Creditaccess Grameen Ltd. · NSE:CREDITACC
Creditaccess Grameen — Q4 FY2019 Earnings Presentation
54 slides from Creditaccess Grameen's earnings presentation, May 9, 2019
Slide 1: Intimation of Investor Presentation cover letter
May 09, 2019 The General Manager The Vice President, Listing Department National Department of Corporate Services – Listing Dept. Stock Exchange of India Limited, The Exchange BSE Limited Plaza Phiroze Jeejeebhoy Towers Dalal Bandra Kurla Complex Bandra Street (East) Mumbai 400051 Mumbai 400001 Scri
Slide 2: Investor Presentation Q4FY2018-19
Investor Presentation Q4FY2018-19 May 2019 CreditAccess Grameen Limited BSE: 541770 NSE: CREDITACC Corporate Identity No. U51216KA1991PLC053425 www.grameenkooota.org Private and Confidential www.grameenkoota.org 1
Slide 3: Disclaimer
Disclaimer By accessing this presentation, you agree to be bound by the following terms and conditions. This presentation (which may reflect some price sensitive information in terms of SEBI regulations and Companies Act, 2013, as amended from time to time) has been prepared by CreditAccess Grameen
Slide 4: Executive Summary
Executive Summary Private and Confidential www.grameenkoota.org 3
Slide 5: Performance driven by strong fundamentals
Performance driven by strong fundamentals Overview Growth in Gross Loan Portfolio (GLP) (Rs. Cr) » Leading NBFC-MFI in India with gross loan portfolio of Rs. 7,159 Cr, 24.70 lakhs borrowers and 670 Branches » Predominantly offers micro loans under group liability (MFI 7,159 7,159 loans) at 18% to 21
Slide 6: Strong business performance
Strong business performance GLP (Rs. Cr) Disbursement (Rs. Cr) Total Income (Rs. Cr) NII[1] (Rs. Cr) PAT (Rs. Cr) NNPA[2] (%) Q4FY19 7,159.33 3,271.90 336.44 202.92 76.31 0.0 43.9% 71.2% 34. 34.4% 33.6% 6.9 6.4% 0.0% 4% % Q4FY18 4,974.66 1,910.85 250.37 151.90 71.71 0.0 FY19 7,159.33 8,221.16 1,283.
Slide 7: Update on Liquidity
Update on Liquidity Private and Confidential www.grameenkoota.org 6
Slide 8: NBFC-MFIs well placed on liquidity position
NBFC-MFIs well placed on liquidity position Type of Institutions Asset Tenure ALM Mismatch Lenders Profile Majority exposure to CPs, NCDs & debt market For most NBFCs average asset Medium to Long Term instruments and borrowing from Mutual Funds NBFCs maturity tenure is higher than (>=2 to > 10 years
Slide 9: Comfortable liquidity to meet obligations and fulfil growth requirements
Comfortable liquidity to meet obligations and fulfil growth requirements For the month For the Financial year Particulars (Rs Cr) Apr-19 May-19 Jun-19 2019-20 Opening Cash & Equivalents* (A) 615.55 920.87 1,215.74 615.55 Loan recovery [Principal] (B) 522.99 548.47 458.62 5,031.63 Total Inflow (C=A+B
Slide 10: Positive ALM continues to contribute growth
Positive ALM continues to contribute growth Positive ALM Mismatch*( in Months) 25.29 23.14 21.50 21.50 19.43 19.02 18.55 15.97 16.12 16.31 16.12 16.03 14.12 14.80 13.60 13.08 FY15 FY16 FY17 FY18 Q3FY18 Q4FY18 Q3FY19 Q4FY19 Average Maturity of Assets Average Maturity of Liabilities Private and Confid
Slide 11: Company Overview
Company Overview Private and Confidential www.grameenkoota.org 10
Slide 12: Proven track record of retaining and strengthening fundamentals of micro-credit model in rural areas
Proven track record of retaining and strengthening fundamentals of micro-credit model in rural areas 01 Rural focus enabling the Company to operate in a segment with low competitive intensity 82% Rural Borrower base 02 Experienced & stable management team with strong promoter group backing Key Manag
Slide 13: Industry Fundamentals
Industry Fundamentals Private and Confidential www.grameenkoota.org 12
Slide 14: NBFC-MFIs best placed to address rural credit needs
NBFC-MFIs best placed to address rural credit needs 75% Unbanked Households in Rural Areas1- Large Untapped Opportunity Low penetration of banking credit in rural areas 90% » Massive Govt. thrust to boost financial Total inclusion - NBFC-MFIs to play a key role in Households furthering this. (247 Mn
Slide 15: Operational Highlights
Operational Highlights Private and Confidential www.grameenkoota.org 14
Slide 16: Strong rural growth story
Strong rural growth story Outreach 670 700 25 24.7 600 20 516 500 393 18.51 15 400 298 14.5 238 11.96 300 10 176 8.45 200 5 5.05 100 0 0 FY-14 FY-15 FY-16 FY-17 FY-18 FY-19 Borrowers (Lakhs) Branches (#) Borrower Base » 670 branches spread across 157 districts in 9 states / UT 18% Q4FY19 » 24.70 lak
Slide 17: Demonstrated robust growth
Demonstrated robust growth Kendras (000) Borrowers (000) 2,470 2,261 172 1,851 157 131 1,655 113 Q3FY18 Q3FY19 Q4FY18 Q4FY19 Q3FY18 Q3FY19 Q4FY18 Q4FY19 Disbursement (Rs. Cr) Gross Loan Portfolio (Rs. Cr) 3,272 7,159 6,085 4,975 1,762 1,911 4,075 1,296 Q3FY18 Q3FY19 Q4FY18 Q4FY19 Q3FY18 Q3FY19 Q4FY1
Slide 18: Infrastructure in place to fuel further growth
Infrastructure in place to fuel further growth Branches (#) Employees (#) 659 670 8,064 7,798 472 516 6,306 5,639 Q3FY18 Q3FY19 Q4FY18 Q4FY19 Q3FY18 Q3FY19 Q4FY18 Q4FY19 Borrowers / Branch (#) Borrowers/ Loan Officers (#) 3,506 3,588 3,686 3,431 416 400 407 428 Q3FY18 Q3FY19 Q4FY18 Q4FY19 Q3FY18 Q3F
Slide 19: Cashless shift based on customer's preference
Cashless shift based on customer’s preference Long term strategy is to move to cashless disbursement mode in phased manner based on customers’ preference. Preference for cashless disbursement given to customers: Small loans: Cash/Cashless based on customers’ preference Larger Loans: Cashless 100% of
Slide 20: Portfolio growth in Q4FY19 came from districts outside the Top 10
Portfolio growth in Q4FY19 came from districts outside the Top 10 » District is the unit of risk in microfinance business, therefore our unit of expansion is district » Geographical expansion strategy: » Penetrate through district centric approach » Expansion to contiguous district after in depth st
Slide 21: Update on Retail Finance Business
Update on Retail Finance Business Private and Confidential www.grameenkoota.org 20
Slide 22: Launched retail finance vertical to support customers' growing needs
Launched retail finance vertical to support customers’ growing needs Key drivers Key numbers » Focus on captive and 395 Cr+ Disbursement graduated group lending 300 Cr+ GLP Group Individual customers 41,000+ Borrowers Lending lending » Separate vertical - Separate 900+ Staff team , structure and pro
Slide 23: Retail finance contributes 4.5% of total portfolio
Retail finance contributes 4.5 % of total portfolio Branches (#) Borrowers (000) 60 41 49 26 18 30 6 2 610 610 2,235 2,429 454 486 1,652 1,845 Q3FY18 Q3FY19 Q4FY18 Q4FY19 Q3FY18 Q3FY19 Q4FY18 Q4FY19 GL RF GL RF Staff (#) GLP (Rs. Cr) 325 790 929 200 416 51 246 20 6,834 7,008 7,135 5,885 5,393 5,890
Slide 24: Product Offerings
Product Offerings Private and Confidential www.grameenkoota.org 23
Slide 25: Customer centric product suite
Customer centric product suite Tenure Loan Type Product Purpose Ticket Size (Rs.) Yield (months) Income Generation Business Investments and Income Enhancement Group 5,000 - 80,000 19%-21% 12-24 Loan(IGL) activities Home Improvement Water Connections, Sanitation and Home Group 5,000 - 50,000 18% 12-4
Slide 26: Financial Highlights
Financial Highlights Private and Confidential www.grameenkoota.org 25
Slide 27: Adoption of Ind AS Accounting Standards
Adoption of Ind As Accounting Standards » The company has adopted Indian Accounting Standards (Ind AS) with effect from April 2018 » Consolidated figures for Q4 FY19 are compliant with Ind AS » Consolidated figures for FY19 are compliant with Ind AS » Corresponding figures for Q4 FY18 have been rest
Slide 28: ROA for FY19 is 5%
ROA for FY19 is 5% Particulars Q3FY19 Q4FY18 Q4FY19 FY18 FY19 Spread Analysis (as % of Avg. Quarterly Gross Loan Portfolio) Gross Yield[1] 23.6% 22.1% 20.3% 22.0% 21.8% Portfolio Yield[2] 21.8% 20.6% 18.5% 20.4% 20.1% Finance Cost 7.4% 7.2% 6.2% 8.9% 7.1% NII 14.4% 13.4% 12.3% 11.5% 13.1% Operating
Slide 29: Profit for FY19 grew by 51% YoY
Profit for FY19 grew by 51% YoY Profit & Loss Statement (Rs. Cr) Q3FY19 Q4FY18 Q4FY19 QoQ% YoY% FY18 FY19 YoY% Revenue from operations Interest income 319.61 245.36 312.44 -2% 27% 859.69 1,218.32 42% Fees and commission 0.00 0.00 0.11 - - 0.00 0.41 - Dividend income 0.00 0.04 0.00 - - 0.17 0.00 - Ne
Slide 30: Strong balance sheet supported by high capital base and robust liquidity
Strong balance sheet supported by high capital base and robust liquidity Balance Sheet (Rs. Cr) Q3FY19 Q4FY18 Q4FY19 QoQ% YoY% Financial Assets Cash and cash equivalents 867.87 130.03 573.73 -34% 341% Bank balance other than cash and cash equivalents 49.15 13.03 41.82 -15% 221% Receivables 1.57 5.46
Slide 31: Q4FY18 Ind AS Vs Previous Indian GAAP
Q4FY18 Ind AS Vs Previous Indian GAAP Profit & Loss Statement (Rs. Cr) Ind AS (A) IGAAP (B) Variance (A-B) Remark Revenue from operations Under Ind AS: Interest Income is based on effective interest rate Securitization is considered On-Balance Sheet and hence income is considered under Interest inco
Slide 32: Q4FY19 Ind AS Vs Previous Indian GAAP
Q4FY19 Ind AS Vs Previous Indian GAAP Profit & Loss Statement (Rs. Cr) Ind AS (A) IGAAP (B) Variance (A-B) Remark Revenue from operations Under Ind AS: Processing Fees and other costs are amortized Securitization is considered On- Interest income 312.44 314.75 (2.31) Balance Sheet and hence expense
Slide 33: Well diversified borrowing mix
Well diversified borrowing mix Rs. Cr Q3 FY 18 Q3 FY 19 Q4 FY 18 Q4FY 19 Banks 1,443.49 48.25% 2,231.49 47.38% 2,216.72 61.53% 2,692.75 49.94% NBFCs 83.52 2.79% 222.22 4.72% 61.27 1.70% 185.34 3.44% FIs 659.31 22.04% 821.21 17.44% 519.22 14.41% 1,098.28 20.37% Foreign Sources 805.65 26.93% 674.40 14
Slide 34: Marginal Cost of Borrowings amongst the lowest
Marginal Cost of Borrowings amongst the lowest Metrics Q3FY18 Q3FY19 Q4FY18 Q4FY19 FY18 FY19 Marginal Cost of Borrowings 8.95% 10.37% 9.15% 9.89% 9.81% 9.82% (on and off b/s loans including processing fees*) Weighted Avg. Cost of Borrowings (on and off b/s loans including processing fees and other 1
Slide 35: Highest Grading reaffirmed for the Comprehensive Microfinance Grading by CRISIL
Highest Grading reaffirmed for the Comprehensive Microfinance Grading by CRISIL Q4 FY18 Q4 FY19 Rating Instrument Rating Agency Rating/Grading Rating/Grading Bank facilities ICRA ICRA A (Stable) ICRA A+ (Stable) Non-convertible debentures ICRA ICRA A ICRA A+ (Stable) Subordinated debt ICRA ICRA A IC
Slide 36: Guidance
Guidance Private and Confidential www.grameenkoota.org 35
Slide 37: Guidance FY20
Guidance FY20 PAT (Rs. Cr) 425 - 450 Private and Confidential www.grameenkoota.org 36
Slide 38: Annexures
Annexures Private and Confidential www.grameenkoota.org 37
Slide 39: Disbursement Trend
Disbursement Trend Private and Confidential www.grameenkoota.org 38
Slide 40: Disbursement Trend
Disbursement Trend FY16 – Rs. 3,349 Cr. FY17 – Rs. 3,403 Cr. FY18 – Rs. 6,082 Cr. FY 19 - Rs. 8,221Cr. 3,272 1,911 1,762 1,680 1,616 1,571 1,368 1,296 1,195 1,011 967 832 709 716 611 538 Q1FY16 Q2FY16 Q3FY16 Q4FY16 Q1FY17 Q2FY17 Q3FY17 Q4FY17 Q1FY18 Q2FY18 Q3FY18 Q4FY18 Q1FY19 Q2FY19 Q3FY19 Q4FY19 1
Slide 41: District and State wise diversification
District and State wise diversification Private and Confidential www.grameenkoota.org 40
Slide 42: District-wise Exposure Trend (1/2)
District-wise Exposure Trend (1/2) Portfolio FY16 FY17 FY 18 Q1FY19 Q2FY19 Q3FY19 Q4FY19 Exposure of Districts No. of % of Total No. of % of Total No. of % of Total No. of % of Total No. of % of Total No. of % of Total No. of % of Total (% of Portfolio) Districts Districts Districts Districts Distri
Slide 43: District-wise Exposure Trend (2/2)
District-wise Exposure Trend (2/2) FY16 FY17 FY 18 Q1FY19 Q2FY19 Q3FY19 Q4FY19 Contribut Contribut Contribut Contribut Contribut Contribut Contribut District % of ion to % of ion to % of ion to % of ion to % of ion to % of ion to % of ion to in terms Total GLP overall Total GLP overall Total GLP ove
Slide 44: Geographical Diversification
Geographical Diversification States/UT » Karnataka GLP » Tamil Nadu (Rs Cr) 1,447 2,539 3,075 4,975 7,159 » Madhya Pradesh » Chhattisgarh Portfolio Mix » Odisha 3% 3% » Kerala 4% 6% 8% 11% » Maharashtra 6% 7% » Goa 28% 10% » Puducherry 30% 28% 27% 26% 69% 63% 60% 58% 53% FY 15 FY16 FY17 FY18 FY19 Ka
Slide 45: Product Mix
Product Mix Private and Confidential www.grameenkoota.org 44
Slide 46: Product Category Mix
Product Category Mix Group Lending Period Parameters Retail Finance Total IGL Family Welfare Home Improvement Emergency No. of Loans Disb (000) 552.65 62.20 282.08 49.42 4.05 950.41 %Mix 58.15% 6.54% 29.68% 5.20% 0.43% 100.00% Q4FY18 Amount Disbursed (Rs. Cr) 1,490.88 18.30 362.74 4.94 33.99 1,910.8
Slide 47: Risk Management
Risk Management Private and Confidential www.grameenkoota.org 46
Slide 48: Prudent risk management and control framework
Prudent risk management and control framework Annual risk management plan formulated Annual risk management plan formulated Board Oversight comprising major risks identified by management comprising major risks identified by management Board and Risk Management Committee oversight on Free an
Slide 49: Information Technology
Information Technology Private and Confidential www.grameenkoota.org 48
Slide 50: Information Technology
Information Technology Key Technology Initiatives Key Technology Partners Paperless transactions (Core Banking Solution) (Data Centre & Disaster Recovery SMS engine Field with reduced TAT Infrastructure) integration process automation (Email and Collaboration) (Mobility solution) Event based Custome
Slide 51: Credit Plus Activities
Credit Plus Activities Private and Confidential www.grameenkoota.org 50
Slide 52: Community Focus
Community Focus Client Protection Certification » Company aims to meet its responsibility towards society through: » Diligently follow responsible financing practices & client protection principles Comprehensive Micro Finance » Ensure transparency with all stakeholders Grading – M1C1 » Design produc
Slide 53: Effective use of CSR funds
Effective use of CSR funds Conducts various activities spread across states of Karnataka, Maharashtra, Tamil Nadu and Madhya Pradesh which complement its regular microfinance operations by contributing to improving living conditions of the customer/s. Events Conducted Beneficiaries WASH (Water Sanit
Slide 54: Thank You
Thank You For any investor related queries , please mail to email id csinvestors@grameenkoota.org Private and Confidential www.grameenkoota.org 53
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