Trucap Finance Limited · NSE:TRU
Trucap Finance — Dhanvarsha Finvest — Investor Presentation (August 2021)
38 slides from Trucap Finance's investor presentation, August 2021
Slide 1: Investor Presentation August 2021
Investor Presentation August 2021
Slide 2: The MSME Credit Gap in India
The MSME Credit Gap in India MSME’s Contribution to India’s GDP Current: 29% Projected (2024): 50% Number of People Employed by MSMEs in India Current: Over 130Mn Projected (2024): 150Mn 63M MSMEs in India Contributing ~6.11% to India’s manufacturing GDP, Policy Support: The government has released
Slide 3: Challenges
Challenges Challenges in Lending to MSMEs 1 2 3 4 5 Difficult to High cost of High Lack of data understand Fragmented set of customer dependence and businesses / acquisition on the information cash flows customers ecosystem asymmetry Challenges in Access to Credit for MSME Customers 1 2 3 4 Products
Slide 4: Dhanvarsha's Solution
Dhanvarsha’s Solution Dhanvarsha believes in providing financial access through a diverse range of product offerings to underserved customers. The company is a one-stop solution for all Credit requirements, categorized and customized as per the customer’s needs. The products are easily accessible wi
Slide 5: Dhanvarsha At A Glance
Dhanvarsha At A Glance* Total Liability Book: Net Worth: AUM Disbursals Average Loan Ticket Active Lenders INR 1,138 Mn INR 1,588 Mn^ INR 1,299 Mn INR 434 Mn Size 11 Debt to Equity (x) INR 1.20 lakhs 0.7x Head of Banking has Dedicated Collections Loan above Co-Lending Branches (Jun 21) Secured Partn
Slide 6: Company Overview
Company Overview 6
Slide 7: Company Overview
Company Overview • Dhanvarsha Finvest Limited (DFL), is promoted under the aegis of the 80-year-old Wilson Group and has transformed into a technology-enabled financial services company focusing on MSME financing. AUM and NII (INR Mn) 1,299 • Wilson Group’s history traces back up to Pre-Independence
Slide 8: Formation of Dhanvarsha
Formation of Dhanvarsha Started as a Approval for open offer; overhaul of Board and leadership Capital Infusion of INR 500 Received Debt Lines concept/idea, under team. Capital infusion of INR 125 Received Debt Line Mn from Wilson Holdings from Northern Arc the, aegis of Wilson Mn by Wilson Holdings
Slide 9: Our Values
Our Values Integrity We aspire to always do the right thing by acting with Equality & Reward for hard work complete honesty, fairness and forthrightness. To further cement our resolve in treating our people like owners, Accountability Dhanvarsha announced its Employee Stock Options scheme which incl
Slide 10: Independent and Eminent Board comprising of Industry Stalwarts
Independent and Eminent Board comprising of Industry Stalwarts…. Mr. Rakesh Sethi Chairperson and Independent Director Mr. Rakesh Sethi age 64 years, former Chairman and Managing Director of Allahabad Bank, and a veteran banker with over 38 years of experience in financial services. Mrs. Manjari Kac
Slide 11: Professional Management Team
Professional Management Team Mr. Sanjay Kukreja Mr. Sahil Lakshmanan Ms. Namita Pradhan Chief Financial Officer Chief Business Officer Head - Human Capital Management Mr. Kukreja has 27 years of experience in Financial Planning Mr. Lakshmanan is our Chief Business Officer and is Ms. Pradhan has an e
Slide 12: Recognition
Recognition Mumbai's Esteemed Lender Rohanjeet Singh Juneja, Karan Dhanvarsha was formed with Dhanvarsha Finvest Dhanvarsha and Rupifi join Serving Unserved & Desai from Dhanvarsha Finvest a vision to empower, with Launches Dhan Vidya, offers hands to solve the financial Underserved MSME Clients Ltd.
Slide 13: Our Product Offering
Our Product Offering 13
Slide 14: Atmanirbhar Bharat Business Loans
Atmanirbhar Bharat Business Loans Atmanirbhar Bharat Business Loans • DFL is an advocate of the Government of India’s ‘Make in India’ campaign to facilitate investment, foster innovation, enhance skill development, protect intellectual property, and build best-in-class manufacturing infrastructure l
Slide 15: Gold Loans
Gold Loans Gold Loans • DFL has launched Gold Loans to help customers access a loan effortlessly and through a transparent process using gold as collateral. • The company promises delivery of funds under 30 minutes in all serviceable locations. • The company has launched 18 Gold Loan Branches as on
Slide 16: Personal Loans
Personal Loans Personal Loans • DFL wants to be the financing partner of choice to help consumers meet their needs and life goals. Through the company’s Digital Assets and business correspondents it offers quick, easy, and affordable personal loans to both salaried and business professionals. • The
Slide 17: Loans Against Property
Loans Against Property Loans Against Property (Off Balance Sheet) • DFL offers Loans Against Property by raising finance against residential, commercial, or industrial assets and provides quick access to funds at attractive interest rates. • Further, it has been classified as an Off-Balance Sheet It
Slide 18: Asset, Liability and Distribution Strategy
Asset, Liability and Distribution Strategy 18
Slide 19: Asset & Liability Strategy
Asset & Liability Strategy Capital Efficiency and Risk Management are at the forefront with a mix of on and off-balance sheet AUM Liability on book (INR Mn) & Cost to Income Ratio (%) Own Balance Sheet Lending Business Correspondent Co-Lending with FLDG 1,138 • Solid sourcing in new geographies 805
Slide 20: On the Asset Side, our focus is on the select sub-sectors
On the Asset Side, our focus is on the select sub-sectors After doing in-depth studies across sectors on various parameters the company has selected the following sectors to focus on lending: Sector: Kirana/General Stores Sector: Education Sector: FMCG Sector: Food/Drinks Sector: Pharma Sub-Sector:
Slide 21: Client Acquisition Strategy
Client Acquisition Strategy Branch Sales Team • Leverage branch sales teams for customer acquisition through outreach/ walk-ins; support with technology • Build targeted sales force with sector / segment experience and community understanding to ensure deep knowledge of customers Financial Inclusion
Slide 22: Distribution Strategy
Distribution Strategy Branches • The bedrock of the business is based on the loan book and an unrelenting focus on 4C’s: - Credit, Capital, Collections & Collaborations. • The company has 18 Gold Loan Branches as of June 2021 and plans to further expand the network by approximately 3-4 branches per
Slide 23: Substantial Opportunity Ahead in Maharashtra
Substantial Opportunity Ahead in Maharashtra • Significant AUM and earnings growth led by Gold loan branch MSME Loan Market Share - Maharashtra Gold Loans Market Share - Maharashtra build out and franchisee model in Maharashtra. • Maharashtra is home to ~7 Mn or 11% of India’s MSME In INR Bn In INR
Slide 24: Underwriting & Collections Process
Underwriting & Collections Process DFL has an extremely robust credit appraisal and collections & recovery process which has been strengthened further given the Covid-19 pandemic. The credit team has pro-actively made changes in the appraisal process by assessing the cases on banking habits rather t
Slide 25: Loan Origination and Management System
Loan Origination and Management System CHANNELS EXTERNAL SYSTEMS Co Lending Financial Digital Call Center DSA/FOS Branches CUSTOMER ONBOARDING Partners Inclusion Stores Marketing LENDING RELATED BANKING SYSTEMS Lending API Middleware Envelope Customer Info Payment Master Data Tally Books Database Sy
Slide 26: Proprietary Lending and Risk Advisory Engine
Proprietary Lending and Risk Advisory Engine Onboarding process Gathering of Data Dhanvarsha Customer Signup Create user Profile in Application in LOS altimate engine Push SMS Call Logs GPS Device Info Useful Data processing Data Junk Classification of Data Yes Template Bank E-commerce KYC Utility A
Slide 27: Money Rabbit: Omni Channel Digital Platform for MSMEs
Money Rabbit: Dhanvarsha’s Omni Channel Digital Platform for MSME’s and Blue-Collar Work Force Virtual & Physical Card Get your own Personalized Ru- pay card which can be used at any online/offline merchants Credit Health Check Tool Get to know your latest Bureau Score and other credit Micro Loans d
Slide 28: Credit Health Check Tool
Credit Health Check Tool • This feature is a Financial Health and Credit Wellness tool for our Target Audience as they rarely use Bureau Reports or have knowledge of them • The idea is to de-mystify a credit score for the underserved MSME and blue- collar consumer • Freely accessible D2C Bureau Scor
Slide 29: One Card for All Needs
One Card for All Needs • Money Rabbit’s Virtual and Physical Card is easy to use and issued instantly (Gives a feel-good factor as our customers do not have easy access to Credit Cards) • Accepted with most merchants online and offline. This enables multiple customer engagement touchpoints during th
Slide 30: Dhanvarsha Neo Bank
Dhanvarsha Neo Bank All your Banking needs ‘On the Go’ Unified Lending Platform Savings Account • Personal Loans • Zero Balance Savings • Business Loans • Account opening • Gold Loans • BNPL NEO BANK Investments Insurance • Mutual Funds • General Insurance • Systematic Term Plan • Life Insurance • S
Slide 31: ESG Integration Framework for Building Social Capital
ESG Integration Framework for Building Social Capital Lending Hand-Head-Heart • With a deep sense of purpose to support the organization’s commitments towards the environment, health and safety, corporate social responsibility, governance, sustainability, and other public policy matters, the company
Slide 32: Financial Overview
Financial Overview 32
Slide 33: Consolidated Income Statement
Consolidated Income Statement Income Statement ( INR Mn) FY19 FY20 FY21 Q1-FY22 Interest Income 93 62 122 62 Less: Finance Cost 52 17 42 35 Net Interest Income 41 45 80 27 Other Income 100 131 179 75 Total Income 141 176 259 102 Operating Expenses 117 121 231 84 Profit Before Tax 24 55 28 18 Less: T
Slide 34: Consolidated Balance Sheet
Consolidated Balance Sheet Balance Sheet (INR Mn) FY20 FY21 Financial Assets 422 1,663 Cash and Investments 94 666 Gross Loans 372 1,045 Less: Impairment Loss Allowance 44 48 Net Loans 329 997 Non-Financial Assets 63 202 Total Assets 485 1,865 Financial Liabilities 163 836 Trade Payables & Other Lia
Slide 35: Consistent Expansion of AUM with Strong Equity & Debt Support
Consistent Expansion of AUM with Strong Equity & Debt Support AUM (in INR Mn) Disbursals (in INR Mn) Debt (in INR Mn) & Leverage Ratio 880 1,299 1 0.8 1,045 0.7 0.8 0.95 0.5 0.6 434 1,138 805 493 0.4 372 192 156 0.2 87 254 0 FY19 FY20 FY21 Q1-FY22 FY19 FY20 FY21 Q1-FY22 FY19 FY20 FY21 Q1-FY22 Net wo
Slide 36: Operating & Financial Ratios continue to improve as we scale up
Operating & Financial Ratios continue to improve as we scale up Interest Income (in INR Mn) Finance Cost (in INR Mn) NII (in INR Mn) 122 52 80 42 93 35 45 62 41 62 17 27 FY19 FY20 FY21 Q1-FY22 FY19 FY20 FY21 Q1-FY22 FY19 FY20 FY21 Q1-FY22 Opex (in INR Mn) GNPA (%) & NNPA (%) Profit Before Tax (in IN
Slide 37: Capital Market Graph
Capital Market Graph 600% 500% 400% 300% 200% 100% 0% -100% Jul-20 Aug-20 Jun-21 Nov-20 Apr-21 May-21 Sep-20 Dec-20 Jan-21 Feb-21 Mar-21 Oct-20 DFL Sensex Price Data (30th June 2021) INR Shareholding Pattern as on 30th June 2021 Face Value 10.0 Market Price 785.3 Public 52 Week H/L 837.1/88.1 38.81%
Slide 38: Disclaimer
Disclaimer Dhanvarsha Finvest Limited Disclaimer: The information contained in this presentation is only current as of its date. All actions and statements made herein or otherwise shall be subject to the applicable laws and regulations as amended from time to time. There is no representation that a
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