ECL Finance Limited

Started in 2005, Mumbai based ECL Finance Limited is a leading non-deposit taking NBFC that offers a wide range of corporate and retail loan products. The company's product portfolio includes: 1. Structured Collateralised Credit: It constitutes 21.63% of the total loan book as of September 30, 2018. 2. Wholesale Mortgages: This constitutes 32.84 % of the total loan book of the company as of September 30, 2018. 3. SMEs and others: It constitutes 4.97 % of the total loan book as of September 30, 2018. 4. Loans against securities: It constitutes 29.71 % of the total loan book as of September 30, 2018. 5. Retail Mortgages - It constitutes 9.01 % of the total loan book as of September 30, 2018. 6. Agri Credit: It constitutes 1.83 % of the Company's total loan book as of September 30, 2018. ECL Finance is a part of the Edelweiss Group, one of prominent financial services organization in India. Edelweiss business is organized around three broad lines - credit including retail finance; franchise & advisory businesses including wealth management, asset management, capital markets, balance sheet management and others, and insurance. As on September 30, 2018, Edelweiss Group along with three of its subsidiaries held 100% of the paid-up share capital of the company. ECL Finance has a total of 117 branches spread across the country. The company's total income and profit after tax (PAT) for 2018 was Rs 30,600.27 million and Rs 4,620.47 million, respectively. Its total loan book stood at Rs. 27,095.62 crore as on 30.09.18. On the said date, its capital adequacy ratio was 15.87% against RBI stipulated minimum requirement of 15%. As at 30.09.18 its gross NPA were 1.87% as a percentage of total loan book and net NPAs were 0.74% for the said date. For FY16, FY17 and FY18 its net NPAs were 0.49%, 0.64% and 0.75% respectively. Post issue its debt-equity ratio will stand increased to 8.24 from 7.66 as on 30.09.18. Company posted net profits of Rs. 246.06 cr. (FY16), Rs. 384.93 cr. (FY17) and Rs. 479.56 cr. (FY18). Investors looking for steady regular income may consider investment for long term in this AA/Stable rated NCD issue. So we give SUBSCRIBE rating to this NCD.

• 1 Edelweiss Financial Services Limited