corporate presentation – 30 june 2012 · pdf filenet worth - rs. 8.59 bn; long term: aa...

Investor Presentation Q1 FY13 11

1

Corporate Presentation – 30 June 2012


Overview

Business Systemically important NBFC with record of constant growth & profitability

Products Comprehensive product suite to meet multiple needs of customers including Consumer Lending, Corporate Lending and Wealth Management services

Book Size Loan Assets of Rs. 46.35 bn (~ $ 823.2 mn*)

Management Professional Management Team with deep Industry Experience

People & Reach 1240 employees across 207 branches

Asset Quality High Asset quality – Secured assets with Gross and Net NPA at 0.13% & 0.05%

Networth & Rating Net worth - Rs. 8.59 bn; Long Term: AA- & Short Term A1+ (CARE)

Profitability ROA (annualized) at 1.97% and ROE (annualized) at 12.30% for the quarter Q1-FY13

* $ Conversion rate = 56.31 on 29/30 June 2012, RBI


Our Vision

To provide MSME clients with capital and support the growth ofMicro, Small and Medium Enterprises in India.

To capitalize on growing consumption in India, which is a key driver ofthe Indian economy.

To help our clients succeed by providing innovative productsolutions, high level of convenience, supported by robust technology.

To grow into a significant financial conglomerate and build businessesof retail loans, corporate loans & Wealth Management.


Highlights - Q1FY13 vs. Q1FY12 (Corresponding quarter)

Loan BookIncreased by

35%

NIIIncreased by

55%

PATIncreased by

19%

Rs. 46,352 mn

Rs. 34,406 mn

Rs. 769 mn

Rs. 496 mn

Rs. 260 mn

Rs. 219 mn

• Retail Loan Book has grown from Rs. 13,063 mn (EOP 30.6.2011) to Rs. 22,658 mn(EOP 30.6.2012)

• Wholesale Loan Book has grown from Rs. 21,343 mn (EOP 30.6.2011) to Rs. 23,694mn (EOP 30.6.2012)

• Networth has increased from Rs. 7,689 mn (EOP 30.6.2011) to Rs. 8,594 mn (EOP30.6.2012)

• Capital Adequacy Ratio (EOP 30.6.2012) at 18.8%

• Gross NPA and Net NPA (EOP 30.6.2012) at 0.13% and 0.05% respectively


Products, Services & Distribution


Comprehensive Services Suite for all 4 key needs of consumers

Borrowing needs Protection needs

Planning needsInvestment needs

Mortgages (for SMEs)Gold LoansConsumer Durable LoansTwo Wheeler LoansHome LoansAuto LoansWholesale loans and syndication

Distribution of :Property BrokingMutual FundsReal Estate FundsEquity BrokingCommodity Broking

Estate Planning- Creation of Private TrustWills CreationReal estate AdvisoryWealth Management Financial Planning

Distribution of :Life InsuranceGeneral Insurance

Auto InsuranceHealth insurancePersonal accident insurance Travel insurance

Consumer


Lines of Businesses

FCH – Lines of Business

Loan Against Property

Home Loan

Consumer Durable Loan

Loan Against Gold

Two Wheeler Loan

Auto Loan

Wealth Manager & Broking

Wholesale Credit

Wholesale Loan Syndication

Retail Business

Wholesale Business


19%29%

42% 49%81%

71%

58% 51%

14.95

28.55

46.70 46.35

0.00

10.00

20.00

30.00

40.00

50.00

FY10 FY11 FY12 Q1-FY13

Rs. b

n

Retail Credit Wholesale Credit Total Loan Book

Loan Book

Loan Book Growth & Composition Composition of Retail Finance Loan Book

• Retail as a % of overall loan book has increased from 19% in FY10 to 49% as of 30 June 2012• The Company plans to increase the contribution of retail loan book to the overall loan book

CD, 3.2%

Mortgage Loans, 75.5%

LAG, 12.9%

LAS, 1.8%Auto Loan

, 4.1%

2-W Loan, 1.9%


Branch Network

Through an Extensive Branch Network, FCH has reachedCustomers across most of the states and major cities(Tier -1, Tier -2) in India

Total 207 Branches

Delhi & NCR

Mumbai& ThanePune

Bangalore

Hyderabad

KolkataBaroda

Bhopal

Bhubaneswar

Chandigarh:

Coimbatore

Dehradun

Indore

Jaipur

Jalandhar:

Jodhpur

Lucknow

Ludhiana

Nasik

NagpurRaipurRajkot

Surat:

Udaipur

SalemVellore

Vizag

Ahmadabad

Ajmer

Amritsar:

Chennai

Kotta


Processes


Underwriting controls

• At Future Capital, there is segregation of authorities and responsibilities across all functions. Sales, credit, operations and collections are independent of each other, with independent reporting lines.

• We underwrite all loans on the basis of cash flow capability of the customers as well as LTV norms.

• Proposals are checked with credit bureaus, and loans are approved only if the customers have a clear record with India’s leading Credit Bureau, CIBIL.

• A robust collections infrastructure is in place.


• Industry Experience

• Bureau Analytics

• Macro Environment

• Statistical Scorecards

• Business strategy

• Competition benchmark

Retail Lending Process- Independent Specialized Verticals.

Customer Acquisition Credit Policy Credit Underwriting

• Credit Appraisal

• Cash flow checks

• Security check

•Profile Check

• Bureau Check

• Application Scorecard

• Fraud Verifications

• Collateral valuation / Title check

• Legal documentations

• Advertisements / Sales Promotions

•Developer and Dealer Tie ups

•Manufacturer Tie ups

• Cross Selling tools

• Corporate Tie ups

• Referral Programs


• Loan Booking on system

•PDC / ECS banking and Archival

•Collateral ( property and RC copy ) storage in Strong room

•Customer Relationship / Request Management

Retail Lending Process- Independent Specialized Verticals.

Loan Management Collections

•Collection Strategy

• Analytical models

•Planning calls and visits

• Planning Intensity of call

• Collection Efficiency

•Productivity management

•Legal recourse

• Analytics & Risk Segmentation

• Bureau Usage to monitor Customer Leverage and Performance

• Cross sell / top up

• Exit Strategy

Portfolio Analysis


Mortgages - Application to Approval Ratio

14

100

29

-7

-39

-5-10

-10

Application CIBIL Reject Insufficient Cash Flow

Personal Interview

Defective Title Deeds

Others Disbursals

Rigorous and robust credit assessment processes in FCH help in maintaining the high assetquality and low NPA levels

In Mortgages, 29% of the total applications aredisbursed after passing through several levels ofscrutiny and checks, mainly centred around cashflow evaluation, credit bureau and reference checks


Funding Pattern


56.72%11.52%

17.73%

9.56%4.48%

Term Loan NCD Cash Credit

Short Term Loans Sub Debt

57.43%

11.71%

18.23%

8.07%4.56%

Term Loan NCD Cash Credit Short Term Loans Sub Debt

Borrowings

Borrowing portfolio – Rs. 44,634 mn (as on June 30, 2012)

Borrowing Portfolio CompositionBorrowing Portfolio Composition

Borrowing portfolio – Rs. 43,863 mn (as on March 31, 2012)


Shareholding


Shareholding Pattern

Particulars Value

No of Shares 64,798,484

No of Shareholders 141793

Face Value of Share 10

EPS – FY11-12 16.33

Shareholding Pattern as on 30 June 2012

• The stock is listed on NSE (stock code: FCH) and BSE (stock code: 532938)

• Financial Institutions include Banks, Insurance Companies and other Financial Institutions• Others include NRI-Repatriable, NRI-Non-Repatriable, Clearing Members and Trusts

Promoters, 53.7%

FII, 2.1%Mutual

Funds, 1.8%

Financial Institutions, 0.6%

Bodies Corporate, 24.0%

Individuals, 16.8%

Others, 1.1%


Financial Updates


Non Performing Assets

Particulars Unit Q1 FY13 Q1 FY12

Loan book Rs. mn 46,352 34,406

Gross Non - Performing Assets Rs. mn 61 16

Net Non – Performing Assets Rs. mn 23 0

% Gross NPA Rs. mn 0.13% 0.05%

% Net NPA % 0.05% 0.00%


Profit & Loss (Consolidated)

Particulars Q1-FY 13 Q1-FY 12 Q4-FY 12

Interest Income 1,915.41 1,281.07 1,977.55 Less: Interest Expense 1,146.58 784.82 1,319.51 Net Interest Income (NII) 768.82 496.25 658.04 Fee income 129.40 224.86 259.30 Other Income 39.61 125.32 25.16 Total Income 937.83 846.43 942.50 Opex 590.45 327.40 576.27 Operating profit 347.38 519.04 366.23 Provision 7.37 170.65 (3.36)PBT 340.01 348.38 369.59 Tax 79.92 129.78 102.74 PAT 260.09 218.60 266.85

All Figures In Rs. mn, Unless Otherwise Specified


Balance Sheet (Consolidated)

Particulars As on June 30, 2012

As onMarch 31, 2012

SOURCES OF FUNDSNet worth 8,594 8,316Loan funds 44,634 43,863 Total 53,228 52,179 APPLICATION OF FUNDSFixed Assets 1,099 1,087Deferred Tax Asset (net) 93 69Investments 228 228Current Assets, Loans & AdvancesLoan Book 46,352 46,704Other current assets and advances 9,679 8,772Less: Current liabilities and provisions 4,223 4,681Net current assets 51,808 50,795Total 53,228 52,179

All Figures In Rs. mn, Unless Otherwise Specified


THANK YOUFuture Capital HoldingsIndia Bulls Finance CentreTower II, 15th FloorSenapati Bapat MargElphinston (West)Mumbai 400 013

Websitewww.futurecapital.in

E-mailInvestor Relations - [email protected]

Telephone+91 22 40423400

mailto:[email protected]


DISCLAIMERThis presentation and the contents therein are for information purposes only and does not and shouldnot construed to be any investment or legal advice. Any action taken or transaction pursued based onthe basis of the information contained herein is at your sole risk and responsibility and Future CapitalHoldings and/or its subsidiaries or its employees or directors, associates will not be liable in anymanner for the consequences of any such reliance placed on the contents of this presentation. Wehave exercised reasonable care in checking the correctness and authenticity of the informationcontained herein, but do not represent that it is true, accurate or complete. Future Capital Holdings orany of its subsidiaries or associates or employees shall not be in any way responsible for any loss ordamage that may arise to any person from any inadvertent error or omission in the informationcontained in this presentation. The recipients of this presentation should make their own verificationsand investigations to check the authenticity of the said information if they so wish. Future CapitalHoldings and/or its subsidiaries and/or directors, employees or associates may be deemed to haveinterests, financial or otherwise in the equity shares of Future Capital Holdings.

corporate presentation – 30 june 2012 · pdf filenet worth - rs. 8.59 bn; long term: aa...

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