Csl Finance Limited · NSE:CSLFINANCE
Csl Finance — Q1 FY2025 Earnings Presentation
37 slides from Csl Finance's earnings presentation, Jul 31, 2024
Slide 1: Exchange filing cover letter
CIN: L74899DL1992PLC051462 July 31, 2024 National Stock Exchange of India BSE Limited Limited Corporate Relationship Department Exchange Plaza, C-1, Block-G, Bandra Phiroze, Jeejeebhoy Towers, Dalal Street, Kurla Complex, Bandra (E), Mumbai - Mumbai-400001 400051 BSE Scrip Code: 530067 NSE Symbol: C
Slide 2: Q1FY25 Investor Presentation
July 2024 Q1FY25 Investor Presentation
Slide 3: Quarterly Business Update
CSL FINANCE LIMITED 2 Quarterly Business Update Loan Book Size Asset Quality Asset Quality: Stage Analysis P&L Highlights Treasury Update Quarterly Financial Snapshot Operational Updates Lending Partners
Slide 4: Business Growth YoY
CSL FINANCE LIMITED 3 Business Growth YoY Q1’25 Q1’25 Q1’25 ₹1,065 Cr ₹258 Cr Consistent Performance 43% Assets Under 38% Disbursement 99% 98% Management Collection Efficiency ₹744 Cr ₹187 Cr Q1’24 Q1’24 Q1’24 Q1’25 Q1’25 Q1’25 ₹36.2 Cr ₹18.5 Cr 41:59 3% Shift in Favour 45% NII 40% PAT of Wholesale
Slide 5: Loan Book Size
CSL FINANCE LIMITED 4 Loan Book Size DISBURSEMENTS COLLECTIONS LOAN BOOK COLLECTION EFFICIENCY (₹ crore) (₹ crore) (₹ crore) (%) 38% -20% -5% -44% 43% 3% YOY Change QOQ Change YOY Change QOQ Change YOY Change QOQ Change 322 277 296 104 59 99 99 99 99 98 258 29 246 32 29 187 163 167 149 155 1,006 915
Slide 6: Asset Quality
CSL FINANCE LIMITED 5 Asset Quality GROSS NPA NET NPA PROVISION COVERAGE RATIO WRITE-OFFS & RECOVERIES (%) (%) (%) (₹ crore) -30 BPS 1 BPS -17 BPS 1 BPS YOY Change QOQ Change YOY Change QOQ Change 0.75 0.43 2.7 291 270 262 0.55 0.32 224 0.44 0.45 0.40 0.25 0.26 175 0.23 0.9 0.9 0.9 0.7 0.8 0.6 0.5 0
Slide 7: Asset Quality: Stage Analysis
CSL FINANCE LIMITED 6 Asset Quality: Stage Analysis CLASSIFICATION OF ASSETS BASIS THE ECL COMPUTATION AS PER IND-AS: PARTICULARS Q1FY24 Q4FY24 Q1FY25 Gross Stage 3 (GNPA) 5.34 4.06 4.55 % portfolio in Stage 3 0.75% 0.44% 0.45% ECL provision Stage 3 2.26 1.75 1.97 Net Stage 3 3.07 2.31 2.58 ECL Prov
Slide 8: P&L Highlights
CSL FINANCE LIMITED 7 P&L Highlights NET INTEREST INCOME TOTAL INCOME PROFIT AFTER TAX YIELDS (₹ crore) (₹ crore) (₹ crore) (%) 45% 11% 45% 10% 40% 0% YOY Change QOQ Change YOY Change QOQ Change YOY Change QOQ Change 36.2 18.3 34.0 51.4 18.6 18.5 18.1 18.1 18.0 18.3 32.6 17.7 45.7 46.9 16.6 16.9 17.
Slide 9: Treasury Update
CSL FINANCE LIMITED 8 Treasury Update LEVERAGE LIQUIDITY (Time) (₹ crore) 1 The Company has adequate liquidity of ₹ 62.0 crore & ₹ 5.0 crore as Undrawn Credit Facilities as on 30th June 2024. The Company has received total sanctions of ₹ 136.5 crore in Q1FY25. 1.10 53.0 1.09 2 The Company has positi
Slide 10: Quarterly Financial Snapshot
CSL FINANCE LIMITED 9 Quarterly Financial Snapshot (₹ crore) PARTICULARS Q1FY24 Q4FY24 Q1FY25 Disbursements 187.07 321.71 258.34 Revenue 35.49 46.92 51.36 Interest Income 31.26 49.06 46.78 PBT 18.18 23.39 24.68 PAT 13.24 18.57 18.51 Bad debts written off 0.94 0.93 2.67 Bad debts recovered 0.85 0.53
Slide 11: Operational Updates
CSL FINANCE LIMITED 10 Operational Updates LOAN BOOK NET INTEREST INCOME & PROFITABILITY BRANCH FOOTPRINT EXPANIONS • Q1 tends to be seasonally the weakest quarter. This year, a few additional factors have • Total income has witnessed a 45% growth YOY • New branch rollout is happening as per the pla
Slide 12: New Product Updates: Suvidha Loans
CSL FINANCE LIMITED 11 New Product Updates: Suvidha Loans Overview Status of Pilot 1.0 Company has undertaken the • The existing book is being completely run down pilot launch of a new product • The team is either collecting dues or writing off accounts that are 90 days past due (DPD) i.e. Suvidha L
Slide 13: Lending Partners
CSL FINANCE LIMITED 12 Lending Partners Banks & SFBs NBFC Kotak Mahindra Investments Limited
Slide 14: 5Y Financial Snapshot
CSL FINANCE LIMITED 13 5Y Financial Snapshot (₹ crore) PARTICULARS FY20 FY21 FY22 FY23 FY24 Disbursements 270.10 433.32 491.10 758.72 1,052.04 Revenue 60.85 61.67 74.62 117.54 166.58 Interest Income 58.42 59.18 67.66 108.54 153.72 PBT 31.74 39.36 44.98 61.47 85.60 PAT 22.47 27.53 33.68 45.52 63.36 B
Slide 15: About CSL Finance
CSL FINANCE LIMITED 14 About CSL Finance Introduction & Snapshot Business Verticals & Products SME Retail Wholesale
Slide 16: Introduction
CSL FINANCE LIMITED 15 Introduction CSL Finance Limited is a Non-Banking Finance ₹1,065 Crore A- Stable Company registered with the Reserve Bank of AUM Credit Rating Upgraded India and listed on the NSE and BSE. The Company is a one-stop destination for Small and Medium-Sized Enterprises (SMEs) and
Slide 17: Business Verticals & Products
CSL FINANCE LIMITED 16 Business Verticals & Products SME SME Fabricator Wholesale Retail Loan WS SME SME WS WS OTHER SME MID- FABRICATOR LARGE SMALL TERM RETAIL SIZED LOAN LOAN LAP Structured loans for Construction loan Loan against SORP/SOCP Micro/Small Loans to Kirana Loan against properties Purch
Slide 18: SME Retail
CSL FINANCE LIMITED 17 SME RETAIL BUSINESS VERTICAL Target market: Unbanked & underserved Using alternative data instead of conventional scorecards to underwrite loans Swift loans and ease of application Small & flexible ticket sizes Focused on secured lending book (99%) Quality collateral (85% is S
Slide 19: SME Retail (1/6)
CSL FINANCE LIMITED 18 SME Retail (1/6) PRODUCTS PRAGATI UNNATI SAARTHAK SHAKTI Loan Amount ₹2-5 ₹5-10 ₹5-10 ₹7.5- 25 Lakhs Lakhs Lakhs Lakhs TENOR (In Years) 7 7 5-6 7 Target Customer Providing loans primarily to Provide working capital to small Salaried professionals who are Small entrepreneur, tr
Slide 20: SME Retail (2/6)
CSL FINANCE LIMITED 19 SME Retail (2/6) PRODUCTS SUVIDHA MID FABRICAT0R NIRMAN SAMADHAN SIZE LAP LOAN Loan Amount ₹35-50 ₹25-50 ₹1-5 ₹0.5-5 Lakhs Lakhs Crores Lakhs TENOR (In Years) 7 7-8 2-3 45-90 Days Target Customer Balance Transfer of LAP along Immediate working capital Loan against properties f
Slide 21: SME Retail (3/6)
CSL FINANCE LIMITED 20 SME Retail (3/6) PRESENCE 31% 26% BRANCH AGEING 11 Branches 8 Branches Rajasthan Gujarat <1 year 12% 12% 30% 3 Branches 5 Branches Punjab Haryana 1- 3 years 32% 2% 7% Clustered 1 Branch 2 Branches Approach to expanding branch network, based on New Delhi Uttarakhand understandi
Slide 22: SME Retail (4/6): Automating Workflow
CSL FINANCE LIMITED 21 SME Retail (4/6) AUTOMATING WORKFLOW TO IMPROVE EFFICIENCY LOAN LOAN LOAN LOAN ORIGINATION EVALUATION DISBURSEMENT COLLECTION • Customer on-boarding & authentication • Multi Bureau checks + CIBIL Auto analysis • 100% cashless, E-disbursement of loan • Digital mobile App for fi
Slide 23: SME Retail (5/6)
CSL FINANCE LIMITED 22 SME Retail (5/6) Relying on a banking Migrated to a bespoke customer onboarding & loan Roadmap: customer onboarding & underwriting platform with multiple API integrations. • Version 2 of the Suvidha Loan loan underwriting platform Recent achievements: Platform • Version 2 of L
Slide 24: SME Retail (6/6)
CSL FINANCE LIMITED 23 SME Retail (6/6) ACTIVE ACCOUNTS AVERAGE LOAN-TO-VALUE AVERAGE TICKET SIZE AVERAGE TENURE (#) (%) (₹ Lakh) (Year) 2,587 2,814 2,789 34 34 34 34 34 13 13 14 2,171 2,396 11 12 7 SME 6 6 6 6 Q1FY24 Q2FY24 Q3FY24 Q4FY24 Q1FY25 Q1FY24 Q2FY24 Q3FY24 Q4FY24 Q1FY25 Q1FY24 Q2FY24 Q3FY2
Slide 25: Wholesale
CSL FINANCE LIMITED 24 WHOLE- SALE BUSINESS VERTICAL Niche, focused, real estate wholesale book Focused on secured lending book (100% of the book) Built on in-depth expertise of NCR and all its micro-markets Strength in affordable housing segment Robust collection framework via escrow accounts
Slide 26: Wholesale (1/2)
CSL FINANCE LIMITED 25 BETTER CUSTOMER SELECTION: STRONG SOURCING • Presence in strategically selected micro-markets of NCR • Excellent understanding of dynamics of each micro-market • Customer selection based on end-use demand • Primarily involved in last-mile funding, thus reducing project executi
Slide 27: Wholesale (2/2)
CSL FINANCE LIMITED 26 Wholesale (2/2) ACTIVE ACCOUNTS AVERAGE LOAN-TO-VALUE AVERAGE TICKET SIZE AVERAGE TENURE (#) (%) (₹ crore) (Year) 38 81 12 3 3 3 3 3 71 72 72 63 11 11 34 34 33 33 10 10 Q1FY24 Q2FY24 Q3FY24 Q4FY24 Q1FY25 Q1FY24 Q2FY24 Q3FY24 Q4FY24 Q1FY25 Q1FY24 Q2FY24 Q3FY24 Q4FY24 Q1FY25 Q1F
Slide 28: Prudent Risk Management
CSL FINANCE LIMITED 27 Prudent Risk Management Well Managed ALM Conservative Leverage Standards
Slide 29: Well Managed ALM
CSL FINANCE LIMITED 28 Well Managed ALM Cumulative Inflow - Outflow 16 21 23 52 324 369 0 (₹ Crore) 540 498 267 157 128 128 63 61 71 40 44 39 24 26 >1 month >2-3 month >3-6 month >6-12 months 1-3 Years 3-5 Years Over 5 Years Inflow (₹ Crore) Outflow (₹ Crore)
Slide 30: Conservative Leverage Standards
CSL FINANCE LIMITED 29 Conservative Leverage Standards CONSERVATIVE LEVERAGE THRESHOLD 1.5-2X in Wholesale & <4X in SME Retail 50 0 9 0 % Total Equity Leverage Ratio Capital Adequacy Ratio 4 50 473 8 0 % 73% 79% 4 0 65% 66% 70 % 64% 35 0 362 6 0 % ₹54 50% 51% 320 30 0 Crore 50 % Equity 25 0 Fund rai
Slide 31: Leadership
CSL FINANCE LIMITED 30 Leadership Board of Directors Leadership Team
Slide 32: Board of Directors
CSL FINANCE LIMITED 31 Board of Directors Rohit Gupta Rachita Gupta Ashok Parmod Bindal Subhash Chand Ayush Mittal Managing Whole-time Kathuria Independent Kwatra Independent Director Director Director Director Independent Director Director Mr Rohit Gupta has over nearly 3 decades Ms Rachita is a co
Slide 33: Management Team
CSL FINANCE LIMITED 32 Management Team Work Experience Years at CSL Rohit Gupta Rachita Gupta Amit Ranjan Naresh Varshney Amit Kaul Atul Agrawal Chandan Kumar Managing Director Whole-time Director Chief Operating Officer Chief Financial Officer President – IT President – Wholesale Credit Head Financ
Slide 34: Strategy
CSL FINANCE LIMITED 33 Strategy Strategic Priorities Key Takeaways
Slide 35: Strategic Priorities
CSL FINANCE LIMITED 34 Strategic Priorities Leveraging Optimising Focusing Leveraging Rationalisation technology to branch on adding Credit rating of portfolio strengthen performance competencies upgrade operations • The Company aims to rationalise its • The Company is working towards • The Company
Slide 36: Key Takeaways
CSL FINANCE LIMITED 35 Well Capitalised 01 CSL is a well-capitalised lender with a superior Capital Adequacy Ratio. A- STABLE: Credit Rating 02 CSL’s credit rating has recently upgraded to A- Stable, this will help CSL access more capital and at competitive terms. It will also open doors to a new se
Slide 37: Safe Harbour
CSL FINANCE LIMITED 36 Safe Harbour This presentation may contain certain words or phrases that are forward - looking statements, which are tentative, based GET IN TOUCH on current expectations and on certain assumptions of the management of CSL Finance Limited (“CSL”). Actual results may vary from