Capital Trust Ltd. (india) · NSE:CAPTRUST
Capital Trust Ltd. (india) — Capital Trust — Q2 FY2025 Earnings Presentation
33 slides from Capital Trust Ltd. (india)'s earnings presentation, Nov 18, 2024
Slide 1: Q2 & HY2025 Investor Presentation
Informal MSME Lending in Rural India CAPITAL TRUST LIMITED Q2 & HY2025 INVESTOR PRESENTATION November 2024
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 04-06 Q2 FY2025 UPDATES 07-14 INDUSTRY OVERVIEW 15-18 OPERATING MODEL 19-21 CAPITAL TRUST 2.0 22-27 FINANCIALS 28-30 KEY PARTNERSHIPS 31-32
Slide 4: Company Overview
> Capital Trust COMPANY OVERVIEW
Slide 5: Capital Trust – MSME Financing with a Tech-Touch Balance
Capital Trust – MSME Financing with a Tech-Touch Balance Company Snapshot • Publicly listed "Rural Doorstep-Fintech Company” focused on providing financial inclusion services to underserved India by merging fintech and traditional financing. • Our digitized rural financing model offers micro busines
Slide 6: Numbers at a Glance
Numbers at a Glance ASSETS UNDER MANAGEMENT CAPITAL ADEQUACY ₹ 284 Cr 29.2 % [YoY: +40%] [QoQ: -4%] [YoY: -22%] [QoQ: -14%] ON-BOOK PORTFOLIO GROSS NPA & NET NPA ₹ 108 Cr 2.90 % & 1.89 % [YoY: +88%] [QoQ: +19%] OFF-BOOK PORTFOLIO Q2 FY25 REVENUE & PBT ₹ 176 Cr ₹ 25.1 Cr & ₹ 0.3 Cr [YoY: +21%] [QoQ:
Slide 7: Q2 FY2025 Updates
Q2 FY2025 UPDATES
Slide 8: Q2 FY2025: Stepping Stone For Future Growth
Q2 FY2025: Stepping Stone For Future Growth Q2 FY2025 - Board Approval for ₹49.9 Cr Equity Raise through Rights Issue Stepping Stone For Future Growth - Pilot and launch of Micro LAP product Q1 FY2025 - Long term tie ups for Co-Lending with larger NBFCs - ₹8.1 Cr Equity Infusion through Preferential
Slide 9: Q2 FY2025: Stepping Stone For Future Growth
Q2 FY2025: Stepping Stone For Future Growth Pilot & Launch of Micro LAP Product Ticket Size: ₹2,00,000 - ₹10,00,000 Interest Rate: ~25% Tenure: 3 years + Business Correspondent line secured for product Board Approval for ₹49.9 Cr Equity Long term tie ups for Co-Lending Infusion through Rights Issue
Slide 10: Proactive Approach To Challenging Market Conditions
Q2 FY2025: Stepping Stone For Future Growth Proactive Rather Than Reactive Approach To Challenging Market Conditions 01 RBI Action on NBFCs, 03 Rising Delinquency in Fintechs and P2Ps Certain Geographical Pockets o Strict RBI action due to material supervisory concerns o Agitation and non-payment du
Slide 11: Q2 FY2025: Financial Parameters
Q2 FY2025: Stepping Stone For Future Growth Financial Parameters: - Consistent quarterly revenue uptrend - Decrease in PBT and PBT numbers due to higher operational cost on account of new branch opening in South India Revenue (₹ in Crores) Profit After Tax (₹ in Crores) 24.7 25.1 0.7 22.5 19.6 19.8
Slide 12: Q2 FY2025: Operational Parameters
Q2 FY2025: Stepping Stone For Future Growth Operational Parameters: - Conservative decision to have lower disbursement in Q2FY25 due to market conditions Asset Under Management (₹ in Crores) Clients (in #) 280 294 284 1,13,163 1,12,530 1,06,604 223 87,723 202 77,695 166 70,214 Q1 FY24 Q2 FY24 Q3 FY2
Slide 13: YoY Comparison (Q2 FY2025 vs Q2 FY2024)
YoY Comparison (Q2 FY2025 vs Q2 FY2024) Assets Under Management (in Cr): Own Book Portfolio (in Cr.): Net Worth (in Cr.): 283.6 108.0 85.8 (40%) (14%) (14%) 202.1 57.5 75.5 Revenue (in Cr): Expenses (in Cr): Profit Before Tax (in Cr): 25.1 24.8 0.5 (28%) (31%) (-55%) 19.6 18.9 0.3 Capital Adequacy (
Slide 14: QoQ Comparison (Q2 FY2025 vs Q1 FY2025)
QoQ Comparison (Q2 FY2025 vs Q1 FY2025) Assets Under Management (in Cr): Own Book Portfolio (in Cr.): Net Worth (in Cr.): 294.2 108.0 85.8 (-4%) (19%) (0%) 283.6 90.3 85.4 Revenue (in Cr): Expenses (in Cr): Profit Before Tax (in Cr): 25.1 24.8 1.0 (1%) (31%) (-69%) 24.7 23.8 0.3 Capital Adequacy (in
Slide 15: Industry Overview
INDUSTRY OVERVIEW
Slide 16: Need For Evolution In Rural Financing
Need For Evolution In Rural Financing Unchanged processes since early 2010s that have not kept up with evolving client demands 01 Untapped Market Above Microfinance Sector 03 Group Structure (Client Perspective) Existing: Existing: • Limited companies focusing specifically on • Clients assessed on c
Slide 17: Spearheading The Evolution
Spearheading The Evolution Untapped Market Above Microfinance Sector Finetuned product (small ticket size, short tenure, optimal EMI) and target sector over a decade of exclusively serving business loans to MSMEs Technology 82% of own book loans disbursed within 2 days of client onboarding. Historic
Slide 18: Market Segment
Market Segment RBI recognizes Capital Trust’s target sector as the Informal Micro Enterprises Sector by placing it on par with the Formal MSME Sector, classifying it as Priority Sector Lending (RBI/2023-24/27: FIDD.MSME & NFS.BC.No.09/06.02.31/2023-24) CLASSIFICATION DOCUMENTATION TICKET SIZE ANNUAL
Slide 19: Operating Model
> Capital Trust SE PC
Slide 20: Rural Doorstep-Fintech Company Focused on MSME Lending
Rural Doorstep-Fintech Company Focused on MSME Lending 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. CREDIT UNDERWRITING QR Code scan of Aadhaar Card
Slide 21: Product Offering & Typical Clientele
Product Offering & Typical Clientele Product Name Capital Business Loan Target Clientele Type of Loan Income-generating business loan Graduated from 8% of the Microfinance clients graduate yearly Microfinance from the Microfinance sector and hit a wall Ticket Size (₹) 30,000 – 1,00,000 Replacing tra
Slide 22: Capital Trust 2.0
CAPITAL TRUST 2.0
Slide 23: Unique Selling Proposition
Unique Selling Proposition Providing Portfolio Quality Lending-As-A-Service - High quality, seasoned portfolio with - Inherent potential to disburse upwards 2.90% GNPA of ₹ 80 Crore monthly through existing branch network - Current product continues to show strength with ₹1054 Cr total - 6 live Co-L
Slide 24: 1. Portfolio Quality
1. Portfolio Quality ₹ 284 Cr 300 17 97% 97% 97% 96% 97% 97% 96% 96% 96% 95% 250 94% 93% 19 26 200 36 150 55 100 116 50 0 Oct-23 Nov-23 Dec-23 Jan-24 Feb-24 Mar-24 Apr-24 May-24 Jun-24 Jul-24 Aug-24 Sep-24 BIH E UP ODS MP JHA RAJ PUN AP UP UKH CG DEL Companywide Collection Efficiency Assets Under Ma
Slide 25: 2. Pioneers in Technological Advancements
2. Pioneers in Technological Advancements 2015 2016 2017 2018 2019 2019 2020 2021 2023 NOW 2012 Decision to go 100% Issuance of Geo-Tagged Decision to go 100% Incorporation of Credit Launch of payment Cashless Disbursements Digital Receipts rather Cashless Collection as Engine (automated decision po
Slide 26: 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 FOIR analysis Disbursement Telephonic No exceptions or manual Verification by HO interv
Slide 27: 4. Lending-As-A-Service
4. Lending-As-A-Service Shift towards Off Balance Sheet partnerships for last 2 years in an aim to offer Lending-As-A-Service (LAAS) Co-Lending / BC Disbursements done with: Co-Lending: Business Correspondent: Total POS 90+ % 30+ % 90+ % Disbursements (₹ in Cr) (on POS) (on Disbursement) (on Disburs
Slide 28: Financials
FINANCIALS ~ ”n = = ie) = [ok ia) i) aed
Slide 29: Key Highlights & Ratios
Key Highlights & Ratios (₹ in Crores) Particulars Q2 FY25 Q1 FY25 QoQ % Q2 FY24 YoY % Total Income 25.1 24.7 1% 19.6 28% Total Expense (excluding tax) 24.8 23.8 4% 18.9 31% Profit / Loss Before Tax 0.3 1.0 -69% 0.7 -55% Profit / Loss After Tax 0.2 0.7 -68% 0.5 -55% Net Worth 85.8 85.4 0% 75.5 14% On
Slide 30: Balance Sheet
Balance Sheet (₹ in Crores) Assets Q2 FY25 Q1 FY25 Q4 FY24 Liabilities And Equity Q2 FY25 Q1 FY25 Q4 FY24 Financial Assets Financial Liabilities Trade Payables 0.5 0.5 0.8 Cash and Cash Equivalents 20.0 36.2 12.2 Debt Securities 16.5 6.7 9.2 Bank Balances other than Cash & Borrowings other than Debt
Slide 31: Key Partnerships
KEY PARTNERSHIPS
Slide 32: Funding & Partnerships
Funding & Partnerships Equity: 1 Co-Lending: 5 Business Correspondent: 3 On-Balance Sheet Funders: 20 BC Partners not currently live: 32
Slide 33: Thank You
THANK YOU Vinod Raina Chief Financial Officer Vinod.raina@capitaltrust.in Vahin Khosla Joint-Managing Director Vahin.khosla@capitaltrust.in 33