Poonawalla Fincorp Limited · NSE:POONAWALLA
Poonawalla Fincorp — Q1 FY2023 Earnings Presentation
43 slides from Poonawalla Fincorp's earnings presentation, Jul 27, 2022
Slide 1: Exchange filing cover letter: Investors/Analysts' Presentation
27 July 2022 BSE Limited National Stock Exchange of India Limited Corporate Relationship Department The Listing Department, 25th Floor, Phiroze Jeejeebhoy Towers, Exchange Plaza, Dalal Street, Fort, Bandra- Kurla Complex, Bandra (East), Mumbai - 400 001. Mumbai - 400 051. BSE Scrip Code: 524000 NSE
Slide 2: Poonawalla Fincorp Limited Investor Presentation Q1FY23
Poonawalla Fincorp Limited (Formerly known as Magma Fincorp Limited) Investor Presentation Q1FY23
Slide 3: Agenda
Agenda 1 Overview 2-6 2 Executive Summary & Business Update 7-15 3 Business and Financial Highlights: Consolidated 16-23 4 Business and Financial Highlights: Subsidiary (PHFL) 24-31 5 Board Members 32-33 6 Appendix: Digital Capabilities 34-39 2
Slide 4: Poonawalla Fincorp At a Glance
Poonawalla Fincorp At a Glance What defines us AUM Q1FY23 Disbursement “Young and resilient NBFC which rebooted itself in the ₹ 17,660 Cr ₹ 3,436 Cr most trying times of pandemic” +22% YoY | +7% QoQ +98% YoY | +3% QoQ “Catering to the financing needs of young India, both Gross Stage 3 Net Stage 3 co
Slide 5: Poonawalla Fincorp at Right Place, Right Time, Right Aspiration
Poonawalla Fincorp at at have Right Place Right Time Right Aspiration ▪ Growing demand for Pre-owned Cars ▪ Growing per capita income ▪ Capitalize on the national ▪ MSME resurgence post pandemic ▪ Formalization of MSME transition ▪ Consumption driven economic ▪ Rising digital penetration ▪ Changed o
Slide 6: Management Vision 2025
Management Vision 2025 Performance in line with the long-term guidance Vision 2025 On the right track (Q1FY23) To be amongst the Top 3 NBFCs in consumer and Leadership board position in POC and LTP on MSMEs monthly disbursement basis AUM 1.24x of FY21 | Focused AUM 1.85x of FY21 Risk-calibrated acce
Slide 7: Scalable Business Model to drive Profitable Growth
Scalable Business Model to drive Profitable Growth Uniquely Positioned Inherent Strengths… Brand Strength Digital First and Technology Led Retail Franchise • Flagship financing arm of Cyrus • Digitalized end to end processes • Focus on consumer & MSMEs Poonawalla Group with shared • Advanced data an
Slide 8: Executive Summary & Business Update
Agenda 2 Executive Summary & Business Update 7-15 7
Slide 9: Profitability Protected in Rising Rate Environment while Maintaining Growth and Asset Quality
Profitability Protected in Rising Rate Environment while Maintaining Growth and Asset Quality Preserving competitive …while rates have been …and maintaining edge through efficient selectively passed on… growth and asset quality liability management… Dynamic liability book management ▪ Median Disburs
Slide 10: Focus on Lifetime Customer Value for Sustainable Profitability
Focus on Lifetime Customer Value for Sustainable Profitability …at a cost lower than …with enhanced X-sell / Accelerated customer pure play DSA led upsell capabilities to acquisition… model… maximize return Significant traction during the quarter Direct, Digital and Partnership (DDP) ▪ Increasing pr
Slide 11: Executive Summary - Consolidated
Executive Summary - Consolidated Consolidation phase is now propelling us into growth orbit in FY23 Strong business momentum continues in Q1 ▪ Overall disbursement in Q1FY23 higher than that in Q4FY22 despite Q1 generally being a muted quarter ▪ Overall disbursement in Q1FY23 ~2x of Q1FY22 | Consist
Slide 12: Executive Summary - Consolidated
Executive Summary - Consolidated Consolidation phase is now propelling us into growth orbit in FY23 Asset quality Improvement ▪ NS3 book at 0.95% as on Jun 22 vs 1.11% as on Mar 22 and 2.71% as on Jun 21 ▪ GS3 book at 2.19% as on Jun 22 vs 2.66% as on Mar 22 and 5.38% as on Jun 21 Rise in profitabil
Slide 13: Executive Summary - PFL (Standalone)
Executive Summary - PFL (Standalone) Key Highlights Q1FY23 AUM growth of 18.1% YoY & 7.2% QoQ NS3 @1.11% 19 bps QoQ | GS3 @ 2.68% 62 bps QoQ Q1 disbursement 14.3% higher than that in Q4 QoQ disbursement momentum seen across all products Organic disbursement 48.6% QoQ and all sourcing channels N
Slide 14: Executive Summary - PHFL
Executive Summary - PHFL Key Highlights Q1FY23 AUM stands at ₹ 5,282 cr as on Jun22; 31% YoY Gross Stage 3 Assets of 0.87%; 107 bps YoY Disbursement of ₹ 535 cr in Q1FY23; 116% YoY Operating in 20 states; 128 branches as on Jun 22 North : West : South : East AUM mix % Reduction in CoB; 6.8% f
Slide 15: Digital Transformation Yielding Results
Digital Transformation Yielding Results Digital First –Tech led approach End to End Digitalized Lending – Lower TATs, Minimal Paperwork, Reduced human intervention ▪ 100% digital journey capability for customers across all products via Digital KYC, Digital Onboarding ( E-sign , E-agreement, E-NACH),
Slide 16: Product Suite
Product Suite Tailored for the target segment identified Existing products Upcoming products Pre-owned Cars Digital Business Loans Machinery Loan Merchant Cash Advance Affordable Home Loan Digital Personal Loan Digital Consumption Loan Consumer Finance Digital Loan to Affordable LAP Medical Equipmen
Slide 17: Business and Financial Highlights: Consolidated
Agenda 3 Business and Financial Highlights: Consolidated 16-23 16
Slide 18: Q1FY23 Performance Highlights - Consolidated
Q1FY23 Performance Highlights - Consolidated AUM CoB NIM RoA 17,660 6.9% 9.5% 3.4% YoY QoQ YoY QoQ YoY QoQ YoY QoQ -264 bps -49 bps +155 bps -7 bps +22.4% +6.5% +155 bps +29 bps Disbursement GS3 NS3 PAT 3,436 2.19% 0.95% 141 YoY QoQ YoY QoQ YoY QoQ YoY QoQ +98.3% +3.0% -319 bps -47 bps -176 bps -16
Slide 19: Q1FY23 Business Update
Q1FY23 Business Update Portfolio attuned for growth and superior risk-adjusted returns Pre-Owned Car Digital BL | Digital PL | Digital LTP ▪ Highest ever quarterly disbursement in Q1FY23 with 22.0% QoQ ▪ Highest ever quarterly disbursement in Q1FY23 growth ▪ QoQ disbursement grew 63.1% in Q1 vs 32.4
Slide 20: Performance Parameters – Consolidated
Performance Parameters – Consolidated Robust Growth continues | Significant Reduction in CoB, GS3 and NS3 Disbursement AUM Networth Focussed Discontinued 3,336 3,436 17,660 6,235 16,579 14,424 15,275 15,228 2,281 6,058 2,580 5,925 2,974 5,841 1,845 4,375 3,626 5,722 1,733 5,163 13,605 15,379 10,900
Slide 21: Asset Quality
Asset Quality Reduction in Stage 2 & Stage 3 assets PFL PHFL Consolidated Jun-21 Mar-22 Jun-22 Jun-21 Mar-22 Jun-22 Jun-21 Mar-22 Jun-22 Stage 1 Assets 76.9% 86.7% 90.8% 85.3% 90.8% 92.2% 78.9% 87.8% 91.1% Stage 2 Assets 16.7% 10.1% 6.6% 12.7% 8.3% 7.0% 15.8% 9.6% 6.7% Stage 1 PCR 1.6% 1.8% 2.5% 0.4
Slide 22: ALM statement and Liquidity – PFL Standalone
ALM statement and Liquidity – PFL Standalone Structural Liquidity Statement as on 30 Jun 22 17,096 17,096 Cumulative inflows (₹ in Cr) Cumulative outflows(₹ in Cr) 15,794 14,690 11,071 8,832 9,712 6,177 6,228 4,198 4,782 3,569 1,745 817 1,171 595 33 72 231 542 1-7d 8 - 14d 0-1m 1-2m 2-3m 3-6m 6m-1y
Slide 23: Profit & Loss Statement – Consolidated
Profit & Loss Statement – Consolidated Amounts in ₹ cr As % of average AUM Particulars Q1FY22 Q4FY22 Q1FY23 FY22 Q1FY22 Q4FY22 Q1FY23 FY22 NII (including fee income) 284 371 398 1,325 7.9% 9.5% 9.5% 8.9% Opex 155 214 235 742 4.3% 5.5% 5.6% 5.0% PPOP 129 157 163 583 3.6% 4.0% 3.9% 3.9% Credit cost 52
Slide 24: Profit & Loss Statement – Standalone
Profit & Loss Statement – Standalone Amounts in ₹ cr As % of average AUM Particulars Q1FY22 Q4FY22 Q1FY23 FY22 Q1FY22 Q4FY22 Q1FY23 FY22 NII (including fee income) 231 288 310 1,058 8.7% 10.4% 10.3% 9.8% Opex 130 169 190 595 4.9% 6.1% 6.3% 5.5% PPOP 101 119 120 463 3.8% 4.3% 4.0% 4.3% Credit cost 38
Slide 25: Business and Financial Highlights: Subsidiary (PHFL)
Agenda 4 Business and Financial Highlights: Subsidiary (PHFL) 24-31 24
Slide 26: Poonawalla Housing Finance Limited
Poonawalla Housing Finance Limited (Formerly known as Magma Housing Finance Limited) (Subsidiary)
Slide 27: Poonawalla Housing Finance – At a glance
Poonawalla Housing Finance – At a glance Q1FY23 AUM ➢ Poonawalla Housing Finance Limited (PHFL), subsidiary Disbursement of PFL, is a national scale affordable segment HFC with 128 branches in 20 states across India. ₹ 5,282 cr ₹ 535 cr +31% YoY | +4% QoQ +116% YoY | -33% QoQ ➢ Direct relationship m
Slide 28: Historical Performance - PHFL
Historical Performance - PHFL Poised for sustainable growth – Directly sourced, Granular, Home loan focus book Disbursement AUM Live Customers (in 000s) Direct Ratio (Units) 1,970 46 5,060 78% 80% 77% 75% 1,315 1,251 3,978 33 1,085 3,283 27 44% 2,429 18 562 12 1,808 FY18 FY19 FY20 FY21 FY22 FY18 FY1
Slide 29: Q1 FY23 Performance Highlights - PHFL
Q1 FY23 Performance Highlights - PHFL On path to achieve 2025 vision AUM CoB NIM RoA 5,282 6.8% 7.0% 2.4% YoY QoQ YoY QoQ YoY QoQ YoY QoQ +30.5% +4.4% -236 bps -33 bps +188 bps 4 bps +153 bps -6 bps Disbursement GS3 NS3 PAT 535 0.87% 0.54% 30 YoY QoQ YoY QoQ YoY QoQ YoY QoQ +115.8% -32.9% -107 bps -
Slide 30: Performance Parameters - PHFL
Performance Parameters - PHFL Significant reduction in CoB Disbursement AUM Networth 5,282 797 5,060 1,114 1,082 4,574 1,048 535 535 1,038 4,287 1,007 390 4,047 248 Q1FY22 Q2FY22 Q3FY22 Q4FY22 Q1FY23 Jun-21 Sep-21 Dec-21 Mar-22 Jun-22 Jun-21 Sep-21 Dec-21 Mar-22 Jun-22 CoB GS3 NS3 9.2% 1.95% 1.95% 1
Slide 31: ALM statement and Liquidity – PHFL
ALM statement and Liquidity – PHFL Well Matched ALM Profile | Adequate Liquidity Structural Liquidity Statement as on 30th Jun 22 Cumulative Inflow Cumulative Outflow 6,984 5,510 5,624 4,257 3,272 2,443 1,740 987 1,213 598 470 620 251 223 0 - 1 Month 1 - 3 Month 3 - 6 Month 6 Month - 1 Year 1 Year -
Slide 32: Profit & Loss Statement – PHFL
Profit & Loss Statement – PHFL Amounts in ₹ cr As % of average AUM Particulars Q1FY22 Q4FY22 Q1FY23 FY22 Q1FY22 Q4FY22 Q1FY23 FY22 NII (including fee income) 51 82 88 263 5.1% 6.9% 7.0% 6.1% Opex 28 45 45 147 2.8% 3.8% 3.6% 3.4% PPOP 23 37 43 116 2.3% 3.1% 3.4% 2.7% Credit cost 11 1 2 14 1.1% 0.1% 0
Slide 33: Board Members
Agenda 5 Board Members 32-33 32
Slide 34: Board of Directors – Poonawalla Fincorp
Board of Directors – Poonawalla Fincorp Experienced & Diversified Board Mr. Adar Poonawalla Mr. Abhay Bhutada Mr. Amar Deshpande Mr. Sajid Fazalbhoy Mr. Atul Kumar Gupta Chairman & Managing Director Non-Executive Director Non-Executive Director Non-Executive Director Non-Executive Director Ms. Vijay
Slide 35: Appendix: Digital Capabilities
Agenda 6 Appendix: Digital Capabilities 34-39 34
Slide 36: Annexure: Digital Capabilities
Annexure: Digital Capabilities
Slide 37: Building a Tech Led Play
Building a Tech Led Play Customers Partners Self service online web application Extended API Infrastructure Contact center led digital onboarding CRM Extension Contactless customer service through Bots Market Place Partnerships Digitized Operating Layer with controls inbuilt Sales Team Digitization
Slide 38: Deep Investments in Technology
Deep Investments in Technology Core Cloud Micro Services Cloud based based applications architecture Omni channel presence Building an integrated getting powered one stop solution for our through the data customers and partners science engine Infosec API Factory Cyber resilience API based competenci
Slide 39: Digital to the Core
Digital to the Core Digitalizing end to end journey Digital KYC Smart Contract & Digital EMIs Sales & Onboarding ▪ CKYC Digital ▪ E-Application & E-Sign TAT Reduction ▪ EKYC Onboarding & ▪ E-Agreement ▪ VKYC Digital NACH ▪ E-NACH Digital Collections Unified Payments Platform ▪ Bharat Bill Pay, UPI ▪
Slide 40: Digital to the Core
Digital to the Core Digitalizing end to end journey 24X7 Digital Service Portal & Mobile App Multilingual ▪ WhatsApp, Chat & Email Bot ▪ Digital Lodgment & Workflow Increase Portal Digital ▪ IVR Bot, AV Bot (Voice biometric) Usage Integrations Interactions ▪ WhatsApp for interactions ▪ Enable Top QR
Slide 41: Disclaimer
Disclaimer This presentation has been prepared by Poonawalla Fincorp Limited (the “Company”), for general information purposes only, without regard to any specific objectives, suitability, financial situations and needs of any particular person and does not constitute any recommendation or form part
Slide 42: Disclaimer (Continued)
Disclaimer (Continued) The information contained in these materials has not been independently verified. Neither the Company, its directors, promoter affiliates, nor any of its or their respective employees, advisers or representatives or any other person accepts any responsibility or liability what
Slide 43: Thank You
THANK YOU www.poonawallafincorp.com