CSL Finance Ltd

- CSL Finance is actively looking to raise more debt to expand their balance sheet. - The company is working on improving their credit rating, which will aid in raising debt at a controlled cost. - They are in discussions with various Public Sector Units (PSUs) to keep the cost of borrowing under control. - The weighted average cost of borrowing currently is around 10.25%, and they intend to raise new debt at a similar cost. - There is no explicit mention of raising equity in the current call. - If unable to raise enough debt in the next 6 to 9 months, they have options through co-lending to increase market presence and profitability. (Referenced from pages 8, 9, 15, 16)

- CSL Finance Limited is focused on expanding its branch network, targeting tier 2 and tier 3 cities with a cluster approach of 3-4 branches within a 30 km radius to capture profitable, underserved markets such as Gandhinagar, Haridwar, Roorkee, and Rishikesh. - The company plans to increase monthly SME retail disbursals from 4-4.5 Crores to 8-9 Crores by financial year-end. - A strategic shift from DSA to DST model with more Relationship Managers (RMs) to generate fresh leads and improve sustainable growth. - Digitalization of processes, aiming for 70-80% digitization by year-end, including KYC integration and digital credit evaluation to stay competitive with fintech lenders. - Focus on maintaining low-cost branches with 6-7 staff, targeting break-even at disbursals of 4.5 to 5 Crores monthly. - Actively looking to raise additional debt capital to fund growth while maintaining balance sheet quality and working to improve credit ratings.

Future Growth Expectations for CSL Finance Limited: - SME Segment Disbursements: - Current disbursal at 4 to 4.5 Crores monthly. - Target to increase to 8-9 Crores monthly by financial year-end. - October saw an unprecedented jump in sanctions and disbursals. - Collections improving with a 96% collection efficiency. - Wholesale Segment: - Pipeline of 150 Crores expected to close in 1.5 months. - Focus on longer tenure loans (24-30 months) for stability and reduced churn. - Pipeline and deals postponed in Q2 expected to close soon. - Branch Expansion & Market Penetration: - Expanding presence in Rajasthan, Gujarat, Haryana, Punjab. - Focus on tier 2 and tier 3 cities using cluster approach (3-4 branches per cluster). - Digitalization & Process Improvements: - Moving toward fully digitalized SME processes by year-end. - Enhanced technology for customer acquisition and credit assessment. - Debt Raising & Rating Improvement: - Focus on improving credit rating to manage cost of borrowing. - Exploring co-lending and alternative borrowing options to fuel growth. Overall, company aims for significant growth in loan book and market presence post-COVID with improved operational efficiency.

- CSL Finance aims for substantial growth post-COVID, focusing on both wholesale and SME retail segments. - Plans to increase SME monthly disbursements from 4-4.5 Crores to 8-9 Crores by FY-end, improving collections (~96% collection efficiency recently). - Growth will be driven by digitalization of processes, expansion of branch network in tier 2, tier 3 cities, and cluster approach for deeper market penetration. - Focus on maintaining balance sheet quality and managing NPAs, especially in the school loan portfolio. - Cost of borrowing is targeted to remain around 10.25%, with efforts to improve credit rating for better funding cost. - Expansion in wholesale lending expected with a healthy pipeline (~150 Crores) and growing retail loan book. - Higher employee strength (+33%) and team building indicate operational scaling. - Overall expectation of promising financial numbers and growth in net profit after cautious risk management in previous years.

- Wholesale segment currently has a pipeline/orderbook of approximately ₹150 Crores. - Of this ₹150 Crores pipeline, CSL Finance's component is around ₹40 Crores to ₹50 Crores, expected to be executed over the next 1 to 1.5 months. - SME segment expects to disburse ₹6 to ₹7 Crores per month going forward from December onwards. - The company aims to increase monthly SME disbursal to ₹8-9 Crores by the financial year-end. - The pipeline shows strong presence in NCR region, with a robust project pipeline for both wholesale and SME segments. - The main limiting factor for growth is the ability to raise debt funding rather than lack of pipeline.