -0.2 1.2 0.0 2.3 2.0 reversed Loss on sale + Provision for diminution in value of repo. 9.1 2.8 3.2 2.5 3.4 11.9 2.6 assets 3.0 0 0 0 1.7 1.7 0 NPA write off 4.0 3.6 1.0 3.1 -0.

  7. Slide 7: Sales Analysis

    SALES ANALYSIS PAPPACHAN CAPITAL /

  8. Slide 8: Branch and Dealer Disbursement Growth by Zone

    ₹. In Crores MFL Branch Dealer Total Zone Growth% June ‘16 June ‘17 June ‘16 June ‘17 June ‘16 June ‘17 Count Value Count Value Count Value Count Value Count Value Count Value East 16 0.07 68 0.33 244 1.07 2 143 10.17 260 1.14 2 211 10.50 820% West 1 166 4.92 958 4.31 2 248 9.54 3 294 14.93 3 414 14

  9. Slide 9: Collection Analysis

    COLLECTION ANALYSIS PAPPACHAN CAPITAL /

  10. Slide 10: Bucket Wise Flow and Collection Performance

    ₹.in Crores Bucket Wise Flow Collection Performance 60% 258 259 221 226 7.9% 5.4% 50% 203 7.0% 5.1% 6.9% 40% 93.1% 93.0% 94.9% 92.1% 94.6% 30% Q1 FY '17 Q2 FY' 17 Q3 FY '17 Q4 FY '17 Q1 FY '18 20% Soft Bucket(1-90DPD) Hard bucket Coll(> 90 DPD) 10% ₹.in Crores Q1 FY '17 Q2 FY' 17 Q3 FY '17 Q4 FY ‘ 1

  11. Slide 11: Monthly Bucket Flow and NPA Roll Back

    Bucket flow NPA roll Month 0 1 to 30 31 -60 61 -90 91- 120 back Jun’16 4% 24% 32% 36% 27% 7% Jul’16 4% 27% 34% 37% 26% 7% Aug’16 4% 26% 30% 33% 28% 8% Sep’16 6% 32% 37% 41% 26% 6% Oct’16 5% 27% 31% 36% 27% 6% Nov’16 15% 55% 58% 65% 58% 3% Dec’16 4% 28% 38% 46% 34% 6% Jan’ 17 5% 22% 33% 43% 35% 6% Fe

  12. Slide 12: Portfolio Trend

    ₹.in Crores Month AUM 30+ 90+ 30+% 90+% Portfolio Trend 01-Jul-16 971 150.0 94.0 15.4% 9.7% 30.0% 01-Aug-16 985 151.0 93.7 15.3% 9.5% 25.0% 01-Sep-16 1 004 150.3 91.0 15.0% 9.1% 20.0% 01-Oct-16 1 043 156.4 92.0 15.0% 8.8% 15.0% 01-Nov-16 1 075 158.7 92.5 14.8% 8.6% 01-Dec-16 1 100 190.5 103.8 17.3%

  13. Slide 13: Live Accounts – Cash v/s NACH Mode

    Live Accounts – Cash v/s NACH Mode Monthly NACH Disbursement Month Total Disbursement NACH MODE % NACH CASH Jan-17 22 146 22 146 100% 97% 90% 99% Feb-17 22 379 22 341 99.83% 74% Mar-17 26 567 26 506 99.77% 61% Apr-17 18 943 18 923 99.89% May-17 23 277 23 245 99.86% 39% June-17 25 101 25 033 99.72% T

  14. Slide 14: NPA Movement by Segment

    ₹. In Crores 2 Wheeler 3 Wheeler & others Total (Value) Particulars Count Principal Count Principal Principal Un realized Provision Balance as on 31.03.2017 41 226 71.3 874 2.89 74.1 9.4 16.6 Slipped NPA due to new NPA Policy 13 656 29.5 149 0.39 29.9 1.8 3.0 NPA amount 3M as on 31.03.2017 54 882 10

  15. Slide 15: NPA Quarterly Movement

    ₹.in Crores Particulars Q2 ‘16 Q3 ‘16 Q4 ‘16 Q1 ‘17 Q2 ‘17 Q3 ‘17 Q4’ 17 Q1 ‘18 Opening Balance 59.7 59.9 62.1 54.0 69.2 66.5 78.1 74.2 Slippage due to NPA Policy change - - - 15.9 - - 29.8 Fresh slippages during the period 11.9 13.6 9.6 12.7 11.8 20.1 13.9 16.1 Sub Total 71.6 73.5 71.7 82.6 81.0 86

  16. Slide 16: Analysis — Quarters

    ANALYSIS — 5 QUARTERS PAPPACHAN CAPITAL

  17. Slide 17: Analysis on Average Loan Book Size

    ₹. In Crores Jun-16 Sep-16 Dec-16 Mar-17 Jun-17 Analysis on Avg loan book size Amount % Amount % Amount % Amount % Amount % Avg Loan Book Size 1051.0 1022.72 1115.0 1133.0 1272.7 Revenue from operations 63.8 24.3% 69.5 27.2% 68.6 24.6% 79.4 28.0% 79.2 24.9% Direct exp. 31.1 11.8% 32.6 12.8% 32.4 11.

  18. Slide 18: Effective Rate of Yield and Cost by Loan Type

    EFFECTIVE RATE SL.No. Description of Loan Q4 FY ‘16 Q1 FY ‘17 Q2 FY ‘17 Q3 FY ‘17 Q4 FY ‘17 Q1 FY ‘18 1 Hypothecation 27.3% 25.3% 26.2% 24.3% 27.0% 24.3% 2 Loan Buyout 15.8% 15.7% 15.5% 15.5% 15.8% 15.6% 3 Term Loan 15.8% 15.7% 15.6% 15.3% 15.1% 14.8% 4 DPN Loans 19.8% 21.1% 21.2% 21.5% 20.6% 20.6%

  19. Slide 19: Composition of Yield, Cost of Funds and Spread

    Composition of Yield SLR Investment 8.0% SLR Deposit 9.3% Cost of Funds, Yield & Spread DPN Loans 20.6% 30.0% Term Loan 24.7% 25.0% 14.8% 24.0% 23.1% 25.0% 22.7% Loan Buyout 15.6% Hypothecation 24.3% 20.0% 0.0% 10.0% 20.0% 30.0% 15.0% 11.0% 10.8% 10.5% 10.1% 10.9% 10.0% Composition of Cost 5.0% Bank

  20. Slide 20: Expense and Profit Composition

    7.0% 9.2% 13.9% 7.6% 11.5% 3.9% 4.2% 5.0% 10.9% 6.2% 8.1% 7.3% 11.5% 5.9% 6.7% 19.5% 20.2% 22.4% 20.3% 23.1% 32.3% 39.3% 37.6% 37.9% 35.2% 17.4% 19.4% 18.5% 19.6% 18.4% Q1 FY '17 Q2 FY '17 Q3 FY '17 Q4 FY '17 Q1 FY '18 Employee Benefit Expense Finance Cost Other expenses (Incl Dep.) Loan Loss Provis

  21. Slide 21: Average LTV, Ticket Size, IRR and Processing Fee

    Average LTV Average Ticket Size (in ₹) 47 910 48 280 48 234 50 315 50 530 70.4% 70.4% 71.2% 72.5% 72.7% Q1 17 Q2 17 Q3 17 Q4 17 Q1 18 Q1 17 Q2 17 Q3 17 Q4 17 Q1 18 Avg. IRR & Processing Fee on Disbursement 29.6% 29.7% 28.5% 28.8% 29.6% 5.5% 6.3% 4.9% 4.9% 5.5% 24.1% 23.4% 23.6% 23.9% 24.0% Q1 17 Q2

  22. Slide 22: Disbursement, Revenue and Loan Book Size

    Disbursement Count (Hypo Loan) Disbursement - Hypo Loan (in ₹ crores) 71 172 358 341 67398 273 271 48 566 56 612 56 174 233 Q1 17 Q2 17 Q3 17 Q4 17 Q1 18 Q1 17 Q2 17 Q3 17 Q4 17 Q1 18 Revenue (in ₹ crores) Loan Book Size (in ₹ crores) 1559 80 80 1440 64 70 70 1090 1170 1269 Q1 17 Q2 17 * Q3 17 * Q4

  23. Slide 23: NII, Opex as % of NII, Loan Loss Provisions

    NII (₹ in Crores) OPEX AS % OF NII 54.0 52.0 64% 62% 64% 59% 64% 39.0 43.7 43.5 Q1 17 Q2 17 Q3 17 Q4 17 Q1 18 Q1 17 Q2 17 Q3 17 Q4 17 Q1 18 Loan Loss Prov. & Write Off (₹ in Crores) 9. 2 7.0 5. 7 5. 3 4. 1 Q1 17 Q2 17 Q3 17 Q4 17 Q1 18

  24. Slide 24: PAT, EPS, ROA, ROE and Capital Adequacy

    PAT (₹ in Crores) Diluted Earning per Share (in ₹) 11. 1 8. 1 8.1 6. 4 6. 1 5.9 4.7 4. 5 3.3 4.4 Q1 17 Q2 17 Q3 17 Q4 17 Q1 18 Q1 17 Q2 17 Q3 17 Q4 17 Q1 18 ROA & ROE Capital Adequacy Ratio 25.8% 20.6% 15.8% 14.0% 13.5% 17.0% 17.1% 17.0% 16.4% 15.8% 3.2% 3.9% 1.7% 2.3% 1.9% Q1 17 Q2 17 Q3 17 Q4 17 Q

  25. Slide 25: Asset Analysis

    ASSET ANALYSIS PAPPACHAN CAPITAL /

  26. Slide 26: Zone-wise Clients and NPA

    ₹ in Crores Active % of Zone Clients Regular NPA NPA Punjab Haryana Delhi South India 3 86 882 1092.37 85.40 7.7% Western India 28 655 67.23 10.10 13.9% North India 21 331 73.80 1.16 1.7% East India 6 612 26.61 0.23 0.9% Telangana Goa Andhra Pradesh Overall 4 43 480 1260.01 96.89 7.6% Karnataka Tami

  27. Slide 27: Portfolio, Segment, Source and Bucket Wise Analysis

    PORTFOLIO ANALYSIS SEGMENT WISE ANALYSIS 7.1% 96.9 1351.2 5.7 92.9% 93.0% 57.0% 7.0% 43.0% 1 260. Two Wheeler Three Wheeler & Others NPA REGULAR NPA Regular SOURCE WISE ANALYSIS BUCKET WISE ANALYSIS 4.2% 7.1% 4.8% 0 1117.8 239.1 9.7% 1 92.4% 94.9% 2 7.6% 5.1% 3 74.2% Dealer Branch Above 3 NPA Regula

  28. Slide 28: Own Book and Managed Portfolio

    (In ₹ Crores) Own Book 1112.0 6% 3% 4% 4% Sanada 23.9 2% Starling 51.1 Quetzal 49.7 Firefinch 43.7 82% Turaco 76.5 Portfolio 1356.9

  29. Slide 29: Liability Analysis

    LIABILITY ANALYSIS PAPPACHAN CAPITAL /

  30. Slide 30: Borrowings Amount and Cost

    ₹ in Crores Q1 FY ’17 Q4 FY ‘17 Q1 FY ‘18 Particulars Amount Cost Amount Cost Amount Cost Bank Loan 768.1 11.1% 814.8 10.5% 919.7 10.2% Debenture/ICD 3.8 11.3% 2.8 11.3% 2.6 10.8% Sub Debt 31.4 11.8% 49.7 12.0% 50.6 11.8% Public Deposit 105.5 9.9% 108.8 9.3% 99.6 8.8% Loan From Directors 13.6 12.0%

  31. Slide 31: Management Discussion & Analysis

    MANAGEMENT DISCUSSION & ANALYSIS PAPPACHAN CAPITAL /

  32. Slide 32: Continued robust growth in disbursement

    ➢ The Company continued its robust growth in disbursement, having a total disbursement of ₹ 371.8 crores in Q1 FY 18 v/s ₹ 423.1 crores Q4 FY 17 (Q4 is normally significantly higher than the subsequent 1st quarter) and ₹ 256.2 crores in Q1 FY17 ➢ Compared to the corresponding quarter of the previous

  33. Slide 33: PTC transactions, funding and attrition

    ➢ We did 1 more PTC transactions of ₹ 81.43 crs with investments from DCB Bank ( 3rd investment by them) ; helped reduce dependence on Bank funding and hence reduce overall cost. ➢ During the 1st quarter of FY 18 the Company has been able to get additional funding of a total of ₹ 250 crs from variou

  34. Slide 34: Q1 FY18 financials better than budget

    ➢ The Q1 FY 18 financials are better than the budget with a PAT of ₹ 6.1 crores v/s ₹ 4.1 crores budgeted. This is mainly on account of lower than expected NPA figures and employee costs. Finance expenses was in line with the budget while Other expenses were higher on account of higher collection co

  35. Slide 35: Thank You

    THANK YOU PAPPACHAN ey CAPITAL J

Muthoot Capital Services — Q1 FY2018 Earnings Presentation on 6ix