Capital Trust Ltd. (india) · NSE:CAPTRUST
Capital Trust Ltd. (india) — Capital Trust — Q3 FY2023 Earnings Presentation
43 slides from Capital Trust Ltd. (india)'s earnings presentation, Feb 16, 2023
Slide 1: Q3 FY2023 Investor Presentation
Merging New-Age Fintech with Traditional Lending CAPITAL TRUST LIMITED Q3 FY2023 INVESTOR PRESENTATION February 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 04-08 CAPITAL DIGITAL LOANS 09-18 COMPETITIVE ADVANTAGES 19-24 DIGITAL JOURNEY 25-27 RURAL DOORSTEP-FINTECH 28-33 FINANCIALS 34-40 KEY PARTNERSHIPS 41-42
Slide 4: Company Overview
> Capital Trust COMPANY OVERVIEW
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: Capital Trust – Numbers at a Glance
Capital Trust – Numbers at a Glance PORTFOLIO NET WORTH CAPITAL ADEQUACY BOOK VALUE NET NPA 9M FY23 PAT EMPLOYEES ₹ 261.1 Cr ₹ 119.2 Cr 47.6 % ₹ 73.5 1.9 % ₹ 0.41 Cr 1706 6
Slide 7: Q3 FY2023 - Quarter At a Glance
Q3 FY2023 - Quarter At a Glance Sanctions & On-Boarding Of Capital Digital Loans’ Increased Focus on Capital New Partnerships Continued Resilience Digital Loans 200 181 179 5% CDL* Legacy** 4% 162 180 5% 152 142 160 4% 4% 3% 3% 140 4% 120 2.8% 3% 54% 100 3% 3% 46% 41% 39% 41% 80 2% 2% 2.1% 2% 60 2%
Slide 8: FY23 as a Launchpad for Future Growth
FY23 AS A LAUNCHPAD FOR FUTURE GROWTH Company has made certain strategic decisions that will propel its growth in the long term… Merger of Subsidiaries Into Holding Company Move Towards Lending-As-A-Service Completed merger of Microfinance & Housing Decision to focus on BC Relationships / Co-Lending
Slide 9: Capital Digital Loans
CAPITAL DIGITAL LOANS
Slide 10: Capital Trust 2.0: Capital Digital Loans
Capital Trust 2.0: Capital Digital Loans 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 ▪ Cl
Slide 11: Capital Digital Loans to Drive Future Growth
Capital Digital Loans to Drive Future Growth Accelerated growth in Rural Internet Users Better Collection Efficiency 01 28% 294 02 ~60% collections made Digitally 230 03 45% 352 Faster Turnaround Time 243 04 Lower Operating Cost 2019 2021 Rural India Urbran India 100% Digital Disbursements Increasin
Slide 12: Our Products: Capital Digital Loans
Our Products: Capital Digital Loans Addressing a wide spectrum of customers, across needs and affluence Product Name Capital Magic Loan Type of Loan Unsecured Digital Loan Ticket Size (₹) 30,000 – 50,000 Tenure 12 – 18 months ROI 35%+ Repayment Digital followed by physical cash collection Why CTL? P
Slide 13: 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 14: Our Clientele
Our Clientele Kirana Stores Dairy and Livestock Farmers Grocery Vendors Small Eateries Textile Stores Handicraft Manufacturers Utility Stores Salons Flower Vendors 14
Slide 15: Increasing our Reach in Rural India
Increasing our Reach in Rural India 39 10 4 33 51 33 47 34 20 7 20 Expansion in customer base via diversification in New Geographies and deeper penetration in existing Geographies 297 Branches spread across 94 Districts in 10 States of India 15
Slide 16: Portfolio Quality – Capital Digital Loans
Portfolio Quality – Capital Digital Loans Robust portfolio quality of loans disbursed post FY 20 (automated credit engine backed) with declining 30+ and 90+ on % and absolute terms both Total Disbursed: Portfolio Outstanding: 30+ DPD: 90+ DPD: ₹ 480 Cr ₹ 152 Cr 2.8% (on POS) 2.1% (on POS) 0.9% (on D
Slide 17: Portfolio Size – Capital Digital Loans
Portfolio Size – Capital Digital Loans (₹ in Crores) Short Term Pain Leading To Long Term Gain: Decline in CDL portfolio in Q3FY23 due to new requirements from client’s wanting higher ticket size loans. This is aimed at ensuring long-term control over delinquency Udyam Reverse Phone # – Smartphone P
Slide 18: Lending-As-A-Service
Lending-As-A-Service Shift towards Off Balance Sheet partnerships for last 1 year in an aim to offer Lending-As-A-Service (LAAS) BC Disbursements done with: Total 30+ % 90+ % POS 30+ % 90+ % Disbursements (on (on (₹ in Cr) (on POS) (on POS) (₹ in Cr) Disbursement) Disbursement) 5 BC Partnerships 214
Slide 19: Competitive Advantages
COMPETITIVE ADVANTAGES
Slide 20: Creating a Competitive Advantage
Creating a Competitive Advantage to Increase Stakeholder Value 1. Unique Business Model 3. Prudent Risk Management • With a deep understanding of target • Our conservative thought process towards customer segments, lean cost structures and financial engineering has helped us differentiated business
Slide 21: 1. Unique Business Model
1. Unique Business Model Financing the Overlooked Void TICKET SIZE UNSECURED SECURED ANNUAL INCOME > ₹ 10 Lakh New Age Fintechs Large SME Funding NBFCs / Banks > ₹ 10 Lakh MSME ₹ 1Lac - 10 Lakh Geographical Specialized MSME NBFCs Product Specialized MSME NBFCs ₹ 4 - 10 Lakh ₹ 30,000 – 1Lac ₹ 3 - 4 L
Slide 22: 2. Technology Driven Operational Efficiency
2. Technology Driven Operational Efficiency Enabling Improved Disbursements & Collections 116% 115% 110% 111% 112% 105% 105% 106% 100% 100% 99% 99% 97% 96% 96% 97% 93% 94% 62% 63% 61% 63% 61% 62% 58% 58% 60% Apr-22 May-22 Jun-22 Jul-22 Aug-22 Sep-22 Oct-22 Nov-22 Dec-22 Apr-22 May-22 Jun-22 Jul-22 A
Slide 23: 3. Prudent Risk Management
3. Prudent Risk Management Conservative ALM Practices and Diversified Funding Book Term Loan, 7% NBFC, 23% Sub-Debt, 18% Public Sector Banks, 15% DIVERSIFICATION OD, 5% P2P Lender, BC, 51% ACROSS… 32% NCD, 12% Private Sector ICD, 3% Banks, 26% PTC, 1% DA, 3% DFI, 2% Instruments Funders Asset Liabili
Slide 24: 4. Strong Governance
4. Strong Governance Being a Publicly Listed Systemically Important NBFC, We Try to Create Sustainable Value for Stakeholders BOARD Accountable for overall management and performance MANAGING DIRECTOR & CEO 1. Mr. Yogen Khosla Mr. Yogen Khosla 2. Mr. Sanjv Syal 3. Mr. Govind Saboo Delegate managemen
Slide 25: Digital Journey
DIGITAL JOURNEY
Slide 26: Pioneers of Digital Transformation in Rural India
Pioneers of Digital Transformation in Rural India Ready to Capture Next Phase Of Growth in Evolving Rural Ecosystem More Rural Internet Users (277 Mn) than Urban (227 Mn): Indian internet is more rural and local than ever Growing 3x Faster Than Urban India: Ready to capture rural digital growth as o
Slide 27: Evolution of Capital Trust's Digital Business Model
Evolution of Capital Trust’s Digital Business Model 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 Engin
Slide 28: Rural Doorstep-Fintech Processes
RURAL DOORSTEP- FINTECH PROCESSES
Slide 29: Meaning: Rural Doorstep-Fintech
Meaning: 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 credi
Slide 30: 3 Pillars of Capital Trust
3 Pillars of Capital Trust 2. HYBRID DUAL CREDIT Automated credit (credit bureau checks and preset algorithms) supplemented with Traditional Safeguards of Branch Banking (physical verification of residence, business premise and cash flow analysis) 1. TECHNOLOGY 3. BUSINESS INTELLIGENCE Use of Techno
Slide 31: 1. Technology
1. Technology One of the first NBFCs to start cashless disbursement of all Cashless Disbursement & loans since 2015 and cashless collection as primary mode Collection of repayment since 2019 Automated closing of company and all branch books at Automation of Daily Cash 6PM daily through collation of
Slide 32: 2. Hybrid Dual Credit
2. 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 33: 3. Business Intelligence
3. Business Intelligence CREDIT ENGINE Automated decision making with Credit Scoring of the borrower based on Income, Credit History and Debt servicing capacity. The engine calibrates regional STAFF ENGINE differences in performance using Integrated tool for real time pin-code level data monitoring
Slide 34: Financials
FINANCIALS ~ ”n = = is) = + i) aed
Slide 35: Product-Wise Portfolio
Product-Wise Portfolio ₹ 725 Cr Legacy Portfolio is coming down on the back of improved collections, no new disbursements** ₹ 471 Cr ₹ 467 Cr ₹ 431 Cr ₹ 427 Cr ₹ 401 Cr Share of Capital Digital Loans continuously 725 ₹ 337 Cr ₹ 311 Cr increasing and stands at ₹ 311 Cr ₹ 301 Cr ₹ 307 Cr ₹ 294 Cr 58%
Slide 36: Portfolio Quality – Companywide
Portfolio Quality – Companywide 10% (₹ in Crores) 9% 52 9% 8% Legacy Book Closure Plan: 6% 39 7% 39 37 - Aim to remove legacy portfolio and associated 33 branches / staff from Balance Sheet perspective 6% 29 so as to show true strength of CDL portfolio 28 28 5% 23 24 - Operating Cost Reduction: 4% a
Slide 37: Key Highlights & Ratios
Key Highlights & Ratios Asset Under Management (₹ in Crores) Net Worth (₹ in Crores) 427 401 337 157 311 312 301 307 294 131 261 117 118 119 121 122 124 119 Q3 FY21 Q4 FY21 Q1 FY22 Q2 FY22 Q3 FY22 Q4 FY22 Q1 FY23 Q2 FY23 Q3 FY23 Q3 FY21 Q4 FY21 Q1 FY22 Q2 FY22 Q3 FY22 Q4 FY22 Q1 FY23 Q2 FY23 Q3 FY23
Slide 38: Key Highlights & Ratios
Key Highlights & Ratios Borrowings (including BC / PTC as well) (₹ in Crores) Cost of Borrowing (%) 285 280 259 266 263 237 240 248 13.9% 13.7% 14.3% 228 13.1% 13.0% 13.1% 13.2% 12.8% 13.4% Q3 FY21 Q4 FY21 Q1 FY22 Q2 FY22 Q3 FY22 Q4 FY22 Q1 FY23 Q2 FY23 Q3 FY23 Q3 FY21 Q4 FY21 Q1 FY22 Q2 FY22 Q3 FY2
Slide 39: Quarterly Consolidated P&L Update Q3 FY23
Quarterly Consolidated P&L Update Q3 FY23 (₹ in Crores) Particulars Q3 FY23 Q3 FY22 YoY % Q2 FY23 QoQ % Total Income 19.8 29.2 -15% 22.4 -12% Total Expense (excluding tax) 24.6 27.9 -22% 19.7 25% Profit / Loss after tax -3.5 0.9 132% 2.0 -273% Net Worth 119.2 118.8 6% 124.4 -4% Capital Digital Loans
Slide 40: Quarterly Consolidated Balance Sheet Update Q3 FY23
Quarterly Consolidated Balance Sheet Update Q3 FY23 (₹ in Crores) Assets Q3 FY23 Q2 FY23 Q1 FY23 Liabilities And Equity Q3 FY23 Q2 FY23 Q1 FY23 Financial Assets Financial Liabilities Cash and Cash Equivalents 12.0 9.1 9.7 Trade Payables 0.8 0.2 0.2 Debt Securities 32.4 41.9 48.7 Bank Balances other
Slide 41: Key Partnerships
KEY PARTNERSHIPS
Slide 42: Equity & Funding Partnerships
Equity & Funding Partnerships Equity: 1 Public Sector Banks: 3 Private Sector Banks: 2 DFI / NBFCs / P2Ps: 13 42
Slide 43: Thank You
THANK YOU Vinod Raina Chief Financial Officer Vinod.raina@capitaltrust.in Vahin Khosla Executive Director Vahin.khosla@capitaltrust.in 43