Sbfc Finance Limited has informed the Exchange about Investor Presentation
Date: 26th April, 2025
National Stock Exchange of India Limited, Exchange Plaza, Plot No. C/1, G Block, Bandra-Kurla Complex, Bandra (East), Mumbai – 400051. NSE Symbol: SBFC
BSE Limited, Phiroze Jeejeebhoy Towers, 21st Floor, Dalal Street, Mumbai – 400001. BSE Scrip Code: 543959
Sub: Investor Presentation
Dear Sir(s),
In furtherance to our letter dated 23rd April, 2025 intimating about Earnings Conference Call, please find enclosed the investor presentation which will be referred during the earnings call scheduled to be held on Monday, 28th April, 2025 with investors in connection with the financial results of the Company for the quarter and year ended 31st March, 2025.
We request you to take this on record.
Thanking you,
Yours faithfully, For SBFC Finance Limited
Namrata Sajnani Company Secretary & Chief Compliance Officer
Encl: as above
Registered Office: Unit No. 103, 1st Floor, C&B Square, Sangam Complex, Andheri Kurla Road, Village Chakala, Andheri (East) Mumbai - 400 059
T. : +91-22-67875300 • F : +91-22-67875334 • www.SBFC.com • Email: complianceofficer@sbfc.com CIN No : L67190MH2008PLC178270
SBFC Finance Limited
Investor Presentation Q4 FY 2025
Safe Harbor
This presentation and the accompanying slides (‘Presentation”), which have been prepared by SBFC Finance Limited (the "Company"), have been prepared solely for information purposes and do not constitute any offer, recommendation or invitation to purchase or subscribe for any securities, and shall not form the basis or be relied on in connection with any contract or binding commitment whatsoever. No offering of securities of the Company will be made except by means of a statutory offering document containing detailed information about the Company.
This Presentation has been prepared by the Company based on information and data which the Company considers reliable, but the Company makes no representation or warranty, express or implied, whatsoever, and no reliance shall be placed on, the truth, accuracy, completeness, fairness and reasonableness of the contents of this Presentation. This Presentation may not be all inclusive and may not contain all of the information that you may consider material. Any liability in respect of the contents of, or any omission from, this Presentation is expressly excluded.
Forward looking statements concerning the Company's future business prospects and business profitability are subject to a number of risks and uncertainties and the actual results could materially differ from those in such forward looking statements. The risks and uncertainties relating to these statements include, but are not limited to, risks and uncertainties regarding fluctuations in earnings, our ability to manage growth, competition (both domestic and international), economic growth in India and abroad, ability to attract and retain highly skilled professionals, time and cost over runs on contracts, government policies and actions regulations, interest and other fiscal costs generally prevailing in the economy. The Company does not undertake to make any announcement in case any of the forward looking statements become materially incorrect in future or update any forward looking statements made from time to time by or on behalf of the Company.
2
Executive Summary
1
2
3
4
Strong Profitability Profit after tax grew 46% to ₹345 crore for the year
Disciplined Growth AUM grew 28% YoY to ₹8,747 crore
Resilient Credit Quality Gross NPA at 2.74% and Cost of Credit below 1%
Improving Operating Efficiency Cost-to-AUM ratio improved to 4.65%, from 5.34% last year
3
Executive Summary – Q4 FY25
Asset Under Management
8,747
+28%
+7%
Gross NPA
2.74%
Disbursement1
766
YoY
QoQ
Branches
205
+6%
+10%
+22
+8
Yield/Spread
17.88% / 8.53%
Opex to AAUM
4.62%
+31 bps
+4 bps
+26 / +26 bps
+7 / +3 bps
-39 bps
+0 bps
PAT
94
RoAAUM
4.52%
RoATE
13.14%
+29%
+7%
-4 bps
+3 bps
+124 bps
+39 bps
1Secured MSME All figures are in Rs. crore
4
SBFC – FY25 Performance
Size and Growth
Distribution
Granular Book
Asset Quality
Liability Profile
Profitability
8,747 AUM YoY +28%
7,249 Secured MSME AUM YoY +27%
205 # Branches
4,294 Employees
100% % Secured
9.49* | 0.94* Average Ticket Size: Secured MSME / LAG (Lakh)*
%
2.74% GNPA YoY +31 bps
%
1.51% NNPA YoY +15 bps
2,930 Tangible Net worth
345 PAT YoY +46%
CRAR 36.1% Capital Adequacy
4.53% Return on AAUM YoY +39 bps
2,671 Secured MSME Disbursal Value YoY -4%
16 States & 2 UTs Pan India presence
1,71,325 # live customers
0.97% Credit Cost YoY +15 bps
9.33% Cost of Borrowing YoY -5 bps
28,138 Secured MSME Disbursal Volume YoY -2%
100% in-house Sourcing
LTV 42.6% / 62.4% Secured MSME / LAG
45.69% PCR
AA- (Stable) Credit rating
Note: All values in ₹ Cr unless stated otherwise, All metrics as of / for FY25 unless stated otherwise;
5
17.75% Yield YoY +67 bps
%
8.42% Spread YoY +72 bps
205 branches 164 Cities 16 States 2 UTs
Executive Summary
Team: Experienced, cycle-tested, professional management with strong corporate governance backed by marquee investors
Focused Segment: Offering Secured MSME loan to small businesses with focus on ₹5 lakh - ₹30 lakh ticket size
Opportunity: Market size (₹5 lakh - ₹30 lakh MSME financing) of ₹3.21 lakh crore, growing at 24%2
Pan-India Footprint: Diversified pan-India network with presence in 16 states & 2 UTs
Credit Underwriting: Understanding of segment with a tested credit underwriting and risk management framework
1 As of Mar-24 (Source – CRIF Data); 2 CAGR period over FY18 to FY24 (Source – CRIF Data)
6 6
SBFC Focus Segment – Customers Borrowing ₹5 Lakh to ₹30 Lakh Large segment within MSME of ₹3.2 lakh cr and growing at CAGR 24%
Segment
Market Size1 (₹ tn)
CAGR2 (%)
% of Market
>₹1 cr
₹0.5 – 1 cr
₹0.3 – 0.5 cr
₹0.05– 0.3 cr
<₹0.05 cr
Total
4.2
1.3
1.1
3.2
0.6
10.4
13.7%
17.2%
20.7%
24.4%
27.7%
18.5%
40%
13%
10%
31%
6%
100%
Focus Segment
Source: CRIF Data; 1 As of Mar-24; 2 CAGR period over FY18 to FY24
7
Our Journey
Investment by Clermont and Arpwood group
778
3
2018
AUM of INR 1000cr
1,156
25
2019
All figures in ₹ Cr
AUM
PAT
100 Branches
1,648
36
2020
Equity Listing on NSE and BSE. India ratings upgraded us to ‘AA -’ Included in MSCI Global Small Cap Index
CARE, ICRA Ratings Upgraded us to ‘AA-’ in Q2 FY25. 1,50,000 customers
8,747
6,822
237
345
1,00,000 customers 150 Branches 150 cr PAT Credit rating upgraded to ‘A +’
4,943
150
3,192
65
50,000 customers
2,221
85
2021
2022
2023
2024
2025
8
Management Experienced, cycle-tested, professional management
Aseem Dhru
Mahesh Dayani
Narayan Barasia
Pankaj Poddar
Sanket Agrawal
MD & CEO
ED & CBO
Chief Financial Officer
Chief Risk Officer
Chief Strategy Officer, Analytics & IR
Sumeet Ghai
Ganesh Vaidya
VM Maneesh
Sai Prashant Menon
Namrata Sajnani
Chief Human Resource Officer
Chief Technology Officer
Chief Operating Officer
Chief Collection Officer
Chief Compliance Officer & CS
Board of Directors Strong corporate governance backed by long term investors
Independent
Neeraj Swaroop Chairman of the Board Ex CEO – SCB, Singapore
Ravi Venkatraman Ex Executive Director & CFO, Mahindra & Mahindra Financial Services
John Mescall Managing Director Clermont Group
Rajesh Agrawal Jt. Managing Director, Ajanta Pharma
Koni Uttam Nayak Ex Senior Vice President, Visa Direct Organization at Visa
Jonathan Tatur Senior Vice President Clermont Group
Surekha Marandi Ex Executive Director, RBI
Leroy Langeveld Assistant General Counsel Clermont Group
Executive Directors
Aseem Dhru MD & CEO
Mahesh Dayani ED & CBO
10
Shareholding
Category of Shareholders
% Share#
Promoter
Clermont Group
Other Major Shareholders
SBI Mutual Fund
Amansa Capital
Malabar Funds
Aditya Birla Sun Life
8.53%
4.08%
4.04%
3.22%
Management & Employees hold 8.4% of diluted share capital
# Non-diluted Status as on March 31, 2025
11
Shareholding Pattern
13.32%
53.33%
17.67%
6.53%
53.33%
Promoters
Foreign Portfolio Investors
Mutual Funds, AIF, Insurance, Banks
Individuals, Bodies Corporate
Business Momentum Delivering Consistent AUM Growth
CAGR: 33%
6,822
15%
1%
84%
8,747
17%
83%
4,943
18%
3%
79%
Simplify graphic
YoY : 28%
QoQ : 7%
8,148
16%
1%
6,822
15%
1%
84%
83%
8,747
17%
83%
Mar-23
Mar-24
Mar-25
Q4 FY 24
Q3 FY 25
Q4 FY 25
Secured MSME
LAG
Others
Secured MSME
LAG
Others
All figures in ₹ Cr.
AUM
12
Business Momentum – Secured MSME
AUM
YoY: 27%
6,781
QoQ: 7%
7,249
5,704
ATS in ₹ Lakhs
Disbursement Value
Disbursement Volume
YoY: 6%
YoY: 6%
QoQ: 10%
QoQ: 8%
724
699
766
7,493
7,326
7,926
9.66
9.54
9.66
Q4 FY 24
Q3 FY 25
Q4 FY 25
Q4 FY 24
Q3 FY 25
Q4 FY 25
Q4 FY 24
Q3 FY 25
Q4 FY 25
AUM Secured MSME All figures in ₹ Cr
13
Business Momentum Co-origination – Validates our profitable origination
Co-origination Disbursement (₹ Cr)
Co-origination AUM (₹ Cr)
%1
22%
18%
16%
20%
21%
20%
162
1,407
1,481
124
122
1,116
Q4 FY 24
Q3 FY 25
Q4 FY 25
Q4 FY 24
Q3 FY 25
Q4 FY 25
1Percentage is on Total Secured MSME Loans
14
Business Momentum No concentration risk & well distributed growth
Present in 16 states, 2 UTs covering 164 cities via 205 branches
Driven by steady rise in AUM per branch
1
1 13 3
4
7
31
10 6
13
11
12
4
23 6
29
23
12
1
7
72
46
Branch Mix
27
60
South
East
15.3%
37.7%
₹8,747 Cr AUM Mix
34.0%
13.0%
South North
East West
# Branches
29
53
123
205
<12 months
>12 & <36 months
>36 months
₹ Cr
56
59
49
31
24
24
8
5
5
Q4 FY 24
Q3 FY 25
Q4 FY 25
Vinatage =<12M
12M<Vintage<36M
Vintage>=36M
70
60
50
40
30
20
10
0
15
Technology Landscape
Lead Generation
Feet on Street
• Digital Form • • Mobile App •
Customer Reference
Cloud Services
Security Layer
Web Layer
Data/DMS & Presentation Layer
Customer Onboarding
• OKYC/EKYC • PAN Verification • ITR Verification • Legal Verification • Banking Check • Property Valuation • Bureau Check • Udyam Verification
Credit Underwriting
Pre-Disbursal
Loan Disbursal
Loan Servicing
• PD with customer • CAM Summary Assessment
• Online Valuation report
assessment
• BRE based Customer
segmentation
• E-Nach • E-Sign • Document verification on
• Digital Disbursal IMPS/RTGS/NEFT • WhatsApp based
digital platform • BRE based system
Deviations
welcome Kit delivery • Digital document storage
• Customer App • CRM Platform • Call Center • WhatsApp • Digital Collection • Collections App • Robotic Processes • BBPS enabled payments • Payment Aggregators
API Integration Layer
Compliance & Regulatory
Monitoring & Logging
16
Credit Underwriting Tailored to service underserved, underbanked informal customers
Most small businesses in India have challenges
Partial Income Proof
Limited Commercial Credit History
Collateral with local nuances
•
•
• •
• •
SBFC's business model, backed by experience in this segment
Credit officer spends time to understand income & cash flow (documented + non-documented) at family level Evaluation of historical asset creation
SBFC customers are often first-time commercial borrowers with past consumer loans Reference check from the neighbourhood, locality and their customer and suppliers
Local team with knowledge of local nuances and local collateral dynamics Spouse or parent act as co-borrower on all loans
Bank Statements with Limited Transactions
• Analytics driven ‘customer segmentation’ •
Triangulation of income sources from multiple data points
Small scale businesses lack resilience
• •
Focus on services/ trading/ retailing businesses Customer with businesses in essential services - less impacted by macro down-cycles
Deep understanding of customer behavior (over 91K MSME customers) & strong knowledge of local markets (16 states, 2 UTs)
17
Credit Underwriting Quality borrowers with credit score above 700
Over 85% AUM from customers with CIBIL >7001
Granular loan book with high quality collateral1
0/-1
<650
> 650 & < 700
7.9% 2.1% 7.7%
7.5% 1.2% 6.6%
6.7% 0.8% 5.6%
93% AUM secured by self occupied residential / commercial property
42.6% LTV
> 700
82.3%
84.7%
86.9%
100% co-borrower Spouse, parent acting as one
95% women Borrowers / co-borrowers
No industry >10% Sector exposure not more than 10% of our loan portfolio
CIBIL Score
Mar'23
Mar'24
Mar'25
> 700
> 650 & < 700
<650
0/ -1
1Pertains to secured MSME Loans
18
Credit Indicators
Gross NPA %1
2.43%
2.70%
2.74%
PCR
44.7%
40.2%
45.7%
Net NPA %2
1.36%
1.63%
1.51%
Q4 FY 24
Q3 FY 25
Q4 FY 25
Q4 FY 24
Q3 FY 25
Q4 FY 25
1+ DPD %3
5.59%
6.52%
7.09%
Collections Efficiency %4
98.30%
97.88%
97.74%
Q4 FY 24
Q3 FY 25
Q4 FY 25
Q4 FY 24
Q3 FY 25
Q4 FY 25
Note: 1. 2. 3. 4.
Gross NPA% (Stage 3%) as per IND AS (including EIR adjustment). Net NPA% is as per IND AS. 1+ DPD % is for secured MSME at AUM level Collections efficiency defined for Standard Secured MSME loans as “amount of EMI received during the month, restricted to a max of 1 EMI per loan divided by EMI demand for the current month”
19
ECL Provisions Summary
As on March 31, 2025 Gross Loans Outstanding ECL Provision Net Loans Outstanding ECL Provision %
As on December 31, 2024 Gross Loans Outstanding ECL Provision Net Loans Outstanding ECL Provision %
As on March 31, 2024 Gross Loans Outstanding ECL Provision Net Loans Outstanding ECL Provision %
All figures in ₹ Cr
Stage 2 238 14 224 6.08%
Stage 2 199 11 188 5.61%
Stage 2 260 13 247 5.02%
Stage 1 7,195 28 7,167 0.38%
Stage 1 6,701 38 6,663 0.56%
Stage 1 5,543 33 5,510 0.59%
20
Stage 3 209 96 113 45.69%
Stage 3 191 77 114 40.22%
Stage 3 144 64 80 44.74%
Total 7,642 138 7,504 1.80%
Total 7,091 126 6,965 1.77%
Total 5,947 110 5,837 1.86%
Collections Approach In-house, on-ground collections teams – 98% collected digitally
Rework icons
On-ground Teams
Scalable Structure
Adaptable collection strategy as per loan stage
Branch staff from local area
+
Branch area- limited radius
quick attention to customer issues
In-house legal team
Backed By Tech
Analytics early warning
Delta/ Omega for focused efforts
Loan Stage
Normal
• Call center autodial
Independent collection vertical dedicated to ensure collection efficiencies
Initial stages of delinquency
• Soft collections + SMS reminders • Initiate recovery in case of
default
NPA
• Legal action if unable to recover
Tele Calling
Field Collection
Legal collection
Real-time mobile tracking
Call centre - autodial
21
Financial Performance Quarterly Trends in KPIs
(₹cr)
6,822
AUM
8,148
8,747
Yield
17.81%
17.88%
Spread
8.50%
8.53%
17.62%
8.27%
Q4 FY 24
Q3 FY 25
Q4 FY 25
Q4 FY 24
Q3 FY 25
Q4 FY 25
Q4 FY 24
Q3 FY 25
Q4 FY 25
Opex to AAUM
Gross NPA
RoAAUM
Cost/Income
42.17%
39.86%
39.67%
5.01%
4.62%
4.62%
2.43%
2.70%
2.74%
11.90%
4.56%
12.75%
13.14%
RoATE
4.49%
4.52%
Q4 FY 24
Q3 FY 25
Q4 FY 25
Q4 FY 24
Q3 FY 25
Q4 FY 25
Q4 FY 24
Q3 FY 25
Q4 FY 25
22
Financial Performance Annual Trends in KPIs
AUM
(₹cr)
6,822
8,747
Yield
17.75%
17.08%
Spread
8.42%
7.70%
FY 24
FY 25
Opex to AAUM
FY 24
FY 25
FY 24
FY 25
Gross NPA
RoAAUM
Cost/Income
45.74%
5.34%
39.98%
4.65%
2.43%
2.74%
12.72%
4.53%
RoATE
11.28%*
4.14%
FY 24
FY 25
FY 24
FY 25
FY 24
FY 25
*The company has received an equity infusion of Rs. 600 crore in Q2 FY 24
23
Sources of Borrowing
Lenders to the Company
Diversified Borrowing Mix
Public Sector Banks
10.9%
12.0%
18.5%
40.3%
18.5%
41.1%
Private Sector Banks
5.3%
8.0%
3.0%
10.9%
17.0%
14.5%
Bank Rupee Loan NCD Co-origination
ECB & FCNR Securitisation DFI's & FI's
Bank Rupee Loan NCD Co-origination
ECB & FCNR Securitisation DFI's & FI's
Q4 FY24
Q4 FY25
AA– (Stable)
Financial Institutions (FIs)
Foreign Banks
Development Financial Institutions (DFIs)
NCD
24
ALM – March 2025
Upto 3 months
Upto 6 months
Upto 1 Year
Upto 3 Years
Upto 5 Years
5+ Years
All figures in ₹ Cr
742
1,479
1,150
2,260
1,945
3,159
4,646
5,130
5,407
7,082
8,721 8,721
Liablilities
Asset
25
Surplus
737
1,110
1,214
484
1,675
Summary Financial Statements – Profit & Loss Statement for Q4 FY25
Particulars
Interest Income on Loans Interest Income other than on Loans Fee & Other Income Total Income Finance Cost Operating Expenses Pre-Provisioning Operating Profit Credit Cost Tax Expense Profit after Tax Basic EPS (Not Annualized) Diluted EPS (Not Annualized)
All figures in ₹ Cr
Quarter Ended
December 2024
301 6 26 333 106 90 137 19 30 88 0.82 0.80
March 2024
248 10 22 280 88 81 111 14 24 73 0.71 0.69
Growth (%)
Q-o-Q
Y-o-Y
7.0%
30.1%
8.3%
29.2%
7.4%
32.7%
7.2%
28.5%
March 2025
322 7 32 361 118 96 147 21 32 94 0.87 0.86
26
Summary Financial Statements – Profit & Loss Statement for FY25
Financial Year Ended
Growth (%)
Particulars
Interest Income on Loans Interest Income other than on Loans Fee & Other Income Total Income Finance Cost Operating Expenses Pre-Provisioning Operating Profit Credit Cost Tax Expense Profit after Tax Basic EPS (Not Annualized) Diluted EPS (Not Annualized)
All figures in ₹ Cr
March 2024
866 52 102 1,020 351 306 363 47 79 237 2.35 2.29
Y-o-Y
34.8%
28.1%
46.6%
45.6%
March 2025
1,167 29 110 1,306 419 355 532 74 113 345 3.20 3.15
27
ROE Tree
Ratios
Q4 FY25
Q3 FY25
Q4 FY24
FY25
FY24
Interest Income on Loans/ Average Loan Book
17.88%
17.81%
17.62%
17.75%
17.08%
Fee & Other Income/ Average AUM
Borrowing Cost/ Average Borrowings
Spread
1.52%
9.35%
8.53%
1.31%
9.31%
8.50%
1.36%
9.35%
8.27%
1.44%
9.33%
8.42%
Net Interest Margin/ Average AUM
10.12%
10.27%
10.52%
10.20%
Operating Expenses/ Average AUM
Credit Cost/ Average AUM
Profit after Tax/ Average AUM
Leverage (Avg AUM/ Avg Tangible Equity)
4.62%
1.00%
4.52%
2.90
4.62%
0.97%
4.49%
2.84
5.01%
0.85%
4.56%
2.61
4.65%
0.97%
4.53%
2.81
1.77%
9.38%
7.70%
9.91%
5.34%
0.82%
4.14%
2.72
RoATE
13.14%
12.75%
11.90%
12.72%
11.28%
28
Balance Sheet
Particulars
Assets Cash and Bank Balances Receivables Loan Assets Investments Other financial assets Current & Deferred tax assets (Net) Property, Plant and Equipment etc. Other non-financial assets Total Assets Liabilities and Equity Derivative Instrument Payables Borrowings Other financial liabilities Non-Financial Liabilities Equity & Reserves Total Liabilities and Equity
All figures in ₹ Cr
As On
March 2024
466 15 5,836 427 7 6 301 5 7,063
5 22 3,996 246 16 2,778 7,063
March 2025
429 15 7,504 327 3 3 309 5 8,595
10 10 5,264 112 9 3,190 8,595
29
Corporate Social Responsibility – Building Livelihood
SBFC Shiksha – Enabling Holistic Education
SBFC Aarogya – Essential eyecare services
Enhanced infrastructure in a rural school to support students with: •
Smart classrooms, ergonomic furniture & value-based wall art. Playground equipment and school cab facilities. Dropout reduction: From 24 to just 3 students. Enrollment growth: Girls from 28 → 54 Academic upliftment: Girls’ pass percentage improved from 62% to 100%.
• • •
SBFC Gurukul – Executive Training Program
Executive Training Program •
Total beneficiaries 616, out of which 166 have been certified in FY 2023–24 & 191 have been certified during current FY 2024-25; and 259 are pursuing the program. 49% of total certified Executive Trainees are absorbed by SBFC. Out of 616, 35% are female beneficiaries in the program.
•
•
Enabled screenings at well-equipped centers for children from remote schools • Total children screened: 6,927 • Children identified with refractive errors: 277
30
THANK YOU!
31
PRIVATE & CONFIDENTIAL