Magma Fincorp Limited Regd. Office Magma House 24 Park Street, Kolkoto 700 016 Tel :91 33 4401 7350 / 7200 MAGMA Fax :91 33 4401 7313 CIN : L51504WB1978PLC031813 Web: www.magma.co.in Investing in the smallest dream 2 August 2017 Company Code - 524000 Corporate Relationship Department BSE Limited 25 th Floor, P.J. Towers, Dalai Street, Fort, Mumbai —400 001 Symbol - MAGMA The Manager Listing Department, National Stock Exchange of India Limited "Exchange Plaza" Bandra- Kuria Complex, Bandra (E), Mumbai — 400 051 Sub: Investors/Analysts' Presentation Ref: Regulation 30 of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015 Dear Sir, Pursuant to Regulation 30 of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015 (listing Regulations') we are enclosing herewith the presentation to be made to the Investors/Analysts on the Unaudited Financial Results of the Company for the quarter ended 30 June 2017. The presentation is also being uploaded on the website of the Company at the URL in accordance with https://magma.co.in/about-us/investor-relations/financial-results/investor-presentation/ Regulation 46 of the Listing Regulations. Kindly take the same on record Thanking you, Yours faithfully, For Magma FincOrp Limited Sha � um Za n Compan ecretary ACS No. 13918 Encl: as above corn/MagrnaFincorpLtd • � www.linkedin.com/company/magma-fincorp-ltd. Follow us on � www.facebook.com/MagmaFincorp � www.twitter . J
Reaching New Heights in Retail Finance Magma Fincorp Limited Q1 FY18 Results Update Bringing Equality of Opportunity to the Economically Disenfranchised 1 1
INVESTING IN THE SMALLEST DREAMS – FOR RURBAN INDIA UNDERSERVED CUSTOMERS CUSTOMISED FINANCING SOLUTIONS PAN INDIA NETWORK Bringing Equality of Opportunity to the Economically Disenfranchised 2 2 2
Business Overview, Competitive Strengths and Strategy Financial Results – Q1 FY18 Leadership Team Annexures Bringing Equality of Opportunity Bringing Equality of Opportunity to the Economically Disenfranchised to the Economically Disenfranchised 3 3 3 3
Business Overview: Focus on underserved ‘Rurban’ India • Farmers with small landholdings (<4 acres) (Tractor SEGMENT 1 : buyer) • First time buyer with prior relevant experience FIRST TIME BUYERS (taxi/truck/machine driver/operators) SEGMENT 2 : • Self employed customer with informal income SELF EMPLOYED NON PROFESSIONAL sources (Home/Car buyer) UNDERSERVED (SENP) ‘RURBAN’ CUSTOMERS • Small factory owner/contractor, trader/shop owner SEGMENT 3 : SMALL & MEDIUM with working capital needs ( SME/LAP customer) • Small fleet operator (taxi/truck/equipment buyer) ENTREPRENEURS • Customer with informal income sources and low SEGMENT 4 : eligibility for bank loans LIMITED BANKING / • Customers with no established credit track record CREDIT HISTORY • Customers with limited banking transactions Rurban includes Rural and Semi-Urban locations/customers Images used for representation purposes only Bringing Equality of Opportunity Bringing Equality of Opportunity to the Economically Disenfranchised to the Economically Disenfranchised 4 4 4 4
Business Overview: Provide distinctive financing solutions to customers in ‘Rurban’ India Strong Recognition and Trusted Brand in ‘Rurban’ India Diverse Product Offerings Commercial Finance Magma’s Core Strengths • Widespread coverage with Agri Finance presence across 1900 Talukas and 2900 Locations Customer Focus • Technological innovation led • Underserved ‘Rurban’ SME Finance faster customer acquisition, customers portfolio servicing and effective cross-sell Mortgage Finance • Deep ‘Rurban’ Insight led underwriting and flexi payment options General Insurance Commercial Finance includes New and Used Vehicles/Equipment; SME Finance includes Unsecured Loans to Business Enterprises; Mortgage Finance includes LAP and Home Loans; Agri Finance includes Tractors Bringing Equality of Opportunity Bringing Equality of Opportunity to the Economically Disenfranchised to the Economically Disenfranchised 5 5 5 5
Business Overview: Higher cross-sell for lifetime customer engagement CUSTOMER SEGMENTS ILLUSTRATIVE ASSET PROFILE Loan to Self Employed Ticket Size Tenure Small & Medium Limited banking / Value First Time Buyers Non (Rs lakh) (months) Entrepreneurs credit history Ratio Professionals Commercial 70-75% 40-45 4-5 Finance FINANCING SOLUTIONS Agri Finance 65-70% 40-45 3-4 SME Finance <20 N/A 30-35 LAP 35-45% Mortgage 10-14 120-150 Finance HL 55-65% General Insurance Numbers indicative of disbursements done during Q1 FY18 Bringing Equality of Opportunity to the Economically Disenfranchised 6 6 6
Business Overview: Product extensions have complemented existing product suite and strengthened Magma’s value proposition • SYNERGIES WITH ASSET FINANCE BUSINESS • GROWTH STRATEGY • Focus more on Home loans and increase HL • Leverage existing ‘ rurban ’ branch network for reach, share significantly and superior service levels • Focus on more Direct sourcing • MORTGAGE • 26% of mortgage business is sourced directly • Sourcing is targeted from Tier 3-6 towns FINANCE including cross sell to existing Magma customers based ‘ rurban ’ SENP customer at Rs.10 -14 • Leveraging common channels of ABF Lakh average ticket size • One third of general insurance business sourced from existing Magma customers • Focus on insuring underserved ‘ rurban ’ customers (core Magma customer- • Profitable business that is also protecting assets archetype) financed by Magma (securing loan portfolio) • GENERAL • Use tech-enablers to prevent revenue • Operating leverage through ‘ rurban ’ branch network INSURANCE leakage and minimize fraudulent claims and OEM/channel acquisition at minimum incremental cost • Leverage tech-tools to quickly and simply underwrite and issue policies • Superior underwriting of used assets through in- house valuer Bringing Equality of Opportunity to the Economically Disenfranchised 7 7 7
Competitive Strength: Widespread pan India coverage Extensive Pan India Branch Network Across Rural and Semi-Urban India • Hub and spoke model with wide coverage led to presence in point of 297 branches sales enabling sourcing from 1900 talukas and 2900 locations • Tablet usage has led to superior sales productivity, better market coverage, improved channel and customer experience • Focus on asset-light model: Field executives come to branch office once a week; technology solutions enable them to conduct business from channel/customer location • Strong customer engagement through 6500+ field executives • State of the art toll free Inbound/Outbound Customer Delivery Centre for servicing and cross sell Region-wise Breakup Rural-Urban Breakup North, Semi- Rural, 35% urban, West, 31% 49% East, 26% 19% Urban, South, 20% 20% Branches as on 30 th June 2017 Bringing Equality of Opportunity Bringing Equality of Opportunity to the Economically Disenfranchised to the Economically Disenfranchised 8 8 8 8
Branch banking structure leading to superior customer connect PEOPLE PROCESS • Strong and deeper customer connect • Dedicated channel relation team with 3300 field officers (FOS), each (CRMs) to source business. OBJECTIVES covering radius of <30 kms • Simplified credit screens • Branch managers (BM) are responsible • Immediate risk hind-sighting after • Better customer service for the P&L of branch disbursement • Better and faster credit decision • KPIs of BMs and FOS aligned as per the • L2D process simplified enabled in • Improved productivity and cost branch and product grading tablets efficiency. • KRAs of BM and FOS include direct • Better channel management business, fee income generation and CUSTOMER • Better local accountability and cross sell. • CRMs / FOS tagged to 8000 channels ownership for service and business TECHNOLOGY • More Direct Business and higher • Rigor of daily market activity • High level of technology adoption by yields implemented field officers and supervisors, improving • IRR grids, doc charges, payout efficiency and productivity structures & escalation matrices • Daily Journey Plan and Visit Calendar revised enabled in tablets Bringing Equality of Opportunity Bringing Equality of Opportunity to the Economically Disenfranchised to the Economically Disenfranchised 9 9 9 9
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