corporate presentation – 30 june 2012 · pdf filenet worth - rs. 8.59 bn; long term: aa...
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Investor Presentation Q1 FY13 11
1
Corporate Presentation – 30 June 2012
Investor Presentation Q1 FY13 2
Overview
Business Systemically important NBFC with record of constant growth & profitability
Products Comprehensive product suite to meet multiple needs of customers including Consumer Lending, Corporate Lending and Wealth Management services
Book Size Loan Assets of Rs. 46.35 bn (~ $ 823.2 mn*)
Management Professional Management Team with deep Industry Experience
People & Reach 1240 employees across 207 branches
Asset Quality High Asset quality – Secured assets with Gross and Net NPA at 0.13% & 0.05%
Networth & Rating Net worth - Rs. 8.59 bn; Long Term: AA- & Short Term A1+ (CARE)
Profitability ROA (annualized) at 1.97% and ROE (annualized) at 12.30% for the quarter Q1-FY13
* $ Conversion rate = 56.31 on 29/30 June 2012, RBI
Investor Presentation Q1 FY13 3
Our Vision
To provide MSME clients with capital and support the growth ofMicro, Small and Medium Enterprises in India.
To capitalize on growing consumption in India, which is a key driver ofthe Indian economy.
To help our clients succeed by providing innovative productsolutions, high level of convenience, supported by robust technology.
To grow into a significant financial conglomerate and build businessesof retail loans, corporate loans & Wealth Management.
Investor Presentation Q1 FY13 4
Highlights - Q1FY13 vs. Q1FY12 (Corresponding quarter)
Loan BookIncreased by
35%
NIIIncreased by
55%
PATIncreased by
19%
Rs. 46,352 mn
Rs. 34,406 mn
Rs. 769 mn
Rs. 496 mn
Rs. 260 mn
Rs. 219 mn
• Retail Loan Book has grown from Rs. 13,063 mn (EOP 30.6.2011) to Rs. 22,658 mn(EOP 30.6.2012)
• Wholesale Loan Book has grown from Rs. 21,343 mn (EOP 30.6.2011) to Rs. 23,694mn (EOP 30.6.2012)
• Networth has increased from Rs. 7,689 mn (EOP 30.6.2011) to Rs. 8,594 mn (EOP30.6.2012)
• Capital Adequacy Ratio (EOP 30.6.2012) at 18.8%
• Gross NPA and Net NPA (EOP 30.6.2012) at 0.13% and 0.05% respectively
Investor Presentation Q1 FY13 5
Products, Services & Distribution
Investor Presentation Q1 FY13 6
Comprehensive Services Suite for all 4 key needs of consumers
Borrowing needs Protection needs
Planning needsInvestment needs
Mortgages (for SMEs)Gold LoansConsumer Durable LoansTwo Wheeler LoansHome LoansAuto LoansWholesale loans and syndication
Distribution of :Property BrokingMutual FundsReal Estate FundsEquity BrokingCommodity Broking
Estate Planning- Creation of Private TrustWills CreationReal estate AdvisoryWealth Management Financial Planning
Distribution of :Life InsuranceGeneral Insurance
Auto InsuranceHealth insurancePersonal accident insurance Travel insurance
Consumer
Investor Presentation Q1 FY13 7
Lines of Businesses
FCH – Lines of Business
Loan Against Property
Home Loan
Consumer Durable Loan
Loan Against Gold
Two Wheeler Loan
Auto Loan
Wealth Manager & Broking
Wholesale Credit
Wholesale Loan Syndication
Retail Business
Wholesale Business
Investor Presentation Q1 FY13 8
19%29%
42% 49%81%
71%
58% 51%
14.95
28.55
46.70 46.35
0.00
10.00
20.00
30.00
40.00
50.00
FY10 FY11 FY12 Q1-FY13
Rs. b
n
Retail Credit Wholesale Credit Total Loan Book
Loan Book
Loan Book Growth & Composition Composition of Retail Finance Loan Book
• Retail as a % of overall loan book has increased from 19% in FY10 to 49% as of 30 June 2012• The Company plans to increase the contribution of retail loan book to the overall loan book
CD, 3.2%
Mortgage Loans, 75.5%
LAG, 12.9%
LAS, 1.8%Auto Loan
, 4.1%
2-W Loan, 1.9%
Investor Presentation Q1 FY13 9
Branch Network
Through an Extensive Branch Network, FCH has reachedCustomers across most of the states and major cities(Tier -1, Tier -2) in India
Total 207 Branches
Delhi & NCR
Mumbai& ThanePune
Bangalore
Hyderabad
KolkataBaroda
Bhopal
Bhubaneswar
Chandigarh:
Coimbatore
Dehradun
Indore
Jaipur
Jalandhar:
Jodhpur
Lucknow
Ludhiana
Nasik
NagpurRaipurRajkot
Surat:
Udaipur
SalemVellore
Vizag
Ahmadabad
Ajmer
Amritsar:
Chennai
Kotta
Investor Presentation Q1 FY13 10
Processes
Investor Presentation Q1 FY13 11
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.
• 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.
Investor Presentation Q1 FY13 12
• Industry Experience
• Bureau Analytics
• Macro Environment
• Statistical Scorecards
• Business strategy
• Competition benchmark
Retail Lending Process- Independent Specialized Verticals.
Customer Acquisition Credit Policy Credit Underwriting
• Credit Appraisal
• Cash flow checks
• Security check
•Profile Check
• Bureau Check
• Application Scorecard
• Fraud Verifications
• Collateral valuation / Title check
• Legal documentations
• Advertisements / Sales Promotions
•Developer and Dealer Tie ups
•Manufacturer Tie ups
• Cross Selling tools
• Corporate Tie ups
• Referral Programs
Investor Presentation Q1 FY13 13
• Loan Booking on system
•PDC / ECS banking and Archival
•Collateral ( property and RC copy ) storage in Strong room
•Customer Relationship / Request Management
Retail Lending Process- Independent Specialized Verticals.
Loan Management Collections
•Collection Strategy
• Analytical models
•Planning calls and visits
• Planning Intensity of call
• Collection Efficiency
•Productivity management
•Legal recourse
• Analytics & Risk Segmentation
• Bureau Usage to monitor Customer Leverage and Performance
• Cross sell / top up
• Exit Strategy
Portfolio Analysis
Investor Presentation Q1 FY13 14
Mortgages - Application to Approval Ratio
14
100
29
-7
-39
-5-10
-10
Application CIBIL Reject Insufficient Cash Flow
Personal Interview
Defective Title Deeds
Others Disbursals
Rigorous and robust credit assessment processes in FCH help in maintaining the high assetquality and low NPA levels
In Mortgages, 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 Q1 FY13 15
Funding Pattern
Investor Presentation Q1 FY13 16
56.72%11.52%
17.73%
9.56%4.48%
Term Loan NCD Cash Credit
Short Term Loans Sub Debt
57.43%
11.71%
18.23%
8.07%4.56%
Term Loan NCD Cash Credit Short Term Loans Sub Debt
Borrowings
Borrowing portfolio – Rs. 44,634 mn (as on June 30, 2012)
Borrowing Portfolio CompositionBorrowing Portfolio Composition
Borrowing portfolio – Rs. 43,863 mn (as on March 31, 2012)
Investor Presentation Q1 FY13 17
Shareholding
Investor Presentation Q1 FY13 18
Shareholding Pattern
Particulars Value
No of Shares 64,798,484
No of Shareholders 141793
Face Value of Share 10
EPS – FY11-12 16.33
Shareholding Pattern as on 30 June 2012
• 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
Promoters, 53.7%
FII, 2.1%Mutual
Funds, 1.8%
Financial Institutions, 0.6%
Bodies Corporate, 24.0%
Individuals, 16.8%
Others, 1.1%
Investor Presentation Q1 FY13 19
Financial Updates
Investor Presentation Q1 FY13 20
Non Performing Assets
Particulars Unit Q1 FY13 Q1 FY12
Loan book Rs. mn 46,352 34,406
Gross Non - Performing Assets Rs. mn 61 16
Net Non – Performing Assets Rs. mn 23 0
% Gross NPA Rs. mn 0.13% 0.05%
% Net NPA % 0.05% 0.00%
Investor Presentation Q1 FY13 21
Profit & Loss (Consolidated)
Particulars Q1-FY 13 Q1-FY 12 Q4-FY 12
Interest Income 1,915.41 1,281.07 1,977.55 Less: Interest Expense 1,146.58 784.82 1,319.51 Net Interest Income (NII) 768.82 496.25 658.04 Fee income 129.40 224.86 259.30 Other Income 39.61 125.32 25.16 Total Income 937.83 846.43 942.50 Opex 590.45 327.40 576.27 Operating profit 347.38 519.04 366.23 Provision 7.37 170.65 (3.36)PBT 340.01 348.38 369.59 Tax 79.92 129.78 102.74 PAT 260.09 218.60 266.85
All Figures In Rs. mn, Unless Otherwise Specified
Investor Presentation Q1 FY13 22
Balance Sheet (Consolidated)
Particulars As on June 30, 2012
As onMarch 31, 2012
SOURCES OF FUNDSNet worth 8,594 8,316Loan funds 44,634 43,863 Total 53,228 52,179 APPLICATION OF FUNDSFixed Assets 1,099 1,087Deferred Tax Asset (net) 93 69Investments 228 228Current Assets, Loans & AdvancesLoan Book 46,352 46,704Other current assets and advances 9,679 8,772Less: Current liabilities and provisions 4,223 4,681Net current assets 51,808 50,795Total 53,228 52,179
All Figures In Rs. mn, Unless Otherwise Specified
Investor Presentation Q1 FY13 2323123
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 Q1 FY13 2424124
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.