Csl Finance Limited · NSE:CSLFINANCE
Csl Finance — Q2 FY25 Earnings Presentation
39 slides from Csl Finance's earnings presentation, Nov 9, 2024
Slide 1: Cover letter to stock exchanges: Investor Presentation
CIN: L74899DL1992PLC051462 November 09, 2024 National Stock Exchange of India Limited BSE Limited Exchange Plaza, C-1, Block-G, Bandra Corporate Relationship Department Kurla Complex, Bandra (E), Mumbai - Phiroze, Jeejeebhoy Towers, Dalal Street, 400051 Mumbai-400001 NSE Symbol: CSLFINANCE BSE Scrip
Slide 2: Investor Presentation November 2024
Investor Presentation November 2024
Slide 3: Quarterly: Inside this section
CSL FINANCE LIMITED 2 Quarterly Inside this section Business Growth YoY Loan Book Size Asset Quality Asset Quality: Stage Analysis P&L Highlights Treasury Update Quarterly Financial Snapshot Operational Updates New Product Updates: Suvidha Loans Lending Partners 5Y Financial Snapshot
Slide 4: Business
CSL FINANCE LIMITED 3 Business 22% Q2’25 (1%) Q2’25 Consistent Q2’25 Performance ₹1,083 Cr ₹294 Cr 98% Q2’24 Assets Under Q2’24 Disbursement Q2’24 Collection ₹890 Cr Management ₹296 Cr 99% Efficiency 28% Q2’25 20% Q2’25 6% Shift in Favour Q2’25 of Wholesale ₹36.9 Cr ₹17.9 Cr 39:61 Q2’24 NII Q2’24 PA
Slide 5: Loan disbursements, collections, loan book, collection efficiency
CSL FINANCE LIMITED 4 Loan Disbursements Collections Loan Book Collection Efficiency (₹ crore) (₹ crore) (₹ crore) (%) -1% 14% 56% 50% 22% 2% YOY Change QOQ Change YOY Change QOQ Change YOY Change QOQ Change 322 277 296 294 99 99 99 98 98 232 59 42 258 104 246 29 32 167 149 155 1,006 1,041 858 915 9
Slide 6: Asset Quality
CSL FINANCE LIMITED 5 Asset Gross NPA NET NPA Provision Coverage Ratio Write-offs & Recoveries (%) (%) (%) (₹ crore) -1 BPS 9 BPS 0 BPS 6 BPS YOY Change QOQ Change YOY Change QOQ Change 0.55 0.54 0.32 0.32 291 3.4 0.44 0.45 270 262 0.25 0.26 0.40 2.7 0.23 224 224 1.6 0.8 0.9 0.7 0.6 0.5 0.6 0.4 Q2FY
Slide 7: Asset Quality: Stage Analysis
CSL FINANCE LIMITED 6 Asset Quality: Classification of Assets Basis the ECL Computation as Per Ind-AS: PARTICULARS Q2FY24 Q1FY25 Q2FY25 Gross Stage 3 (GNPA) 4.55 4.55 5.64 % portfolio in Stage 3 0.55% 0.45% 0.54% ECL provision Stage 3 1.92 1.97 2.37 Net Stage 3 2.63 2.58 3.27 ECL Provision % Stage 3
Slide 8: P&L: NII, Total Income, PAT, Yields
CSL FINANCE LIMITED 7 P&L Net Interest Income Total Income Profit After Tax Yields (₹ crore) (₹ crore) (₹ crore) (%) 28% 2% 41% 6% 20% -3% YOY Change QOQ Change YOY Change QOQ Change YOY Change QOQ Change 36.2 36.8 54.2 34.0 51.4 18.6 18.5 18.1 18.1 18.0 18.3 18.3 32.6 17.7 17.7 17.9 45.7 46.9 16.9
Slide 9: Treasury
CSL FINANCE LIMITED 8 Treasury Leverage Liquidity 1 The Company has 3 Credit Rating for the (Time) (₹ crore) adequate liquidity of ₹ 63.6 Company has been crore as on 30th September reaffirmed as 2024. Additionally, it has A- | Stable from Acuite 100 Cr of DA Lines Ratings & Research as on 1.13 avai
Slide 10: Quarterly Financial Snapshot
CSL FINANCE LIMITED 9 Quarterly (₹ crore) PARTICULARS Q2FY24 Q1FY25 Q2FY25 Disbursements 297.37 258.34 293.93 Revenue 38.53 51.36 54.31 Interest Income 33.94 46.78 49.56 PBT 20.25 24.68 24.72 PAT 14.82 18.51 17.85 Bad debts written off 0.74 2.67 3.39 Bad debts recovered 0.57 0.58 1.61 Loans and Adva
Slide 11: Operational Updates
CSL FINANCE LIMITED 10 Operational LOAN BOOK • there has been some spillover impact on the NET INTEREST INCOME & PROFITABILITY SUVIDHA PRODUCT UPDATE • Q2 & H1FY25 have experienced subdued AUM secured lending industry as well. • Total Income growth rate is largely in line with • As communicated in t
Slide 12: Lending Partners
CSL FINANCE LIMITED 11 Lending Banks & SFBs Newly added NBFC Newly added Kotak Mahindra Investments Limited
Slide 13: 5Y Financial Snapshot
CSL FINANCE LIMITED 12 5Y 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 Bad debts written off 0.26 3.8
Slide 14: About
CSL FINANCE LIMITED 13 About Inside this section Introduction CSL’s Business Model Key Differentiators of CSL Business Verticals & Products SME Retail Wholesale
Slide 15: Introduction
CSL FINANCE LIMITED 14 Introduction The Company is a one-stop destination for Small and Medium-Sized Enterprises (SMEs) and real estate and non-real estate corporates to CSL Finance Limited is a Non-Banking Finance avail a variety of secured loan 39% products. CSL's experienced SME Retail Company re
Slide 16: CSL's Business Model
CSL FINANCE LIMITED 15 CSL’s 01 02 03 04 05 Domain Focused Customer- Technology- Healthy Expertise Strategy Centric Driven Businesses Build deep Operate within circle Prioritise customer Harness technology to Lend to healthy understanding of our of competence, and comfort, tailored enhance credit bu
Slide 17: Key Differentiators of CSL
CSL FINANCE LIMITED 16 Key SME Retail Lending Wholesale Lending 1. Target market: serving the 5. Small and flexible ticket sizes 1. Niche and focused real estate 5. Proactive project monitoring unbanked & underserved wholesale book post funding 6. Focused on secured lending book 2. Using alternative
Slide 18: Business Verticals & Products
CSL FINANCE LIMITED 17 Business Wholesale SME Retail WS WS WS Other SME SME Mid- Large Small Term Loan Retail Sized Lap Structured loans for Construction loan Loan against SORP/SOCP Micro/Small Loans to Kirana Stores, Loan against Mid Income/ Affordable given against single properties and Loan again
Slide 19: SME Retail Business Vertical
CSL FINANCE LIMITED 18 SME Using alternative data Target market: Swift loans Small & instead of conventional Unbanked & underserved scorecards to underwrite loans Business and ease of application flexible ticket sizes Vertical Promoting Focused on Quality collateral Achieving efficiency financial in
Slide 20: SME Products (1/6)
CSL FINANCE LIMITED 19 SME (1/6) Products Jyoti Saarthak Shakti School Loan ₹3-10 Lakhs ₹10-50 Lakhs ₹10-35 Lakhs ₹5-100 Lakhs Loan Amount Loan Amount Loan Amount Loan Amount 3-7 3-7 3-7 3-7 Tenor (In Years) Tenor (In Years) Tenor (In Years) Tenor (In Years) Target Customer Target Customer Target Cu
Slide 21: SME Products (2/6)
CSL FINANCE LIMITED 20 SME (2/6) Products Nirman Samadhan Mid-Size Lap ₹10-50 Lakhs ₹25-50 Lakhs ₹1-5 Crores Loan Amount Loan Amount Loan Amount 3-7 3-7 2-3 Tenor (In Years) Tenor (In Years) Tenor (In Years) Target Customer Target Customer Target Customer Balance Transfer of LAP along with top-up fo
Slide 22: SME Presence (3/6)
CSL FINANCE LIMITED 21 SME (3/6) Presence 31% 26% 13 Branches 11 Branches Clustered Rajasthan Gujarat Approach to expanding branch network, based on understanding & comfort 12% 12% in each micro-market 3 Branches 7 Branches Punjab Haryana 33% <1 year 2% 7% 1 Branch 3 Branches New Delhi Uttarakhand B
Slide 23: Automating Workflow to Improve Efficiency
CSL FINANCE LIMITED 22 SME (4/6) Automating Workflow to Improve Efficiency Loan Origination Loan Evaluation Loan Disbursement Loan Collection • Customer on-boarding & authentication • Multi Bureau checks + CIBIL Auto • 100% cashless, E-disbursement of • Digital mobile App for field officers • Geotag
Slide 24: SME (5/6)
CSL FINANCE LIMITED 23 SME (5/6) Relying on a banking Migrated to a bespoke customer onboarding & loan Roadmap: customer onboarding & loan underwriting platform with multiple API integrations. • Version 2 of LOS & LAP expected underwriting platform Recent achievements: to launch in November’24 • Key
Slide 25: SME (6/6)
CSL FINANCE LIMITED 24 SME (6/6) SME Active Accounts Average Loan-to-value Average Ticket Size Average Tenure (#) (%) (₹ Lakh) (Year) 34 34 34 34 34 14 14 7 7 2,814 2,789 2,902 2,587 2,396 13 13 12 6 6 6 Q2FY24 Q3FY24 Q4FY24 Q1FY25 Q2FY25 Q2FY24 Q3FY24 Q4FY24 Q1FY25 Q2FY25 Q2FY24 Q3FY24 Q4FY24 Q1FY2
Slide 26: Wholesale Business Vertical
CSL FINANCE LIMITED 25 Whole Niche, focused, real estate wholesale book Robust collection Focused on secured framework via escrow lending book (100% of accounts the book) Business Vertical Built on in-depth Strength in affordable expertise of NCR and all housing segment its micro-markets
Slide 27: Wholesale (1/2): Robust Risk Management Framework
CSL FINANCE LIMITED 26 Whole (1/2) Robust Risk Management Framework Better Customer Selection: Credit Appraisal & Constant Strong Sourcing Excellent Screening Monitoring • Presence in strategically selected micro- • Robust due diligence • Dedicated, on-ground resourced for markets of NCR • Extensive
Slide 28: Wholesale (2/2)
CSL FINANCE LIMITED 27 Whole (2/2) Active Accounts Average Loan-to-value Average Ticket Size Average Tenure (#) (%) (₹ crore) (Year) 81 36 12 3 3 3 3 3 79 11 11 11 34 34 34 72 72 71 33 10 Q2FY24 Q3FY24 Q4FY24 Q1FY25 Q2FY25 Q2FY24 Q3FY24 Q4FY24 Q1FY25 Q2FY25 Q2FY24 Q3FY24 Q4FY24 Q1FY25 Q1FY25 Q2FY24
Slide 29: Building for Tomorrow
CSL FINANCE LIMITED 28 Building Building for Well Managed Tomorrow ALM Conservative Leverage Standards
Slide 30: Building for Tomorrow
CSL FINANCE LIMITED 29 Building for Professionals Governance Risk-management DNA Poised For Growth • Professional leadership & CXOs • Independent BOD • Never growth at cost of risk- Multiple growth levers aligning: • Deep domain expertise & experience • 8 years of uninterrupted Dividends management
Slide 31: Well Managed ALM
CSL FINANCE LIMITED 30 Well Managed Cumulative Inflow -Outflow 37 49 53 65 326 388 0 (₹ Crore) 550 509 290 145 133 121 87 67 55 70 65 30 43 25 >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 32: Conservative Leverage Standards
CSL FINANCE LIMITED 31 Conservative CONSERVATIVE LEVERAGE THRESHOLD 50 0 1.5-2X in Wholesale & <4X in SME Retail 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 raise in FY18 259 ₹30
Slide 33: Leadership
CSL FINANCE LIMITED 32 Leadership Board of Management Directors Team
Slide 34: Board of Directors
CSL FINANCE LIMITED 33 Board of Rohit Gupta Rachita Gupta Ashok Kathuria Parmod Bindal Subhash Chand Kwatra Ayush Mittal Managing Director Whole-time Director Director Independent Director Independent Director Independent Director Mr Rohit Gupta has over nearly Ms Rachita is a commerce Mr Kathuria h
Slide 35: Management Team
CSL FINANCE LIMITED 34 Management Work Experience Years at CSL Rohit Gupta Rachita Gupta Amit Ranjan Naresh Varshney Atul Agrawal Amit Kaul Chandan Kumar Deepak Sood Managing Whole-time Chief Operating Chief Financial President – President – Wholesale President SME Director Director Officer Officer
Slide 36: Strategy
CSL FINANCE LIMITED 35 Strategy Strategic Key Priorities Takeaways
Slide 37: Strategic Priorities
CSL FINANCE LIMITED 36 Strategic Rationalisation Optimising branch Leveraging technology to Focusing on adding Leveraging Credit of portfolio performance strengthen operations competencies rating upgrade • •The Company aims to rationalise its •The Company is working towards • The Company is working
Slide 38: Key Takeaways
CSL FINANCE LIMITED 37 Key 1 2 3 4 5 Well A- STABLE: Geared for Growing mix of SME Strong Risk Capitalised Credit Rating Growth Retail: Wholesale Management DNA CSL is a well-capitalised CSL’s credit rating has With a significant Growing mix of SME Retail, The Company puts risk lender with a superio
Slide 39: Safe Harbour / Get in Touch
CSL FINANCE LIMITED Safe This presentation may contain certain words or phrases that are forward - looking statements, which are tentative, based on current expectations and on certain assumptions of the management of CSL Finance Limited (“CSL”). Actual results may vary from the forward-looking stat