Capital Trust Ltd. (india) · NSE:CAPTRUST
Capital Trust Ltd. (india) — Capital Trust — Q3 FY2021 Earnings Presentation
38 slides from Capital Trust Ltd. (india)'s earnings presentation, Feb 9, 2021
Slide 1: Investor Presentation Q3 FY21
INVESTOR PRESENTATION Q3 FY21
Slide 2: Company Overview / Agenda
COMPANY OVERVIEW COVID-19 UPDATE MARKET SEGMENT UNIQUE SELLING PROPOSITION PRODUCT OFFERINGS OPERATING MODEL PORTFOLIO UPDATE FINANCIALS PARTNERS 1
Slide 3: About Capital Trust
ABOUT CAPITAL TRUST STORY ORIGINS MISSION VISION CTL pioneers the digitalization of Capital Trust is a publicly listed To provide financial assistance to the To become the first fully digital and the rural financing model. Systematically Important Non unbanked in deep interiors of rural cashless, te
Slide 4: Performance Milestones
PERFORMANCE MILESTONES o Business Intelligence & AI incorporation into products o Capital Digital Loans Initiative o On-Tap Borrowing Partnership with IDFC Bank o ₹ 71Cr Promoter infusion o ₹ 65Cr PE investment o Listing on NSE o Acquisition of Microfinance subsidiary o Ventured into MSME funding o
Slide 5: COVID-19 Update
COMPANY OVERVIEW COVID-19 UPDATE MARKET SEGMENT UNIQUE SELLING PROPOSITION PRODUCT OFFERINGS OPERATING MODEL PORTFOLIO UPDATE FINANCIALS PARTNERS 4
Slide 6: Business Update
BUSINESS UPDATE • Higher than Pre-Covid times Disbursement • Subject to newly developed automated disbursement engine and algorithmic credit scorecard (In ₹ Cr) 30 25 26 25 23 23 21 20 18 15 15 11 10 6 5 0 0 0 1 0 January 20 February 20 March 20 April 20 May 20 June 20 July 20 August 20 September 20
Slide 7: Liquidity Update
LIQUIDITY UPDATE High Liquidity Buffers (Actual and Systematic) Actual Systematic - ₹ 28Cr Opening Cash Balance in January 2021 - Positive ALM - Capital Adequacy of 51% - Business Correspondent Relationship with IDFC First Bank - Leverage Ratio of 1.5x - Co-Lending Agreement Signed with Poonawalla F
Slide 8: Market Segment
COMPANY OVERVIEW COVID-19 UPDATE MARKET SEGMENT UNIQUE SELLING PROPOSITION PRODUCT OFFERINGS OPERATING MODEL PORTFOLIO UPDATE FINANCIALS PARTNERS 7
Slide 9: Serving the Unserved Missing Middle
SERVING THE UNSERVED MISSING MIDDLE Annual Income > ₹ 17 Lakh ₹ 10-17 Lakh Banks and MSME Focused NBFCs ₹ 3.5-10 Lakh ₹ 2 - 3.5 Lakh Capital Trust Limited Debt Shortfall in Micro of MSME: 87 Lakh Crore ($117Bn) ** < ₹ 2 Lakh Microfinance Institutions *NCAER-CMCR Annual Income Data **IFC Report on MS
Slide 10: Target Clientele
TARGET CLIENTELE Graduated from Microfinance 8% of the Microfinance clients graduate yearly from the Microfinance sector New to Organized Credit Replacing traditional informal sources of financing (local moneylenders) MISSING MIDDLE ‘Micro’ of the MSME Unserved by MFIs (owing to RBI guidelines) and
Slide 11: Customer Segment
CUSTOMER SEGMENT Linked To Local Economy Non-Seasonal Businesses Businesses which are not part of larger supply Businesses which are active throughout chain economies but depend on local demand year and not seasonal Self-Run Businesses Essential Services Businesses which are run by family members Bu
Slide 12: Typical Clientele
TYPICAL CLIENTELE Kirana Stores Dairy and Livestock Farmers Grocery Vendors Small Eateries Textile Stores Local Handicraft Producers Utensil Stores Hair Salons Flower Sellers 11
Slide 13: Unique Selling Proposition
COMPANY OVERVIEW COVID-19 UPDATE MARKET SEGMENT UNIQUE SELLING PROPOSITION PRODUCT OFFERINGS OPERATING MODEL PORTFOLIO UPDATE FINANCIALS PARTNERS 12
Slide 14: Unique Selling Proposition
UNIQUE SELLING PROPOSITION RURAL DOORSTEP-FINTECH COMPANY: One-of-a-kind business that finds the perfect balance between technology and traditional financing Hybrid Fintech-Physical Credit Model Use of a credit decision scorecard that merges automated credit (credit bureau and alternate data) with p
Slide 15: Rural Doorstep-Fintech Process
RURAL DOORSTEP-FINTECH PROCESS 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 Financial literacy of client 2. HYBRID CREDIT UNDERWRITING QR Code scan of
Slide 16: Product Offerings
COMPANY OVERVIEW COVID-19 UPDATE MARKET SEGMENT UNIQUE SELLING PROPOSITION PRODUCT OFFERINGS OPERATING MODEL PORTFOLIO UPDATE FINANCIALS PARTNERS 15
Slide 17: Evolution Pre-Lockdown
EVOLUTION PRE-LOCKDOWN MOVE TO DIGITAL COLLECTION Group Loan Individual Loan DISBURSEMENT Safety - One of the first rural NBFCs to start 100% cashless disbursement in 2015 COLLECTION Efficiency - Pioneered digital collection in rural lending in 2019 Cash Collection Digital Collection - Loans given s
Slide 18: Evolution Post-Lockdown 1.0
EVOLUTION POST-LOCKDOWN 1.0 We have developed a credit engine for internal rating of every client. The Credit Engine uses Artificial Intelligence and Credit Engine: 1 Machine Learning in an automated self-learning credit model that covers parameters on client demographics, financial condition and en
Slide 19: Evolution Post-Lockdown 2.0
EVOLUTION POST-LOCKDOWN 2.0 Staff Engine Our staff engine is an integrated tool for real time monitoring of current staff availability and projected staff sufficiency at branch level. By looking at past attendance, this engine Performance Management Engine predicts staff shortfall in times to come R
Slide 20: Products Offered
PRODUCTS OFFERED Capital Magic Loan Micro Business Loan Unsecured Digital Business Loan Unsecured Digital Business Loan Ticket Size (₹): 30,000 – 50,000 Ticket Size (₹): 60,000 Tenure: 12-18 months Tenure: 24 months ROI: 40% ROI: 32% Repayment: Digital followed by Repayment: Digital followed by phys
Slide 21: Operating Model
COMPANY OVERVIEW COVID-19 UPDATE MARKET SEGMENT UNIQUE SELLING PROPOSITION PRODUCT OFFERINGS OPERATING MODEL PORTFOLIO UPDATE FINANCIALS PARTNERS 20
Slide 22: Branch Network
BRANCH NETWORK 39 13 6 31 56 26 10 24 8 20 Branches: 233 Districts: 63 States: 10 21
Slide 23: Smart Credit
SMART 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 Verification No exceptions or manual by HO Credit Team
Slide 24: Information Technology Prowess
INFORMATION TECHNOLOGY PROWESS One of the first NBFCs to start cashless disbursement of all Cashless Disbursement & loans since 2015. Also started process of cashless Collection repayment for all loans (expect Microfinance) in 2019 Automated closing of company and all branch books at Automation of D
Slide 25: Portfolio Update
COMPANY OVERVIEW COVID-19 UPDATE MARKET SEGMENT UNIQUE SELLING PROPOSITION PRODUCT OFFERINGS OPERATING MODEL PORTFOLIO UPDATE FINANCIALS PARTNERS 24
Slide 26: Productwise Portfolio
PRODUCTWISE PORTFOLIO (In ₹ Cr) 900 ₹ 795Cr ₹ 725Cr 800 120 700 89 ₹ 555Cr 56 600 55 ₹ 471Cr ₹ 427Cr 500 125 24 29 15 400 15 90 300 619 581 200 419 397 340 100 ₹175Cr Capital ₹134Cr Capital Digital Initiative ₹2Cr Capital Digital Initiative Digital Initiative 0 FY '17 FY '18 FY '19 FY '20 Q3 FY '21
Slide 27: Statewise Portfolio
STATEWISE PORTFOLIO (In ₹ Cr) 900 ₹ 795Cr ₹ 725Cr 800 13 62 7 700 37 ₹ 555Cr 600 272 165 ₹ 471Cr 48 500 ₹ 427Cr 99 90 12 83 50 7 400 31 106 65 61 300 115 257 65 54 72 21 37 70 72 200 71 31 82 88 100 33 189 151 86 99 86 - FY '17 FY '18 FY '19 FY '20 Q3 FY '21 PUN BIH ODI RJ MP UP JH UKH CH DEL 26
Slide 28: Portfolio Quality
PORTFOLIO QUALITY (In ₹ Cr) 30 9.0% 7.7% 8.0% 25 25 7.1% 22 7.0% 20 6.0% 5.0% 4.8% 15 14 4.0% 10 3.0% 1.5% 2.0% 5 1.0% 0.5% 0 0.0% Q1 FY21 Q2 FY21 Q3 FY21 GNPA NNPA GNPA % NNPA % - Own book data of Stage 3 ECL 27
Slide 29: Financials
COMPANY OVERVIEW COVID-19 UPDATE MARKET SEGMENT UNIQUE SELLING PROPOSITION PRODUCT OFFERINGS OPERATING MODEL PORTFOLIO UPDATE FINANCIALS PARTNERS 28
Slide 30: Annual Change (Q3 FY20 vs Q3 FY21)
ANNUAL CHANGE (Q3 FY20 vs Q3 FY21) Assets Under Management (in Cr): Capital Digital Initiative (in Cr.): Net Worth (in Cr): 508.5 174.9 162.2 (-16%) (88%) (-3%) 426.8 93.1 157.0 Book Value Per Share (in Rs): Capital Adequacy Ratio (in %): Gross NPA (in %): 100.0 51.2 6.4 (-3%) (23%) (-24%) 96.8 41.6
Slide 31: Quarterly Change (Q2 FY21 vs Q3 FY21)
QUARTERLY CHANGE (Q2 FY21 vs Q3 FY21) Assets Under Management (in Cr): Capital Digital Initiative (in Cr.): Net Worth (in Cr): 429.5 174.9 157.5 (-1%) (22%) (-0%) 426.8 144.3 157.0 Book Value Per Share (in Rs): Capital Adequacy Ratio (in %): Gross NPA (in %): 97.1 51.2 7.7 (-1%) (3%) (-37%) 96.8 49.
Slide 32: Key Financials
KEY FINANCIALS Line Item Q3 FY20 Q3 FY21 (YoY) Q2 FY21 Q3 FY21 (QoQ) Total Income 41.5 31.2 -25% 27.0 31.2 15% Total Expense (excluding tax) 30.4 31.2 2% 25.9 31.2 20% Profit / (loss) before tax 11.1 0.0 -100% 1.1 0.0 -99% Profit / (loss) after tax 8.2 -0.4 -105% 0.9 -0.4 -147% Net Worth 162.2 157.0
Slide 33: Key Ratios
KEY RATIOS Line Item Q3 FY20 Q3 FY21 (YoY) Q2 FY21 Q3 FY21 (QoQ) Net Interest Margin* 10.7% 11.6% 9% 9.6% 11.6% 21% Operating Cost to AUM Ratio* 12.4% 15.1% 22% 13.0% 15.1% 16% Earning Per Share (Rs.)* 20.3 -1.0 -105% 2.2 -1.0 -147% Book Value Per Share (Rs.) 100.0 96.8 -3% 97.1 96.8 0% Return on As
Slide 34: Partners
COMPANY OVERVIEW COVID-19 UPDATE MARKET SEGMENT UNIQUE SELLING PROPOSITION PRODUCT OFFERINGS OPERATING MODEL PORTFOLIO UPDATE FINANCIALS PARTNERS 33
Slide 35: Benefits of Long-Term Funding
BENEFITS OF LONG-TERM FUNDING MSME Client (Capital Magic Loan and Micro Business Loan) • Business Correspondent relationship • On-tap funding • ₹47Cr Disbursed under this arrangement • Co-Lending relationship • ₹600Cr limit for 1st year Benefits of Long-Term Funding Secured: Enables raise of Leverag
Slide 36: Debt & Direct Assignment Partnerships
DEBT & DIRECT ASSIGNMENT PARTNERSHIPS Public Sector Banks: 5 Private Banks: 2 NBFCs: 5 35
Slide 37: Thank You
> Capital Trust THANK YOU
Slide 38: Disclaimer
DISCLAIMER This presentation has been prepared by and is the sole responsibility of Capital Trust Limited. By accessing this presentation, you are agreeing to be bound by the trailing restrictions. This presentation does not constitute or form part of any offer or invitation or inducement to sell or