Muthoot Finance Ltd · NSE:MUTHOOTFIN
Muthoot Finance — Q1 FY2016 Earnings Presentation
30 slides from Muthoot Finance's earnings presentation, June 2015
Slide 1: Financial Results Q1 FY 2016
Financial Results Q1 FY 2016 June 2015 MUTHOOT FINANCE LIMITED
Slide 2: Safe Harbour Statement
SAFE HARBOUR STATEMENT This presentation may include statements, which may constitute forward-looking statements. All statements that address expectations or projections about the future, including, but not limited to, statements about the strategy for growth, business development, market position,
Slide 3: Muthoot Finance: Driving Inclusive Growth
MUTHOOT FINANCE: DRIVING INCLUSIVE GROWTH o India’s largest gold financing company (by loan portfolio) o Trusted pan-India brand in the gold loans sector; revolutionised India’s gold banking o Our intervention has empowered millions of people across the social pyramid Multiple service offerings CORE
Slide 4: MFIN - A Glimpse
MFIN - A GLIMPSE 26 138 tonnes States/Union territory presence Gold jewellery kept as security 4,200+ 500,000+ Pan-India branches Retail investor base across debenture and subordinated debt portfolio 22,000+ 80,000+ Team members Customers served every day ` 244,089 mn Retail Loan Assets Under Manage
Slide 5: Shareholding Pattern
SHAREHOLDING PATTERN Strong promoter interest in business with 75% stake NSE Ticker 23.81 1.37 MUTHOOTFIN (%) Shareholding as on June 30, 2015 BSE Ticker Promoters & Relatives 533398 FII, FC, MF & Others Market Capitalisation Public (as on June 30, 2015) ` 80,416 million 74.82 4
Slide 6: Dividend Payout
DIVIDEND PAYOUT Delivering consistent returns to stakeholders (%) FY 2015 FY 2014 FY 2013 FY 2012 Dividend (% )* 60 60 45 40 First Interim Dividend (%) 40 30 - - Second Interim Dividend (%) 20 - - Final Dividend (%) 20 10 45 40 Dividend Payout Ratio (%) 35.36 28.59 16.65 16.47 * On face value of ` 1
Slide 7: Geographical Presence
GEOGRAPHICAL PRESENCE A strong presence of 4242 branches across India (%) Branches region wise State wise Branch Network Jammu &Kashmir 12 5 Himachal Pradesh 4 Chandigarh Punjab 8 165 Uttarakhand 65 14 East West Haryana 18 118 Delhi 221 North South Rajasthan Uttar Pradesh 120 142 16 (As of June 30,
Slide 8: Shareholder's Funds
SHAREHOLDER’S FUNDS Strong Capital Base Networth Jun-15 Mar-15 Jun-14 Growth Growth (` in million) (` in million) (` in million) YoY (%) QoQ (%) Share Capital 3,980 3,980 3,971 0 0 Reserves & Surplus 48,726 46,855 44,648 9 4 Total 52,706 50,835 48,619 8 4 7
Slide 9: Assets
ASSETS Core focus continues to be gold loan Gross retail loan assets under management Jun-15 Mar-15 Jun-14 Growth Growth (` in million) (` in million) (` in million) YoY (%) QoQ (%) Gross retail loan assets under 244,089 234,085 214,636 14 4 management Break-up of Gross Retail Loan Assets under mana
Slide 10: Liabilities
LIABILITIES Stable sources of funding Jun-15 Mar-15 Jun-14 Growth Growth (` in million) (` in million) (` in million) YoY (%) QoQ (%) Secured Non-Convertible Debentures 56,095 59,839 76,162 (26) (6) (Muthoot Gold Bonds) Secured Non-Convertible Debentures- 32,757 30,656 25,068 31 7 Listed Borrowings
Slide 11: Revenue & Profit
REVENUE & PROFIT Profit & Loss Statement (` in million) YoY Q1 FY 2016 Q4 FY 2015 Q1 FY 2015 FY 2015 Growth(%) INCOME Interest Income 11,280 10,872 10,802 4 42,703 Other Income 146 147 118 24 543 Total 11,426 11,019 10,920 5 43,246 EXPENDITURE Interest Expense 5,670 5,332 5,354 6 21,064 Personnel Ex
Slide 12: Gold Loan Portfolio
GOLD LOAN PORTFOLIO Gaining scale over the years Gold Loan Assets Under Management (` in million) 300,000 260,004 233,499 250,000 244,173 216,179 243,605 200,000 213,054 157,281 150,000 100,000 73,417 33,001 50,000 6,431 7,569 14,201 21,790 0 Mar-05 Mar-06 Mar-07 Mar-08 Mar-09 Mar-10 Mar-11 Mar-12 M
Slide 13: Gold Holding
GOLD HOLDING Carrying the trust of millions of our customers Gold jewellery kept as security (In tonnes) 160 137 134 138 131 140 118 116 120 112 100 80 66 60 39 40 30 23 15 16 20 0 Mar-05 Mar-06 Mar-07 Mar-08 Mar-09 Mar-10 Mar-11 Mar-12 Mar-13 Mar-14 Jun-14 Mar-15 Jun-15 12
Slide 14: Geographical Spread of Gold Loan Portfolio
GEOGRAPHICAL SPREAD OF GOLD LOAN PORTFOLIO Diversified gold loan portfolio across India (%) 100 80 60 40 20 0 Mar-07 Mar-08 Mar-09 Mar-10 Mar-11 Mar-12 Mar-13 Mar-14 Jun-14 Mar-15 Jun-15 East 0 1 1 2 3 4 5 6 6 6 6 West 3 4 5 8 8 10 11 13 14 15 15 North 13 13 14 15 15 17 19 22 22 22 22 South 84 82 80
Slide 15: Productivity
PRODUCTIVITY Widening presence with increasing gold loan business per branch Average Gold Loan Per Branch (` in million) 75 66.39 65 57.43 57.55 63.69 55 49.88 55.01 50.63 45 45.74 33.50 35 25.77 30.82 25 17.24 17.40 15 Mar-05 Mar-06 Mar-07 Mar-08 Mar-09 Mar-10 Mar-11 Mar-12 Mar-13 Mar-14 Jun-14 Mar
Slide 16: Return on Average Retail Loan Asset
RETURN ON AVERAGE RETAIL LOAN ASSET Attractive returns over the years Yearly (%) Quarterly (%) 4.50 4.40 4.21 4.50 4.25 4.05 4.25 3.94 4.24 4.00 4.00 3.75 3.46 3.75 3.50 3.50 3.49 3.22 3.33 3.25 3.25 3.06 3.00 2.90 3.00 3.03 2.75 2.75 2.50 2.50 Mar-07 Mar-08 Mar-09 Mar-10 Mar-11 Mar-12 Mar-13 Mar-14
Slide 17: Non-Performing Assets & Bad Debts
NON-PERFORMING ASSETS & BAD DEBTS Non-Performing Assets (` in million) Jun-15 Mar-15 Jun-14 Gross Non-Performing Assets 5,195 5,117 3,968 Provision For Non-Performing Assets 752 725 725 Net Non-Performing Assets 4,443 4,392 3,243 % of Gross NPA on Gross Retail Loans 2.13 2.19 1.85 % of Net NPA on Gr
Slide 18: Liability Mix
LIABILITY MIX Maintaining a diversified funding profile (%) 1 3 2 Secured Non-Convertible Debentures (Muthoot Gold Bonds) – ` 56,095 mn (27%) 12 Secured Non-Convertible Debentures – Listed – ` 32,757 mn (16%) 27 Borrowings from Banks/Fis - ` 77,851 mn (38%) Subordinated Debt – ` 23,932 mn (12%) 38 S
Slide 19: Credit Ratings
CREDIT RATINGS Highest Rating among gold loan companies Short-term Rating Amt of rating Rating Indicates (` in million) COMMERCIAL PAPER Degree of safety with regard to timely payment of CRISIL 40,000 CRISIL A1+ interest & principal on the instrument is very strong ICRA 2,000 ICRA A1+ Lowest credit
Slide 20: Break-up of Gross Income
BREAK-UP OF GROSS INCOME Interest Income (` in million) Yearly Quarterly 60,000 60,000 53,641 49,077 42703 50,000 50,000 45,280 40,000 40,000 30,000 30,000 22,983 20,000 20,000 11,280 10,872 10,802 10,000 6,062 10,775 10,000 2,236 3,579 0 0 Mar-07 Mar-08 Mar-09 Mar-10 Mar-11 Mar-12 Mar-13 Mar-14 Mar
Slide 21: Operating Expenses to Average Retail Loans
OPERATING EXPENSES TO AVERAGE RETAIL LOANS Operational efficiency over the years Yearly (%) Quarterly (%) 6.00 6.00 5.45 5.38 5.50 5.50 5.01 5.11 4.59 4.72 4.87 5.00 5.00 4.46 4.66 4.28 4.50 4.02 4.08 4.50 4.00 4.00 3.50 Mar-07 Mar-08 Mar-09 Mar-10 Mar-11 Mar-12 Mar-13 Mar-14 Mar-15 3.50 Q1 FY 2016
Slide 22: Break-up of Operating Expenses
BREAK-UP OF OPERATING EXPENSES Yearly (` in Millions) Quarterly (` in Million) Q1 FY Q4 FY Q1 FY Mar-15 Mar-14 Mar-13 Mar-12 Mar-11 Mar-10 Mar-09 2016 2015 2015 Personnel Expenses 6,304 5,917 5,453 4,145 2,209 1,169 677 1,607 1,577 1,523 Rent 1,650 1,542 1,309 1,042 603 290 131 415 424 402 Advertise
Slide 23: Profitability
PROFITABILITY Efforts getting rewarded Profitability at a glance (` in million) Yearly PBT PAT Quarterly PBT PAT 16,000 15,114 16,000 14,000 14,000 13,312 11,936 12,000 12,000 10,042 10,000 10,000 10,279 8,920 8,000 8,000 7,612 7,801 6,000 6,000 6,705 3,456 4,942 4,000 4,000 2,835 2,730 1,482 1,832
Slide 24: Net Worth
NET WORTH Steady capital position Share Capital and Reserves & Surplus (` in million) 60,000 52,706 48,619 50,000 50,835 37,356 40,000 42,646 29,257 30,000 20,000 13,344 10,000 1,598 2,234 3,712 5,845 0 Mar 07 Mar 08 Mar 09 Mar 10 Mar 11 Mar 12 Mar 13 Mar-14 Jun-14 Mar- 15 Jun-15 23
Slide 25: Return on Equity
RETURN ON EQUITY Stable shareholder value creation Return on Average Equity Yearly (%) Quarterly (%) 55 30 51.52 50 48.10 45 25 41.90 40 35.10 34.00 20 35 15.79 33.90 30.15 14.15 13.10 30 15 25 10 20 19.50 14.35 15 5 10 Mar 07 Mar 08 Mar 09 Mar 10 Mar 11 Mar 12 Mar 13 Mar 14 Mar 15 0 Q1 FY 2016 Q4 F
Slide 26: Capital Ratio
CAPITAL RATIO Maintaining capital well above the statutory requirement Capital Adequacy Ratio (%) Jun-15 Mar-15 Jun-14 Capital Adequacy Ratio 24.15 24.78 26.79 Tier-I 19.76 19.96 20.45 Tier-II 4.38 4.82 6.34 25
Slide 27: Market Value Ratio
MARKET VALUE RATIO Equity market valuation ratios indicate potential for upside Q1 FY 2016 Q4 FY 2015 Q1 FY 2015 FY 2015 Earnings per share (`) - Basic 4.60 4.16 4.63 16.97 - Diluted 4.56 4.10 4.60 16.80 Jun-15 Mar-15 Jun-14 Book Value per share (`) 132.29 127.59 122.29 Market price per share (`)* 2
Slide 28: Capitalisation Ratios
CAPITALISATION RATIOS Headroom for further leveraging (` In million) Jun-15 Mar-15 Jun-14 Outside Liabilities 229,251 216,857 206,005 Cash & Bank Balances 19,657 17,366 18,289 Tangible Networth 52,653 50,775 48,556 Capital Gearing 3.98 3.93 3.87 27
Slide 29: Team Strength
TEAM STRENGTH Groomed human capital over the years to meet growing business requirements (No. of Employees) 28,000 24,881 24,140 25,351 22,785 23,000 25,012 22,882 18,000 16,688 13,000 9,745 8,000 5,979 3,999 3,102 3,000 Mar-07 Mar-08 Mar-09 Mar-10 Mar-11 Mar-12 Mar-13 Mar-14 Jun-14 Mar-15 Jun-15 28
Slide 30: Registered Office
REGISTERED OFFICE 2nd Floor, Muthoot Chambers Opposite Saritha Theatre Complex Banerji Road, Kochi Kerala – 682 018. India Tel: (91484) 2394712 Fax: (91484) 2396506 CIN: L65910KL1997PLC011300 RBI Reg No: N.16.00167 EMAIL (Individual & Corporate Investors) investors@muthootfinance.com (Institutional