CSL Finance Limited · NSE:CSLFINANCE
CSL Finance — Investor Presentation (January 2018)
29 slides from CSL Finance's investor presentation, January 2018
Slide 1: Corporate Presentation
Corporate Presentation January 2018 © 2 0 1 8 C S L F I N A N C E L I M I T E D , A L L R I GH TS R E S E R V E D
Slide 2: Table of Contents
Table of Contents Company Snapshot 3 Milestones 4 Management Team 5 Financial Services Landscape 7 Business Strategy 8 Our Differentiators 9 Our Presence 12 Operational Overview 13 Financial Overview 21 Fund Raise 24 Shareholders Composition 26 Future Growth Drivers 27 © 2018 CSL Finance Limited, Al
Slide 3: Company Snapshot
Company Snapshot Delhi based NBFC with Listed on Bombay 98% of loan BBB rating AUM of Rs 260 Cr Stock Exchange book is secured from CARE 7 Branches spread High CAR Low cost of Raised 53 Cr from Marquee across North India of 68 % operations investors in Sep 2017 © 2018 CSL Finance Limited, All Rights
Slide 4: Milestones
Milestones SME/Retail Loan Foray; opened seven branches Got NBFC Exited the registration from Controlling stake in Asian Oilfield Invested in Reserve Bank of India Asian Oilfield Services Ltd for a return of Fintech Crossed 100 Cr (a BSE listed Oilfield Services 7X company) Company loan book 2003 20
Slide 5: Management Team
Management Team Rohit Gupta (Managing Director) Rohit is a chartered accountant with over 25 years of diverse experience in the fields of merchant banking, corporate finance, financial restructuring, project finance, capital markets and structured lending. He has advised several small/mid-size organ
Slide 6: Management Team
Management Team Rakesh Kapoor: Zonal Business Head- SME North India Rakesh has over 19 years of rich experience in retail assets including secured/unsecured SME, personal loans and auto loans. He has worked across various markets in North India for NBFCs like Indiabulls, Magma and Religare. In his l
Slide 7: Financial Services Landscape
Financial Services Landscape USD 3,500 3020 bn Low Retail Debt to GDP ratio will result in 5x in 10 1 Retail lending to grow from USD 600 Billion years to USD 3,000 Billion by FY2026 15% CAGR USD USD 620 bn 279 bn As Per CRISIL Report published in November 2017 0 2 FY09 FY16 FY26E NBFCs will continu
Slide 8: Business Strategy
Business Strategy Portfolio Quality Focussed Approach Systematic build up of portfolio Prudent risk management and in chosen geographies consistent monitoring of portfolio Costs Flexibility Focus on low operational Flexible offerings in line with and borrowing costs customer needs Niche Segments Cus
Slide 9: Product Portfolio
Product Portfolio Product Portfolio Wholesale Mortgage – Large (Group Housing) Wholesale Mortgage – Small (Builder Floor Financing) Wholesale Financing Wholesale Mortgage - LAP (Corporates and Education Sector) Secured Business Loans Retail Unsecured Business Loans Financing © 2018 CSL Finance Limit
Slide 10: A wholesale lending NBFC building a retail franchise
A wholesale lending NBFC building a retail franchise Multiple Growth Drivers Established Vertical 98% of loan book is Secured Wholesale Credit Structured Collateralised Credit High CAR driving growth Focused Expansion with a cluster based approach Emerging Vertical SME Secured Credit Low cost
Slide 11: Diversifying to retail SME lending
Diversifying to retail SME lending Secured Business Loan Key Features Loans ranging between INR 2 - 25 lakh offered to Traders, Kirana Stores & Small businesses with regular cash flows Secured Business Loan- INR 2 against security of residential/commercial property. lakh to 25 lakh Unsecured Busines
Slide 12: Branches
Branches Existing Branches Jalandhar Ludhiana Proposed Branches Dehradun Patiala Yamnuna Karnal Nagar Panipat New Delhi Jaipur Ajmer Jodhpur Kota Ahmedabad Rajkot Surat Vapi Map not to scale, for representation purposes only © 2018 CSL Finance Limited, All Rights Reserved. 12
Slide 13: Corporate Credit – Leveraging our Relationships
Corporate Credit – Leveraging our Relationships Assets Under Management (AUM) Business Approach Figures in INR Crores 300 Better domain knowledge due to controlled 248 geographical presence Selective focus on market segments with good end-use 194 demand 200 High degree of flexibility in deal structu
Slide 14: Retail Credit Expanding Footprint
Retail Credit Expanding Footprint Assets Under Management (AUM) Business Approach Figures in INR Crores 12 Building a focussed retail presence. Started with select 10.53 markets in NCR, Haryana and Punjab and expanding into Rajasthan and Gujarat 7.83 Implementing Loan Origination & Management System
Slide 15: What do we stand for
What do we stand for Build a low cost profitable business model with a focus on high portfolio quality and customer satisfaction Focus to become formidable player in our niche target segment Build a sustainable business with ROE target of 16-18% in the medium term Service unbanked small businesses w
Slide 16: Credit Business Mix
Credit Business Mix Product Category Book Size (Rs Cr) Corporate Lending Loans to Group Housing Projects consisting both of Wholesale Mortgage – Large 151 standard loans and structured collateralised loans Wholesale Mortgage – Small 34 Builder Floor & Site Redevelopment Loans Loans given to Educatio
Slide 17: High NIMs and Robust Asset Quality
High NIMs and Robust Asset Quality Key Parameters Q3FY18 At the end of Q3FY18 Return on Net worth 11.61% Gross NPA (Rs Cr) 0.00 0.00 Average Cost of Borrowing 10.07% Net NPA (Rs Cr) Capital Adequacy Ratio 68.40% Total AUM (Rs Cr) 260.22 Provisions for Standard Assets (Rs Cr) 0.65 Average Collection
Slide 18: Credit Business at a Glance
Credit Business at a Glance At the end of Q3FY18 Q3FY17 Key Highlights AUM (Rs Cr) 260.22 106.72 AUM of company as on 31 Dec Total Revenue (Rs Cr) 10.81 7.07 2017 has grown significantly by 150% on YoY basis Net Interest Income (NII) (Rs Cr) 9.32 6.38 Net Interest Margin % 17.05% 21.21% SME portfoli
Slide 19: Leveraging IT/MIS
Leveraging IT/MIS Implemented a web-based integrated loan management system with Integrated Loan comprehensive Loan Management, Collections, MIS and Reporting 1 Management System Gone live with retail SME vertical In the course of implementation for wholesale mortgage loans Developed and imp
Slide 20: Risk Management Framework
Risk Management Framework Presence in select pockets of NCR Excellent understanding of the market dynamics and risks Presence in select 1 Selective focus on market segments with good end-use demand markets Last mile financing – significantly reduced project risk Deal with reputed developer
Slide 21: Financial Metrics
Financial Metrics 1 Total Income Operating Expenses (Rs Cr) 12 10.81 2 1.84 1.98 1.71 9.22 1.5 8.2 8 7.07 6.2 1 0.66 4 0 0 Q3FY17 Q4FY17 Q1FY18 Q2FY18 Q3FY18 Q3FY17 Q4FY17 Q1FY18 Q2FY18 Q3FY18 Pre Provisioning Profit Before Tax (Rs Cr) Net Profit (Rs Cr) 7.65 8 6 5.09 6.08 5.97 5.46 3.98 3.89 4.08 4
Slide 22: Financial Metrics (contd..)
Financial Metrics (contd..) 2 Borrowings (Rs Cr) Net Interest Income (Rs Cr) 100 89.62 10 9.32 7.54 68.78 6.38 6.58 58.05 5.67 50 5 30.77 0.76 0 0 Q3FY17 Q4FY17 Q1FY18 Q2FY18 Q3FY18 Q3FY17 Q4FY17 Q1FY18 Q2FY18 Q3FY18 AUM – End of Quarter (Rs Cr) Disbursements (Rs Cr) 300 260.22 100 90.95 84.06 204.7
Slide 23: Financial Metrics (contd..)
Financial Metrics (contd..) 3 Capital Adequacy Ratio (%) Net Worth 200 172.89 177.99 150% 160 104.84% 112.41 114.22 119.69 120 100% 84.32% 84.44% 64.25% 68.40% 80 50% 40 0 0% Q3FY17 Q4FY17 Q1FY18 Q2FY18 Q3FY18 Q3FY17 Q4FY17 Q1FY18 Q2FY18 Q3FY18 Number of Employees Number of Branches 70 8 7 7 57 6 48
Slide 24: Fund Raise - Debt
Fund Raise - Debt Year Amount Sr. Name of Investor Instrument Sanctioned (Rs Cr) 1 AU Small Finance Bank Term Loan 2017 10 AU Small Finance Bank 2 CC Limit/WCDL 2017 10 3 State Bank of India CC Limit/WCDL 2017 57 4 State Bank of India Term Loan 2017 18 5 TFCI Term Loan 2017 25 © 2018 CSL Finance Lim
Slide 25: Fund Raise – Investors in Preferential Issue in Sep-17
Fund Raise – Investors in Preferential Issue in Sep-17 No of Amount Sr. Name of Investor Instrument Price (Rs) Date of Allotment Shares (Rs Cr) 1 Kothari Ventures LLP Preferential Allotment 3,85,000 Rs 390 15.02 18 Sep 2017 2 Aadi Financial Advisors LLp Preferential Allotment 3,85,000 Rs 390 15.02 1
Slide 26: Shareholding Pattern
Shareholding Pattern Shareholding Pattern Top 5 Public Shareholders Sr. Name % Holding Public 1 Kothari Ventures LLP 6.52% 2 Aadi Financial Advisors Pvt. Ltd. 6.52% 40.69% 3 Ajay Relan 1.69% 59.31% 4 Radhika Sharma 1.35% Promoter 5 Madhuri Kela 1.35% © 2018 CSL Finance Limited, All Rights Reserved.
Slide 27: Our future growth strategy
Our future growth strategy Portfolio Mix Consolidate our wholesale lending book and diversify into Retail SME lending Aim to achieve a mix of 50:50 between Wholesale and Retail lending Wholesale Mortgage – Large Wholesale Mortgage-Small Broaden our loan target segment from Rs 5-15 cr to Expand our f
Slide 28: Our future growth strategy (Contd…)
Our future growth strategy (Contd…) Wholesale mortgage – LAP SME Lending Continue our strategy to focus on select deals with Expand footprints in select cities in North and West strong cash flow and marketable security . India Structured LAP for funding commercial projects in Develop deeper penetrat
Slide 29: Registered & Corporate Office
Registered & Corporate Office: Phone Email Website 8/19, GF, W.E.A, Pusa Lane +91 11 42503441-44 [email protected] www.cslfinance.in Opp Metro Pillar 87, Karol Bagh, New Delhi -110005 © 2018 CSL Finance Limited., All Rights Reserved. CSL Finance Logo is a trademark of CSL Finance Limited. In additi