SHRIRAMCIT

lsHRIRAM City MONEY WHEN YOU NEED IT MOST Ref: STEC NSE/BSE 07/2020 January 30. 2020 The Secretary, The Manager BSE Ltd National Stock Exchange of India Ltd P J Towers. Exchange Plaza, 5th Floor Dalal St. Plot No.C/1, G Block Mumbai 400 001 Bandra- Kurla Complex Bandra (E) Mumbai 400 051 Sir, Ref: ISIN- INE722A01011 Scrip Code: BSE-532498 and NSE- SHRIRAMCIT Please find attached the presentation on financial results made by the Company to analysts I institutional investors. This is an intimation under Regulation 30 read with Schedule III (Part A) (15) of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements), Regulations, 2015. We request you to kindly take the above information on record. Thanking you, Yours faithfully, For Shri~;am City Union Finance Limited, ~~\ryNJ C R Dash Company Secretary ~~ Encl: ala. __________. Shriram City Union Finance Limited __________ Business Solution Centre,144, Santhome High Road, Mylapore, Chennai-600 004. Ph: +91 44 4392 5300, Fax: +91 44 4392 5430 Regd. Office: 123, Angappa Naicken Street, Chennai- 600 001. Ph: +91 44 2534 1431 E-mail : shriramcity@shriramcity.in Website : www.shriramcity.in Corporate Identification Number (CIN) L65191TN1986PLC012840 ----- ---------------------------- .SHRIRAM City MONEY WHEN YOU NEED IT MOST Investor Presentation Q3FY20 Company Background Market leader-differentiated position in large under-served retail markets 989 Strong parentage and an established track record in financial services Strong business fundamentals with diversification-led growth Mar- Mar- Mar- · Q3 Mar- Mar- Mar-, Q3 9M Healthy capitalization and balance Sheet with adequate liquidity 15 18 19 ' FY20 15 18 19 :FY20 Assets Under Management Profit After Tax Primarily caters to under-banked customers 25.30% 94 7 branches with strong presence in rural and semi-urban markets Leading small enterprise finance company in India in the Small Loans segment Leading two-wheeler financier in India Yield NIM Operating CRAR profit Active customer base of 40.5 Lakhs. Strong base of 28274 employees 4.07% 404% RoA Q3FY19 Q2FY20 Q3FY20 CI!EOIT RATING -SHQRT TERM 17.14% 17.68% 17.12% ,:.-~ ·yj RoE J~;! AA+ f ~; l Q3FY19 Q2FY20 Q3FY20 2 Performance Highlights for Q3 FY20 Key Financial Metrics -----------------------------------------------------------------~~----- Total Disbursements Total AUM PAT INRCr INRCr. INRCr. 4583 5201 5822 17461 17296 28646 29722 29546 Q3FY19 Q2FY20 Q3FY20 9MFY19 9MFY20 Q3FY19 Q2FY20 Q3FY20 Q3FY19 Q2FY20 Q3FY20 9MFY19 9MFY20 ~ ~ ~ ' ' y Disbursements Assets Under Management INRCr INRCr 9MFY20- Small Enterprise 1774 1596 1506 fiai'~·- 17081 17433 16973 Finance Two Wheelers 1049 1251 1887 44.~·-- Two Wheelers 5242 5521 6184 Personal Loans 397 699 185 1~----- Personal Loans 2357 2929 2423 Auto Loans 55 5 400 ~1----- Auto Loans 1202 910 1108 Gold Loans 1308 1650 1844 4362" 5283 Gold Loans 2764 2929 2859 Total 4583 5201 5822 "1146-1 11~ Total 28646 29722 29546 3 Performance Highlights- AUM Q3FY19 Q3FY20 AUTO LOAN PERSONAL AUTO LOAN PERSONAL 4% 4% LOANS LOANS 8% GOLD LOAN 10% 21% ~ ~~~-~~~~~~------------ 4 Performance Highlights for Q3 FY20 Geographic Breakup of Business Branch Network by Geography AUM by Geography AUM in INR Cr. 947 branches as on 31-Dec-2019 29646 29722 29546 North South West South West Q3FY19 Q2FY20 Q3FY20 5 ----- ---- -- --- ------- --- ------------------- Performance Highlights Income Statement under lnd-AS Particulars - Growth Q3FY19 Q2FY20 Q3FY20 (INR in Crores) YoY QoQ Assets Under Management 28646 29722 29546 3.1% (0.6%) Disbursements 4583 5201 5822 27.0% 11.9% Interest Income 1439 1490 1470 2.1% (1 A%) Interest Expenses 527 538 522 (0.9%) (3.0%) Net Interest Income 912 952 948 3.9% (0.4%) Operating Expenses 365 377 375 2.8% (0.6%) Operating Profit 547 574 573 4.6% (0.3%) ' Impairment on Financial Instruments & Write-offs 145 197 182 25.7% (7.5%) Profit Before Tax 403 378 390 (3.0%) 34% ' Tax Expenses 144 80 94 (34.7%) 17.5% l Profit After Tax 259 298 297 14.7% (0.3%) Performance Highlights Under lnd-AS- Key Ratios & Other Information Analysis on Average AUM Q3FY19 Q2FY20 Q3FY20 Yield on Assets 19.77% 19.85% 19.84% Interest Expenses 7.24% 7.17% 705% Net Interest Margin 12.53% 12.68% 12.79% Operating Expenses 5.01% 5.03% 506% Operating Profit 7.52% 7.65% 7.73% Impairment on Financial Instruments & Write-offs 1.99% 2.62% 2.46% Net Spread (Pre Tax) 5.53% 5.03% 5.27% RoA 3.48% 407% 4.04% RoE 17.14% 17.68% 17.12% Leverage (times) 3.74 3.14 3.12 Cost to Income Ratio 39.99% 39.65% 39.59% Earnings per Share (Rs- for the Quarter) 39.22 45.08 44.96 Book Value per Share (Rs) 931 1031 1070 CRAR Total (As per IGAAP) 23.02% 24.37% 25.30% CRAR (Tier I) (As per IGAAP) 22.56% 24.37% 25.30% Stage Analysis as per lnd AS !NR Cr Provisions Analysis as per lnd AS Q3FY19 Q2FY20 Q3FY20 I Stage 3- Gross 2568 2517 2461 I Stage 3- ECL Provisions 1169 1094 1073 I I Stage 3- Net 1398 1423 I 1388 I Stage 3 -Coverage Ratio(%) 45.54% 43.48% 43.60%· .. 26461 Stage 1 & 2-Gross 25548 26444 Stage 1 & 2 - ECL Provisions 748 846 654 Stage 1 & 2 - Net 24799 25598 Stage 1 & 2 -ECL Provisions % 2.93% 3.20% Stage 3 % -Gross 9.13% 8.69% Stage 3 % - Net 5.19% 5.10% .. 4.98%. 3 Analysis of stage 3 (as per IND AS) Small Enterprise 9.67% 9.01% 8.86% 5.42% 5.19% 5.05% 46.82% 44.80% 45.32% Finance Two Wheelers 9.69% 9.11% 8.89% 5.41% 5.20% 5.05% 46.72% 45.33% 45.42% Personal Loans 10.90% 10.89% 10.99% 6.35% 6.67% 6.74% 41.89% 41.54% 41.46% Auto Loans 11.61% 12.13% 908% 6.02% 6.26% 4.59% 51.22% 51.61% 51.82% Loan Against Gold 2.25% 2.80% 3.38% 2.13% 2.67% 3.22% 5.09% 4.89% 4.97% Total 9.13% 8.69% 8.51% 5.19% 5.10% 4.98% 45.54% 43.48% 43.60% 9 Diversified Borrowing Profile & adequate Liquidity Backup Source Q2FY20 Q3FY20 Total Borrowings (INR Cr.) 21396 22030 Term Loans(%) 43% 40% CC & WCDL (%) 10% 9% Retail Fixed Deposits and SD (%) 18% 19% Public Issue NCD (%) 4% 4% Institutional NCD & SD (%) 14% 12% Securitization (%) 8% 14% Commercial Papers(%) 3% 2% TOTAL(%) 100% 100% Average Cost of Borrowing (%) 9.87% 9.71% ,. Fresh mobilization in Q3FY20: Rs. 3064 Crores (Rs. 2529 Crores From Banks, Rs. 535 Crores From Retail Fixed Deposits). i-- Of incremental Bank funding of Rs. 2529 Crores In Q3, average door-to-door tenor: 49 months i-- As on 3151 December 2019, liquidity backup in the form of undrawn Bank lines and Current Account balances: Rs. 1590 Crores ALM statement as of 31 December 2019 /NRC! ASSUMING 90% COLLECTION EFFICIENCY Net Cash Position (Current Account 790 Balances & Fixed Deposits) On Book Stock Receivables (with 1816 1562 1570 4560 7395 10155 3217 1953 interest) Scheduled Commitments (with 567 572 2191 2824 6151 10206 1479 13 interest) Mismatch 2039 990 (621) 1736 1243 (50) 1738 1939 Cumulative 2039 3029 2408 4144 5387 5337 7075 9014 Mismatch --------------------------------- Product Summary //----···-~--~ /----- /------- -----~------. __ - 57% of · '21% of - i1o%ot' ' · 8% of - / 4%of "\ ' , AUM ) ("-.A _U_M__ / ---_A_uv \' __A__U__M_ / ) '' AUM i ·-~----------/ ..__ '·~~-----// 0 MSME Financing Two-Wheeler Financing Gold Loans Personal Loans Auto Loans Launch Year: 2006 Launch Year: 2002 Launch Year: 2007 Launch Year: 2002 Launch Year: 2006 • Loans to micro, small and Among the largest 2W Focused on 5 leading Cross sell product- Primarily involves medium enterprises. financiers with 20% market gold demand states. Currently offered to Preowned cars, PVs & share 2W customers. 3Ws in South & West • Strong Presence in Offered through existing Relationship based Andhra, Telangana, Tamil Focus on non salaried class regional network. Entirely based on data lending, offered to Nadu & Maharashtra. mining & analytics existing/past customers. Tech-based lending Ticket Size: 40-50 K • Ticket Size: 10 - 15 L Ticket Size: 75K Ticket Size: 1.25-1.5 L Ticket Size: 40 - 45 K Tenor: 4-6 months. Tenor: 36-60 months. Tenor: 18 - 36 months. Tenor: 24-48 months. Tenor: 24-30 months. Yield Band: 14-18% Yield Band: 14-22% Yield Band: 22-28% Yield Band: 18-24% Yield Band: 21 -26% LTV: C. 75% • LTV: Cash Flow based LTV: Cash Flow LTV: 60-80% Lending LTV: C. 75% based Lending " i.sHRIRAMCi~ '•Em:v \'if<''< ··r;v 'IH0 '>''Jb'' SUBSIDIARY DETAILS SHRIRAM HOUSING FINANCE LIMITED Shriram Housing Finance Ltd -/ Registered as non-deposit accepting HFC with the National Housing Bank ,; Predominantly catering to self-employed borrowers/ informal salaried customers in Tier-11/ Tier-Ill towns -/ Focus on middle-income segment; average ticket size of INR 18.31akhs -/ Operates out of 65 branches across 15 states in India with 752 employees, catering to 10600 customers -/ Rated 'AA+' by Care Ratings and 'lnd AA' by India Ratings Loan AUM Split As ofQ3FY19 As ofQ2FY20 AsofQ3FY20 Rs.1721 Cr. Rs.11 Cr. Rs.1875 Cr. Rs.98 Cr. Rs.21 00 Cr. Rs.386 Cr. Construction Construction Construction Construction Construction/ Construction / Finance Finance Finance Finance Finance Finance Retail Retail Retail Retail AUM Disbursements AUM Disbursements AUM Disbursements 14 Shriram Housing Finance Ltd Quarterly Financial Highlights Growth Particulars Q3FY19 Q2FY20 Q3FY20 (INR in Crores) YoY QoQ Assets Under Management 1721 1875 2100 22.0% 12.0% Disbursements 11 98 386 3329.9% 293.5% Interest Income 69.41 66.25 62.18 (1 0.4%) (6 14%) Other I nco me 4.19 6.91 39.80 8489% 475.7% I nco me from Operations 73.61 73.16 101.98 38.6% 39.4% ' Interest Expenses 33.23 38.75 41.86 ' ' 26.0% 8.0% ' ' ' Net Interest Income 40.38 34.41 60.12 ' 48.9% 74.7% ' ' ' Operating Expenses 24.96 23.98 29.63 ' ' 18.7% 23.6% ' ' ' Impairment on Financial Instruments & Write-offs 3.11 0.38 1.41 ' ' (54.5%) 271.2% ' Profit Before Tax (10.01) 10.04 29.08 ' ' - 189.6% ' ' ' - Profit After Tax (6.52) 7.41 20.55 ' ' 177.1% ' ' Shriram Ho using Finance Ltd Quarterly Fin ancial Highlights Analysis on Average AUM Q3FY19 Q2FY20 Q3FY20 Yield on Assets 15.97% 15 09% 20.80% Finance Expenses 8.47% 8.96% 9.61% Net Interest Margin 7.51% 6.13% 11.19% Cost to Income Ratio 61.79% 69.71% 49.28% Gross NPAs 3.22% 3 01% 2.70% Net NPAs 2.35% 2.37% 2.13% RoA (1.27%) 1.32% 3.61% RoE (5.63%) 6.17% 16.61% Leveraging (times) 3.57 3.67 3.52 Capital Adequacy Ratio 32.53% 32.60% 29.44% Net worth (INR Cr.) 456.35 480.49 501.14 1G wsHRIRAM ~"'.'?:' :·:;':'.·~ 'i-'~!:'-<(~·.'. Disclaimer This presentation is for information purposes only and does not constitute an offer, solicitation or advertisement with respect to the purchase or sale of any security of Shriram City Union Finance Limited (the "Company") and no part of it shall form the basis of or be relied upon in connection with any contract or 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 is not a complete description of the Company. Certain statements in the presentation contain words or phrases that are forward looking statements. All forward-looking statements are subject to risks, uncertainties and assumptions that could cause actual results to differ materially from those contemplated by the relevant forward looking statement Any opinion. estimate or projection herein constitutes a judgment as of the date of this presentation, and there can be no assurance that future results or events will be consistent with any such opinion, estimate or projection. The information in this presentation is subject to change without notice, its accuracy is not guaranteed, it may be incomplete or condensed and it may not contain all material information concerning the Company. We do not have any obligation to, and do not intend to, update or otherwise revise any statements reflecting circumstances arising after the date of this presentation or to reflect the occurrence of underlying events, even if the underlying assumptions do not come to fruition. All information contained in this presentation has been prepared solely by the Company. No information contained herein has been independently verified by anyone else. No representation or warranty (express or implied) of any nature is made nor is any responsibility or liability of any kind accepted with respect to the truthfulness, completeness or accuracy of any information, projection, representation or warranty (expressed or implied) or omissions in this presentation. Neither the Company nor anyone else accepts any liability whatsoever for any loss, howsoever, arising from any use or reliance on this presentation or its contents or otherwise arising in connection therewith. This presentation may not be used, reproduced, copied, distributed, shared, or disseminated in any other manner. The distribution of this document in certain jurisdictions may be restricted by law and persons into whose possession this presentation comes should inform themselves about, and observe, any such restrictions. 1 7 lsHRIRAMC~ "i:'lfv "''"H' 'GU ;jh() 1T '>1061