Shriram Transport Finance Company Ltd Corporate Presentation - March - - PowerPoint PPT Presentation
Shriram Transport Finance Company Ltd Corporate Presentation - March 2016 Contents 03 Company Overview 06 Business Model/Competitive Strengths 09 Market Dynamics & Growth Strategy 14 Organizational Structure 20 Performance Track
Corporate Presentation - March 2016
03 06 09 14 20 26
2
Over 1.3 mn customers Large network of 853 Branch offices and 803 rural centres Tie up with over 500 Private Financiers
Market Capitalization over `230 billion + FII holding of 53.65%
4 Note: As on 31 March 2016
Pre-
89.5% New CV 10.4% Others 0.1%
5
1979 1984 1990 1999 2002-04 2005-06 2009 2010
â Successfully placed Rs. 10
bn of NCD with domestic investors
â Purchased hypothecation
loan outstandings of commercial vehicles and construction equipments of GE Capital Services India and GE Capital Financial Services (GE) aggregating to approximately Rs. 11 bn
â Securitised Rs. 87.57
bn during FY 2010.
â Successfully raised Rs.
5.84 bn through QIP with domestic & international investors.
â Initiated financing of
construction equipment
â Merger of Shriram
Investment Ltd. and Shriram Overseas Finance Ltd. with STFC; PAT crosses Rs. 1,000 mn (2006)
â Investment from
ChrysCapital (2005) and TPG (2006)
â Tied up with Citicorp for
CV financing under Portfolio Management Services (PMS)
â The 1st securitization
transaction by STFC
â Initial Public Offering â Preferential
Allotment to Citicorp Finance (India) in 2002
â Preferential
Allotment to Axis Bank and Reliance Capital in 2004
â Investment from Telco &
Ashok Leylond
â STFC was
established
â Introduced
Shriram Automalls – a dedicated platform for trading of pre-
a fair value
2011
â AUM crosses Rs.
500 billion
2013 2015-16
â Fitch upgraded long term
issuer ratings to ‘IND AA +’ from ‘IND AA’
â CRISIL upgraded long-
term debt instruments and bank facilities, and FD to 'CRISIL AA+/ FAAA/Stable' from 'CRISIL AA/FAA+/ Positive‘
â Merger of Shriram
Equipment Finance Co. Ltd with STFC
2 3 4 5 1 6 11
18-24%
7 8 9 10 12
Pre-Owned
7
CV Financing Business Model
New
FY09 FY10 FY11 FY12 FY13 FY14 FY15 FY16 LCV 200,699 287,777 361,846 460,831 524,887 432,233 382,206 383,331 MHCV 183,495 244,944 323,059 348,701 268,263 200,618 232,755 302,373 Total 384,194 532,721 684,905 809,532 793,150 632,851 614,961 685,704
â
Small truck owners (less than 5 trucks) with underdeveloped banking habits
â
AUM of approximately Rs. 651.35 bn at the end of Q4 FY16
â
Existing customer base upgrading to new trucks
â
AUM of approximately Rs. 75.72 bn at the end
Target Segment Performance
Vehicles Sold (Industry Data) Age of Truck 14-16% 15-16% Lending Rates
8
Knowledge Driven Valuation Model Loan Amount EMI Repayment Ability
Critical Success Factor Vehicle Assessment
Old CVs New CVs
60-70% LTV Ratio 75-80% LTV Ratio
Relationship Based Recovery Model Field Officers
Loan Origination Inspection & Valuation Financing Collection / Repossession
Well-aligned incentives structure Customer Base
Compulsory monthly visits Managing large cash collections Small Truck Operators Underdeveloped banking habits STFC has right mix of scale and skill Awareness of load structure / business mix
10
STFC TARGET SEGMENT LARGEST ORGANIZED PLAYER 960 1,020 180
Market Potential (Rs. bn)
35% 46% 19%
Trucks
8.0mn `2,160bn
â
Market for second hand truck financing is under penetrated with 65-70% of the market with private financiers who charge high interest rates
â
Stringent traffic regulations in major cities limiting movement of higher tonnage vehicles
â
Financing amount of Rs. 1,350 bn to be triggered through replacement demand for 1.35 mn new as well as pre-owned trucks
â
Stricter emission norms and legislative pressure on banning trucks > 15 years to trigger replacement demand
â
Freight capacity expected to grow at 1.25x GDP growth going forward
â
STFC to benefit from exponential growth for cargo LCV’s with increased penetration in to rural areas
11
Market Size (FY16) Key Driver
Infra spends in 11th 5-year plan
Improving road infrastructure Construction Equipment Passenger Vehicle’s Tractor Financing Automall
Increasing policy thrust on agriculture NA Access to ready consumer base of used-CV’s
Hub and Spoke Transportation Model CV Life Cycle: Multiple Financing Opportunities
12
Long Haul >800 kms Medium Haul 350-800 kms Short Haul 50-350 kms Last Mile <50 kms
Load re-distributed from few large hubs in major regions of the country to large number of touch points in the hinterland National Highway 0-5 Years 5-9 Years 9-12 Years >12 Years Interstate Transport Intercity Transport Local Transportation SHRIRAM TRANSPORT EXPERTISE
â Strengthening presence
and expanding reach
â Increase penetration into
rural and urban centres
â Build partnerships with
private financiers in the unorganized market to leverage their local know- how to enhance market share
13 â Introduction of
top-up products like finance for tyres, working capital and engine replacement
â
Economies of scale - incremental cost of new products is low
â Opex to AUM low at 1.8%
CONSERVATIVE APPROACH IN LIGHT OF CHALLENGING MACROECONOMIC CONDITIONS AUM expected to grow to ~Rs. 1,100 billion by end of FY19
Mar'16 Actual Mar'19 Target Target AUM (Rs. bn)
â
Marketing and sales of existing products
â
Extensive training and development of product executives
â
Development of new products
â
Ensuring quality appraisals
â
Branch administration
Tri-Vertical Structure Credit, Admin and Products
15
Field Officers
National Product Heads Zonal Business Head Credit Admin Regional Product Heads Regional Business Heads Regional Credit Risk Head Credit Cell Branch Heads Credit Cell Credit Risk Head
Focus on
16
Branch Network
Branch Offices Rural Centres Private Financiers Field Officers Customers
ABBREVEATIONS
SOIZO TAMILNADU KERALA ZONE SOUZO ANDHRAPRADESH TELANGANA KARNATAKA ZONE NRWZO MAHARASTRA MP CG ZONE GRAZO GUJARATH AND RAJASTHAN ZONE NCEZO UTTARPRADESH UK BJ ZONE WONZO WB ORISSA NORTH EAST ZONE DHPZO DELHI HARYANA PUNJAB HP JK ZONE
Employees
SOIZO, 194 SOUZO, 194 NRWZO, 167 GRAZO, 99 NCEZO, 79 WONZO, 63 DHPZO, 57
17
Jasmit Gujral CEO & Managing Director Vinay Kelkar Deputy Managing Director Parag Sharma Executive Director & CFO
Executive Director Accounts & Admin Sanjay K Mundra
Investor and Media Relations
18
development banking out of which 14 years were at the CEO/Board level.
services companies.
Subramanian Laksminarayanan Chairman Jasmit Gujral CEO & Managing Director Umesh Revankar Director S Sridhar Director Amitabh Chaudhry Director
D V Ravi Director
19
Insurance Services (India) Ltd., Elantas Beck India Ltd. and Shriram Automall India Limited.
(India) Ltd, Bafna Motors (Ratnagiri) Pvt Ltd, Kishore Transport Services Pvt. Ltd. etc.
Mrs Kishori Udeshi Director Puneet Bhatia Director Sumatiprasad M Bafna Director Gerrit Lodewyk Van Heerde Director
P&L Metrics (Rs. mn) FY11 FY12 FY13 FY14 FY15 FY16 Interest Income 37,114.7 36,659.4 44,970.5 62,865.1 77,779.0 95,300.1 Securitization income 13,192.3 18,194.6 16,295.4 13,943.9 7,593.9 6,171.0 Total Interest Income 50,307.0 54,854.0 61,265.9 76,809.0 85,372.9 101,471.1 Less: Interest Expenses 23,007.9 24,473.3 28,491.5 38,981.8 44,028.7 50,743.8 Net Interest Income 27,299.1 30,380.7 32,774.4 37,827.2 41,344.2 50,727.3 Other income 748.4 1,344.8 1,942.2 1,502.1 754.0 761.6 Profit After Tax 12,298.8 12,574.5 13,606.2 12,642.1 12,378.1 11,782.0 EPS (Rs.) 54.49 55.59 59.98 55.72 54.56 51.93 Cost to income Ratio (%) 20.20% 20.66% 20.91% 24.15% 23.34% 24.01% NIM (% on AUM) 7.35% 7.07% 7.08% 6.89% 6.64% 7.23%
21 Note: The standalone financials for FY16 include the performance of erstwhile wholly owned subsidiary Shriram Equipment Finance Co. Ltd. which has been amalgamated with STFC - the Appointed date being April 1, 2015. Hence, the numbers are not strictly comparable with the standalone financials for earlier periods.
Balance Sheet Metrics (Rs. mn) FY11 FY12 FY13 FY14 FY15 FY16
198,698.2 219,922.6 314,568.3 364,877.6 492,271.4 618,783.7
163,170.2 182,261.4 182,321.8 166,284.3 98,811.4 108,822.3 Total AUM 361,868.4 402,184.0 496,890.1 531,161.9 591,082.8 727,606.0
88,300.0 90,857.0 95,269.0 62,499.0 46,802.0 75,715.1
272,561.0 310,424.0 398,279.0 465,540.0 537,421.0 651,348.4
1,007.4 903.0 3,342.1 3,122.9 6,859.8 542.5 Total AUM 361,868.4 402,184.0 496,890.1 531,161.9 591,082.8 727,606.0 Securitisation done 102,036.0 83,461.0 87,843.0 106,795.0 44,814.0 89,917.5 Networth 48,674.5 59,528.1 71,593.7 82,295.7 92,010.7 101,317.8 Book Value (Rs.) 215.22 263.05 315.58 362.72 405.54 446.56 Interest Coverage Ratio (%) 2.34% 2.41% 2.31% 1.99% 1.96% 2.03% ROA (%) 4.20% 3.75% 3.61% 2.64% 2.28% 1.86% ROE (%) 27.94% 22.82% 20.53% 16.20% 14.03% 11.99% CRAR (%) 24.85% 22.26% 20.74% 23.37% 20.52% 17.55%
22 Note: The standalone financials for FY16 include the performance of erstwhile wholly owned subsidiary Shriram Equipment Finance Co. Ltd. which has been amalgamated with STFC - the Appointed date being April 1, 2015. Hence, the numbers are not strictly comparable with the standalone financials for earlier periods.
â
Client and truck-wise exposure limits
â
Substituted formal credit evaluation tools, such as IT returns and bank statements, with personal understanding of the customers’ proposed business model
â
Field officers responsible for loans they originate
â
Relationship based model – Focused on earning capacity of asset
â
Assets are easy to repossess with immediate liquidity – Asset backed lending with adequate cover – Repossession last resort
23 Particulars (Rs. mn) FY11 FY12 FY13 FY14 FY15 FY16 Gross NPA 5,285.8 6,937.9 10,253.7 14,505.0 18,941.4 38,702.4 Net NPA 744.6 977.3 2,416.4 3,029.1 3,791.2 11,437.0 Gross NPA (%) 2.64% 3.06% 3.20% 3.86% 3.80% 6.18% Net NPA (%) 0.38% 0.44% 0.77% 0.83% 0.79% 1.91% Coverage Ratio (%) 85.91% 85.91% 76.43% 79.12% 79.98% 70.45%
â
NPA recognition on a 180 dpd basis upto Q3 FY16
â
Have transitioned to NPA recognition on a 150 dpd basis from Q4 FY16
â
Pursuant to the amalgamation of Shriram Equipment Finance
been included in the standalone financials
â
Due to earlier recognition of NPAs (150 dpd vs 180 dpd earlier), the Company has reduced its range for coverage ratio from 80% earlier to 70%.
Note: The standalone financials for FY16 include the performance of erstwhile wholly owned subsidiary Shriram Equipment Finance Co. Ltd. which has been amalgamated with STFC - the Appointed date being April 1, 2015. Hence, the numbers are not strictly comparable with the standalone financials for earlier periods.
â
Strategic mix of retail deposits and institutional funding matched favorably with deployment
â
Access to fixed rate long term loans of 3 - 5 years due to strong relationships with public, private sector, foreign banks and institutions
â
Securitization of loan book at regular intervals to fund new originations and maintain growth momentum. – Securitized assets portfolio stands at Rs. 89.92 bn at the end of Q4 FY16
â
Conservative recognition of income on account of amortization of securitization income over the tenor of the agreements 24 22.40% 21.10% 18.40% 19.51% 19.60% 19.40% 77.60% 78.90% 81.60% 80.49% 80.40% 80.60% FY11 FY12 FY13 FY14 FY15 FY16
Funding Mix as % of Overall Liabilities
Retail Banks/Institutions
Credit Rating Agency Instruments Ratings
CARE NCD’s CARE AA+ CARE Subordinated Debt CARE AA+ CRISIL Fixed Deposit CRISIL FAAA/ Stable CRISIL Subordinated Debt CRISIL AA+/ Stable CRISIL NCD’s CRISIL AA+/ Stable CRISIL Bank Loan Short Term CRISIL A1+ CRISIL Bank Loan Long Term CRISIL AA+/ Stable CRISIL Short Term Debt CRISIL A1+ ICRA Fixed Deposit MAA+/ Stable India Ratings NCD’s IND AA+/ Stable India Ratings Subordinated Debt IND AA+/ Stable FITCH Long Term Issuer Default Rating BB+/ Stable FITCH Short- Term Issuer Default Rating B S&P Long Term Issuer credit Rating BB+/ Stable S&P Short- Term Issuer credit Rating B
Promoter & Promoter Group, 26.05% FII & FPI, 53.65% MF/ Banks, 1.97% Public, 6.66% Other Corporate Bodies, 11.49% NRI/ OCBs, 0.18%
25
Promoter & Promoter Group, 26.05% FII & FPI , 51.24% MF/ Banks, 4.15% Public , 6.21% Other Corporate Bodies, 12.11% NRI/ OCBs, 0.24%
â Consistent track record and high growth
potential has attracted reputed institutional and private equity investors to infuse growth capital
â Last fund raising: Allotted 11.658 mn equity
shares at Rs. 500.80 per share to Qualified Institutional Buyers (QIB) for an aggregate sum of Rs. 5.84 bn resulting in a dilution of around 5.20% to 45 marquee global as well as domestic funds and insurers, which included 22 existing investors and the rest, new investors on January 28, 2010
26 Key Shareholders Current Shareholding (Mn Shares) % age Shriram Capital 59.10 26.05 Piramal Enterprises Limited 22.60 9.96 Sanlam Life Insurance Limited 6.76 2.98 Smallcap World Fund, Inc 4.93 2.17 Centaura Investments (Mauritius) Pte Ltd 4.49 1.98 Stichting Depositary Apg Emerging Markets Equity Pool 4.48 1.97 Government of Singapore 4.34 1.91 New World Fund Inc 3.31 1.46 Kuwait Investment Authority 2.68 1.18 Vanguard Emerging Markets Stock Index Fund, Aseries of Vanguard International Equity Inde X Fund 2.63 1.16 Government Pension Fund Global 2.48 1.09 Public & Others 109.08 48.09 Total 226.88 100.00
â Capital Adequacy Ratio at 17.55% as on March 31, 2016 vs 15% mandated by RBI 27
59,528 71,594 82,296 92,011 1,01,318
22.26% 20.74% 23.37% 20.52% 17.55%
0% 1% 2% 3% 4% 5% 6% 7% 8% 9% 10% 11% 12% 13% 14% 15% 16% 17% 18% 19% 20% 21% 22% 23% 24% 25% 26% 27% 28% 20,000 40,000 60,000 80,000 1,00,000 1,20,000
FY12 FY13 FY14 FY15 FY16
Networth (Rs. mn) CRAR (%) 263.05 315.58 362.72 405.54 446.60
0.00 50.00 100.00 150.00 200.00 250.00 300.00 350.00 400.00 450.00 500.00
FY12 FY13 FY14 FY15 FY16
Book Value (Rs.)
Note: The standalone financials for FY16 include the erstwhile wholly owned subsidiary Shriram Equipment Finance Co. Ltd. which has been amalgamated with STFC - the Appointed date being April 1, 2015. Hence, the numbers are not strictly comparable with the standalone financials for earlier periods.
29
Total Income Net Interest Income* PAT EPS
â Cost to income at 25.55%
in Q4 FY16 as compared to 24.68% in Q4 FY15
â Employee strength at
19,170, including 12,177 field executives against 17,398 in Q3 FY16
Q4 FY16 Rs 29,180.4 mn Q4 FY15 Rs 23,123.2 mn Q4 FY16 Rs 6.34 Q4 FY15 Rs 13.96 Q4 FY16 Rs 14,437.8 mn Q4 FY15 Rs 10,980.5 mn Q4 FY16 Rs 1,439.2 mn Q4 FY15 Rs 3,167.3 mn
Note: The standalone financials for Q4 FY16 include the performance of erstwhile wholly owned subsidiary Shriram Equipment Finance Co. Ltd. which has been amalgamated with STFC - the Appointed date being April 1, 2015. Hence, the numbers are not strictly comparable with the standalone financials for Q4 FY15.
30
Total Income Net Interest Income* PAT EPS
â Cost to income at 24.01%
in FY16 as compared to 23.34% in FY15
FY16 Rs 1,02,452.6 mn FY15 Rs 86,447.2 mn FY16 Rs 51.93 FY15 Rs 54.56 FY16 Rs 50,727.3 mn FY15 Rs 41,344.2 mn FY16 Rs 11,782.0 mn FY15 Rs 12,378.1 mn
Note: The standalone financials for FY16 include the performance of erstwhile wholly owned subsidiary Shriram Equipment Finance Co. Ltd. which has been amalgamated with STFC - the Appointed date being April 1, 2015. Hence, the numbers are not strictly comparable with the standalone financials for FY15.
31
AUM GNPA NNPA Book Value
FY16 Rs 7,27,606.0 mn FY15 Rs 591,082.8 mn FY16 Rs 446.6 FY15 Rs 405.5 FY16 Rs 38,702.4 mn FY15 Rs 18,941.4 mn FY16 Rs 11,437.0 mn FY15 Rs 3,791.2 mn
â
Change in the NPA recognition norms for FY 16 to 150 days from 180 days for FY15
â Coverage ratio at 70.45%
in FY16 as compared to 79.98% in FY15
â CRAR at 17.55% at the
end of FY16 as compared to 20.52% at the end of FY15
Note: The standalone financials for FY16 include the performance of erstwhile wholly owned subsidiary Shriram Equipment Finance Co. Ltd. which has been amalgamated with STFC - the Appointed date being April 1, 2015. Hence, the numbers are not strictly comparable with the standalone financials for FY15.
32
FY15 FY16
Segment-wise Break up
HCVs, 42.3% M&LCVs, 27.0% Passenger Vehicles, 22.4% Tractors, 5.5% Others, 2.8% HCVs, 46.4% M&LCVs, 19.9% Passenger Vehicles, 23.1% Tractors, 5.4% SEFCL Equipment Finance, 2.2% Others, 3.1% Note: The standalone financials for FY16 include the performance of erstwhile wholly owned subsidiary Shriram Equipment Finance Co. Ltd. which has been amalgamated with STFC - the Appointed date being April 1, 2015. Hence, the numbers are not strictly comparable with the standalone financials for FY15. AUM of SEFCL at the end of Q4 FY16 at 2.2% of total standalone AUM
Particulars (Rs. mn) Q4 FY15 Q1 FY16 Q2 FY16 Q3 FY16 Q4 FY16 YoY (%) QoQ (%) FY15 FY16 YoY (%)
492,271.4 517,727.0 550,877.4 583,926.6 618,783.7 25.70% 5.97% 492,271.4 618,783.7 25.70%
98,811.4 87,590.2 81,652.3 81,456.9 108,822.3 10.13% 33.59% 98,811.4 108,822.3 10.13% Total AUM 591,082.8 605,317.2 632,529.7 665,383.5 727,606.0 23.10% 9.35% 591,082.8 727,606.0 23.10%
46,801.6 46,834.2 49,425.5 55,435.1 75,715.1 61.78% 36.58% 46,801.6 75,715.1 61.78%
537,420.9 558,122.1 582,743.7 609,462.3 651,348.4 21.20% 6.87% 537,420.9 651,348.4 21.20%
6,860.3 360.9 360.5 486.1 542.5
11.60% 6,860.3 542.5
Total AUM 591,082.8 605,317.2 632,529.7 665,383.5 727,606.0 23.10% 9.35% 591,082.8 727,606.0 23.10%
33 â NPA recognition on a 180 dpd basis upto Q3 FY16 â Have transitioned to NPA recognition on a 150 dpd basis from Q4 FY16 â Provision Coverage Ratio (PCR) on 150 dpd NPA at ~70.45% â Pursuant to the amalgamation of Shriram Equipment Finance Co. Ltd. – NPA (on 150 dpd basis) of Rs. 8.94 billion
have been included in the standalone financials for FY16
Note: The standalone financials for FY16 include the performance of erstwhile wholly owned subsidiary Shriram Equipment Finance Co. Ltd. which has been amalgamated with STFC - the Appointed date being April 1, 2015. Hence, the numbers are not strictly comparable with the standalone financials for FY15.
Particulars (Rs. mn) Q4 FY15 Q1 FY16 Q2 FY16 Q3 FY16 Q4 FY16 YoY (%) QoQ (%) FY15 FY16 YoY (%) Gross NPA 18,941.4 21,303.9 23,385.9 25,357.3 38,702.4 104.33% 52.63% 18,941.4 38,702.4 104.33% Net NPA 3,791.2 4,578.5 5,029.3 5,022.8 11,437.0 201.67% 127.70% 3,791.2 11,437.0 201.67% Gross NPA (%) 3.80% 4.07% 4.18% 4.29% 6.18% 62.63% 44.06% 3.80% 6.18% 62.63% Net NPA (%) 0.79% 0.90% 0.93% 0.88% 1.91% 141.77% 117.05% 0.79% 1.91% 141.77% Coverage Ratio (%) 79.98% 78.51% 78.49% 80.19% 70.45%
79.98% 70.45%
Particulars (Rs. mn) Q4 FY15 Q1 FY16 Q2 FY16 Q3 FY16 Q4 FY16 YoY (%) QoQ (%) FY15 FY16 YoY (%) Interest Income 21,363.7 22,014.5 22,402.0 23,677.0 27,206.6 27.35% 14.91% 77,779.0 95,300.1 22.53% Interest expended 11,885.9 11,971.6 12,058.9 12,239.4 14,473.9 21.77% 18.26% 44,028.7 50,743.8 15.25% Net Interest Income 9,477.8 10,042.9 10,343.1 11,437.6 12,732.7 34.34% 11.32% 33,750.3 44,556.3 32.02% Income from Securitisation 1,452.3 1,506.9 1,651.0 1,815.2 1,896.3 30.57% 4.47% 7,696.1 6,869.4
Less : Securitisation expenses
193.7 65.0 248.5 191.2
102.2 698.4 583.37% Income from Securitisation (Net) 1,502.7 1,313.2 1,586.0 1,566.7 1,705.1 13.47% 8.83% 7,593.9 6,171.0
Net Interest Income (incl. Sec) 10,980.5 11,356.1 11,929.1 13,004.3 14,437.8 31.49% 11.02% 41,344.2 50,727.3 22.70% Other fee based income 21.4 16.5 24.9 22.9 31.0 44.86% 35.37% 59.2 95.3 60.98% Operating Income 11,001.9 11,372.6 11,954.0 13,027.2 14,468.8 31.51% 11.07% 41,403.4 50,822.6 22.75% Operating expenditure 2,991.1 2,905.3 3,001.1 3,286.8 3,895.7 30.24% 18.53% 10,782.6 13,088.9 21.39% Core Operating Profit * 8,010.8 8,467.3 8,952.9 9,740.4 10,573.1 31.99% 8.55% 30,620.8 37,733.7 23.23% Other Income 157.4 145.9 186.1 168.1 166.2 5.59%
694.8 666.3
Operating Profit 8,168.2 8,613.2 9,139.0 9,908.5 10,739.3 31.48% 8.38% 31,315.6 38,400.0 22.62% Provisions for Bad Debts 3,379.4 3,767.5 3,914.3 4,122.8 8,282.1 145.08% 100.89% 12,593.5 20,086.7 59.50% Provisions against Standard Assets 7.0 55.6 82.3 76.1 285.0 3971.43% 274.51% 298.2 499.0 67.34% PBT 4,781.8 4,790.1 5,142.4 5,709.6 2,172.2
18,423.9 17,814.3
Tax 1,614.5 1,579.0 1,761.4 1,958.9 733.0
6,045.8 6,032.3
PAT 3,167.3 3,211.1 3,381.0 3,750.7 1,439.2
12,378.1 11,782.0
EPS (Rs) 13.96 14.15 14.90 16.54 6.34
54.56 51.93
Tier I CRAR % 16.40% 16.37% 15.75% 15.37% 14.70%
16.40% 14.70%
Tier II CRAR % 4.12% 3.68% 3.44% 3.10% 2.85%
4.12% 2.85%
Total CRAR % 20.52% 20.05% 19.19% 18.47% 17.55%
20.52% 17.55%
Book Value (Rs) 405.54 419.87 434.91 446.78 446.56 10.11%
405.54 446.56 10.11%
34 *Before Provisions & Contingencies Note: The standalone financials for FY16 include the performance of erstwhile wholly owned subsidiary Shriram Equipment Finance Co. Ltd. which has been amalgamated with STFC - the Appointed date being April 1, 2015. Hence, the numbers are not strictly comparable with the standalone financials for FY15.
Particulars (Rs. mn) 31-Mar-15 30-Jun-15 30-Sep-15 31-Dec-15 31-Mar-16 Liabilities Shareholder funds (a) Share capital 2,269.1 2,269.1 2,269.1 2,269.1 2,269.1 (b) Reserves and surplus 90,110.6 93,321.7 96,697.8 99,356.2 99,272.1 Non-current liabilities (a) Long-term borrowings 315,707.6 311,027.0 308,460.6 302,352.8 302,696.7 (b) Other Long term liabilities 9,713.4 9,764.7 9,843.3 10,262.1 11,635.1 (c) Long term provisions 15,865.0 17,482.9 19,175.0 21,227.1 28,427.2 Current liabilities (a) Short-term borrowings 26,614.1 24,018.4 27,128.4 35,821.3 33,303.5 (b) Trade payables 11,596.9 12,309.0 12,125.3 12,960.0 15,113.7 (c) Other current liabilities 117,416.4 130,114.8 142,499.3 165,693.4 181,819.7 (d) Short-term provisions 3,978.4 5,376.3 3,546.2 3,142.4 5,096.0 Total 593,271.5 605,683.9 621,745.0 653,084.4 679,633.1 Assets Non-current assets (a) Fixed assets (i) Tangible assets 994.5 966.5 972.0 979.7 996.1 (ii) Intangible assets 12.8 20.7 18.3 16.0 14.5 (b) Non-current investments 11,142.6 13,136.8 14,717.5 15,578.4 12,521.7 (c) Deferred tax assets (net) 2,564.8 2,719.4 2,777.6 2,890.1 3,077.0 (d) Long term loans and advances 308,228.7 326,811.8 352,983.3 384,755.0 430,101.9 (e) Other non-current assets 931.1 257.1 214.5 167.7 138.8 Current assets (a) Current investments 22,129.2 2,955.0 8,629.9 7,039.9 1,040.0 (b) Cash and bank balances 47,234.0 52,204.4 27,188.5 21,823.6 23,638.6 (c) Short-term loans and advances 199,409.4 205,905.9 213,544.8 219,112.2 207,598.7 (d) Other current assets 624.4 706.3 698.6 721.8 505.8 Total 593,271.5 605,683.9 621,745.0 653,084.4 679,633.1
35 Note: The standalone financials for FY16 include the performance of erstwhile wholly owned subsidiary Shriram Equipment Finance Co. Ltd. which has been amalgamated with STFC - the Appointed date being April 1, 2015. Hence, the numbers are not strictly comparable with the standalone financials for FY15.
36 Note: The standalone financials for FY16 include the performance of erstwhile wholly owned subsidiary Shriram Equipment Finance Co. Ltd. which has been amalgamated with STFC - the Appointed date being April 1, 2015. Hence, the numbers are not strictly comparable with the standalone financials for FY15.
P&L Metrics (Rs. mn) Q4 FY15 Q1 FY16 Q2 FY16 Q3 FY16 Q4 FY16 YoY (%) QoQ (%) FY15 FY16 YoY (%) Interest Income 21,363.7 22,014.5 22,402.0 23,677.0 27,206.6 27.35% 14.91% 77,779.0 95,300.1 22.53% Securitisation Income 1,502.7 1,313.2 1,586.0 1,566.7 1,705.1 13.47% 8.83% 7,593.9 6,171.0
Total Interest Income 22,866.4 23,327.7 23,988.0 25,243.7 28,911.7 26.44% 14.53% 85,372.9 101,471.1 18.86% Less: Interest Expenses 11,885.9 11,971.6 12,058.9 12,239.4 14,473.9 21.77% 18.26% 44,028.7 50,743.8 15.25% Net Interest Income 10,980.5 11,356.1 11,929.1 13,004.3 14,437.8 31.49% 11.02% 41,344.2 50,727.3 22.70% Other Income 178.8 162.4 211.0 191.0 197.2 10.29% 3.25% 754.0 761.6 1.01% Profit After Tax 3,167.3 3,211.1 3,381.0 3,750.7 1,439.2
12,378.1 11,782.0
EPS (Rs.) 13.96 14.15 14.90 16.54 6.34
54.56 51.93
Cost to income Ratio (%) 24.68% 23.77% 23.32% 23.17% 25.55% 3.53% 10.27% 23.34% 24.01% 2.87% NIM (on AUM) 6.67% 6.76% 7.03% 7.47% 7.65% 14.69% 2.41% 6.61% 7.23% 9.34%
37 Note: The standalone financials for FY16 include the performance of erstwhile wholly owned subsidiary Shriram Equipment Finance Co. Ltd. which has been amalgamated with STFC - the Appointed date being April 1, 2015. Hence, the numbers are not strictly comparable with the standalone financials for FY15.
Balance Sheet Metrics (Rs. mn) Q4 FY15 Q1 FY16 Q2 FY16 Q3 FY16 Q4 FY16 YoY (%) QoQ (%) FY15 FY16 YoY (%) Networth 92,010.7 95,261.2 98,672.7 101,366.5 101,317.8 10.12%
92,010.7 101,317.8 10.12% Book Value 405.54 419.87 434.91 446.78 446.56 10.11%
405.54 446.56 10.11% Securitisation done 37,844 8,262 15,617 19,840 46,199 22.08% 132.86% 44,814 89,918 100.64% Interest Coverage Ratio (%) 1.93% 1.98% 2.01% 2.10% 2.02% 4.66%
1.96% 2.03% 3.57% ROA (%) 2.17% 2.14% 2.19% 2.34% 0.86%
2.28% 1.86%
ROE (%) 13.83% 13.67% 13.90% 14.96% 5.67%
14.03% 11.99%
CRAR (%) 20.52% 20.05% 19.19% 18.47% 17.55%
20.52% 17.55%
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Retail, 19.6% Banks / Institutional, 80.4% Retail, 19.4% Banks / Institutional, 80.6%
Q4 FY15 Q4 FY16
â Shriram Automall India Limited.
– ONE STOP - Launched in more than 500 branches. – AUTOMALL - 57 Automalls in operation; over 0.3 million assets sold
â Fees Income earned Rs. 218.4 mn in Q4 FY16 (Rs. 212.4 mn in Q4 FY15) 39
Particulars (Rs. mn) Q4 FY15 Q1 FY16 Q2 FY16 Q3 FY16 Q4 FY16 YoY (%) QoQ (%) FY15 FY16 YoY (%) Income Revenue from operations 219.0 166.5 182.0 166.7 230.1 5.09% 38.06% 697.9 745.3 6.80% Other income 3.3 3.2 2.6 2.6 3.4 1.80% 30.77% 6.3 11.8 87.18% Total 222.3 169.7 184.6 169.3 233.5 5.04% 37.95% 704.2 757.1 7.52% Expenditure Employees Benefit expense 76.3 87.0 90.2 84.5 84.9 11.37% 0.49% 281.4 346.6 23.20% Finance cost 0.8 0.1 0.2 0.1 0.1
1.5 0.5
Depreciation and amortisation 0.4 3.3 3.3 3.3 3.3 680.95%
20.7 13.3
Other expenses 75.2 77.6 86.0 81.1 73.6
282.4 318.3 12.71% Total 152.7 168.0 179.7 169.0 161.9 6.03%
585.9 678.7 15.82% Profit/(Loss) before taxation 69.6 1.7 4.9 0.2 71.7 2.89% 31052.17% 118.2 78.5
Provision for taxation Current tax 21.4 0.7 1.7
21.7 1.21%
40.1 23.0
Less: MAT credit entitlement Deferred tax liability / (Asset) 1.9
0.5 2.4 27.81% 397.92%
1.3
Total tax expense / (income) 23.3
1.1
24.1 3.31%
39.4 24.3
Profit/(Loss) after tax from continuing operations 46.4 2.0 3.8 0.8 47.6 2.68% 5775.31% 78.9 54.2
Earnings/(Loss) per share Basic & Diluted (Rs.) 1.54 0.07 0.13 0.03 1.59 3.25% 5200.00% 2.63 1.81
Nominal Value of Share (Rs.) 10.00 10.00 10.00 10.00 10.00 0.00% 0.00% 10.00 10.00 0.00%
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Particulars (Rs. mn) 31-Mar-15 30-Jun-15 30-Sep-15 31-Dec-15 31-Mar-16 Liabilities Shareholder funds (a) Share capital 300.0 300.0 300.0 300.0 300.0 (b) Reserves and surplus 158.6 160.9 164.9 165.9 213.7 Current liabilities (a) Short-term borrowings 59.1 0.0 0.0 0.0 0.9 (b) Trade payables 254.5 244.7 216.0 212.9 270.5 (c) Other current liabilities 12.3 12.1 146.1 123.7 17.3 (d) Short-term provisions 24.2 12.6 13.2 13.0 25.9 Total 808.7 730.2 840.2 815.5 828.2 Assets Non-current assets (a) Fixed assets (i) Tangible assets 517.9 516.8 514.8 513.1 509.2 (ii) Intangible assets 1.4 1.4 1.3 1.3 1.3 (b) Non Current Investments 0.0 0.0 7.4 8.7 10.4 (c) Deferred tax assets (net) 13.0 14.0 14.6 14.1 11.7 (d) Long term loans and advances 17.6 25.4 22.6 21.9 30.8 (e) Other assets 0.0 0.0 0.1 0.2 0.2 Current assets (a) Trade receivables 29.9 35.5 62.3 59.1 101.0 (b) Current investments 0.0 65.0 165.0 156.1 131.1 (c) Cash and bank balances 207.8 46.3 24.6 10.8 16.9 (d) Short-term loans and advances 19.9 25.5 27.6 29.6 15.1 (e) Other current assets 1.2 0.4 0.0 0.7 0.6 Total 808.7 730.2 840.2 815.5 828.2
Sanjay K. Mundra
Shriram Transport Finance Co. Ltd Email: smundra@stfc.in
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About Shriram Transport Finance Co. Ltd. Shriram Transport Finance Co Ltd. is the largest asset financing NBFC in India with Assets on Balance sheet of Rs. 61,878.37 crores and off Balance sheet assets of Rs.10,882.23 crores. The company is a leader in organized financing of pre-owned trucks with strategic presence in 5-12 year old trucks. It has a pan-India presence with a network of 853 branches, and employs 19,170 employees including 12,177 field officers. The company has built a strong customer base of approx. 1.30 mn. Over the past 37 years, it has developed strong competencies in the areas of loan origination, valuation of pre-owned trucks and collection. It has a vertically integrated business model and offers a number of products which include: Pre-owned CV financing, New CV financing and other loans like accidental repair loans, tyre loans and working capital finance, etc. For more information please visit www.stfc.in Forward Looking Statement Certain statements in this document with words or phrases such as “will”, “should”, etc., and similar expressions or variation of these expressions or those concerning our future prospects are forward looking statements. Actual results may differ materially from those suggested by the forward looking statements due to a number of risks or uncertainties associated with the
changes in government policies. The company may, from time to time, make additional written and oral forward looking statements, including statements contained in the company’s filings with the stock exchanges and our reports to shareholders. The company does not undertake to update any forward-looking statements that may be made from time to time by or on behalf of the company.
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