Corporate Presentation – 31 March 2012 - AceAnalyser Meet/200040_20120529.pdf · Net worth - Rs....
Transcript of Corporate Presentation – 31 March 2012 - AceAnalyser Meet/200040_20120529.pdf · Net worth - Rs....
Corporate Presentation – 31 March 2012
Investor Presentation Q4 FY12 11
1
Corporate Presentation – 31 March 2012
Overview
Business Systemically important NBFC with record of constant growth & profitability
ProductsComprehensive product suite to meet multiple needs of customers including Consumer Lending, Corporate Lending and Wealth Management services
Book Size Loan Assets of Rs. 46.70 bn (~ $ 912.9 mn*)
Profitability ROA at 2.46% and ROE at 13.41% for the year FY12
Investor Presentation Q4 FY12 2
Management Professional Management Team with deep Industry Experience
People & Reach
1123 employees across 197 branches
Asset Quality High Asset quality – Secured assets with Gross and Net NPA at 0.08% & 0.001%
Networth & Rating
Net worth - Rs. 8.32 bn; Long Term: AA- & Short Term A1+ (CARE)
* $ Conversion rate = 51.15 on 30/31 March 2012, RBI
Our Vision
To provide MSME clients with capital and support the growth of
Micro, Small and Medium Enterprises in India.
To capitalize on growing “consumption” in India, which is a key driver of
the Indian economy.
Investor Presentation Q4 FY12 3
To help our clients succeed by providing innovative product solutions,
high level of convenience, supported by robust technology.
To grow into a significant financial conglomerate and build businesses
of retail loans, corporate loans, Wealth Management & Equity broking.
Highlights FY ’12 vs. FY ’11
Loan Book
Increased by
64%
NII
Increased by
92%
PAT
Increased by
115%
Rs. 46,704 mn
Rs. 28,548 mn
Rs. 2,302 mn
Rs. 1,198 mn
Rs. 1058 mn
Rs. 491 mn
Investor Presentation Q4 FY12 4
• Retail Loan Book has grown from Rs. 8,144 mn (EOP 31.3.2011) to Rs. 19,451 mn
(EOP 31.3.2012)
• Wholesale Loan Book has grown from Rs. 20,404 mn (EOP 31.3.2011) to Rs. 27,253
mn (EOP 31.3.2012)
• Networth has increased from Rs. 7,469 mn (EOP 31.3.2011) to Rs. 8,316* mn (EOP31.3.2012)
*EOP – pre dividend
Highlights Q4 FY ’12 vs. Q4 FY ’11
NII
Increased by
Fee Income
Increased by
PAT
Increased by
Rs. 644 mn Rs. 259 mn Rs. 267 mn
Investor Presentation Q4 FY12 5
Increased by
17.5%
Increased by
18.3% Increased by
50.4%
Rs. 548 mn Rs. 219 mn Rs. 178 mn
Leadership
Investor Presentation Q4 FY12 6
Leadership
FCH- Leadership
Independent Directors VC & MD
CEO- Retail Financial Services
G N Bajpai
Shailesh Haribhakti Chief Risk OfficerCEO-Wholesale
CFO andHead -Corporate
V VaidyanathanVice Chairman and Managing
Director
Investor Presentation Q4 FY12 7
Financial Services
Apul Nayyar
(Citigroup, India Infoline)
N C Singhal
Anil Singhvi
Pradeep Mukherjee
K K Rathi
Pankaj Sanklecha
(ICICI Bank, Standard
Chartered Bank)
Wholesale Credit
Shailesh Shirali
(ICICI Bank, DSP Merrill)
Head -Corporate Center
Ashok Shinkar
(JM Morgan Stanley, Wanbury)
FCH – Management Team
Mr. V. Vaidyanathan is the Vice Chairman and Managing Director of FutureCapital Holdings (FCH). Prior to this, he was the Managing Director and CEO ofICICI Prudential Life Insurance Company Limited. He was earlier an ExecutiveDirector on the Board of ICICI Bank, He was also the Chairman of ICICI HomeFinance Co. Ltd, and served on the Board of ICICI Lombard General InsuranceCompany and CIBIL, India’s first credit bureau. He worked with Citibank Indiafrom 1990 to 2000.
At ICICI Bank he set up the bank’s Retail Banking Business since its inception in2000 and managed it till 2009. He also built the SME business and Rural
Investor Presentation Q4 FY12 8
2000 and managed it till 2009. He also built the SME business and RuralBanking Business for the bank. His contribution includes building 1400 Retailbranches in 800 cities, a large Deposit base, a loan book of USD 30 billion inMortgages, Auto and Consumer loans, Private Banking, 25 millioncustomers, and a team of 26000 employees and taking ICICI Bank to marketleadership. The Retail banking Business was a key driver to help transition ICICIfrom a Domestic Financial Institution to a Commercial Bank.
His contribution won many domestic and international awards, Best Retail bankin Asia 2001, “Excellence in Retail Banking Award” 2002, Best Retail Bank inIndia 2003, 2004, and 2005 from the Asian Banker, “Most Innovative Bank”2007, and nominated for “Retail Banker of the Year” by EFMA Europe for 2008.He is an alumnus of Birla Institute of Technology and Harvard Business School.
FCH – Management Team
Apul Nayyar, CEO-Consumer Business: Apul has been with FCH since Oct. ‘10. Prior to this, he was the ED & CEO of India Infoline
Investment Services (Credit & Financing arm of India Infoline Group), CEO – Moneyline Credit, CEO & Manager – India Infoline HousingFinance. He contributed significantly to the start up and development of various business models. Prior to joining IIL, he was with DSPMerrill Lynch as Co-Head – Consumer Finance, Global Structured Finance & Investments and Co-CEO – Moneyline. He has also workedwith Citifinancial Consumer Finance where he was involved in setting up of operations of different products under retails financebusiness, retail financial product development and administration of marketing and distribution thereof, Human ResourceManagement, Risk Management, Product Portfolio Management, managing treasury and investments, fund raising, etc. Overall, Apul has14 years of experience in the financial services sector. Apul is a Bachelor of Commerce from Delhi University and a CA by profession.
Shailesh Shirali, CEO – Wholesale Credit: Shailesh jhas been with FCH since July 2008. Prior to this he was MD – Global Structured
Finance and Investments at DSP Merrill Lynch Capital Limited, India. At DSP Merrill, he was responsible for the start up and building up ofthe on-shore and off-shore structured lending business to Indian companies. Prior to joining DSP Merrill, Shailesh was with Rabo IndiaFinance Limited (RIF), a 100% subsidiary of Rabobank, as ED responsible for Leveraged Finance, Acquisition Finance, Telecom andInfrastructure and Structured Finance which included both on-shore and off-shore lending to Indian companies as well as originatingadvisory business for Investment banking and Syndication. During his 5 years with RIF from 2001 to 2006, Shailesh contributedsignificantly towards making the India credit business among the most profitable franchises in Rabobank Asia. Shailesh started his career
Investor Presentation Q4 FY12 9
significantly towards making the India credit business among the most profitable franchises in Rabobank Asia. Shailesh started his careerwith ICICI Limited where he was with the Credit Risk Group and the Structured Finance Department from 1993 to 2000. Overall Shailesh haspost qualification experience of over 17 years in the financial services industry. He is a BCOM from Mumbai University and is a CA.
Ashok Shinkar, Corporate Centre Head & CFO: Prior to FCH, Ashok was on the Board of Wanbury Limited, a Pharma company. He
headed finance function & also handled strategy, accounts, taxation, mergers and acquisitions and financial resources mobilizations etc.Prior to joining Wanbury, he was associated with SSKI Corporate Finance for more than 4 years as a Vice President and handled CorporateFinance Advisory; M&A; Private Equity; Debt and Equity Structuring; and Merchant Banking activities. Ashok has also worked with J MMorgan Stanley for around 7 years in the field of Investment banking activities including merchant banking, corporate and financialadvisory in various sectors including power, oil and gas, infrastructure, Pharma, iron and steel etc. Ashok is a Bachelor of Commerce fromSydenham College of Commerce & Economics, Mumbai and a Chartered Accountant by profession.
Pankaj Sanklecha, Chief Risk Officer: Pankaj is a qualified chartered accountant with 15 years of experience in Retail and SME bankinghaving held leadership positions across risk and business. Prior to FCH, Pankaj was with Standard Chartered Bank for 7 years where hewas the Head of Credit for Retail Lending managing a portfolio of close to $ 2.5 billion. He was also responsible for Portfolio buyouts andsell downs and has been credited for building a stable, healthy and profitable mortgage portfolio of approx $ 2 billion at StandardChartered Bank. He has earlier worked with ICICI Bank and GE Capital in senior risk management positions.
Products, Services &
Investor Presentation Q4 FY12 10
Products, Services & Distribution
Comprehensive Services Suite for all 4 key needs of consumers
Borrowing needs Protection needs
Mortgages (for SMEs)
Gold Loans
Consumer Durable Loans
Two Wheeler Loans
Home Loans
Auto Loans
Wholesale loans and syndication
Distribution of :
Life Insurance
General Insurance
Auto Insurance
Health insurance
Personal accident insurance
Travel insurance
Consumer
Investor Presentation Q4 FY12 11
Investment needs Planning needs
Distribution of :
Property Broking
Mutual Funds
Real Estate Funds
Equity Broking
Commodity Broking
Estate Planning- Creation of Private Trust
Wills Creation
Real estate Advisory
Wealth Management Financial Planning
Consumer
Lines of Businesses
FCH – Lines of Business
Loan Against Property
Home Loan
Consumer Durable Loan
Loan Against GoldRetail
Business
Investor Presentation Q4 FY12 12
Loan Against Gold
Two Wheeler Loan
Auto Loan
Wealth Manager & Broking
Wholesale Credit
Wholesale Loan Syndication
Business
Wholesale
Business
19%29%
42%81%
71%
58%
14.95
28.55
46.70
10.00
20.00
30.00
40.00
50.00
Rs.
bn
Loan Book
Loan Book
CAGR: 77%
Loan Book Growth & Composition Composition Retail Finance Loan Book (31 Dec’11)
79.4%Personal Loan
CD
Mortgage Loans
LAG
LAS
Auto Loan
2-Wheeler Loan
Investor Presentation Q4 FY12 13
19%29%
0.00
FY10 FY11 FY12
Retail Credit Wholesale Credit Total Loan Book
• Retail as a % of overall loan book has increased from 19% in FY10 to 42% as of 31 March 2012
• The Company plans to increase the contribution of retail loan book to the overall loan book
0.9%
2.3%12.0%
1.1%3.6%
0.7%
2-Wheeler Loan
Branch Network
Through an Extensive Branch Network, FCH has reachedCustomers across most of the states and major cities(Tier -1, Tier -2) in India
Delhi & NCR
Bhopal
Chandigarh:Dehradun
Jaipur
Jalandhar:
Jodhpur
Lucknow
Ludhiana
Udaipur
Ahmadabad
Ajmer
Amritsar:
Kotta
Investor Presentation Q4 FY12 14
Total 197
Branches
Mumbai& Thane
Pune
Bangalore
Hyderabad
KolkataBaroda
Bhubaneswar
Coimbatore
Indore
Nasik
Nagpur
RaipurRajkot
Surat:
Salem
Vellore
Vizag
Ahmadabad
Chennai
Processes
Investor Presentation Q4 FY12 15
Processes
Underwriting controls
• At Future Capital, there is segregation of authorities and responsibilities across all functions. Sales, credit, operations and collections are independent of each other, with independent reporting lines.
• We underwrite all loans on the basis of cash flow capability of the customers as well as LTV norms.
Investor Presentation Q4 FY12 16
customers as well as LTV norms.
• Proposals are checked with credit bureaus, and loans are approved only if the customers have a clear record with India’s leading Credit Bureau, CIBIL.
• A robust collections infrastructure is in place.
• Industry Experience
• Bureau Analytics
• Macro Environment
• Industry Experience
• Bureau Analytics
• Macro Environment
Retail Lending Process- Independent Specialized Verticals.
Customer Acquisition Credit PolicyCredit
Underwriting
• Credit Appraisal
₋ Cash flow checks
₋ Security check
₋Profile Check
• Credit Appraisal
₋ Cash flow checks
₋ Security check
₋Profile Check
• Advertisements / Sales
Promotions
•Developer and Dealer Tie
ups
• Advertisements / Sales
Promotions
•Developer and Dealer Tie
ups
Investor Presentation Q4 FY12 17
• Statistical Scorecards
• Business strategy
• Competition benchmark
• Statistical Scorecards
• Business strategy
• Competition benchmark
₋ Bureau Check
• Application Scorecard
• Fraud Verifications
• Collateral valuation /
Title check
• Legal documentations
₋ Bureau Check
• Application Scorecard
• Fraud Verifications
• Collateral valuation /
Title check
• Legal documentations
•Manufacturer Tie ups
• Cross Selling tools
• Corporate Tie ups
• Referral Programs
•Manufacturer Tie ups
• Cross Selling tools
• Corporate Tie ups
• Referral Programs
• Loan Booking on system
•PDC / ECS banking and
Archival
•Collateral ( property and
• Loan Booking on system
•PDC / ECS banking and
Archival
•Collateral ( property and
Retail Lending Process- Independent Specialized Verticals.
Loan
ManagementCollections
•Collection Strategy
• Analytical models
•Planning calls and visits
•Collection Strategy
• Analytical models
•Planning calls and visits
• Analytics & Risk
Segmentation
• Bureau Usage to
monitor Customer
Leverage and Performance
• Analytics & Risk
Segmentation
• Bureau Usage to
monitor Customer
Leverage and Performance
Portfolio
Analysis
Investor Presentation Q4 FY12 18
•Collateral ( property and
RC copy ) storage in Strong
room
•Customer Relationship /
Request Management
•Collateral ( property and
RC copy ) storage in Strong
room
•Customer Relationship /
Request Management
• Planning Intensity of call
• Collection Efficiency
•Productivity
management
•Legal recourse
• Planning Intensity of call
• Collection Efficiency
•Productivity
management
•Legal recourse
Leverage and Performance
• Cross sell / top up
• Exit Strategy
Leverage and Performance
• Cross sell / top up
• Exit Strategy
Mortgages - Application to Approval Ratio
-7
-39
Rigorous and robust credit assessment processes in FCH help in maintaining the high assetquality and low NPA levels
In Mortgages, only 29% of the total applications aredisbursed after passing through several levels ofscrutiny and checks, mainly centred around cashflow evaluation, credit bureau and reference checks
Investor Presentation Q4 FY12 1919
100
29
-5
-10
-10
Application CIBIL Reject Insufficient
Cash Flow
Personal
Interview
Defective Title
Deeds
Others Disbursals
Provisioning Norms
Investor Presentation Q4 FY12 20
Provisioning Norms
Participation BC
Particulars FCH Norms RBI Norms
Loans other than Mortgage Loans
90 days overdue 10% provision -
120 days overdue 33% provision cumulative -
150 days overdue 66% provision cumulative -
180 days overdue 100% write off 33%
360 days overdue - 66% cumulative
Conservative Provisioning Norms
FCH maintains a much stricter provisioning norms compared to the regulatory norms as requiredby the RBI
Investor Presentation Q4 FY12 21
Participation BC360 days overdue - 66% cumulative
540 days overdue - 100%
Loss Assets - 100% write off
SME Mortgage Loans ( Loan against Property) and Home Loan
90 days overdue 10% provision -
180 days overdue 33% provision cumulative 10%
360 days overdue 66% provision cumulative -
720 days overdue 100% write off 20% cumulative
1080 days overdue - 50% cumulative
1800 days overdue - 100%
Loss Assets - 100% write off
Funding Pattern
Investor Presentation Q4 FY12 22
Funding Pattern
18.23%
8.07%4.56%
Borrowings
36%
20%
0%
24%
Borrowing Portfolio Composition Borrowing Portfolio Composition
Investor Presentation Q4 FY12 23
57.43%
11.71%
Term Loan NCD Cash Credit
Short Term Loans Sub Debt
20%
20%
Term Loans Cash Credit / WCDL NCD
Sub - Debt Commercial Paper
Borrowing portfolio – Rs. 25,630 mn(as on Mar 31, 2011)
Borrowing portfolio – Rs. 43,863 mn(as on Mar 31, 2012)
Asset-Liability Management – Structural Liquidity
120917756 6286 8279
3493
18650
26747
90336278 3199
3273
8029
14656
1593315924
10845
10624
0
Investor Presentation Q4 FY12 24
All Figures In Rs. mn, Unless Otherwise Specified
ParticularsApr'12-Mar13
Apr'13-Mar14
Apr'14-Mar15
Apr'15-Mar16
Apr'16-Mar17
Apr 17 Onwards
Outflows 12091 7756 6286 8279 3493 18650
Inflows 26747 9033 6278 3199 3273 8029
Cumulative 14656 15933 15924 10845 10624 0
Apr'12-Mar13 Apr'13-Mar14 Apr'14-Mar15 Apr'15-Mar16 Apr'16-Mar17 Apr 17 Onwards
Outflows Inflows Cumulative
Shareholding
Investor Presentation Q4 FY12 25
Shareholding
Shareholding Pattern
Particulars Value
No of Shares 64,798,484
No of Shareholders 146677
Face Value of Share 10
EPS – FY11-12 16.33
Shareholding Pattern as on 31 March 2012
Promoters, 56.3
%
Individuals, 14.8
Others, 7.0%
Investor Presentation Q4 FY12 26
EPS – FY11-12 16.33
EPS – FY10-11 7.64
• The stock is listed on NSE (stock code: FCH) and BSE (stock code: 532938)
• Financial Institutions include Banks, Insurance Companies and other Financial Institutions• Others include NRI-Repatriable, NRI-Non-Repatriable, Clearing Members and Trusts
FII, 2.1%
Mutual
Funds, 1.9%
Financial
Institutions, 0.6
%
Bodies
Corporate, 17.3
%
Individuals, 14.8
%
Financial Updates
Investor Presentation Q4 FY12 27
Financial Updates
Non Performing Assets
Particulars Unit Q4 FY12 Q4 FY11
Loan book Rs. mn 46,704 28,548
Gross Non - Performing Assets Rs. mn 36 71
Net Non – Performing Assets Rs. mn 0 18
% Gross NPA Rs. mn 0.08% 0.25%
% Net NPA % 0.00% 0.06%
Gross & Net NPA movement over the quarters
Investor Presentation Q4 FY12 28
• The gross and net NPAs havereduced over the past 8 quartersand have remained at a low level
3.73%
2.60%
1.98%
0.27% 0.25% 0.05% 0.03% 0.04% 0.08%
0.00%
0.50%
1.00%
1.50%
2.00%
2.50%
3.00%
3.50%
4.00%
% Gross NPA % Net NPA
Consolidated Profit & Loss (YoY)
Particulars Q4-FY 12 Q4-FY 11 % Change
Interest Income 1,977.55 1,168.39 69%
Less: Interest Expense 1,319.51 662.15 99%
Net Interest Income (NII) 658.04 506.24 30%
Fee income 259.30 219.21 18%
Other Income 25.16 114.59 -78%
Total Income 942.50 840.04 12%
All Figures In Rs. mn, Unless Otherwise Specified
Investor Presentation Q4 FY12 29
Total Income 942.50 840.04 12%
Opex 576.27 364.96 58%
Operating profit 366.23 475.08 -23%
Provision (3.36) 86.45 -104%
PBT 369.59 388.63 -5%
Tax 102.74 168.88 -39%
PAT 266.85 219.75 21%
Consolidated Profit & Loss (FY)
Particulars FY 12 FY 11 % Change
Interest Income 6,279.67 3,086.24 103%
Less: Interest Expense 3,976.97 1,887.48 111%
Net Interest Income (NII) 2,302.70 1,198.76 92%
Fee income 896.28 449.04 100%
Other Income 261.49 259.25 1%
Total Income 3,460.47 1,907.05 81%
All Figures In Rs. mn, Unless Otherwise Specified
Investor Presentation Q4 FY12 30
Total Income 3,460.47 1,907.05 81%
Opex 1,719.25 942.59 82%
Operating profit 1,741.22 964.46 81%
Provision 225.28 125.89 79%
PBT 1,515.94 838.57 81%
Tax 457.63 347.36 32%
PAT 1,058.31 491.21 115%
ROE (%) 13.41% 6.66% NA
CAR (%) 18.63% 16.00% NA
Consolidated Balance Sheet (YoY)
ParticularsAs at
March 31, 2012As at
March 31, 2011
SOURCES OF FUNDS
Net worth 8,316 7,469
Loan funds 43,863 26,238
Total 52,179 33,707
APPLICATION OF FUNDS
Fixed Assets 1,087 918
All Figures In Rs. mn, Unless Otherwise Specified
Investor Presentation Q4 FY12 31
Fixed Assets 1,087 918
Deferred Tax Asset (net) 69 60
Investments 228 1,849
Current Assets, Loans & Advances
Loan Book 46,704 28,548
Other current assets and advances 8,772 5,020
Less: Current liabilities and provisions 4,681 2,688
Net current assets 50,795 30,880
Total 52,179 33,707
THANK YOU
Investor Presentation Q4 FY12 3232132
THANK YOUFuture Capital HoldingsIndia Bulls Finance CentreTower II, 15th FloorSenapati Bapat MargElphinston (West)Mumbai 400 013
Websitewww.futurecapital.in
E-mailInvestor Relations - [email protected]
Telephone+91 22 40423400
Investor Presentation Q4 FY12 3333133
DISCLAIMERThis presentation and the contents therein are for information purposes only and does not and shouldnot construed to be any investment or legal advice. Any action taken or transaction pursued based onthe basis of the information contained herein is at your sole risk and responsibility and Future CapitalHoldings and/or its subsidiaries or its employees or directors, associates will not be liable in anymanner for the consequences of any such reliance placed on the contents of this presentation. Wehave exercised reasonable care in checking the correctness and authenticity of the informationcontained herein, but do not represent that it is true, accurate or complete. Future Capital Holdings orany of its subsidiaries or associates or employees shall not be in any way responsible for any loss ordamage that may arise to any person from any inadvertent error or omission in the informationcontained in this presentation. The recipients of this presentation should make their own verificationsand investigations to check the authenticity of the said information if they so wish. Future CapitalHoldings and/or its subsidiaries and/or directors, employees or associates may be deemed to haveinterests, financial or otherwise in the equity shares of Future Capital Holdings.