CSL Finance Limited · NSE:CSLFINANCE
CSL Finance — Q1 FY2020 Earnings Presentation
31 slides from CSL Finance's earnings presentation, June 2019
Slide 1: FY20 Q1 - Update
FY20 Q1 - Update June 2019 © 2019 CS L F I N A N CE L I M I T E D , A L L R I GH T S R E S E R V E D
Slide 2: Table of Contents
Table of Contents Company Snapshot 3 Business Strategy 4 Key Management Team 5 Our Presence 7 Product Portfolio 8 Wholesale Book 10 SME Retail Lending Book 19 Financial Snapshot 22 ALM Breakup 28 Debt Profile 29 Operational Update 30 © 2019 CSL Finance Limited, All Rights Reserved. 2
Slide 3: Company Snapshot
Company Snapshot Listed on Bombay Delhi based NBFC with Wholesale housing book of 98% of loan Stock Exchange AUM of Rs 317 Cr as on 30th INR 253 Cr & SME Retail book is secured Jun-19 book of INR 64 Cr. 19 Branches spread Raised 51 Cr from Marquee High CAR BBB rating across North and West India inve
Slide 4: Business Strategy
Business Strategy Portfolio Quality Focussed Approach Pragmatic build up of portfolio Prudent risk management and in chosen geographies through continuous monitoring of portfolio cluster approach Costs Flexibility Optimisation of Flexible offerings in line with operating profits customer needs throu
Slide 5: Management Team
Management Team Rohit Gupta (Managing Director) Naresh Varshney (CFO) Rohit is a CA with over 25 years of diverse Naresh is a CA with more than 25 years of diverse experience in the fields of merchant banking, experience in the field of financial services, corporate finance, financial restructuring,
Slide 6: Management Team
Management Team Rakesh Kapoor (ZBH SME North India) Manish Kumar (SME Collections) Rakesh has over 14 years of rich experience in Manish has over 7 years of extensive experience in developing and managing various channels for the collections fields of SME and MSME segments. SME and retail loans. Pre
Slide 7: Our Presence
Our Presence Jalandhar Ludhiana Dehradun Patiala Yamuna Ambala Nagar Hissar Panipat New Delhi States Present Faridabad Delhi Sikar Haryana Jaipur Ajmer Punjab Jodhpur Uttrakhand Bhilwara Rajasthan Gujarat Mehsana Ahmedabad Baroda Surat Map not to scale, for representation purposes only © 2019 CSL Fi
Slide 8: Product Portfolio
PRODUCT PORTFOLIO Product Category Book Size (Rs Cr) Q1 FY20 Customer Segment Wholesale Lending Standard and Structured loans given to corporates into Wholesale Large 152.32 Group housing projects Loans given to Small Builders, engaged in development Wholesale Small 84.77 of Single Plotted Projects
Slide 9: AUM Composition
AUM Composition Q1 FY20 FY 19 SME Retail Book SME Retail Book 20% 17% 80% Wholesale Book 83% Wholesale Book © 2019 CSL Finance Limited, All Rights Reserved. 9
Slide 10: Wholesale Lending Book
Wholesale Lending Book Assets Under Management (AUM) Figures in INR Crores Business Approach Vintage presence in selected geographies results in better domain knowledge than peers. 295 Market Penetration with conscious selection of 279.05 customers. 275 279.41 277.48 265.19 268.25 Flexible deal stru
Slide 11: Wholesale Large Book (WS Large)
Wholesale Large Book ( WS Large) Wholesale Large Portfolio Segment Update WS Large book mainly consists of Group 2% housing and Affordable group housing in Northern Region of India 44% Total AUM of WS large book is INR 152.32 Cr as 54% on 30th June. There are 22 loan accounts with 17 reputed develop
Slide 12: WS Large – Affordable Group Housing
WS Large –Affordable Group Housing Affordable Group Housing Figures in INR Crores Segment Update Affordable group housing projects comprises of housing units which are comparatively lower Ticket Size units of less 80 than INR 25 lacs each, hence having high saleability amongst 70 larger target audie
Slide 13: WS Large – Residential Group Housing
WS Large –Residential Group Housing Residential Group Housing Figures in INR Crores Segment Update Residential group housing projects comprises of 110 106.73 housing units which are comparatively lower Ticket Size units of less than INR 50 lacs each where end consumer demand is still there if the pr
Slide 14: WS Large – Commercial Projects
WS Large –Commercial Projects Commercial Projects Figures in INR Crores Segment Update It has been observed that since the last few quarters, 7 6.5 demand for Commercial Inventory is picking up 6 Commercial Projects constitutes only 1.03% (AUM of 2.60 Cr) of total AUM of Wholesale book 5 2 projects
Slide 15: WS Small – Small Builder Loans
WS Small – Small Builder Loans Small Builder loans Segment Update Figures in INR Crores Delhi NCR is a big market having a potential of 10K crore for small builders, whose borrowing requirements are not serviced by the standard products offered by Financial Institutions/ Banks 80 73.3 Geographically
Slide 16: WS – LAP/ MSME
WS – LAP/ MSME LAP / MSME Segment Update Figures in INR Crores WS LAP/MSME comprises of business or working capital loans provided to MSME/ business entities for 40 various business activities 35 33.9 Total AUM of the WS LAP book is INR 15.55 Cr which is just 6% of the total AUM consisting of a tota
Slide 17: Wholesale Lending Book – Risk Management Framework
Wholesale Lending Book – Risk Management Framework Presence in select pockets of NCR Excellent understanding of the market dynamics and risks Presence in select 1 Customer selection based on end use demand markets Last mile financing – significantly reduces project risk Deal with reputed d
Slide 18: Wholesale Book – Product Breakup
Wholesale Book – Product Breakup Wholesale Book - Large (Rs Cr) Wholesale Book - Small (Rs Cr) 100.00 200 180.12 173.8 80.42 84.77 75.44 78.83 155.47 151.97 147.03 147.01 152.32 80.00 160 121.96 56.36 60.00 120 44.75 40.00 32.60 80 23.58 20.00 40 0.00 0 Q2FY18 Q3FY18 Q4FY18 Q1FY19 Q2FY19 Q3FY19 Q4FY
Slide 19: SME Retail Lending Book
SME Retail Lending Book Assets Under Management (AUM) Figures in INR Crores Business Approach 70 Focus on increasing market presence in current 65 64.24 geographies of north and west India. 60 To increase market presence with hub and spoke model 55 55.26 within existing 19 branches 50 45 43.23 Conti
Slide 20: SME Retail Book- Industry Composition
SME Retail Book- Industry Composition Industry wise Composition (INR Cr) Salaried Individual Manufacturing 2.65 3.13 Kirana Merchant 4.57 Services Auto Workshops 2.18 11.69 Healthcare 1.19 Trading & Others Schools 10.91 22.01 Dairy 5.89 © 2019 CSL Finance Limited, All Rights Reserved. 20
Slide 21: SME Retail Book – Operational Update
SME Retail Book – Operational Update • AUM for SME Retail book in Q1 FY20 is INR 64 Cr & Net NPA is maintained at 0.33% during Q1 FY20 in the SME book • AUM increased by 16% during Q1 FY20 vis-à-vis Q4 FY19 • During the first quarter of FY20, we have opened one branch in Bhilwara, Rajasthan making a
Slide 22: Financial Snapshot
Financial Snapshot INR Cr Metrics FY20 Q1 FY19 Q1 FY19 Revenue 15.39 13.67 59.69 NII 12.07 10.25 42.91 PAT 6.54 6.17 25.15 Net worth 221.38 193.85 214.76 AUM 316.88 301.72 323.51 CAR 70% 64% 66% © 2018 CSL Finance Limited, All Rights Reserved. 22
Slide 23: Financial Update
Financial Update • CSL Finance recorded an increase of 13% in revenues in Q1 FY20 vis-à-vis Q1 FY19 • Operating profit increased by 6% in Q1 FY20 vis-à-vis Q1 FY19 • Net interest income has increased by 18% Q1 FY20 vis-à-vis Q1 FY19 • AUM declined by 2% in Q1FY20 vis-à-vis Q4FY19. The main reason be
Slide 24: Ind AS vs IGAAP Comparative Results – Q1 FY20
Ind AS vs IGAAP Comparative Results – Q1 FY20 INR CR Particulars Regrouped IGAAP Adjustments Ind AS Revenue from operations Interest Income 15.75 (0.48) 15.27 Fees and commission Income - - - Recoveries of financial assets written off 0.06 - 0.06 (I) Total Revenue from operations 15.81 (0.48) 15.33
Slide 25: Financial Metrics
Financial Metrics 1 Total Income Operating Expenses (Rs Cr) 20 3.50 15.81 15.6 15.39 3.00* 3.02* 14.62 2.93* 3.00 2.81* 15 13.23 13.67 10.81 2.50 2.27* 9.22 2.21* 10 2.00 2.00 1.83 5 1.50 1.00 0 Q2FY18 Q3FY18 Q4FY18 Q1FY19 Q2FY19 Q3FY19 Q4FY19 Q1FY20 Q2FY18 Q3FY18 Q4FY18 Q1FY19 Q2FY19 Q3FY19 Q4FY19
Slide 26: Financial Metrics (contd..)
Financial Metrics (contd..) 2 Net Interest Income (Rs.Cr) AUM – End of Quarter (Rs Cr) 12.07 350 313 322 324 317 12 10.81 11.05 10.8 302 10.25 300 281 9.32 9.75 260 10 250 7.54 205 8 200 6 150 4 100 2 50 0 0 Q2FY18 Q3FY18 Q4FY18 Q1FY19 Q2FY19 Q3FY19 Q4FY19 Q1FY20 Q2FY18 Q3FY18 Q4FY18 Q1FY19 Q2FY19 Q
Slide 27: Financial Metrics (contd..)
Financial Metrics (contd..) 3 Borrowings (Rs Cr) Net worth (Rs Cr) 140 129.71 123.98 121.94 250 221.38 115.98 214.76 120 198.77 205.5 102.32 101.92 183.83 193.85 89.62 200 172.89 177.99 100 80 150 58.05 60 100 40 50 20 0 0 Q2FY18 Q3FY18 Q4FY18 Q1FY19 Q2FY19 Q3FY19 Q4FY19 Q1FY20 Q2FY18 Q3FY18 Q4FY18
Slide 28: ALM Breakup
ALM Breakup Maturity Pattern of Assets & Liabilities as on 30th June,2019 (INR Cr) 250 200 150 Assets 100 Liablities 50 0 Upto 1 year 1-5 years Over 5 years Note: • First bucket of upto 1 year includes CC limit and WCDL of INR 67 Cr which are renewable every year • Last bucket of over 5 years includ
Slide 29: Debt Profile as on 30th June, 2019
Debt Profile as on 30th June, 2019 O/st Loan Amount Lender’s Name Facility Type Sanction Period (in INR CR) Tourism Finance Corporation of India Ltd Term Loan Nov’17 20 TATA Capital Term Loan May’18 4 AU Small Finance Bank Term Loan Aug’18 15.56 AU Small Finance Bank Term Loan June’17 3.61 State Ban
Slide 30: Operational Update
Operational Update • Continuous and rigorous review of all loan accounts considering vulnerable market conditions • Considering the adverse market condition, we are we are focusing on the improving the quality of our book and are more selective in our disbursements • FinnOne LOS and LMS systems are
Slide 31: Thank You
Thank You Corporate Office: Investor Contact: 716-717, 7th floor, Tower B, Akash Gupta World Trade Tower, Sector16, Phone: 0120 4290650-52-53-54-55 Noida- 201301 Email: investor@cslfinance.in Email: akash.gupta@cslfinance.in Registered Office: 410-412, 18/12, 4th floor, WEA, Arya Samaj Road, Karol B