Muthoot Finance Ltd · NSE:MUTHOOTFIN
Muthoot Finance — Q3 FY2012 Earnings Presentation
31 slides from Muthoot Finance's earnings presentation, Apr 25, 2012
Slide 1: Financial Results Q3 FY 2012
FINANCIAL RESULTS Q3 FY 2012 Muthoot Finance
Slide 2: Key Financials: Networth
KEY FINANCIALS (Rs. In Millions) NETWORTH Dec-11 Sep-11 Jun-11 Mar-11 Dec-10 Growth% Rs. Rs. Rs. Rs. Rs. QoQ YoY Share Capital 3717 3717 3717 3202 3202 0% 16% Reserves & Surplus 24912 22403 20247 10139 8746 11% 185% 28629 26120 23964 13341 11948 10% 140% 2
Slide 3: Assets
ASSETS (Rs. In Millions) Dec-11 Sep-11 Growth Jun-11 Mar-11 Growth Dec-10 Growth QoQ YTD YoY Rs. Rs. Rs. % Rs. Rs. Rs. % Rs. % Gross Retail Loan Assets Under Management 228851 209405 19446 9% 179492 158685 70166 44% 137874 66% Break up of Gross Retail Loan Assets Under Management: Gold Loans under m
Slide 4: Liabilities
LIABILITIES (Rs. In Millions) Dec-11 Sep-11 Jun-11 Mar-11 Dec-10 Growth% Rs. Rs. Rs. Rs. Rs. QoQ YoY Secured Non-Convertible Debentures (Muthoot Gold Bonds) 55465 50415 44108 39832 34761 10% 60% Secured Non-Convertible Debentures - Listed 8082 8082 2150 2150 0% Unsecured Non-Convertible Debentures U
Slide 5: Revenue & Profit
(Rs. In Millions) REVENUE & PROFIT Q3 FY Q3 FY Q2 FY Q1 FY 9M FY 9M FY FY 2012 2011 YoY 2012 2012 QoQ 2012 2011 YoY 2011 % % % Rs. Rs. Growth Rs. Rs. Growth Rs. Rs. Growth Rs. INCOME Interest Income 12261 6412 91% 10984 9142 12% 32387 15438 110% 22983 Other Income 46 46 0% 65 55 -29% 166 142 17% 175
Slide 6: Geographical Spread of Branches
Geographical Spread of Branches 110% 90% 70% 50% 30% Mar-07 Mar-08 Mar-09 Mar-10 Dec-10 Mar-11 Jun-11 Sep-11 Dec-11 East 1% 1% 2% 3% 3% 4% 4% 4% 5% West 5% 6% 7% 10% 11% 12% 13% 13% 13% North 8% 8% 10% 17% 17% 18% 18% 18% 18% South 86% 85% 81% 70% 69% 66% 65% 65% 64% No: of branches 551 707 985 1605
Slide 7: Gold Loan Portfolio
(Rs. In Millions) Gold Loan Portfolio 226949 207666 250000 178035 157281 136756 200000 150000 73417 100000 33001 21790 14201 7569 6431 50000 0 Gold Loan Assets Under Management 7
Slide 8: Gold Holding
Gold Holding (In tonnes) 132 130 140 120 112 120 102 100 80 66 60 39 30 40 23 16 15 20 0 Gold Jewellery kept as Security (tonnes) 8
Slide 9: Geographical Spread of Gold Loan Portfolio
Geographical Spread of Gold Loan Portfolio 100% 95% 90% 85% 80% 75% 70% 65% 60% Mar-07 Mar-08 Mar-09 Mar-10 Dec-10 Mar-11 Jun-11 Sep-11 Dec-11 East 0% 1% 1% 2% 3% 3% 3% 4% 4% West 3% 4% 5% 8% 8% 8% 8% 9% 10% North 13% 13% 14% 15% 14% 15% 15% 16% 16% South 84% 82% 80% 75% 75% 74% 74% 71% 70% (Rs. In
Slide 10: Average Gold Loan Outstanding Per Branch
Average Gold Loan Outstanding Per Branch (Rs. In Millions) 75 65.22 65 59.4 57.2 63.43 55 57.55 45 33.5 45.74 35 25.77 25 30.82 17.24 17.4 15 10
Slide 11: Return on Average Retail Loan Asset
Return on Average Retail Loan Asset 4.40 5.50% 4.91% 4.24% 4.58 % 4.20 4.21% 5.00% 4.52% 4.51% 4.46% 4.43% 4.00 3.94% 4.50% 3.80 3.60 4.00% 3.49% 3.40 3.50% 3.46% 3.20 3.00% Q3 FY 2012 Q3 FY 2011 Q2 FY 2012 Q1 FY 2012 9M FY 2011 9M FY 2012 3.00 11
Slide 12: Non-Performing Assets & Bad Debts written off
(Rs. In Millions) Non-Performing Assets & Bad Debts written off Dec-11 Sep-11 Jun-11 Mar-11 Dec-10 Rs. Rs. Rs. Rs. Rs. Gross Non-Performing Assets 1304 1233 548 460 409 Provision For Non-Performing Assets 181 174 77 70 62 Net Non-Performing Assets 1123 1059 471 390 347 % of Gross NPA on Gross Retail
Slide 13: Liability Mix
(Rs. In Millions) LIABILITY MIX 1% 0% 6% Secured Non-Convertible Debentures 9% (Muthoot Gold Bonds)- 55465 (27%) 12% Secured Non-Convertible Debentures - Listed - 8082 (4%) Bank Borrowings - 87763 (41%) 27% Sell down of receivables under Bilateral Assignment - 24615 (12%) Unsecured Non-Convertible D
Slide 14: Debt Rating
DEBT RATING SHORT TERM RATING AMT OF RATING RATING INDICATES COMMERCIAL PAPER Degree of safety with regard to timely payment of interest & CRISIL Rs.4000crs CRISIL A1+ principal on the instrument is very strong ICRA Rs.200crs ICRA A1+ Lowest credit risk & Stronger credit quality BANK LOANS ICRA Rs.4
Slide 15: Geographical Spread of Gold Bond
Geographical Spread of Gold Bond 100% 90% 80% 70% 60% 50% Mar-08 Mar-09 Mar-10 Dec-10 Mar-11 Jun-11 Sep-11 Dec-11 East 0% 0% 1% 1% 1% 1% 2% 2% West 2% 2% 4% 5% 6% 6% 7% 8% North 5% 6% 9% 11% 12% 13% 13% 13% South 93% 92% 86% 83% 81% 80% 78% 77% (Rs. In Millions) Muthoot Gold Bond Portfolio 12403 190
Slide 16: Geographical Spread of Subordinated Debt
Geographical Spread of Subordinated Debt 105% 100% 95% 90% 85% 80% 75% 70% Mar-09 Mar-10 Dec-10 Mar-11 Jun-11 Sep-11 Dec-11 East 0% 0% 1% 1% 1% 2% 2% West 1% 2% 3% 4% 4% 5% 6% North 4% 10% 9% 12% 12% 11% 11% South 95% 88% 87% 83% 83% 82% 81% (Rs. In Millions) Subordinated Debt Portfolio 1099 3246 55
Slide 17: Break-Up of Gross Income
Break-Up of Gross Income Interest Income Other Income 36000 166 26000 175 32000 24000 22000 28000 20000 24000 18000 16000 20000 14000 32387 141 16000 22983 12000 119 46 10000 12000 65 8000 55 15439 142 8000 46 10775 6000 12261 10984 107 9142 4000 6062 104 4000 6412 3579 2000 2236 0 0 Q3 FY Q3 FY Q2
Slide 18: Yield on Retail Loan and NIM
Yield on Retail Loan and NIM 22.38% 22.60% 22.29% 21.63% 25.00% 20.24% 19.40% 23 21 21.67 20.00% 20.04 19 19.47 19.72 19.94 11.58% 11.22% 11.15% 11.38% 15.00% 11.24% 11.20% 11.14% 10.81% 10.43% 10.62% 17 9.00% 8.77% 15 10.00% 13 11.09 9.78 11.07 11.17 11 10.86 5.00% 9 10.6 8.95 9.69 8.77 8.86 7 0.00
Slide 19: Interest Spread
Interest Spread 22.38% 22.60% 22.29% 21.63% 25.00% 20.24% 19.40% 23 20.00% 21.67 21 20.04 12.45% 19.72 11.88% 19.47 11.67% 15.00% 19 11.02% 10.94% 10.72% 10.69% 10.62% 19.94 10.51% 9.93% 9.22% 8.89% 17 10.00% 15 13 11.24 11.88 5.00% 10.04 11.53 11 9.79 10.9 9 0.00% 8.8 9.43 8.82 8.41 Q3 FY 2011 Q2 F
Slide 20: Operating Expenses to Average Retail Loans
Operating Expenses to Average Retail Loans 4.81% 6 5.50% 4.33% 4.34% 5.00% 3.96% 3.94% 3.90% 5.5 5.45 4.50% 5.38 4.00% 5 3.50% 4.72 3.00% 4.5 4.59 2.50% 4.33 2.00% 4 1.50% 1.00% 3.5 Q3 FY Q3 FY Q2 FY Q1 FY 9M FY 9M FY Mar-08 Mar-09 Mar-10 Mar-11 Mar 07 2012 2011 2012 2012 2012 2011 20
Slide 21: Break-Up of Operating Expenses
Break-Up of Operating Expenses (Rs. in Millions) Mar- Mar- Mar- Mar- Mar- Q3 FY Q3 FY Q2 FY 9M FY 9M FY OPERATING EXPENSES 07 08 09 10 11 2012 2011 2012 2012 2011 Personnel Expenses 266 405 677 1169 2209 1134 630 937 2886 1529 Rent 47 82 131 290 603 280 157 245 741 390 Advertisement 36 67 208 331 64
Slide 22: Break-Up of Operating Expenses
Break-Up of Operating Expenses Mar- Mar- Mar- Mar- Mar- Q3 FY Q3 FY Q2 FY 9M FY 9M FY OPERATING EXPENSES 07 08 09 10 11 2012 2011 2012 2012 2011 Personnel Expenses 40% 44% 42% 43% 42% 51% 49% 39% 44% 47% Rent 7% 9% 8% 11% 12% 13% 12% 10% 11% 12% Advertisement 5% 7% 13% 12% 12% 8% 11% 10% 11% 13% Pos
Slide 23: Profitability Ratios
PROFITABILITY RATIOS (Based on Gross Income) Q3 FY 2012 Q3 FY 2011 Q2 FY 2012 Q1 FY 2012 9M FY 2012 9M FY 2011 Interest expense to Gross Income 51.52% 44.13% 49.34% 47.92% 49.76% 44.83% Selling, general and administrative expenses to Net Income 17.36% 19.31% 21.19% 19.90% 19.37% 20.22% Operational e
Slide 24: Profitability Ratios (Based on Average Retail Loans)
(Based on Average Retail Loans) Q3 FY 2012 Q3 FY 2011 Q2 FY 2012 Q1 FY 2012 9M FY 2012 9M FY 2011 FY 2011 Interest income to avg. retail loans 22.38% 20.24% 22.60% 21.63% 22.29% 19.40% 19.72% Interest expense to avg. retail loans 11.58% 9.00% 11.22% 10.43% 11.15% 8.77% 8.86% Net Interest Margin 10.8
Slide 25: Profit Growth
Profit Growth 8000 7612 12000 9827 7000 10000 6000 4942 6569 5000 8000 3456 5334 3183 4000 6000 3744 3548 3000 2900 1482 2324 2276 4000 2508 2000 1905 970 2156 670 1556 1000 2000 977 0 636 440 Mar 07 Mar-08 Mar-09 Mar-10 Mar-11 0 Q3 FY Q3 FY Q2 FY Q1 FY 9M FY 9M FY 2012 2011 2012 2012 2012 2011 PBT
Slide 26: Networth
Networth (Rs. In Millions) 28629 31000 26000 26120 23964 21000 16000 13342 11000 10392 6000 2131 3614 5842 1592 1000 Mar Mar- Mar- Mar- Sep- Mar- Sep- Jun- Dec- 11 07 10 11 11 09 08 10 11 26
Slide 27: Return on Average Equity
(In Percentage) Return on Average Equity 55.71% 53.19% 60.00% 55.00 51.50 41.74% 40.84% 50.00% 36.66% 34.43% 50.00 48.10 40.00% 45.00 30.00% 40.00 20.00% 35.10 35.00 10.00% 33.90 34.00 0.00% 30.00 Q3 FY Q3 FY Q2 FY Q1 FY 9M FY 9M FY 2012 2011 2012 2012 2012 2011 27
Slide 28: Capitalisation Ratios
CAPITALISATION RATIOS Dec 31,2011 Sep 30,2011 June 30,2011 March 31,2011 Dec 31,2010 Capital Adequacy Ratio 18.33% 18.24% 19.19% 15.82% 15.29% Tier I 13.37% 13.48% 14.51% 10.62% 10.81% Tier II 4.96% 4.76% 4.68% 5.20% 4.48% Book Value Per Share(Rs.) 77.02 70.27 64.47 41.67 37.31 Earnings per Share (R
Slide 29: Capitalisation Ratios
(Rs. In Millions) CAPITALISATION RATIOS Dec Sep June March 31,2011 30,2011 30,2011 31,2011 Dec 31,2010 Gross Outside Liabilities(including assigned loans) 219600 206968 175332 168184 142662 Outside Liabilities(excluding assigned loans) 194985 181093 151340 126320 107680 Cash & Bank Balances 7390 133
Slide 30: Human Resources: Number of Employees
Human Resources 28000 23219 23000 No: Of Employees 19125 21543 18000 16688 13000 9745 8000 3102 3999 5979 3000 Mar-11 Jun-11 Mar-08 Mar-09 Mar-10 Sep-11 Dec-11 Mar 07 30
Slide 31: Muthoot Finance
Muthoot Finance