UGROCAP

UGRO Capital Limited Q3’FY24 EMPOWERING MSME ECOSYSTEM NSE: UGROCAP | BSE: 511742 Slide 1 Safe Harbor This presentation has been prepared by UGRO Capital Limited (the “Company”) solely for your information. By accessing this presentation, you are agreeing to be bound by the trailing restrictions. This presentation is for information purposes only and should not be deemed to constitute or form part of any offer or invitation or inducement to sell or issue any securities, or any solicitation of any offer to purchase or subscribe for, any securities of the Company, nor shall it or any part of it or the fact of its distribution form the basis of, or be relied upon in connection with, any contract or commitment therefor. In particular, this presentation is not intended to be a prospectus or offer document under the applicable laws of any jurisdiction, including India. 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Slide 2 Rebound visible post-Covid for MSMEs Journey towards formal credit fold is accelerating Sign of business rebound visible in post pandemic time frame New credit disbursals picking up post Covid During pandemic period 1st year Post pandemic 2nd year Post pandemic 77% customers showing 68% customers showing >10% YoY Business activity and sales dip 90% 1600 resumption of activity sales growth 98 80% 1400 91 85 82 70% 1200 71 60% 69 1000 62 60 50% 800 48 49 40% 43 42 44 38 41 40 600 36 30% 26 400 20% 21 200 10% 0% 0 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 2019 2020 2021 2022 2023 Sample size % MSMEs showing YoY growth % MSMEs showing over 10% YoY growth Total Loans Sanctioned per Customer (in lakhs) In FY23, 68% of observed MSMEs in UGRO’s target segment show 10%+ YoY turnover New credit sanctions per customer has increased steadily in post covid timeframe growth Slide 3 Performance Highlights for Q3’FY24 and 9M’FY24 Q3FY23 Q3FY24 9M’FY23 9M’FY24 AUM (INR Cr) 5,095 8,364 64% 5,095 8,364 64% Annualized EPS on current rate INR 14.24 per Net Disbursement (INR Cr)* 1,166 1,552 33% 3,183 4,311 35% share for 9M’FY24 Off-book AUM 35% 45% 29% 35% 45% 29% Pre-Tax Profit (INR Cr) 22.2 46.4 109% 50.2 122.8 145% Book Value per Share INR 153.8 PAT (INR Cr) 13.1 32.5 148% 25.7 86.7 237% as on Dec’23 Net Total Income %$ 12.9% 13.5% 5% 11.8% 13.0% 11% Cost to Income Ratio 64% 53% 17% 66% 55% 17% Price to Earning Ratio (P/E) ROA 1 1.4% 2.4% 74% 1.0% 2.3% 129% 19.5x as on Dec’23 * Price as on 20 Jan 2024 ROE 5.5% 9.4% 72% 3.5% 9.7% 173% *Gross Disbursements – Repayment received in Supply Chain Financing during the period $On Average Gross on-books AUM Slide 4 Key metrics for 9M’FY24 01 02 03 04 Asset Asset Liability & Profitability Growth Quality Co - lending GNPA Borrowings AUM Net Total Income As on Dec’23 : 8,364 Cr 9M’FY24 : 436.5Cr As on Dec’23 : 2.0% As on Dec’23 : 4,173 Cr (+30 bps Y-o-Y) (+64% Y-o-Y) (+66% Y-o-Y) Co-lending Net Loans Originated PPOP NNPA - Partnership with 13 co - lenders / co - originators 9M’FY24 : 4,311 Cr 9M’FY24 : 198.0 Cr As on Dec’23 : 1.1% (+35% Y-o-Y) - 3,765 Cr off-book AUM (+121% Y-o-Y) (flat Y-o-Y) (+121% Y-o-Y) Portfolio yield (net) Pre-tax Profit Collection efficiency * Cost of Borrowings As on Dec’23: 16.3% 9M’FY24 : 122.8 Cr 9M’FY24 : 97% As on Dec’23 : 10.65% (+145% Y-o-Y) (Stable) * Total Collections (including overdue) / Current month demand Slide 5 We continue to deliver strong Net Loan Origination Amount in INR Cr Net loans originated increased to INR 1,552 Cr in Q3’FY24 from INR 1,476 Cr in Q2’FY24 ( +5%) and INR 1,164 Cr in Q3’FY23 (+33%). 1,054 963 1,359 1,653 1,874 2,314 2,036 2,506 2,810 33% 5% Gross Loans Originated 1,552 1,459 1,476 261 17% 193 1,284 209 1,166 1,100 173 172 167 225 15% 148 13% 917 193 109 153 85 52 3% 134 12% 16 817 188 180 12% 143 126 65 6% 206 151 58 136 199 611 119 12% 120 66 70 44 107 91 418 429 524 590 38% 41 81 387 33% 27 353 195 44 305 250 360 363 268 251 294 25% 304 244 16% 192 103 Q3'FY22 Q4'FY22 Q1'FY23 Q2'FY23 Q3'FY23 Q4'FY23 Q1'FY24 Q2'FY24 Q3'FY24 Prime - Secured Prime - Unsecured Micro Enterprise Loan Supply Chain Financing Machinery Loan Partnerships & Alliances *Percentages represent product wise portfolio mix Slide 6 And strong AUM Amount in INR Cr AUM increased to INR 8,364 Cr as on Dec’23 from INR 7,592 Cr as on Sep’23 (+10%) and INR 5,095 Cr as on Dec’22 ( +64%). 64% 10% 8,364 7,592 967 12% 6,777 849 1,037 12% 6,081 750 893 722 9% 715 5,095 798 670 721 8% 4,375 701 585 636 746 14% 567 548 3,656 718 564 11% 472 2,970 620 465 458 9% 2,380 2,664 32% 2,589 397 338 7% 2,109 361 535 240 1,899 356 523 253 170 1,528 30% 183 106 287 1,261 74 259 1,000 766 574 1,986 2,164 2,252 27% 1,727 976 1,022 1,150 1,294 1,462 29% Q3'FY22 Q4'FY22 Q1'FY23 Q2'FY23 Q3'FY23 Q4'FY23 Q1'FY24 Q2FY24 Q3FY24 Prime - Secured Prime - Unsecured Micro Enterprise Loan Supply Chain Financing Machinery Loan Partnerships & Alliances *Percentages represent product wise portfolio mix Slide 7 Which is delivering operating leverage Amount in INR Cr Consistently increasing PBT over past 8 quarters 109% 46 41 36 34 22 18 10 8 5 Q3'FY22 Q4'FY22 Q1'FY23 Q2'FY23 Q3'FY23 Q4'FY23 Q1'FY24 Q2'FY24 Q3'FY24 Slide 8 Our collection efficiencies and portfolio performance remains stable Current Month and Overall Collection Efficiency remains robust ECL Data (Dec’23) Current Month Collection (excluding overdue) / Current Month Demand (In Cr) Loan Exposure Loan Exposure (%) Total Collections* (including overdue) / Current Month Demand Stage 1 7,887 94.3% Stage 2 306 3.7% 97% 97% 98% 97% 98% 96% Stage 3 171 2.0% Total 8,364 100.0% 94% 94% 93% 93% 91% 91% Product wise GNPA Product Category AUM (INR Cr) GNPA(%) Prime -Secured Loans 2,552 0.6% Q2FY23 Q3FY23 Q4FY23 Q1FY24 Q2FY24 Q3FY24 Prime -Unsecured Loans 2,664 3.6% Micro Enterprise Loan 721 2.3% Key highlights: Supply Chain Financing 722 3.9% • GNPA / NNPA as a % of Total AUM stood at 2.0% / 1.1% as of Dec’23 Machinery Loan 1,037 0.8% • Stage 3 provisioning coverage stood at ~49% (on-book AUM) Partnerships & Alliances 967 0.0% • Total Restructured portfolio stood at 0.4% of Total AUM Grand Total 8,364 2.0% • Total provisions as of Dec’23 stood at ~ ₹108.3 Cr (1.3% of Total AUM) *Excluding foreclosures Slide 9 Our collection efficiencies and portfolio performance remains stable Stage 1 has remained stable over last 5 quarters Provision Coverage Ratio 96% 96% 95% 95% 94% 49% 48% 49% 49% 38% Dec'22 Mar'23 June'23 Sep'23 Dec'23 Dec'22 Mar'23 Jun'23 Sep'23 Dec'23 Restructured Loans (standard portfolio) 1.5% • Stage 1 assets have been around ~95% over past 6 quarters 1.1% 0.8% 0.6% 0.4% 76.7 • Restructured loans have decreased from INR 76.7 Cr (1.5% of Total 64.9 52.9 48.8 AUM) as on Dec’22 to INR 34.3 Cr (0.4% of Total AUM) as on Dec'23. 34.3 • Stage 3 PCR has improved from 38% as on Dec'22 to 49% as on Dec'23 Dec'22 Mar'23 June'23 Sep'23 Dec'23 Restructured loans % of Total AUM Slide 10 Tri-pronged liability strategy – on-balance sheet, co-lending and assignment continues to mature Demonstrated ability to manage a prudent mix of on-balance sheet and off-balance sheet approach 1 On-Balance sheet Diversified Lender base across Lending Institutions – Banks, Large NBFCs and DFIs. Multi product approach through TL, NCDs, MLDs, CPs 3 2 Assignments with FIs Co-Lending with Banks/NBFCs 100% PSL Loan book leading to higher Partnership with PSBs, Pvt. Banks and Large demand of securitized pool and a lever to NBFCs to achieve scale with lesser leverage manage ALM and lower on-balance sheet risk Actively partnering with liability providers and focus on building a long-term relationship Slide 11 Robust momentum of our co-lending platform continues Increasing Mix of off - Book AUM Product wise Mix of off - Book AUM (Sep’23) 2,252 2,664 721 722 1,037 967 On Book Portfolio Off Book Portfolio 7% 3% 51% 48% 41% 21% 29% 35% 40% 43% 45% 45% 66% 93% 97% 49% 52% 59% 34% Prime Prime Micro Supply Chain Machinery Partnership & Secured Unsecured Enterprise Financing Financing Alliances 79% 71% 65% 60% 57% 55% 55% On-Book Off-Book 1,148 1,768 343 51 430 25 Jun'22 Sep'22 Dec'22 Mar'23 Jun'23 Sep'23 Dec'23 4% 28% 27% 30% 43% Jun’22 Sep’22 Dec’22 Mar’23 Jun’23 Sep’23 Dec’23 38% 100% 100% 60% Off Book AUM 782 1,272 1,775 2,442 2,929 3,405 3,765 66% 57% 34% Co-Origination 304 619 915 1,181 1,457 1,604 1,615 13% Prime Prime Micro Supply Chain Machinery Partnership & Co-lending 215 332 505 773 943 1,166 1,474 Secured Unsecured Enterprise Financing Financing Alliances DA 263 322 355 488 530 635 676 Co-Origination Co-lending DA Co-lending Partnership with 7 Banks and 6 NBFC’s Slide 12 Diversified Lender base and continued build-out of liability book Total Debt (INR Cr) and Cost of borrowings Liability mix by lender profile Liability mix by product 10.53% 10.58% 10.66% 10.61% 10.65% 19% 2% 0% 4% Cost of Borrowings 4,173 3,798 3,149 3,342 24% 2,885 43% Total Debt INR 10% Total Debt INR 4,173 Cr 4,173 Cr 70% 18% 10% Banks NBFC DFI FIIs Capital Markets Term Loan NCD Securitization Q3'FY23 Q4'FY23 Q1'FY24 Q2'FY24 Q3'FY24 CP Cash Credit/OD Our liability sanctions have been raised from a diverse set of lenders Public Sector Banks and institutions Private Sector Banks DFI SFBs and NBFCs Slide 13 Finance | Income Statement Income Statement (₹ Cr) Q3FY23 Q3FY24 Y-o-Y Q2FY24 Q-o-Q Interest Income 133.1 182.8 37% 171.9 6% Income on Co-Lending / Direct Assignment 42.9 76.4 78% 64.8 18% Other Income 13.6 20.1 48% 17.0 18% Total Income 189.6 279.3 47% 253.6 10% Interest Expenses 81.6 116.7 43% 105.4 11% Net Total Income 108.0 162.6 51% 148.2 10% Employee Cost 40.5 48.5 20% 46.0 5% Other Expenses 28.6 38.0 33% 36.8 3% PPOP 38.9 76.1 95% 65.4 16% Credit Cost 16.7 29.7 78% 24.6 21% PBT 22.2 46.4 109% 40.8 14% Tax 9.1 13.8 52% 11.9 16% PAT 13.1 32.5 148% 28.9 13% ROA % 1.4% 2.4% - 2.3% - Slide 14 Finance | Income Statement & ROA Tree Income Statement (₹ Cr) 9MY23 9MFY24 Y-o-Y FY23 ROA Tree 9MY23 9MFY24 Interest Income 341.8 516.2 51% 482.9 As a % of Gross On Book AUM Income on Co-Lending / Direct Assignment 91.7 185.1 102% 154.1 Total Income 20.8% 22.4% Other Income 33.1 50.0 51% 46.8 Interest Expenses 9.1% 9.4% Total Income 466.6 751.3 61% 683.8 Net Total Income 11.8% 13.0% Interest Expenses 202.9 314.8 55% 293.3 Opex 7.8% 7.1% Net Total Income 263.7 436.5 66% 390.5 Credit cost 1.8% 2.2% Employee Cost 100.6 131.4 31% 140.7 PBT 2.2% 3.7% Other Expenses 73.6 107.0 45% 109.1 PAT 1.1% 2.6% PPOP 89.5 198.0 121% 140.6 Credit Cost 39.3 75.2 91% 56.8 Key Ratios (Annualized) 9MY23 9MFY24 PBT 50.2 122.8 145% 83.8 ROA (% Avg. Total Assets) 1.0% 2.3% Tax 24.4 36.2 48% 44.1 Leverage 3.0x 3.0x PAT 25.7 86.7 237% 39.8 RoE 3.5% 9.7% Slide 15 Operating & Financial Metrics Total Income (INR Cr) & Portfolio Yield$ Finance Cost (INR Cr) & Cost of Borrowing Operating Exp. (INR Cr) and Cost to Income 17.4% 17.3% 17.3% 17.4% 17.5% 10.5% 10.6% 10.7% 10.6% 10.7% 63.9% 55.9% 55.0% 55.9% 53.2% 16.0% 16.1% 16.3% 16.2% 16.3% 117 83 87 254 279 82 90 93 105 69 74 69 217 218 190 Q3'23 Q4'23 Q1'24 Q2'24 Q3'24 Q3'23 Q4'23 Q1'24 Q2'24 Q3'24 Q3'23 Q4'23 Q1'24 Q2'24 Q3'24 Operating Expenses Cost to Income Ratio (%) Total Income Gross Yield (%) Net Yield (%) Finance Expense Cost of borrowing (%) Credit Cost (INR Cr) & Credit cost / Avg AUM PBT (INR Cr) and PBT / Avg. Total Assets# PAT (INR Cr) and PAT / Avg. Total Assets# 2.3% 3.2% 3.1% 3.2% 3.4% 2.2% 2.3% 2.4% 1.4% 1.3% 1.3% 1.4% 1.5% 1.4% 1.4% 46 25 30 34 36 41 25 29 33 21 17 17 22 13 14 Q3'23 Q4'23 Q1'24 Q2'24 Q3'24 Q3'23 Q4'23 Q1'24 Q2'24 Q3'24 Q3'23 Q4'23 Q1'24 Q2'24 Q3'24 Credit Cost Credit Cost/ Avg Total AUM PBT PBT/ Avg Total Assets PAT ROTA % 1,405 8,364 45% 4,173 / 22.3% 2.0% / 1.1% 104/2,350+ 67,000+ Total Debt / GNPA / NNPA Branch/ Net Worth AUM Off book % Active Borrowers CRAR (Total AUM) Employees1 $ Weighted Average AUM yield as on Period End # Annualized ratio based on quarterly average of total assets 1 Employees include on-roll employees and dedicated off-roll employees Slide 16 Building a large institution for small business financing is a real possibility Explosion of Credit in MSME Segment: INR 92 Trn MSME Credit Gap Presents a large Market Opportunity Total MSME Credit gap is Rs 92 trn Credit Gap of our customer segment constitutes 95% FY17 FY23 Medium Enterprise No. of entities – 0.05L (0.05%) Medium Credit O/s – INR 7.6 Trn (33%) 116 Total MSME Credit Demand (INR Trn) 69 Small Enterprise Small No. of entities – 3.3L (0.52%) Credit O/s – INR 9.5 Trn (41%) ~ 16% ~ 20% UGRO’s Target Customer Segment Formal Formal T/o – Rs 25L - 15Cr Credit Credit availability availability Micro Enterprise Micro No. of entities – 631L (99.47%) Credit O/s – INR 5.8 Trn (25%) 92 Total MSME Credit 53 Unserved Customers Gap (INR Trn) Source: IFC report on Financing India’s MSME dated November 2018;Crisil Report Slide 18 UGRO’s journey of Data-Tech driven lending to MSMEs over 5+ yrs Build phase Early Validations Maturing phase Growth Phase Data Repository-Dec 2023 Infrastructure build at inception During Covid, pivoted At Dec 2022, 87% of long term portfolio Become an industry to cash flow based underwriting models organic prime performance starting to benchmark in data-driven 3.5L+ business was using emerge decision making for GRO Score MSME Bureau Records analyzed Develop Network Science, ability to create blueprint of large supply chains 1.5+ First generation eligibility Industry first statistical recommendation model Bank Statements analyzed model using GST data Gro Score 3.0 as a First Banking scorecard and combination of Bureau + 2024+ Gro Score 2.0 (Jul 21) Banking + GST 50k+ In house analytical rule engine Gro Score 4.0 – 100% digital for fast deployment of GST records analyzed API integrations analytics strategies 2023-24 underwriting including hyper- customization of personal Data layer interactions First gen Gro Score on look- Sector specific data models alike data from credit bureau 2022-23 3k+ based on proprietary data and knowledge Anchor/OEM networks discovered Doubling of credit productivity with stable asset quality 2021-22 7k cr+ 2020-21 Disbursed through GRO Score Slide 19 Our Distribution continues to be powered by our GRO Score Ability to capture alternate data from banking and bureau… …to draw meaningful insights out of unorganized data... Artificial Intelligence GRO 2.0 GRO 3.0 Engineering of making Intelligent Credit Credit Bureau Machines and Programs Across Multiple parameters Bureau Data Data + + Machine Learning Turnover and transaction intensity Banking Banking Data Ability to learn without being explicitly programmed Data + Borrowing mix and nature GST Deep Learning Learning based on Deep Neural GST Cheque bounces & bank charges Network Frequency and magnitude of defaults Historical aggregation – several pages of statement going back 12 months can be Payment cycles summarized instantly Normalization – convert absolute values to History of high-cost debt/credit card usage scale, for even comparison Machine generates Obligations as % of turnover Trending – changes over time, create 25,000+ data features standardized measure of comparison across diverse nature of entities, sectors, geographies from an applicant’s Balances and withdrawals Bank Bureau Scoring of each case into one of the five bureau record and Counterparties & relative strengths bands of A – E with A being the best and E bank statement Matches Banking & Bureau Scorecards to being the worst generate one single score which further gets Pace of borrowing augmented with GST data as an external A B C D input … and decide whether to disburse or not disburse the loan within 60 minutes. Slide 20 GRO Score – Risk Bands Stacking up on Historical Portfolio Default rates across score bands – All customers assessed Since Inception Score Band wise break up of recent disbursals (Jul 23 – Dec 23) 4.2% 3.7% A 3.2% 9% 2% 6% B 2.2% 1.5% GRO Score A&B C 1.1% 1.1% ~84% 0.9% 22% 61% D A B C D,E E Disbursed cases Not Disbusred cases Segments A, B – contributing to majority share of disbursals and lever for calibrated increase of throughput To that effect we have analysed both sets of data i.e. cases disbursed and rejected by UGRO. Performance across risk bands was observed to be stacking up for both sets of data Explanation note : Scores are computed based on repayment track record of loan applicants and submitted bank statements. Default rate tracking is done based on quarter-end credit bureau data; “default” represents incidence of 90 dpd in any business purpose credit facility reported in bureau during a period of six months from the point of assessment at UGro Capital Slide 21 Sector Focused Approach, Multiple Products and Large Distribution Strength Hospitality 23 Supply Chain Financing Prime Branches Business Loans Light Engineering 81 Secured by Property Unsecured Micro Branches Auto Components Business 500+ Loans Chemicals GRO Partners Our Product 70+ Food Processing Offering Anchors New Age Education 50 Products OEMs Healthcare 40+ Electrical Equipment Fintech Partners Machinery Loans Micro Enterprises Loans & Components 1100+ 9 sectors are further subdivided into 200+ subsectors basis homogeneity Micro Enterprises of cash flows among MSMEs Sales Employees Slide 22 Of our addressable market, we serve a diverse set of customers Prime: Metro & Ecosystem (SCF & Micro: Tier 3-6 Partnership & Tier 1/2 Direct Digital Machinery) Branches Alliances Branches Collateral: Prime CCoollllaatteerraall:: PPrriimmee CCoollllaatteerraall:: SSttaannddaarrdd Collateral: FLDG from Property (For Sec.) MMaacchhiinneerryy && rreecceeiivvaabblleess PPrrooppeerrttyy partner Cashflow: GST, Banking Collateral: None CCaasshhffllooww:: GGSSTT && CCaasshhffllooww:: LLiiqquuiidd iinnccoommee Cashflow: Banking & Cashflow: Banking & Liquid income Cashflow: Banking BBaannkkiinngg aasssseessssmmeenntt liquid income assessment assessment Rs 1cr – 15cr Rs 1cr – 10cr <Rs 1cr <Rs 50L <Rs 20L Customer Turnover Customer Turnover Customer Turnover Customer Turnover Customer Turnover Secured: Rs 69L SCF: Rs 25L Rs 8L Rs 4L Rs 35k Unsecured: Rs 16L Machine: Rs 36L Average ticket size Average ticket size Average ticket size Average ticket size Average ticket size AUM Mix: 59% AUM Mix AUM Mix: 8% AUM Mix: 12% AUM Mix: <1% Sec/Unsec: 27%/32% SCF/Machine: 9%/12% Through our multi-pronged distribution channels Prime Loan Branches Micro Loan Branches Branch-Led Channel – Catering through 100+ branches Product Avg. Yield Tenor Avg. Yield Tenor • Prime Loan Branches : 23 branches with origination through intermediated Ticket % Ticket % channel Secured 69L 13.8% 11 yrs 9L 20.5% 8 yrs • Micro Loan Branches : 81 branches across 7 states, loans directly sourced Biz. Loan by sales executives (FOS) Biz. Loan 16L 19.6% 3 yrs 3L 25.2% 3 yrs Eco-System Channel - Catering through Anchors and OEM partners Product Avg. Ticket Yield % Tenor • Supply Chain Financing : Anchor and its ecosystem financing of Supply Machinery Finance 36L 13.4% 4 yrs Chain • Machinery Finance : Secured loans to machine buyers with a charge on Supply Chain Finance 25L 13.6% (Net) 0.24 yrs machines Partnership & Alliances Channel - Catering through Fintech Partners Product Avg. Ticket Yield % Tenor • Joint lending partnerships with NBFCs/Fintech (downstream). Secured/Unsecured • These partners originate loans and provide 5% - 15% FLDG cover 4L 14.8% (Net) 4 yrs Loans Product Avg. Ticket Yield % Tenor Direct Digital Channel – D2C 100% Digital sourcing • On tap merchant financing through mobile application Unsecured Merchant 35K 27% 1 yr Financing • Ability to dispense credit through UPI and other forms of payment Slide 24 Resulting in a well diversified, granular and stable portfolio quality Product Mix (AUM) Portfolio Concentration in key geographical areas Sector Mix* State wise AUM 12% coverage * 7% 27% 18% 4% 21% 1% 12% 8% 7% 9% 9% 5% 8% 9% 21% 23% 9% 8% 11% 23% 6% Guaranteed by CGTMSE 3% Prime - Secured Loans Prime - Unsecured Loans 13% Micro Enterprise Loan Supply Chain Financing Rest of India – 4% Machinery Loan Partnerships & Alliances 23% AUM Ticket size State wise branches Micro Prime Total Product category ROI (%) (Cr) (Lakh) Tamil Nadu 20 1 21 Auto Components Chemicals Prime -Secured Loans 2,252 13.8% 69 Rajasthan 15 2 17 Prime -Unsecured Loans 2,664 19.6% 16 Gujarat 15 1 16 Education Electrical Equipment Karnataka 15 1 16 Micro Enterprise Loan 721 20.8% 8 Food Processing HealthCare Telangana 10 1 11 Supply Chain Financing 722 13.6% 25 Maharashtra 6 6 Hospitality Light Engineering Machinery Loan 1,037 13.4% 36 West Bengal 4 4 Micro Enterprises Other MSME Andhra Pradesh 2 2 4 Partnerships & Alliances 967 14.8% 4 Other States 4 5 9 Grand Total 8,364 16.3% 16 Total 81 23 104 * Includes Prime – Secured Loans, Prime – Unsecured Loans, Micro Enterprise Loan, Supply Chain Financing, Machinery Loan and Co-lending Slide 25 Board, Management and Shareholding Slide 26 Independently Supervised : Eminent Board of Directors Satyananda Mishra – S. Karuppasamy - Karnam Sekar – Hemant Bhargava – Rajeev K. Agarwal - Non-Executive Chairman Independent Director Independent Director Independent Director Independent Director Ex-Chairman, MCX, Ex-CIC, GOI, Ex-Executive Director, RBI Ex - MD & CEO of Indian Ex-Chairman in charge and MD Ex-Whole Time Member, SEBI Ex-Director - SIDBI Overseas Bank of LIC Tabassum Inamdar Amit Gupta Chetan Gupta Manoj Sehrawat Deepa Hingorani Independent Director (New Quest Nominee) (Samena Nominee) (ADV Nominee) (IFU Nominee) Ex Goldman Sachs, UBS Founding Partner of New Quest Managing Director at Samena Partner at ADV Senior VP at IFU Securities, Kotak Securities Capital Legend: Independent Directors, Non-executive Directors Slide 27 Professionally Managed : 190+ years of cumulative experience Shachindra Nath - Amit Mande - Anuj Pandey - Kishore Lodha - Sunil Lotke – Vice Chairman & Managing Chief Revenue Officer Chief Risk Officer Chief Financial Officer Chief Legal & Compliance Director 20+ Years of Experience 20+ Years of Experience 20+ Years of Experience Officer 25+ Years of Experience 19+ Years of Experience J Sathiayan - Rajni Khurana - Rishabh Garg - Om Sharma- Subrata Das - Chief Business Officer Chief People Officer Chief Technology Officer Chief Operating Officer Chief Innovation Officer 25+ Years of Experience 20+ Years of Experience 17+ Years of Experience 20+ Years of Experience 17+ Years of Experience Management to potentially own 7.7% equity stake on fully diluted basis; vesting conditions linked to share price performance (ranging between Rs 261-538) over next 3 years, thereby aligning management’s goals towards company’s performance and ultimately shareholder returns Slide 28 Institutionally Owned : Majority held by Institutional Investors Shareholding Pattern IFU: Investment arm of 16.5% Denmark govt. Other Public shareholders, 27.7% 24k+ shareholders 16.3% Insurance Companies, 3.3% Foreign Portfolio Investors, 2.2% Corporate (Family Offices, HNIs), 7.8% Promoter, 2.2% 16.3% 7.5% Slide 29 Business Metrices in line with long term goal Credit Cost has been stable 1.4% 1.4% 1.5% 30 25 17 Off Book Aum Mix increasing YoY Cost To Income Ratio decreasing Y-o-Y Q3'FY23 Q2'FY24 Q3'FY24 Credit Cost Credit Cost/ Avg Total AUM 64% 56% 53% 45% 45% 35% 3 83 87 69 2 4 Q3'FY23 Q2'FY24 Q3'FY24 Q3'FY23 Q2'FY24 Q3'FY24 ~<2% Operating Expenses Cost to Income Ratio (%) Credit Cost >50% ~<45% Strong AUM growth continues Increasing ROA/ROE Off-Book AUM Cost to Income Ratio 64% 8,364 2.3%/8.5% 2.4%/9.4% 7,592 1.4%/5.5% ~30% 5,095 ~4%/~18% 1 5 Loan Growth on ROA/ROE Sustained basis 29 33 13 On a sustainable basis Q2'FY23 Q2'FY24 Q3'FY24 Q3'FY23 Q2'FY24 Q3'FY24 beyond 2025 PAT ROA/ROE