Capital Trust Ltd. (india) · NSE:CAPTRUST
Capital Trust Ltd. (india) — Capital Trust — Q4 FY2023 Earnings Presentation
33 slides from Capital Trust Ltd. (india)'s earnings presentation, May 27, 2023
Slide 1: Q4 & FY 2023 Investor Presentation
Merging New-Age Fintech with Traditional Lending CAPITAL TRUST LIMITED Q4 & FY 2023 INVESTOR PRESENTATION May 2023
Slide 2: Disclaimer
Disclaimer Certain statements in this document that are not historical facts are forward looking statements. Such forward- looking statements are subject to certain risks and uncertainties like government actions, local, political or economic developments, technological risks, and many other factors
Slide 3: Table of Contents
TABLE OF CONTENTS COMPANY OVERVIEW & RECENT UPDATES 04-11 CAPITAL DIGITAL LOANS 12-19 CAPITAL TRUST 2.0 20-26 FINANCIALS 27-30 KEY PARTNERSHIPS 31-32
Slide 4: Company Overview & Recent Updates
COMPANY OVERVIEW & RECENT UPDATES
Slide 5: Capital Trust - Financing with a Tech-Touch Balance
Capital Trust - Financing with a Tech-Touch Balance Company Snapshot • Being India’s first "Rural Doorstep-Fintech Company,” we are focused on providing financial inclusion services to underserved India by merging fintech and traditional financing. • Our digitized rural financing model offers quick
Slide 6: Important Recent Updates: Launchpad For Future Growth
Important Recent Updates: Launchpad For Future Growth 01 Merger of Subsidiaries 03 Successful Bullet Repayments Final merger of subsidiaries In April and May 2023, Capital Trust (Capital Trust Microfinance and successfully repaid ₹77 Cr bullet Capital Trust Housing) with the repayments (₹45 Cr Sub-D
Slide 7: 1. Merger Of Subsidiaries
1. Merger Of Subsidiaries merged into Benefits Realized: Increase in Increase in Net Increase in Simplified Consolidation Increase in Net Capital Authorized Owned Funds Capital of Assets Worth of CTL Structure Capital of CTL of CTL Adequacy of CTL 7
Slide 8: 2. Formalization of Informal MSMEs
2. Formalization of Informal MSMEs RBI/2023-24/27 (FIDD.MSME & NFS.BC.No.09/06.02.31/2023-24) circular (“Formalisation of Informal Micro Enterprises on Udyam Assist Platform”) CLASSIFICATION DOCUMENTATION TICKET SIZE ANNUAL INCOME UNSECURED SECURED > ₹ 10 Lakh > ₹ 10 Lakh Banks / Large SME - Income
Slide 9: 3. Successful Bullet Repayments
3. Successful Bullet Repayments - ₹ 30 Cr NCD repayment on 20th April - ₹ 2 Cr TL repayment on 30th April - ₹ 45 Cr Sub-Debt repayment on 1st May Borrowings: ₹ 96 Cr (March) to ₹ 24 Cr (May) Capital Adequacy: 56% (March) to 85% (May) Leverage: 1.3X (March) to 0.3X (May) 9
Slide 10: 4. Legacy Portfolio Write-Off in Q4FY23
4. Legacy Portfolio Write-Off in Q4FY23 Total Legacy Disbursement from FY16: ₹ 2131 Cr 30 795 725 471 71 Written Off * 297 139 127 116 109 101 FY18 FY19 FY20 FY21 FY22 Q1 FY23 Q2 FY23 Q3 FY23 Q4 FY23 Q4 FY23 Legacy Portfolio • Fresh Start (Capital Trust 2.0) • ₹ 75 Cr Net Worth vs ₹ 120 Cr Net Worth
Slide 11: Numbers at a Glance
Numbers at a Glance PORTFOLIO NET WORTH BORROWINGS CAPITAL ADEQUACY LEVERAGE GNPA & NNPA Provisions ₹ 150 Cr ₹ 75 Cr March 23: ₹ 96 Cr March 23: 56% March 23: 1.3X GNPA: ₹ 3.1 Cr May 23: ₹ 24 Cr May 23: ~85% May 23: 0.3X ₹ 1.5 Cr (1%) Off: ₹ 107 Cr ₹ 32 Cr SBI NCD+TL NNPA: 0% On: ₹ 43 Cr ₹ 45 Cr IDF
Slide 12: Capital Digital Loans
CAPITAL DIGITAL LOANS
Slide 13: Current Product Offering
Current Product Offering Product Name Capital Digital Loan Type of Loan Unsecured Income Generating Business Loan Ticket Size (₹) 30,000 – 75,000 Tenure 12 – 24 months ROI 32%+ Repayment Digital NACH followed by physical cash collection Why CTL? Production Optimization - Branch banking - Human conne
Slide 14: Target Audience
Target Audience Graduated from Microfinance 8% of the Microfinance clients graduate yearly from the Microfinance sector and hit a wall New to Organized Credit Replacing traditional informal sources of financing (local moneylenders) which currently account for MISSING 84% of all financing to MSMEs MI
Slide 15: Our Clientele
Our Clientele Kirana Stores Dairy and Livestock Farmers Grocery Vendors Small Eateries Textile Stores Handicraft Manufacturers Utility Stores Salons Flower Vendors 15
Slide 16: Branch Network
Branch Network 39 10 3 33 51 33 47 34 20 7 20 Actively Disbursing Branches: 176 Collection-Only Branches: 121 Reason for Collection-Only Branches: Bad geographical delinquency in past, high DPD of other MFIs evident in pin code report, CDL delinquency crossing set 30+DPD benchmark 297 Branches sprea
Slide 17: Portfolio Quality
Portfolio Quality Total Disbursed: Portfolio Outstanding: 30+ DPD: 90+ DPD: ₹ 512 Cr ₹ 120 Cr 1.8% 1.3% Covid 2nd Wave Impact 5% 4.3% 3.8% 4% 3.4% 3.4% 3.0% 3% 2.8% 2.8% 2.5% 2.3% 2.3% 2.2% 2.1% 1.8% 2% 1.7% 1.3% 1% 0.3% 0% Q2 FY21 Q3 FY21 Q4 FY21 Q1 FY22 Q2 FY22 Q3 FY22 Q4 FY22 Q1 FY23 Q2 FY23 Q3 F
Slide 18: Product Features
Product Features 01 Driven by Faster Credit Unique Customer Low Risk - High Stringent Technology Delivery Profile Returns Credit Control Rural Doorstep Fintech Short Turn-Around-Time Serving the Better Robust Quality Company For Disbursement Missing Middle Rewards Checks ▪ Client facing Capital ▪ Ca
Slide 19: Rural Doorstep Fintech
Rural Doorstep Fintech 1. LEAD GENERATION Generate lead by door to door canvasing Geotagging of business and residential premise Mobile number verification through OTP Handholding of client through digital onboarding 2. HYBRID CREDIT UNDERWRITING QR Code scan of Aadhaar Card Automated credit bureau
Slide 20: Capital Trust 2.0
CAPITAL TRUST 2.0
Slide 21: Acknowledging What Went Wrong: CDL – Legacy Differentiators
Acknowledging What Went Wrong: CDL – Legacy Differentiators CDL Legacy Enhancement in CDL Product Timeline Sourced Post FY20 Sourced Before FY20 - Predominantly joint-liability, cash Active flagship product of the company About collection product with comparatively - that is automated credit engine
Slide 22: Capital Trust 2.0: A Clean Slate
Capital Trust 2.0: A Clean Slate 1. Remaining Portfolio 3. Hybrid Dual Credit • High quality, seasoned AUM • Automated credit (credit with 1% GNPA and 0% bureau checks and preset NNPA algorithms) supplemented with Traditional Safeguards • ₹120 Cr CDL product with of Branch Banking (physical good por
Slide 23: 1. Remaining Portfolio
1. Remaining Portfolio ₹ 150 Cr 160 100% 100% 99% 98% 99% 140 9 97% 96% 96% 97% 97% 93% 94% 12 120 15 100 16 16 80 25 60 40 52 20 0 Apr-22 May-22 Jun-22 Jul-22 Aug-22 Sep-22 Oct-22 Nov-22 Dec-22 Jan-23 Feb-23 Mar-23 BIH E UP MP PUN JHA ODS RAJ UP UKH CG DEL Companywide Collection Efficiency Portfoli
Slide 24: 2. Pioneers in Technological Advancements
2. Pioneers in Technological Advancements 2015 2016 2017 2018 2019 2019 2020 2020 2021 NOW 2012 Decision to go 100% Issuance of Geo-Tagged Decision to go 100% Incorporation of AI Enabled Launch of AI Enabled Cashless Disbursements Digital Receipts rather Cashless Collection as Credit Engine (automat
Slide 25: 3. Hybrid Dual Credit
3. Hybrid Dual Credit Instant in-principal approval by automated credit decisioning system with no manual intervention at client doorstep. Final approval subject to positive physical verification of cash flow and disposable income Disbursement Telephonic No exceptions or manual Verification by HO in
Slide 26: 4. Lending-As-A-Service
4. Lending-As-A-Service Shift towards Off Balance Sheet partnerships for last 1.5 years in an aim to offer Lending-As-A-Service (LAAS) BC / Co-Lending Disbursements done with: Total 30+ % 90+ % POS 30+ % 90+ % Disbursements (on (on (₹ in Cr) (on POS) (on POS) (₹ in Cr) Disbursement) Disbursement) 5
Slide 27: Financials
FINANCIALS ~ ”n = = ie) = [ok ia) i) aed
Slide 28: Key Highlights & Ratios
Key Highlights & Ratios Net Worth (₹ in Crores) Borrowings (₹ in Crores) 228 240 238 209 155 117 118 119 121 122 124 119 130 114 96 75 24 Q1 FY22 Q2 FY22 Q3 FY22 Q4 FY22 Q1 FY23 Q2 FY23 Q3 FY23 Q4 FY23 Q1 FY22 Q2 FY22 Q3 FY22 Q4 FY22 Q1 FY23 Q2 FY23 Q3 FY23 Q4 FY23 May 23 Capital Adequacy Ratio (%)
Slide 29: Key Highlights & Ratios
Key Highlights & Ratios (₹ in Crores) Particulars Q4 FY23 Q4 FY22 YoY % Q3 FY23 QoQ % FY23 FY22 YoY % Total Income 20.0 27.8 -28% 19.8 1% 86.9 106.0 -18% Total Expense (excluding tax) 81.9 25.4 222% 24.6 232% 148.2 120.2 23% Profit / Loss After Tax -46.0 1.6 -3.5 -45.6 -10.8 322% Net Worth 74.5 120.
Slide 30: Consolidated Balance Sheet
Consolidated Balance Sheet (₹ in Crores) Assets Q4 FY23 Q3 FY23 Q2 FY23 Liabilities And Equity Q4 FY23 Q3 FY23 Q2 FY23 Financial Assets Financial Liabilities Cash and Cash Equivalents 8.1 12.0 9.1 Trade Payables 0.8 0.8 0.2 Debt Securities 30.0 32.4 41.9 Bank Balances other than cash & 65.1 68.4 64.
Slide 31: Key Partnerships
KEY PARTNERSHIPS
Slide 32: Equity & Funding Partnerships
Equity & Funding Partnerships Equity: 1 Public Sector Banks: 2 Private Sector Banks: 2 DFI / NBFCs / P2Ps: 9 32
Slide 33: Thank You
THANK YOU Vinod Raina Chief Financial Officer Vinod.raina@capitaltrust.in Vahin Khosla Executive Director Vahin.khosla@capitaltrust.in 33