Manappuram Finance Limited
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Manappuram Finance Limited Investor Presentation November 2017 Gold Loans Microfinance Housing Finance Vehicle Finance Quarterly Update Company Overview Business Strategy Key Technology Initiatives Annexure Q2 FY18 RESULTS: CONSOLIDATED RESULT HIGHLIGHTS AUM Net Profit Networth ROA 4.3% Rs 137,232 Mn Rs 1,602.1 Mn Rs 35,748 Mn ROE 18.2% (+ 2.6% QoQ) (3.3 % QoQ) Capital Adequacy * Borrowing Cost * GNPA * BV / Share Rs 42.46 28.7% 8.8% 1.2% EPS Rs 7.61 Share of New Dividend / Share Total Branches No of Live Customers Businesses FY17: Rs 2.00 4,148 3.5 mn 22.0% AUM: Assets Under Management, Net Profit: PAT after Minority Interest * Calculated on standalone basis 3 Q2 FY18 RESULTS: CONSOLIDATED PROFIT & LOSS STATEMENT Particulars (Rs Mn) H1FY18 H1FY17 YOY Q2 FY18 Q2 FY17 YOY % Q1 FY18 QOQ % FY17 Closing AUM (Rs Bn) 137 145 -5.3% 137 145 -5.3% 134 2.6% 137 Interest income 16,567.1 15,826.3 4.7% 8,290.6 8,392.9 -1.2% 8,276.6 0.2% 33,762.5 Other Operating Income 53.7 57.5 -6.6% 22.1 29.6 -25.5% 31.6 -30.2% 114.5 Income from Operations 16,620.8 15,883.8 4.6% 8,312.6 8,422.6 -1.3% 8,308.2 0.1% 33,876.9 Finance expenses 5,020.6 5,608.7 -10.5% 2,457.6 2,959.2 -17.0% 2,563.1 -4.1% 11,687.1 Net interest income 11,600.2 10,275.1 12.9% 5,855.1 5,463.4 7.2% 5,745.2 1.9% 22,189.9 Employee expenses 2,955.0 2,519.9 17.3% 1,548.8 1,317.1 17.6% 1,406.2 10.1% 5,025.8 Other operating expenses 2,942.4 2,075.4 41.8% 1,510.4 1,087.0 39.0% 1,432.0 5.5% 4,627.0 Pre provision profit 5,702.8 5,679.8 0.4% 2,795.9 3,059.3 -8.6% 2,906.9 -3.8% 12,537.1 Provisions/Bad debts 1,267.2 334.2 279.1% 460.1 175.3 162.5% 807.1 -43.0% 1,092.1 Other Income 320.4 109.8 191.7% 81.3 67.0 21.3% 239.0 -66.0% 212.2 Profit before Tax 4,756.0 5,455.4 -12.8% 2,417.1 2,951.0 -18.1% 2,338.9 3.3% 11,657.2 Tax 1,637.4 1,906.7 -14.1% 823.9 1,015.5 -18.9% 813.5 1.3% 4,072.3 PAT before Minority Interest 3,118.6 3,548.7 -12.1% 1,593.3 1,935.5 -17.7% 1,525.4 4.5% 7,584.9 Minority Interest (35.2) 21.4 -264.1% (8.9) 11.5 -177.1% (26.3) -66.3% 26.4 PAT 3,153.8 3,527.2 -10.6% 1,602.1 1,924.0 -16.7% 1,551.7 3.3% 7,558.5 4 Q2 FY18 RESULTS: CONSOLIDATED BALANCE SHEET Particulars (Rs Mn) Sep 2017 Sep 2016 YOY % Jun 2017 QOQ % Cash & Bank Balances 5,926.1 6,285.9 -5.7% 4,608.0 28.6% Investments 50.5 50.5 0.0% 50.5 0.0% Loans & Advances 137,007.8 143,895.6 -4.8% 134,497.4 1.9% Fixed Assets 1,787.7 1,866.0 -4.2% 1,830.2 -2.3% Other Assets 5,683.6 6,311.9 -10.0% 5,338.3 6.5% Total Assets 150,455.8 158,410.0 -5.0% 146,324.4 2.8% Share Capital 1,683.9 1,683.2 0.0% 1,683.9 0.0% Reserves & Surplus 34,064.1 28,918.9 17.8% 32,974.1 3.3% Borrowings 107,527.4 122,258.1 -12.0% 103,670.4 3.7% Other Liabilities & Provisions 6,977.0 5,316.3 31.2% 7,783.8 -10.4% Minority Interest 203.3 233.5 -12.9% 212.1 -4.2% Total Liabilities 150,455.8 158,410.0 -5.0% 146,324.4 2.8% 5 Q2 FY18 RESULTS: CONSOLIDATED RESULT HIGHLIGHTS CONSOLIDATED AUM (Rs Bn) NET PROFIT (Rs Mn) CAGR: 18.7 % CAGR: 49.6 % 146 137 137 134 137 7,559 114 96 82 3,534 2,713 2,260 2,025 2,006 1,552 1,602 FY14 FY15 FY16 FY17 Q3 Q4 Q1 Q2 FY14 FY15 FY16 FY17 Q3 Q4 Q1 Q2 FY17 FY17 FY18 FY18 FY17 FY17 FY18 FY18 RETURN RATIOS % TOTAL CUSTOMER BASE (Mn) 24.7% 25.8% 24.4% 3.4 3.3 3.4 3.4 3.6 18.2% 18.2% 2.6 12.8% 9.2% 10.6% 1.5 1.8 5.4% 5.1% 5.1% 4.2% 4.3% 1.9% 2.4% 3.0% FY14 FY15 FY16 FY17 Q3 Q4 Q1 Q2 FY14 FY15 FY16 FY17 Q3 Q4 Q1 Q2 FY17 FY17 FY18 FY18 FY17 FY17 FY18 FY18 ROA % ROE % 6 Q2 FY18 RESULTS: CONSOLIDATED RESULT HIGHLIGHTS NETWORTH (Rs Mn) BOOK VALUE PER SHARE (Rs) 33,618 33,618 34,658 35,748 32,106 39.9 39.9 41.2 42.5 27,580 38.2 24,918 26,328 32.8 29.6 31.3 FY14 FY15 FY16 FY17 Q3 Q4 Q1 Q2 FY14 FY15 FY16 FY17 Q3 Q4 Q1 Q2 FY17 FY17 FY18 FY18 FY17 FY17 FY18 FY18 EARNINGS PER SHARE (Rs) DIVIDEND PER SHARE (Rs) 9.6 9.5 9.0 2.0 7.4 7.6 1.8 1.8 1.8 4.2 3.2 2.7 0.5 0.5 0.5 0.5 FY14 FY15 FY16 FY17 Q3 Q4 Q1 Q2 FY14 FY15 FY16 FY17 Q3 Q4 Q1 Q2 FY17 FY17 FY18 FY18 FY17 FY17 FY18 FY18 7 Q2 FY18 RESULTS: CONSOLIDATED AUM UPDATE CONSOLIDATED AUM (Rs Mn) Particulars (Rs Mn) FY14 FY15 FY16 FY17 Q3FY17 Q4FY17 Q1FY18 Q2FY18 Gold Loans 81,552.4 92,244.8 100,806.0 111,245.3 122,672.0 111,245.3 107,273.1 107,609.1 Microfinance 0.0 3,220.0 9,988.0 17,959.4 16,504.0 17,959.4 18,271.2 19,645.8 Housing Finance 0.0 21.9 1,286.0 3,104.1 2,630.0 3,104.1 3,197.8 3,265.8 Vehicle Finance 0.0 153.7 1,297.7 3,058.3 2,505.0 3,058.3 3,437.4 4,190.9 Other Loans 78.3 295.0 952.0 1,204.8 1,233.0 1,204.8 1,619.0 2,520.5 Total 81,630.7 95,935.4 114,329.7 136,572.0 145,544.0 136,572.0 133,798.4 137,232.2 SHARE OF NEW BUSINESSES IN CONSOLIDATED AUM 21.6% 19.0% 19.0% 19.8% 15.7% 11.8% 3.9% 0.1% FY14 FY15 FY16 FY17 Q3 Q4 Q1 Q2 FY17 FY17 FY18 FY18 8 Q2 FY18 RESULTS: MANAPPURAM FINANCE: BORROWING PROFILE BORROWING AS ON SEP, 2017 = Rs 87,532 Mn CREDIT RATING Commercial Paper Manappuram Finance: 35.9% Long Term: AA- (Stable) by CRISIL, ICRA Long Term: AA (Stable) by Bricwork, CARE Short Term: A1+ by CRISIL, ICRA, CARE Subordinated Bond 0.1% Asirvad Microfinance: Long Term: A+ (Stable) by CRISIL, CARE Short Term: A1+ by CRISIL Bank Finance 41.0% Housing Finance: NCD Long Term: A+ (Stable) by CRISIL 22.9% Short Term: A1+ by CRISIL COST OF BORROWING % MARGINAL COST OF BORROWING 11.1% 10.6% 10.5% 8.8% 10.1% 8.3% 9.9% 9.7% 9.4% 8.8% Q2 Q3 Q4 Q2 Q3 Q4 Q1 Q2 Q2 FY18 FY16 FY16 FY16 FY17 FY17 FY17 FY18 FY18 Weighted Average COB Incremental COB 9 Q2 FY18 RESULTS: MANAPPURAM FINANCE: RESULT ANALYSIS GOLD LOAN AUM (Rs Bn) GOLD LOAN DISBURSEMENTS (Rs Bn) 525 CAGR: 10.9 % 123 111 111 107 108 361 92 101 82 245 203 121 123 127 128 FY14 FY15 FY16 FY17 Q3 Q4 Q1 Q2 FY14 FY15 FY16 FY17 Q3 Q4 Q1 Q2 FY17 FY17 FY18 FY18 FY17 FY17 FY18 FY18 OPEX TO AUM % NET PROFIT (Rs Mn) 9.3% 8.1% 8.7% 7,260 7.7% 7.6% 7.5% 7.0% 6.4% 3,372 2,260 2,707 1,899 2,072 1,878 1,702 FY14 FY15 FY16 FY17 Q3 Q4 Q1 Q2 FY14 FY15 FY16 FY17 Q3 Q4 Q1 Q2 FY17 FY17 FY18 FY18 FY17 FY17 FY18 FY18 10 Q2 FY18 RESULTS: MANAPPURAM FINANCE: RESULT ANALYSIS NETWORTH (Rs Mn) NPA ANALYSIS % * 35,662 33,108 33,108 34,474 31,529 2.3% 27,368 2.0% 2.0% 24,918 26,274 1.2% 1.2% 1.0% 1.1% 1.2% 2.0% 1.7% 1.7% 1.0% 1.0% 0.7% 0.9% 0.9% FY14 FY15 FY16 FY17 Q3 Q4 Q1 Q2 FY14 FY15 FY16 FY17 Q3 Q4 Q1 Q2 FY17 FY17 FY18 FY18 FY17 FY17 FY18 FY18 GNPA % NNPA % RETURN RATIOS % CAPITAL ADEQUACY RATIO % 23.8% 21.9% 22.7% 22.2% 27.7% 19.4% 25.7% 24.0% 26.1% 28.2% 28.8% 22.7% 26.1% 11.7% 12.3% 9.2% 5.8% 5.3% 6.1% 6.0% 5.4% 3.5% 1.9% 3.0% FY14 FY15 FY16 FY17 Q3 Q4 Q1 Q2 FY14 FY15 FY16 FY17 Q3 Q4 Q1 Q2 FY17 FY17 FY18 FY18 FY17 FY17 FY18 FY18 ROA % ROE % * NPA recognised at 90 Days NPAs on account of theft, spurious collateral etc.