Shriram Transport Finance Company Ltd.

Investor Presentation

April
p 29,, 2010

1

Company Snapshot

Market Leader in High-Yield Pre-Owned CV Financing
‰

Shriram Transport Finance Company Limited (STFC) is one of the
largest asset financing NBFC with approximately 20-25% market
share in pre-owned and approximately 7-8% market share in new truck
financing

‰

Strategically present in high yield - pre-owned CV financing with
expertise in loan origination, valuation and collection

‰

Expanded product portfolio to include financing of tractors, small
commercial vehicles, 3-wheelers, passenger commercial vehicles and
construction equipment

‰

Large customer base in excess of 0.7 mn as of March 31, 2010

‰

Employee strength of approximately 13,817 including 7,398
product/credit executives as of March 31, 2010

‰

Listed on the National Stock Exchange and Bombay Stock
Exchange with a market capitalisation of over Rs. 120 bn

‰

FY09 – Rs. 36.68 bn

FY10 – Rs. 44.65 bn

14.6%

8.6%
0.7%

0.1%
91 3%
91.3%

84.7%

Fund Based

Income from Securitisation

Fee Based

Equity investment from reputed private equity and institutional
investors including TPG Newbridge

Large Assets Under Management
‰

Operating Revenue Break Up

Total Assets Under Management (AUM) of Rs. 291.26 bn

Extensive Distribution Network
‰

Pan-India presence through a network of

Pre-Owned CV: Approximately Rs. 221.6 bn

60 Strategic Business Units (SBUs)

New CV: Approximately Rs
Rs. 69
69.7
7 bn

484 branch offices

‰

Partnership with over 500 Private Financiers
3

Corporate History

2010
AUM: Rs. 291.26 bn

‰ Securitised Rs. 87.57 bn during FY 2010.
‰ Successfully raised Rs. 5.84 bn through QIP with

domestic & international investors.

As of March 31, 2010

‰ Successfully placed Rs. 10 bn of NCD with domestic investors
‰ Purchased hypothecation loan outstandings of commercial

2009

vehicles and construction equipments of GE Capital Services
India and GE Capital Financial Services (GE) aggregating to
approximately Rs.
Rs 11 bn
‰ Merger of Shriram Investment Ltd. and Shriram Overseas Finance Ltd.

2005-06

With STFC ; PAT crosses Rs. 1,000 mn (2006)
‰ Investment from ChrysCapital (2005) and TPG (2006)
‰ Preferential Allotment to Citicorp Finance (India) in 2002

2002-04

‰ Preferential Allotment to Axis Bank and Reliance Capital in 2004
‰ Tied up with Citicorp for CV financing under Portfolio Management Services (PMS)

AUM: Rs. 2.44 bn 1999

1990
1984
1979

‰ The 1st securitization transaction by
y STFC

‰ Investment from Telco & Ashok Leylond

‰ Initial Public Offering

‰ STFC was established

4

With a Strong Financial Track Record

Total Income
49,000

Net Interest Income

(Rs mn)

42,000

18,000

37,311.3

35,000

15,682.2
14,108.0

15,000
25,090.3

28,000
21,000
14 000
14,000

(Rs mn)

44,996.4

12,000

10,333.6

9,000

14,213.9
9 063 1
9,063.1

6,000

7,000

6,502.8
4 659 4
4,659.4

3,000

0
2006

2007

2008

2009

0

2010

2006

Net Profit
(Rs mn)

2007

2008

2009

2010

EPS
48
42
36
30
24
18
12
6
0

(Rs)

41.08

30 11
30.11
20.26
9.36

2006

11.01

2007

2008

2009

2010
5

Driven by Fast Growth in AUM with Low NPAs

AUM (Rs bn)
240
200
160
120
80
40
0

151.4
54.5
2006

179.2

179.5

84.3
NPA Levels

2007
2008
2009
Off‐Books
On‐Books

2010

3.0%
2.8%
2.5%

2.0%
2.1%

2.0%
1.6%
1.5%

1.3%

1.3%
0.9%

1.0%
0.5%

0.4%

0.8%

0.7%

0.0%
FY'06

FY'07

FY'08
Net NPA

FY'09

FY'10

Gross NPA

6

Strengths

1
2
3
4
5
6

Widespread Geographical Reach

Valuation Skills & Recovery/Collection Operation

Strong Balance Sheet

S
Strong
M
Management Team
T

Organizational Structure: Credit Risk Focus

Strengthening Presence and Expanding Reach

7

1

Widespread Geographical Reach:
Proximity to the Customer

Branch Locations Across India

Pan--India Presence
Pan

60 SBUs
484 Branch Offices
Ti up with
Tie
ith

Over 500 Private
P i t Financiers
Fi
i

Regional Split of Branches

States with STFC Presence
As on March 31, 2010
8

Driven by Growing AUM
Assets under Management (On books & Off books)
Rs mn

25.1%
25
1% growth in total Assets under
Management to Rs. 291.26 bn

Assets under Management (New & Pre-owned CVs)
Rs mn

76.0%
76
0% of total Assets under Management in pre
pre-owned
owned
CV to Rs 221.6 bn

9

Profit and Loss Statement
Profit & Loss Statement
Interest Income
Interest Expense
Net Interest Income
Income from Securtisation
Net Interest Income including
Income from Securtisation
Fees for Trading
Other Operating Income
Operating Income after Interest
Expense
Operating expenditure
Core Operating Profit (before
Provisions & Contingencies)
Other Income
Operating Profit
Provisions for Bad Debts
PBT
Tax
PAT
EPS (Rs)
Total CRAR %
Book Value (Rs)
Key Ratios (%)
N t Interest
Net
I t
t Margin
M i (on
( AUM)
Return on Avg. Net Worth
Return on Avg. Assets

Q4 FY'09

Q1 FY'10

Q2 FY'10

Q3 FY'10

Q4 FY'10

YoY %

QoQ %

FY'09

FY'10

Rs mn
YoY %

8,858.8
5,061.0
,
3,797.8
706.0

9,052.2
5,384.3
3,667.9
,
1,036.9

9,475.6
5,248.3
4,227.3
,
1,044.4

10,264.0
5,708.0
4,556.0
,
1,208.2

8,752.6
5,521.5
3,231.1
,
3,241.5

-1.20%
9.10%
-14.92%
359.17%

-14.72%
-3.27%
-29.08%
168.29%

33,387.4
19,279.4
14,108.0
,
3,169.5

37,544.4
21,862.2
15,682.2
,
6,531.0

12.5%
13.4%
11.2%
106.1%

4,503.8
0.0
20.9

4,704.8
62.0
83.7

5,271.7
86.0
25.0

5,764.2
75.7
63.0

6,472.6
81.8
99.0

43.71%
0.00%
372.80%

12.29%
8.04%
57.10%

17,277.5
0.0
122.1

22,213.2
305.3
270.9

28.6%
0.0%
121.9%

4,524.7
1,507.8

4,850.5
1,454.3

5,382.7
1,227.3

5,902.9
1,317.7

6,653.4
1,512.7

47.05%
0.33%

12.71%
14.80%

17,399.6
5,538.6

22,789.4
5,512.0

31.0%
-0.5%

3,016.9
153 5
153.5
3,170.4
819.8
2,350.6
812.0
1,538.6
7.56
16.35%
113.82

3,396.2
22 1
22.1
3,418.3
949.2
2,469.1
825.0
1,644.1
8.01
17.08%
127.54

4,155.4
29 2
29.2
4,184.6
1,121.6
3,063.0
988.4
2,074.6
9.80
16.69%
137.20

4,585.2
15 6
15.6
4,600.8
1,013.5
3,587.3
1,219.2
2,368.1
11.16
16.99%
145.44

5,140.7
80
8.0
5,148.7
1,022.2
4,126.5
1,482.2
2,644.3
11.95
20.92%
170.36

70.40%
-94.81%
-94
81%
62.40%
24.69%
75.55%
82.53%
71.87%
58.07%
27.95%
49.68%

12.12%
-48.86%
-48
86%
11.91%
0.86%
15.03%
21.56%
11.66%
7.08%
23.13%
17.13%

11,861.0
402 8
402.8
12,263.8
3,057.5
9,206.3
3,082.3
6,124.0
30.11
16.35%
113.82

17,277.4
74 9
74.9
17,352.3
4,106.5
13,245.8
4,514.7
8,731.1
41.08
20.92%
170.36

45.7%
-81.4%
-81
4%
41.5%
34.3%
43.9%
46.5%
42.6%
36.4%
28.0%
49.7%

Q4 FY'09
6 82%
6.82%
26.91%
2.69%

Q1 FY'10
6 62%
6.62%
26.23%
2.65%

Q2 FY'10
7 21%
7.21%
29.62%
3.22%

Q3 FY'10
7 37%
7.37%
31.58%
3.45%

Q4 FY'10
7 83%
7.83%
30.49%
3.85%

FY'09
7 24%
7.24%
29.11%
2.99%

FY'10
7 28%
7.28%
29.65%
3.31%
10

Details of Key Parameters (Profit & Loss Account)
Q4
FY 2008 09

Particulars

Q1
FY 2009 10

Q2
FY 2009 10

Q3
FY 2009 10

Q4
Year ended
FY 2009 10
FY 2009

Year ended
FY 2010

Interest Income
Interest Income

Rs mn
Rs. mn

8 858 80
8,858.80 

9 052 20
9,052.20 

9 475 60
9,475.60 

10 264 00
10,264.00 

8 752 60
8,752.60 

33 387 40
33,387.40 

37 544 40
37,544.40 

Securitisation Income

Rs. mn

706.00 

1,036.90 

1,044.40 

1,208.20 

3,241.50 

3,169.50 

6,531.00 

Total

Rs. mn

9,564.80 

10,089.10 

10,520.00 

11,472.20 

11,994.10 

36,556.90 

44,075.40 

Less : Interest Expenses
Less : Interest Expenses

Rs mn
Rs. mn

5 061 00
5,061.00 

5 384 30
5,384.30 

5 248 30
5,248.30 

5 708 00
5,708.00 

5 521 50
5,521.50 

19 279 40
19,279.40 

21 862 20
21,862.20 

Net Interest Income

Rs. mn

4,503.80 

4,704.80 

5,271.70 

5,764.20 

6,472.60 

17,277.50 

22,213.20 

Other Income

Rs. mn

174.40 

105.80 

54.20 

78.60 

107.00 

524.90 

345.80 

Fee for Trading
Fee for Trading

Rs. mn
Rs. mn

62.00
62.00 

86.00
86.00 

75.70
75.70 

81.80
81.80 

305.30
305.30 

Total Income

Rs. mn

4,678.20 

4,872.60 

5,411.90 

5,918.50 

6,661.40 

17,802.40 

22,864.30 

32.23 

29.85 

22.68 

22.26 

22.71 

31.11 

24.11 

Rs. mn

1,538.60 
,

1,644.10 
,

2,074.60 
,

2,368.10 
,

2,644.30 
,

6,124.00 
,

8,731.10 
,

EPS

Rs.   

7.56 

8.01 

9.80 

11.16 

11.95 

30.11 

41.08 

ROA

%

2.69 

2.65 

3.22 

3.45 

3.85 

2.99 

3.31 

ROE

%

26.91 

26.23 

29.62 

31.58 

30.49 

29.11 

29.65 

NIM (on AUM)

%

6.82 

6.62 

7.21 

7.37 

7.83 

7.24 

7.28 

Cost to Income Ratio
Profit after Tax

%

11

Details of Key Parameters (Balance Sheet)
Q4
FY 2008 09

Particulars
Asset under Management
‐ On Books
‐ Off Books
Total
Disbursement
‐ Used CV
‐ New CV

Rs. mn
Rs. mn
Rs. mn

Q1
FY 2009 10

Q2
FY 2009 10

Q3
FY 2009 10

Q4
Year ended
FY 2009 10
FY 2009

179,239.70  193,358.60  203,575.00  215,520.60  179,460.50  179,239.70 
53,571.40  49,390.10  54,662.50  66,265.10  111,800.30  53,571.40 
232,811.10  242,748.70  258,237.50  281,785.70  291,260.80  232,811.10 

Year ended
FY 2010

179,460.50 
111,800.30 
291,260.80 

Rs. mn
Rs. mn

24,130.90 
3,690.40 

26,378.40 
6,217.40 

28,663.10 
7,099.80 

32,355.50 
7,091.70 

30,897.20 
8,132.80 

97,042.90 
18,611.00 

118,294.20 
28,541.70 

Total  AUM

Rs. mn

27,821.30 

32,595.80 

35,762.90 

39,447.20 

39,030.00  115,653.90 

146,835.90 

Securitisation done
Securitisation done

Rs mn
Rs. mn

17 204 00
17,204.00 

1 946 00
1,946.00 

12 084 00
12,084.00 

18 593 00
18,593.00 

54 945 00 31,249.80
54,945.00 
31 249 80

87 568 00
87,568.00 

Gross NPA

%

2.14 

2.22 

2.29 

2.43 

2.83 

2.14 

2.83 

Net NPA

%

0.83 

0.81 

0.66 

0.68 

0.71 

0.83 

0.71 

Coverage Ratio
Coverage Ratio

%

61 63
61.63 

64 12
64.12 

71 80
71.80 

72 56
72.56 

75 58
75.58 

61 63
61.63 

75 58
75.58 

Gross NPA

Rs. mn

3,843.10 

4,300.20 

4,676.90 

5,245.20 

5,112.70 

3,843.10 

5,112.70 

Net NPA

Rs. mn

1,474.60 

1,542.80 

1,319.00 

1,439.30 

1,284.70 

1,474.60 

1,284.70 

%
Rs.   

16.35 
113.82 

17.08 
127.54 

16.69 
137.20 

16.99 
145.44 

20.92 
170.36 

16.35 
113.82 

20.92 
170.36 

CAR
Book Value

12

Thank You