TruCap Finance Limited · NSE:TRU
TruCap Finance — Q3 FY2023 Earnings Presentation
31 slides from TruCap Finance's earnings presentation, Feb 13, 2023
Slide 1: Earnings Presentation cover letter to BSE
February 13, 2023 To, The General Manager Department of Corporate Services BSE Limited P.J. Towers, Dalal Street, Mumbai – 400 001. Scrip Code: 540268 Subject: Earnings Presentation Dear Sir/Madam, This is to inform you that the Board of Directors of TruCap Finance Limited (Formerly Dhanvarsha Finve
Slide 2: TruCap Finance Ltd
TruCap Finance Ltd
Slide 3: Safe Harbor
Safe Harbor This presentation is not a prospectus, a statement in lieu of a prospectus, an ofering circular / memorandum, an advertisement, an ofer, an invitation to ofer or an ofer document in terms of the Companies Act, 2013, the Securities and Exchange Board of India (Issue of Capital and Disclos
Slide 4: TruCap Finance: Lender to India's MSME Needs
Tru Cap Finance Lender to India’s MSME Needs TRUST TRU Promise T TRANSPARENCY TECHNOLOGY We stand by the belief that technology & capital can be employed to catalyze the growth journey of MSMEs. It can bring positive social impact by creating opportunities & supporting livelihoods through fostering
Slide 5: Another milestone in TruCap's Journey
Another milestone in TruCap’s Journey. IEVED ACH E AUM R R O C
Slide 6: TruCap Finance – Lending Journey
TruCap Finance – Lending Journey
Slide 7: Journey to Cross INR 5 billion of AUM
TruCap Finance – Journey to Cross INR 5 billion of AUM… Cumulative Disbursement (INR Mn) Customers Served 14,000 1,40,000 1,28,708 12,209 12,000 1,20,000 1,06,875 10,018 10,000 1,00,000 84,251 8,035 8,000 80,000 5,968 61,159 6,000 60,000 4,000 40,000 2,000 1,662 20,000 709 794 7,742 416 101 243 462
Slide 8: Journey to Cross INR 5 billion of AUM (gold and business loans)
…TruCap Finance – Journey to Cross INR 5 billion of AUM MSME Gold Loan Cumulative Disbursement (INR Mn) MSME Business Loan Cumulative Disbursement (INR Mn) 8,000 4,500 7,215 4,000 3,853 7,000 3,500 3,258 6,000 5,624 3,000 2,767 5,000 4,135 2,500 4,000 2,082 2,000 3,000 2,762 1,500 2,000 1,000 614 1,
Slide 9: Granular MSME Gold and Business Loan Disbursement
Granular MSME Gold and Business Loan Disbursement TruCap Transformation - Changing Product Mix* Focused Business Loans & Gold Loans Portfolio* 120% 100% 80% 35% 38% 40% 43% 47% 49% 60% 59% 66% 75% 75% 26% 38% 40% 39% 44% 46% 14% 45% 44% 20% 38% 12% 7% 29% 33% 25% 25% 4% 13% 3% 11% 9% 2% 7% 5% 4% 0%
Slide 10: Focus on Essential Sector Across MSME Gold & Business Loans
Focus on Essential Sector Across MSME Gold & Business Loans Gross Loan Portfolio (AUM) INR Mn Essential Sector* Portfolio Mix 5,104 56% 56% 56% 54% 4,549 3,952 41% 3,059 32% 2,580 2,395 27% 28% Q2’FY22 Q3’FY22 Q4’FY22 Q1’FY23 Q2’FY23 Q3’FY23 FY18 FY19 FY20 FY21 FY22 Q1-23 Q2-23 Q3-23 AUM = managed b
Slide 11: Sectoral Composition
Sectoral Composition Sector Mix - Top10 Asset Quality Performance (GNPA%) Sector Composition 7.0% 3% 4% 6.0% 12% 6.0% 5% 5.1% 5.0% 5% 4.0% 3.0% 3.0% 3.1% 9% 2.8% 2.8% 3.0% 5% 2.0% 1.0% 7% 8% 0.0% 7% FY19 FY20 FY21 FY22 Q1-23 Q2-23 Q3-23 GNPA is calculated on Total AUM (On-book and off-book) Beauty /
Slide 12: Multi Channel Distribution Built in the Last Few Years
Multi Channel Distribution Built in the Last Few Years… Experiential Centers Offers Superior Value Proposition Captive Sales Team for MSME Customers in BL & GL Tru Cap Finance has a team of ~150 Strong Feet on Street Significantly increasing financial inclusion in 5 key states These individuals play a
Slide 13: Lending with Technology Enablement
Lending with Technology Enablement Dhanvarsha Digital Assets Third Party Core: LOMS B2B App B2C Apps API Integrations Loans & Payment Micro Loans & Loans & Value Credit Health Added Services CRM System User Facing LOS & LMS Applications Workflow Reporting & Leads Customer Automation Analytics Managem
Slide 14: Expanding Experiential Centre Presence
…And Expanding Experiential Centre Presence Built over the last few years Increasing Branch Presence 74 n' 23 y J u es b n c h b ra 1 0 0 59 h ave 56 74 Experiential Centres e t to g Tar Multi-city Presence Single-city Presence 37 34 31 Q2’FY22 Q3’FY22 Q4’FY22 Q1’FY23 Q2’FY23 Q3’FY23 Expanding netwo
Slide 15: Expanding Geographic Presence & AUM – Entered Gujarat
Expanding Geographic Presence & AUM – TruCap Entered Gujarat in Q3FY23 AUM distribution Over the Years Increasing Branch Distribution with Focus on Tier II/III/IV State FY19 FY20 FY21 FY22 H1FY23 9MFY23 FY20 FY21 FY22 1HFY23 Q3FY23 Maharashtra 100% 100% 81.3% 52.8% 39.6% 37.4% Maharashtra 0 2 4 1 Ma
Slide 16: Lending-as-a-Service – Accretive & Accelerating
Lending-as-a-Service – Accretive & Accelerating
Slide 17: Differentiated Approach in Lending
TruCap Finance Differentiated Approach in Lending Capital efficiency & risk management at the fore Own balance sheet lending Lending-as-a-Service (L-a-a-S) Preferred Sourcing Partnership MSME Business loans and Gold loans High IRR generating business with share Solid sourcing in new geographies of in
Slide 18: Over INR 2.0 billion of L-a-a-S disbursements
Over INR 2.0 billion of L-a-a-S disbursements Since commencement of Partnerships Leading to 24% L-a-a-S AUM Portfolio Mix 1,950 24% Share of L-a-a-S 24% 20% 12% 4% 1% 1% 23 34 Q2’FY22 Q3’FY22 Q4’FY22 Q1’FY23 Q2’FY23 Q2’FY23 CBOI Aug’21 Shivalik SFB Nov’22 UGRO Nov’22 On Book Portfolio L-a-a-S Portfo
Slide 19: Increasing and Accelerating L-a-a-S Partnerships
Increasing and Accelerating L-a-a-S Partnerships What does it entail Commercial synergies Partnerships details across products Benefit for TruCap Finance Benefit for TruCap Finance TruCap Live Partnership with Sourcing partnership with large lenders to Superior Growth with High IRR Central Bank of Ind
Slide 20: Quarterly Results
2QOFY23 Quarterly Results
Slide 21: Key Highlights – H1FY23
Key Highlights – H1FY23 INR Mn Particulars 9MFY22 9MFY23 Y-o-Y Change Significant scale up in L-a-a-S partnership reflecting in Off-book AUM. Disbursements 2,787 6,237 2.2x AUM 2,581 5,104 2x Disbursement growth has outpaced branch growth, as vintage branches have matured. MSME Gold Loans 981 2,533 2.
Slide 22: Income Statement
Income Statement INR Mn Substantial increase in interest income, Income Statement (INR Mn) Dec'20 Dec'21 Dec'22 ahead of AUM growth Interest Income 29.9 132.6 240.5 Increase in operating expenses due to continued addition to experiential center and Less: Finance Cost 5.4 72.5 137.4 technology build
Slide 23: Balance Sheet
Balance Sheet INR Mn Consistent build up of secured and Balance Sheet Dec'20 Dec'21 Dec'22 more granular loan assets Well capitalized and low gearing, ensures high Financials Assets 1,132 3,442 5,623 growth in future Cash and Investments 416 938 1,784 Debt provided by marquee financial institutions,
Slide 24: Well Capitalized for Growth
Well Capitalized for Growth INR Mn INR Mn Equity (INR Mn) Debt (INR Mn) Current Equity (INR MN) 2,193 Borrowings from Banks & FIs 3,712 Capital infusion concluded in May'22, has a residual NCD & other debentures 51 infusion towards warrants. This round was led by Aviator 270 Emerging Market Fund (AE
Slide 25: Risk & Governance
Risk & Governance
Slide 26: Robust Collections and Asset quality
Robust Collections and Asset quality INR Mn Months Demand Collection Collection Payment & CE including for the done efficiency foreclosures prepyament Asset Quality Performance month for the for the in the /part payment 7.0% month month month 6.0% 6.0% Apr-22 129 116 89.8% 358 366.5% 5.1% 5.0% May-22
Slide 27: Comprehensive Risk Management Framework
Comprehensive Risk Management Framework Action Undertaken Aspects Covered Objective Achieved / To Be Achieved Risk Assessment Framework Credit, liquidity, solvency, financial, Common standards for management and information security risks of various risks at portfolio level Independent unit for inter
Slide 28: Standardised Branch Score Card
Standardised Branch Score Card Mitigate Risk and Maintain Quality Service Standard Branch Audit Score Branch Score Matrix Card Mechanism Standard scoring mechanism following weighted Risk Rating average mechanism based upon risk rating of 12 comprehensive processes and 130 checkpoints High C RBI ten
Slide 29: Focus on Governance
Focus on Governance Independent and Eminent Board Comprising of Industry Stalwarts Rakesh Sethi Nirmal Momaya Atwood Porter Collins Rajiv Kapoor KP Raghuvanshi Non-Executive Chairman Independent Director Non-executive Director Non-executive Director Independent Director Past experience: Past experie
Slide 30: Shareholding Pattern
Shareholding Pattern Substantial management ownership in the company Public 30.9% Promoter - Wilson Group 59.7% FII 9.4% Promoter Group FII Public Shareholding on fully diluted basis as on Dec’22, including equity and warrants issued in May’22
Slide 31: Thank You
Thank You