Corporate Presentation

Transcription

1 Corporate Presentation March, 2018 Disclaimer: This presentation is intended solely for viewing. No part of it may be circulated, quoted, or reproduced for distribution without prior written approval from Vistaar Financial Services Pvt. Ltd. Figures rounded off to the nearest digit across the presentation. Figures and ratios have been regrouped wherever necessary.

2 Our Vision, Mission, Values & 5 Principles Our Vision Our vision is to be a catalyst to the underserved so that they can achieve greater economic and social well-being. Specifically, we offer a full range of financial services customised to fulfill their every business requirement and move them into the mainstream. Our Mission We shall achieve our vision by deeper understanding of specific customer segments, to fulfil their financial needs through customized products and simple processes Our Values Customer Centricity Transparency Team Work Ethics 5 Principles Our Customer is at the Centre of everything that we do I hold myself Accountable for my Performance I will treat Colleagues the way I expect to be treated My colleagues and I will deliver greater results, working together, than in isolation Each of my actions will be to the highest standards of Integrity & Ethics 2

3 A Specialist MSME Lending Player What we do We provide loans to the Micro, Small & Medium Enterprises ( MSME ) primarily in the rural & semi-urban areas Loan Portfolio of `1,270 Crores Presence in 13 States through 225 Branches Customer Segment Haryana Our Belief(01) We believe in the power of MSMEs as engines of economic growth that will drive India forward Textiles Small Mfg. Units Unique Characteristics of the Company First player to use Unique Credit Methodology to disburse loans to small entrepreneurs & address credit demand gap in the sector Presence in rural & semi-urban areas Company is run by professionals with deep industry knowledge Hotel/Bakery Kirana/Retail Shops Agri Allied Activities Impact Created by Vistaar is Both Economic & Social Cumulative amount of loans disbursed: > 2,600 Crs. Cumulative no. of entrepreneurs serviced: >1.84 Lakhs Employment generated (direct & indirect): ~5.5 Lakhs 3

4 Vistaar: A Brief History Raised Capital of 10 Crs. Launched specialised Products - Small Business Mortgage Loans - Small Business Hypothecation Loans Portfolio increased by more than two fold to 243 Crs. Expanded operations in Gujarat Branch number doubled to 81 Raised capital of 250 Crs. Credit rating upgraded from [ICRA]BBB+ to [ICRA]A- Entered in Uttar Pradesh, Uttarakhand, Haryana, Odisha & AP Launched new product - Bill discounting Portfolio increased 1270 Crs. Expanded operations in Telangana Launched new product Loan Against Electronic Receivable FY12 FY14 FY16 FY18 FY11 FY13 FY15 FY17 Founded in Apr 10 Raised 15 Crs. capital Started Operations in Karnataka & Tamilnadu Raised Capital of 40 Crs. Expanded Operation in Maharashtra Aug 2012 Operating break even achieved Crossed 100 Crs. Portfolio Raised Capital of 160 Crs. Entered in Madhya Pradesh, Rajasthan & Chhattisgarh Raised 308 Crs. debt Portfolio increased to 516 Crs. Portfolio increased to 1,124 Crs. Raised 495 Crs. debt (incl. 125 Crs. from Mutual Fund) 4

5 Target Customer Segment of Vistaar Vistaar s Focus Target Segments Constitute Majority of the Demand Gap Medium & Large Enterprises Small Businesses Productive Poor Mainly Banks & Large NBFCs Vistaar Target segment Microfinance Institutions & Self Help Groups Current focus target segments of Vistaar (1) Textiles / Auto/Power-looms Agri allied activities Kirana stores (2) Hotels / Restaurants Agro / Food processing Light engineering Other retail stores Breakup of MSME sector* (Number of units) Others 28% Vistaar's focus target segments 72% Breakup of Credit Demand in MSME sector* Others 22% Vistaar's focus target segments 78% Focus target segments of Vistaar constitute 72% of the total MSME business units & 78% of the total MSME sector credit demand Sources : * Data from Ministry of MSME, Company analysis Notes : (1) Vistaar also targets other segments in addition to these focus segments (2) Kirana Stores are small unorganized retail stores, with merchandizing similar to Mom and Pop stores 5

6 Vistaar Has Uniquely Positioned Itself to Cater to MSME Sector Effectively Timely & sizable capitalisation Cost optimisation & timely funding Strong People Practices Marquee Investors Well Diversified Debt Profile Strong Professional Management Proven Business Model Driving growth systematically Strong Governance Structure Unique Credit Methodology Proactive Board Right customer selection Strong Processes, Controls & IT Minimising risks 6

7 Vistaar s 5 Step Process Addresses MSME Segment Effectively 5 4 Continuous refinement of product and credit methodology Collateral taken for moral suasion 3 Reference checks- supply chain players, neighbors In-depth study of a sector to determine unique credit methodology Income assessment through nontraditional documents 2 1 7

8 Fully Integrated Client Protection Principles In The Business Model Client Protection Principles Appropriate Product Design & Delivery Prevention of Overindebtedness Transparency Responsible Pricing Fair & Respectful Treatment of Clients Privacy of Client Data Effective Client Resolution Vistaar s Approach Sector specific approach Templatization for different trade segments Direct selling 100% dual credit bureau check Cash flow based lending Loan summary schedule to customers Impart credit literacy through videos Competitive pricing Reasonable RoAUM Sales SOP Collections code of conduct Sharing of data only with specific consent Toll free numbers for complaints Board level review of customer complaints and resolution 8

9 Products Offering to Suit Varied Needs of MSMEs Requirement >> Long Term Business Loan Short Term Business Loan Products >> Small Business Mortgage Loan Bill Discounting Loan Against Electronic Receivables Loan Size (`) 1,00,000 to 25,00,000 1,00,000 to 25,00,000 Upto 25,00,000 Repayment Frequency Monthly Bullet Daily/ Weekly/ Biweekly/ Monthly Tenor 24 to 120 Months Upto 90 days per Bill, Limit valid up to 1 year Upto 18 months Security Property Unsecured Unsecured 9

10 Effective Risk Management & Governance Key Aspects Asset Quality Liquidity Risk Interest Rate Volatility Management Systems Competition Capital Adequacy & Profitability Corporate Governance Management Strategy Diversified portfolio across geographies & sectors Provisioning norms are more conservative than RBI s requirements Amongst the lowest NPA levels in the industry Sound liquidity management & stable funding partners Raised capital through both equity & debt markets (Term Loans, CC, NCDs, PTCs) Good asset liability management system in place Borrowing at variable rates & lending at fixed rate Robust Core Banking Solution & other reporting systems in place Timely reporting of critical data points to help decision making Increasing branch network across varied geographies Less competition from mainstream sources of finances (Banks & NBFCs) Strong CAR of 44% (as of Mar 18) well above RBI s requirement Profitable since last five years at continuous increasing growth rate Well established policies & procedures across functions Professional Board with strong profile of Independent Directors 10

11 Diversified Presence: Scaling Up In A Sustainable Manner Gujarat (19) Rajasthan (15) Haryana (04) Maharashtra (32) Madhya Pradesh (30) Chhattisgarh (04) Odisha (05) Karnataka (36) Andhra Pradesh (17) Uttarakhand (04) Telangana (05) 225 Branches Spread Across 13 States (as of Dec 17) States FY12 FY13 FY14 FY15 FY16 FY17 FY18 Branches FY12 FY13 FY14 FY15 FY16 FY17 FY18 No. of Loan Accounts ( 000) FY12 FY13 FY14 FY15 FY16 FY17 FY18 Employees ( 000) Map not to scale Tamil Nadu (46) FY12 FY13 FY14 FY15 FY16 FY17 FY18 11

12 Performance Highlights Disbursements (` Crs.) Portfolio Growth (` Crs.) ,124 1,270 FY12 FY13 FY14 FY15 FY16 FY17 FY18 Profit Before Tax (` Crs.) FY12 FY13 FY14 FY15 FY16 FY17 FY18 Networth (` Crs.) (2.7) FY12 FY13 FY14 FY15 FY16 FY17 FY FY12 FY13 FY14 FY15 FY16 FY17 FY18 Note: 9M-FY18 nos. are provisional & unaudited 12

13 Well Diversified Debt Profile & Stable Funding Partners Source Mix: Rs. 741 Crs. Outstanding as of Mar 18 International FIs 19% Banks 59% Domestic FIs 22% Note: (1) Above outstanding nos. includes Off Balance Sheet & excludes car loans (2) Logos shown of major lenders 13

14 Support From Marquee Investors Since Inception To Support Growth Rs. 250 Crs. in Aug 15 Rs. 160 Crs. in May 14 Rs. 40 Crs. in Jul & Aug 12 Rs. 10 Crs. in Apr 11 Rs. 15 Crs. in Apr & Aug 10 14

15 Our Founders Mr. Hegde was a Director Microfinance and Micro enterprises businesses in Fullerton India Credit Company, as a core member of the team which conceptualized, developed and started the Micro Business from mid Prior to that, Mr. Hegde had worked in ICICI Group between 1992 and 2007, in the Rural and Micro banking Group with a range of responsibilities covering strategy to execution. During this phase, he worked very closely with the microfinance sector, lending to over 80 MFIs in the country with an aggregate exposure of over Rs. 3,000 Crore. In his initial years in ICICI, he worked for Project Financing in the Agri Business Division, responsible for implementing a special project, namely Agriculture Commercialisation & Enterprise (ACE) programme for USAID. Prior to ICICI, Mr. Hegde had also worked in Bank of Maharashtra for 8 years in Agriculture Finance in Karnataka and Maharashtra. Mr. Brahmanand Hegde Exe. Vice Chairman & Co-Founder He completed his Post Graduate in M.Sc. from University of Agricultural Sciences, Bangalore in 1983 and qualified CAIIB from Indian Institute of Bankers, Mumbai. Mr. Nishtala is a Business Operations Specialist, who headed the Microfinance and Microenterprises Business of Fullerton India and was a core member in the team which conceptualized, developed and started the Microfinance Business of the company from early Earlier, he was responsible for coordinating the rollout of Fullerton India s 800-branch network including technology, people and premises. Prior to this Mr. Nishtala had worked for over 20 years in the Eicher Group in a variety of sectors including commercial vehicles, tractors and auto components, in various functions ranging from Sales and Marketing, Strategic Planning and Implementation. He was head of Corporate Strategy, and worked with the owners in re-structuring the group s portfolio. He also spearheaded the acquisition and integration of a Design company in the US, to accelerate the Group s Engineering Services Business. Mr. Ramakrishna Nishtala MD & CEO, Co-Founder He completed his Post Graduation in Industrial Engineering from NITIE, Mumbai in 1986 and Graduation in Mechanical Engineering from Jawaharlal Nehru Technological University, Kakinada, Andhra Pradesh. 15

16 Board of Directors Mr. C.B. Bhave Non-Executive Chairman & Independent Director Ms. Radhika Haribhakti Independent Director Mr. James Abraham Independent Director Mr. Sandeep Farias Nominee Director, Elevar Equity Mr. Sailesh Mehta Additional Director, WestBridge Capital Mr. Sumir Chadha Nominee Director, WestBridge Capital Mr. Badri Pillapakkam Nominee Director, Omidyar Network Note: Board of Directors also includes the Founders 16

17 Management Team Mr. Sudesh Chinchewadi EVP, Chief Financial Officer & CS Mr. Praveen Arora EVP, Chief Business Officer Dr. Ashok Nagpal Sr. VP- Risk & Collection Head Mr. T.K. Srinath EVP, Chief Human Resources Officer Mr. Nikhil Bandi Sr. VP- Chief Information Officer & Head Operations Mr. Mohan K Pattabhiraman Sr. VP- Internal Audit Head 17

18 Awards & Recognitions IFC Mint Strategy Award in September 2016 Segment Leadership & Financial Inclusion by SKOCH Award in June, 2016 Best Financial Reporting for FY15, FY16 & FY17 Medium Business award by Times Network & CMO Asia CEO with HR Orientation by Vijayavani - BFSI award to Mr. Brahmanand Hegde, MD & CEO in September, 2015 Most Influential CFOs of India by CImA, London to Mr. Sudesh Chinchewadi, CFO & CS in July, 2015 The India CFO Award for Excellence in Finance in a Start-Up by IMA to Mr. Sudesh Chinchewadi, CFO & CS in May,

19 Happy MSME Customers Customer & Profile Impact by Vistaar s Loan Mr. Balasubramaniyam, Power loom owner Perundurai, Erode dist., Tamil Nadu No. of Power looms 26 Pre Loan 52 Post Loan Mr. Surekha Sunil Teli, Kirana Shop owner (primarily sells oil) Rabakavi, Bagalkot dist., Karnataka Annual Revenue Household Surplus 15 1 Pre Loan 36 3 Post Loan Rs. Lakhs p.a Mr. Siddeshwar Kambale, Small Shop owner (sells bags & sports goods) Rabakavi, Bagalkot dist., Karnataka (1) Annual Revenue Household Surplus 11 1 Pre Loan 13 2 Post Loan 3 Rs. Lakhs p.a

20 Version: Website 09-May-2018