Trucap Finance Limited · NSE:TRU
Trucap Finance — Dhanvarsha Finvest — Q1 FY2022 Earnings Presentation
42 slides from Trucap Finance's earnings presentation, Aug 13, 2021
Slide 1: Earnings Update cover letter to BSE
August 13, 2021 The General Manager, Department of Corporate Services BSE Limited Phiroze Jeejeebhoy Towers, Dalal Street, Mumbai — 400001. Scrip Code: 540268 Dear Sir / Madam, Subject : Earnings Update. This is to inform you that the Board of Directors of Dhanvarsha Finvest Limited at its meeting h
Slide 2: Dhanvarsha
3 Dhanvarsha
Slide 3: Disclaimer
Disclaimer This presentation is not a prospectus, a statement in lieu of a prospectus, an offering circular / memorandum, an advertisement, an offer, an invitation to offer or an offer document in terms of the Companies Act, 2013, the Securities and Exchange Board of India (Issue of Capital and Disc
Slide 4: Business Update
Lo | Business Update SOA
Slide 5: Financial Update
Financial Update • Profit before tax growth of 170% Y/Y led by robust revenue growth of 157%. • Disbursement growth led by secured Gold and FLDG backed loans. • Capital raise of INR 658 million completed on April 15, 2021. • Pristine balance sheet with robust liquidity and high capital adequacy. • C
Slide 6: Business Goals Achieved
Business Goals Achieved 66% of disbursements in the quarter led by Gold and FLDG backed loans. INR Million Particulars June 2020 June 2021 Disbursement 48.2 433.9 Net Worth* 357.3 1,588.2 Debt Outstanding 246.5 1,138.1 Credit Ratings BBB- (Stable) BBB (Stable) Lenders (Count) 2 11 Experiential Cente
Slide 7: Robust Revenue Growth & Improving Efficiency
Robust Revenue Growth & Improving Efficiency… 137 Revenue (INR Mn) 108 89 68 53 QE Jun-20 QE Sep-20 QE Dec-20 QE Mar-21 QE Jun-21 Cost to Income (%) 82.3% 76.1% 77.0% 75.9% 61.5% QE Jun-20 QE Sep-20 QE Dec-20 QE Mar-21 QE Jun-21
Slide 8: Resulting from strong monthly Disbursement
Resulting from strong monthly Disbursement July 2021 clocked the highest disbursement in the history of Dhanvarsha led by Gold loans 413 Disbursement (INR Mn) 241 99 94 Apr-21 May-21 Jun-21 Jul-21 Personal Loans MSME Loans Gold Loans 261 147 95 61 57 34 44 40 34 21 26 29 Apr-21 May-21 Jun-21 Jul-21
Slide 9: Quarterly Disbursements & Scalable Distribution
Quarterly Disbursements & Scalable Distribution Disbursement (INR Mn) 1,050 405 434 206 221 48 QE Jun-20 QE Sep-20 QE Dec-20 QE Mar-21 QE Jun-21 QE Sep-21E Distribution Strength 475 Experiential Centers Financial Inclusion Stores 163 24 34 4 0 Jun-20 Jun-21 Sep-21 E
Slide 10: Pristine balance sheet with debt from marquee lenders
Pristine balance sheet with debt from marquee lenders Current Equity (INR MN) Debt (INR MN) Equity Share Capital on March 31 993.6 Borrowings from Banks & FIs 938.1 Capital infusion led by Aviator NCD & other debentures 200.0 Emerging Market Fund (AEMF) including 658.0 a marquee list of investors su
Slide 11: Collection Efficiency
Collection Efficiency INR Million Prepayments Collection efficiency Demand Collections Collection Month & Foreclosure (%) without prepayments raised received Efficiency (%) Received* & foreclosures Jan-21 23 20 20 89% 175% Feb-21 25 22 18 90% 162% Mar-21 28 27 25 95% 182% Apr-21 34 29 25 87% 163% Ma
Slide 12: Asset Quality & Provision Levels
Asset Quality & Provision Levels INR Million Particulars Jun 2020 Jun 2021 Gross NPA 20.5 37.3 Gross NPA % 4.83% 2.87% Net NPA 9.5 11.6 Net NPA % 2.23% 0.89% Gross Performing Assets 405.3 1,261.2 Gross Performing Assets % 95.16% 97.13% • Provision coverage ratio of 69%. • Of the INR 37.3 million GNP
Slide 13: Lending & Distribution Strength
Lending & Distribution Strength
Slide 14: Co-lending partnership with Central Bank of India
Co-lending partnership with Central Bank of India • The Company has recently partnered with Central Bank of India for Co-lending of up to INR 10 billion to MSME Gold loan customers. • Under the partnership, Dhanvarsha will originate, service and collect MSME gold loans and will retain 20% of loan ba
Slide 15: Gold Loans: Experiential centers & Door-Step Disbursement
Gold Loans: Experiential centers & Door - Step Disbursement The company through ‘experiential centers’ and digitally optimised ‘door-step disbursement’ offers a superior value proposition to customers in gold financing. The company has disbursed more than INR 729 million of gold loans through experi
Slide 16: Dhanvarsha Financial Inclusion Stores: Distribution with Scale
Dhanvarsha Financial Inclusion Stores: Distribution with Scale • The company has onboarded ~323 Financial Inclusion Stores until August 10th. These stores are in Mumbai, Thane, Pune, Solapur, Nashik, Kolhapur, Nagpur, Aurangabad, Amravati, etc. in the home state of Maharashtra • Guidance for onboard
Slide 17: Financial Inclusion Store Model
Financial Inclusion Store Model KYC / CIBIL Validated Fraud Investigation Future EMI Initiated – on Files Logged in Collections in average 10% Stores ‘Go’ / ‘No go’ decision co-ordination rejected given to stores in 5 mins with Stores Underwriting Initiated Onboard a Financial Successful Stores give
Slide 18: Co-Lending Partnerships
Co-Lending Partnerships Existing and Forthcoming Partnerships • Co-Lending partnerships with FLDG (first loss default guarantee) specifically in MSME, education and business loans. • Partners in co-lending are chosen after extensive due diligence by the Credit Committee. Criteria for selection is de
Slide 19: Enabling Substantial Scale with Technology
Enabling Substantial Scale with Technology
Slide 20: Addressable Market for MSMEs & Blue-Collar Work Force
Addressable Market for MSMEs & Blue-Collar Work Force 63 million MSMEs – 350 million employs >110 million - More than 20% of the Blue Collared Workers employable population in the country Potential Market Size Potential Market Size INR 550 Bn# INR 1.75 Tn# Potential Potential Addressable Market Addr
Slide 21: Money Rabbit: Omni Channel Digital Platform
Money Rabbit: Dhanvarsha’s Omni Channel Digital Platform for MSME’s and Blue-Collar Work Force Virtual & Physical Card Get your own Personalized Ru-pay card which can be used at any Credit Health Check Tool online/offline merchants Get to know your latest Bureau Score and other Micro Loans credit de
Slide 22: Credit Health Check Tool
Credit Health Check Tool This feature is a Financial Health and Credit Wellness tool for our Target Audience as they rarely use Bureau Reports or have knowledge of them The idea is to de-mystify a credit score for the underserved MSME and blue-collar consumer. D2C Bureau Score and report would be fr
Slide 23: One Card for all Needs
One Card for all Needs Money Rabbit’s Virtual and Physical Card is easy to use and issued instantly (Gives a feel-good factor as our customers don’t use Credit Cards). Accepted both Digitally and Physically across most merchants which provides high level of engagement for all our customers. Seamless
Slide 24: Dhanvarsha Neo Bank
Dhanvarsha Neo Bank All your Banking needs ‘On the Go’ Unified Lending Savings Account Platform • Zero Balance Savings • Personal Loans • Account opening • Business Loans • Gold Loans • BNPL NEO BANK Investments Insurance • Mutual Funds • General Insurance • Systematic Term Plan • Life Insurance • S
Slide 25: Dhanvarsha Neo Bank
Dhanvarsha Neo Bank All your Banking needs ‘On the Go’
Slide 26: An Integrated LOS and LMS (LOMS)
An Integrated LOS and LMS (LOMS) Focusing on Automation A world class platform enabling seamless onboarding, underwriting, servicing, monitoring and on-time collections. CHANNELS EXTERNAL SYSTEMS Co-Lending Financial Digital Call Center DSA/FOS Branches CUSTOMER ONBOARDING Partners Inclusion Stores
Slide 27: Company Overview: Governance & Mission
Company Overview: Governance & Mission
Slide 28: Deep sectoral expertise in MSME essential goods segments
Deep sectoral expertise in MSME essential goods segments MSME Focussed Lender Pristine Balance Sheet Serving the underserved Unlevered and liquid balance 15% and underbanked sector sheet. Marquee lenders 26% which has >63 Mn MSME’s 7% Significantly Tech Enabled Solid Promoter Backing MSME Exposure b
Slide 29: Differentiated approach in lending
…with a Differentiated approach in lending Capital eficiency & risk management at the fore Own balance sheet lending Co-lending with FLDG Business correspondent Small ticket Solid sourcing in new geographies High fee generating business with with very low acquisition cost share of interest & fee Sho
Slide 30: Product Profile
Product Profile On Balance Sheet Off Balance Sheet Particulars Gold Loans Business Loans Personal Loans LAP* Average Ticket Size Up to INR 5 Mn INR 0.40 Mn INR 0.15 Mn INR 2.7 Mn Interest Rate 15% - 22% 18% - 24% 18% - 24% 14% - 20% Tenure 12 Months 12 / 60 Months 12 / 36 Months 60 / 180 months Avg
Slide 31: We enable businesses by lending hand, head & heart
We don’t just lend money. We enable businesses by lending ‘hand’, ‘head’ & ‘heart’ Ecosystem We are true business partners to our customers Growth & Wealth & Scalability Wellbeing For us, business are communities first. We help building ‘Social Capital’ We give equal importance to both ‘Social’ & ‘C
Slide 32: ESG Integration Framework for Building Social Capital
ESG Integration Framework for Building Social Capital Lending Hand-Head-Heart • With a deep sense of purpose to support the organization’s commitments towards the environment, health and safety, corporate social responsibility, Dhanvarsha Finvest Limited governance, sustainability, and other public
Slide 33: Partnerships
Partnerships Lenders MSME lending FLDG partners Education lending FLDG partners Distribution partners and 100+ partners Minaxi Mehta Welfare Social Capital partners Foundation Mera Cashier Insurance partners Auditors Harikbhakti & Co
Slide 34: Focus on Governance & Best Practices
Focus on Governance & Best Practices Substantial management ownership in the company Independent and Eminent Board comprising of industry stalwarts High governance standards Rakesh Sethi Manjari Kacker Rajiv Kapoor Nirmal Momaya KP Raghuvanshi Stat Audit Haribhakti & Co Non-Executive Chairman Indepe
Slide 35: Professional management team
Professional management team Karan Desai Joint Managing Director • Ex-investment banker with 15+ years of experience • Previously worked at Bank of America, PwC and Centrum Capital Rohanjeet Juneja Joint Managing Director • 17+ years of experience, in India & US. • An investment banker, hedge fund m
Slide 36: Management team (continued)
Mahendra Servaiya Credit Head & Principal Officer • 32+ years of experience • Previously worked in the credit team of Union Bank of India for heading the South Mumbai division Sunil Ranpara Collections Head • 15+ years of experience across collections, litigation and recovery • Previously worked wit
Slide 37: Backed by a promoter group with rich heritage
Dhanvarsha is backed by a promoter group with rich heritage Group’s businesses Dhanvarsha Finvest Limited is a Bombay Stock Exchange Limited listed NBFC provides credit to the underbanked MSME sector in India About the group • Wilson Group’s history traces back up to Pre-Independence • Diversified c
Slide 38: Shareholding Pattern
Shareholding Pattern Public 29.8% Promoter 62.8% FII 7.2% Shareholding on fully diluted basis including CCDs issued in November 2020 and April 2021
Slide 39: Financials
= Financials
Slide 40: Balance Sheet
Balance Sheet • Strong liquidity profile coupled Balance Sheet (INR Million) Jun 2020 Jun 2021 with an un-levered balance sheet will support higher disbursement Financials Assets 567.5 2,611.6 trajectory. Cash and Investments 188.6 1,347.6 • Company anticipates robust loan Gross Loans 425.9 1,313.7
Slide 41: Income Statement
Income Statement • Robust growth in pre-tax profit Income Statement (INR Million) Jun 2020 Jun 2021 but post tax profit saw one time impact from deferred tax liability Interest Income 16.0 61.8 of INR 13.8 million due to issuance Less: Finance Cost 6.3 35.1 of CCDs in April 2021. This one-time negat
Slide 42: Thank You
Thank You