Poonawalla Fincorp Limited · NSE:POONAWALLA
Poonawalla Fincorp — Q3 FY25 Earnings Presentation
43 slides from Poonawalla Fincorp's earnings presentation, Jan 31, 2025
Slide 1: Investor Presentation Q3FY25
Q3FY25 Investor Presentation January 31,2025 Sustainable | Predictable | Productive
Slide 2: Disclaimer
Disclaimer This presentation and the accompanying slides (the "Presentation") have been prepared by Poonawalla Fincorp Ltd. (the "Company") solely for informational purposes. They do not constitute an offer, recommendation, or invitation to purchase or subscribe for any securities. Furthermore, they
Slide 3: Table of Contents
Table of Contents 1 Key Highlights 2 Business Overview 3 Financial Overview 4 Board of Directors, Management Team, ESG and Awards
Slide 4: 1. Key Highlights
POONAWALLA FINCORP POONAWALLA, FINCORP. INTRODUCING THE SAFEST & FASTEST WAY TO GET FUNDS 1. Key Highlights
Slide 5: Financial Highlights
Financial Highlights Robust AUM growth led by right mix AUM NII PPoP ▪ Consistent growth in AUM led by right product mix (building robust AUM growth QoQ) ₹30,984 Cr ₹672 Cr ₹373 Cr ▪ Secured on-book mix at 54% 41% YoY 22% YoY 7% YoY ▪ Successful credit recalibration of incremental 9% QoQ 4% QoQ 34%
Slide 6: Table of Contents
Table of Contents 1 Key Highlights 2 Business Overview ✓ Vision and Strategy ✓ Assets ✓ Liability ✓ Risk Management 3 Financial Overview 4 Board of Directors, Management Team, ESG and Awards
Slide 7: 2. Business Overview
POONAWALLA FINCORP INTRODUCING THE SAFEST & FASTEST WAY TO GET FUNDS 2. Business Overview
Slide 8: Our Vision and Mission
Our Vision and Mission To be the Most Trusted Financial Services brand ➢ Trust: Denotes legacy and brand promise Vision ➢ Financial Services: Holistic term that broadly defines the current and future business expansion To help our customers succeed financially, and our values guide everything we do:
Slide 9: Way Forward
Way Forward Solidify, Expand and Scale Shaping up a Sustainable, Predictable and Productive Business Scale ▪ Sharper focus on customer FY25 Expand acquisition funnel ▪ Cross-sell to onwards ▪ Expand the new product customer cohorts at Solidify lines lower acquisition ▪ Expand ‘Phygital’ model cost ▪
Slide 10: Strengthening the core – Investments for growth
Strengthening the core – Investments for growth Aspiration for 5-6x AUM Technology over next 5 years Driving future growth and profitability ▪ Investments (Opex) of ~₹ 50 Cr per quarter for next 6 quarters to build 6 new businesses and Distribution underpin AUM growth ▪ Upgrading our technology stac
Slide 11: Optimising product mix
Optimising product mix Incubate and expand with product lines New Product Launches PL Prime Consumer Durable Shopkeeper Loans Used CVs Gold Loans Education Loans ▪ Quality of ▪ Build large customer ▪ No incremental ▪ Profit maximiser ▪ Secured business ▪ Penetration in customers franchise branch inf
Slide 12: AI-led digital strategy
AI-led digital strategy One-stop shop for customer servicing and value-added services Disbursement through App for PL has already picked-up and web-based loan applications and complete digital onboarding will be replicated for other products as well Digital Onboarding Account Aggregator Dedicated Cu
Slide 13: Specific AI Projects and Solutions
Specific AI Projects and Solutions 6 projects identified AI-first approach: 6 Projects across functions are underway – Delivery in 3-6 months Problem Statement Solution Approach Human Resources Human Resources Candidate resume review & matching took considerable time and Solution deployed using LLM,
Slide 14: Leveraging data analytics
Leveraging data analytics Application across Product & Credit lifecycle 1 2 3 5 6 4 Prospect Acquisition Pre-Sourcing Acquisition Fraud Control Post Sourcing Collections Application Models Behavioural Score Early Bucket Models Storage Market Insights Identify Theft Multi-Bureau Cross Sell Models Cha
Slide 15: Vertically deeper Collection Strategies
Vertically deeper Collection Strategies Next orbital shift • Leveraging analytics to enhance digital • Allocation strategies developed at micro and communication through constant stream regional level of insights • Enhance customer engagement by evolving • Predicting propensity to pay using ML and A
Slide 16: Deepening engagement with all stakeholders
Deepening engagement with all stakeholders Fostering strong relationships across the value chain Employees Channel Partners Customers • Implementation of robust • Increase partner visibility and • Holistic customer engagement engagement framework to foster a reward & recognize them in their plan vib
Slide 17: Human Resources: Planned Innovations and Goals
Human Resources: Planned Innovations and Goals HR Vision To enable both HR and employees to complete HR-related tasks with minimal effort, aiming to achieve “Zero Clicks” experience 1 Prioritizing Employee Development employee development by continuous Impact Increased engagement with employees lear
Slide 18: Table of Contents
Table of Contents 1 Key Highlights 2 Business Overview ✓ Vision and Strategy ✓ Assets ✓ Liability ✓ Risk Management 3 Financial Overview 4 Board of Directors, Management Team, ESG and Awards
Slide 19: Well diversified product suite
Well diversified product suite Tailored to target our focused segment • Loan ₹2 lakh to ₹75 lakhs • Tenure: 12 to 72 months Pre- Owned Car • Loan from ₹1 lakh upto ₹50 lakhs Personal • Tenure: 12 to 60 months Loan Business • Loan from ₹5 lakh to ₹75 lakhs Loan • Tenure: 6 to 48 months Product Offeri
Slide 20: Phygital Distribution Model
Phygital Distribution Model An architecture for customer sourcing App Website Social Media Sourcing of customers through direct, Sourcing of customers through other DSAs and call centers Channels for various product offerings Other Physical Digital Channels In-house sourcing of customers through web
Slide 21: Assets Under Management
Assets Under Management Growth in AUM targeting right mix ▪ Robust growth momentum in AUM ▪ Right balance of Secured to Unsecured on-book mix at 54:46 Assets under Management [₹ crore] AUM Mix +41%YoY MSME [Secured+Unsecured] 36% 30,984 26,972 28,396 Personal and Consumer 24% 25,003 21,946 Loan Agai
Slide 22: Table of Contents
Table of Contents 1 Key Highlights 2 Business Overview ✓ Vision and Strategy ✓ Assets ✓ Liability ✓ Risk Management 3 Financial Overview 4 Board of Directors, Management Team, ESG and Awards
Slide 23: Credit Rating
Credit Rating Highest rating - AAA Long-term Ratings* Short-term Ratings** CRISIL Ratings CARE Ratings CRISIL Ratings CARE Ratings Q3FY25 AAA/Stable Q3FY25 A1+ *Long-term rated instruments includes Bank Facilities, NCD and Subordinated Debt | **Short-term rated instrument includes Commercial Paper 2
Slide 24: Composition of Borrowings
Composition of Borrowings Well diversified liability profile ▪ Total borrowings as on Dec 31, 2024, at ₹ 21,338 crore. Further diversification of funding mix with maiden ECB of ₹ 1,477 crore ▪ 65% of borrowings are on variable rate ▪ Healthy mix of Short-term and Long-term borrowing ensuring positiv
Slide 25: Optimizing Cost of Borrowing
Optimizing Cost of Borrowing CoB lower 4bps QoQ despite tight liquidity condition and elevated interest rate environment 10.00% 9.50% 9.00% 8.50% 8.17% 8.16% 8.10% 8.00% 8.04% 7.98% 7.99% 8.06% 7.90% 8.00% 7.54% 7.54% 7.50% 7.16% 6.97% 7.00% 6.50% Repo rate hike → 6.00% Q3FY22 Q4FY22 Q1FY23 Q2FY23 Q
Slide 26: ALM statement and Liquidity
ALM statement and Liquidity Structural Liquidity Statement as on December 31, 2024 Liquidity as on Dec 31, 2024, for PFL stood at ₹ 4,808 crore in the form of cash, cash equivalents and undrawn bank lines Cumulative inflows (₹ crore) Cumulative outflows (₹ crore) 35,511 35,511 30,471 27,561 27,253 2
Slide 27: Table of Contents
Table of Contents 1 Key Highlights 2 Business Overview ✓ Vision and Strategy ✓ Assets ✓ Liability ✓ Risk Management 3 Financial Overview 4 Board of Directors, Management Team, ESG and Awards
Slide 28: Risk Management integrated into the strategy
Risk Management integrated into the strategy Comprehensive risk management framework GE M E N T A R C HI T ANA E CT Risk Management Strategy KM UR R IS E Focus on Retail Creating a granular retail loan portfolio with low concentration risk Lending and prudent mix of secured and unsecured offerings C
Slide 29: Table of Contents
Table of Contents 1 Key Highlights 2 Business Overview 3 Financial Overview 4 Board of Directors, Management Team, ESG and Awards
Slide 30: 3. Financial Overview
POONAWALLA FINCORP POONAWALLA, FINCORP. INTRODUCING THE SAFEST & FASTEST WAY TO GET FUNDS 3. Financial Overview
Slide 31: Net Interest Income (NII) and Operating Expense
Net Interest Income (NII) and Operating Expense Consistent growth in net interest income; Stable Opex ratio NII (₹ crore) Opex to Average AUM ratio 6.0% +22% YoY 5.4% 5.0% 676 645 672 641 4.0% 550 4.4% 4.0% 4.0% 4.2% 3.0% 3.9% 2.0% 1.0% 0.0% Q3FY24 Q4FY24 Q1FY25 Q2FY25 Q3FY25 Q3FY24 Q4FY24 Q1FY25 Q2
Slide 32: Asset Quality Trend
Asset Quality Trend Reduction in Gross NPA; Adequately Provisioned ➢ GNPA reduced by 25bps QoQ to 1.85% ➢ PCR stands at 56.79% ➢ NNPA at 0.81% GNPA and NNPA Particulars (₹ crore) Dec-23 Mar-24 Jun-24 Sep-24 Dec-24 GNPA NNPA Stage 1 Assets 19,706 22,204 23,903 24,771 27,811 Stage 2 Assets 745 615 713
Slide 33: Profitability
Profitability Building blocks for sustainable and predictable profitability PPoP (₹ crore) PBT and PAT (₹ crore) +7% YoY 357 265 385 332 390 292 409 432 25 19 373 350 279 -471 -630 Q3FY24 Q4FY24 Q1FY25 Q2FY25 Q3FY25 Q3FY24 Q4FY24 Q1FY25 Q2FY25 Q3FY25 PBT PAT RoA 5.31% 5.73% 4.62% ▪ PPoP grew by 7% Q
Slide 34: Profit & Loss Statement
Profit & Loss Statement ₹ crore Q3FY24 Q2FY25 Q3FY25 Total Interest Income 714 911 999 Interest expenses 224 352 385 Net Interest Income (NII) 491 559 614 Fee & Other Income 59 86 58 NII (inc. fees and other income) 550 645 672 Operating expenses 200 366 299 Operating profit 350 279 373 Credit cost
Slide 35: Balance Sheet
Balance Sheet ₹ crore Dec 31, 2023 Sep 30, 2024 Dec 31, 2024 Cash & Bank Balances 198 138 114 Receivables 66 15 30 Loans 19,415 24,646 27,962 Investments 743 1,239 1,230 Other Financial Assets 342 213 199 Non-Financial Assets 468 701 697 Total Assets 21,232 26,952 30,232 Borrowings 12,472 18,107 21,
Slide 36: Table of Contents
Table of Contents 1 Key Highlights 2 Business Overview 3 Financial Overview 4 Board of Directors, Management Team, ESG and Awards
Slide 37: 4. Board of Directors, Management Team, ESG and Awards
4. Board of Directors, Management Team, ESG and Awards
Slide 38: Board of Directors
Board of Directors Commanding the course with the best governance standards Ms. Sonal Sanjay Modi Mr. Kewal Kundanlal Handa Mr. Adar Poonawalla Mr. Arvind Kapil Mr. Sunil Samdani Non -Executive Director Independent Director Chairman & Non- Managing Director Executive Director Executive Director & CE
Slide 39: Management Team
Management Team Leading the next phase of growth Mr. Arvind Kapil Mr. Sunil Samdani Mr. Sanjay Miranka Mr. Shriram V. Iyer Mr. Vikas Pandey Mr. Veeraraghavan lyer Managing Director & CEO Executive Director Chief Financial Officer Chief Credit & Analytics Chief Business Officer - Chief Business Offic
Slide 40: ESG delivering sustainable long-term value to stakeholders
ESG delivering sustainable long-term value to stakeholders Prioritising responsible business practices Our Approach Metrics Environment 5575.05 GJ 0.40 tCO2/H Implemented energy saving Total Scope 1 and Scope 2 We are committed to sustaining our environment by Total energy measures emissions intensi
Slide 41: Awards and Accolades
Awards and Accolades Industry Recognition for our brand Human Resource Certified as a great India’s Best Recognised as The workplace by Great Workplace in Most Preferred Place To Work Health & Wellness Workplace (GPTW) from January 2023 2023-24 2024 Brand & Marketing Risk Management The Great Indian
Slide 42: Shareholding Pattern
Shareholding Pattern Shareholding Pattern (Quarter ending Dec, 2024) Top Institutional Investors Kotak Mahindra Mutual Fund Others SBI Life Insurance 18.62% Life Insurance Corporation of India (24.66%) Amansa Holdings Private Limited Bank Muscat India Fund Promoter and Franklin Templeton India Fund
Slide 43: Thank You!
Thank You! For further information, please contact: Team – Investor Relations Investor.relations@poonawallafincorp.com www.poonawallafincorp.com CIN : L51504PN1978PLC209007