Capital Trust Ltd. (india) · NSE:CAPTRUST
Capital Trust Ltd. (india) — Capital Trust — Q4 FY19 Earnings Presentation
40 slides from Capital Trust Ltd. (india)'s earnings presentation, May 31, 2019
Slide 1: Investor Presentation Q4 FY19
INVESTOR PRESENTATION Q4 FY19
Slide 2: Agenda
Company Overview Business Model Portfolio Update Financials Capital + (Page 2) (Page 9) (Page 19) (Page 28) (Page 34) Target Segment Comfortable Liquidity Portfolio Quality Way Forward (Page 5) (Page 16) (Page 22) (Page 32)
Slide 3: Company Overview
> Capital Trust COMPANY OVERVIEW
Slide 4: Company Overview
COMPANY OVERVIEW CTL Version 2.0 • $10M PE investment • Acquisition of Microfinance subsidiary • Listing on NSE Ventured into MSME funding Ventured into Microfinance • Incorporation • Advisory to foreign banks • Listing on BSE 1985 2008 2012 2016 2019 As on 31.03.2019 Public 15.68% Net Worth: FII Pr
Slide 5: Over the Years…
OVER THE YEARS… ASSETS UNDER MANAGEMENT (₹ Cr.) NET WORTH (₹ Cr.) 795 250 800 725 220 220 219 700 200 600 555 161 500 150 400 304 300 100 186 200 93 50 100 14 22 0 0 FY '14 FY '15 FY '16 FY '17 FY '18 FY '19 FY '14 FY '15 FY '16 FY '17 FY '18 FY '19 PROFIT AFTER TAX (₹ Cr.) BRANCHES 40 38 300 35 251
Slide 6: Target Segment
> Capital Trust TARGET SEGMENT
Slide 7: Serving the Unserved
SERVING THE UNSERVED Annual Income > ₹ 17Lakh Banks ₹ 10-17 Lakh ₹ 3.4-10 Lakh Large NBFCs ₹ 1.5-3.4 Lakh < ₹ 1.5 Lakh Debt Shortfall in Microfinance + Micro of MSME: 11.1 Lac Crore** *NCAER-CMCR Annual Income Data 6 **IFC Report on MSMEs (Nov 2018)
Slide 8: Financial Inclusion?
FINANCIAL INCLUSION? Formal Income Income Proof Filing Taxes Debt 7
Slide 9: Target Clientele
TARGET CLIENTELE Microfinance Through Capital Trust Microfinance, its 100% owned subsidiary Graduating from Microfinance 8% of the Microfinance clients graduate from the Microfinance sector each year and come and hit a wall New to Organized Credit Replacing traditional informal sources of MISSING fi
Slide 10: Business Model
> Capital Trust BUSINESS MODEL
Slide 11: Capital Trust USP
CAPITAL TRUST USP Hybrid Fintech Model With Dual Credit Automated credit (credit bureau checks and preset algorithms) is supplemented with traditional safeguards of branch banking (physical verification of residence, business premise and cash flow analysis) One Stop Financial Institution Pioneer in
Slide 12: Products
PRODUCTS Micro Enterprise Loan AUM: ₹579 Crore Ticket Size: ₹1,05,000 Interest Rate: 26-28% Tenure: 3 years Joint Liability Fortnightly Cash Repayment Micro Business Loan Capital Magic Loan Launching in Q1 FY20 AUM: ₹2 Crore (launched in March 2019) Ticket Size: ₹60,000 - ₹1,05,000 Ticket Size: ₹10,
Slide 13: Capital Magic Loan (Digital Micro Loan)
CAPITAL MAGIC LOAN (DIGITAL MICRO LOAN) First of Its Kind Digital Loan in Rural India Quick Disbursement within 24 hours Created owing to client demand for faster turn- Automated credit decision based on analysis of client around-time, non availability of short term loans and credit bureau data, alt
Slide 14: 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 15: 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 16: Geographical Footprint
GEOGRAPHICAL FOOTPRINT PUN, RJ, MP, BIH, ODS, JH, CH: Growth Focused States (New client sourcing) UP, UKH, DEL: Collection Only States (No new client sourcing) Branches: 251 Districts: 68 States: 10 15
Slide 17: Comfortable Liquidity
> Capital Trust COMFORTABLE LIQUIDITY
Slide 18: Asset Liability Position Update
ASSET LIABILITY POSITION UPDATE Q3 FY19 Q4 FY19 Q1 FY20 Q2 FY20 Q3 FY20 Q4 FY20 (Actual) (Actual) (Expected) (Expected) (Expected) (Expected) Quarterly Collection (Cr.) 169.2 173.5 164.0 153.4 131.8 113.0 Quarterly Repayment (Cr.) 91.1 92.6 91.1 90.6 79.8 69.9 Quarterly Surplus (Cr.) 78.1 80.9 72.9
Slide 19: Business Partnership with IDFC First
BUSINESS PARTNERSHIP WITH IDFC FIRST MSME Client (Micro Business Loan) Benefits to CTL: Leveraging IDFC Long term First Bank’s On-tap funding relationship with balance sheet a bank Opportunity to Enables raise of Opening door for provide products Increase of ROE equity at right other such not curren
Slide 20: Portfolio Update
> Capital Trust PORTFOLIO UPDATE
Slide 21: Productwise Portfolio
PRODUCTWISE PORTFOLIO 900 795 725 800 700 555 600 Micro Enterprise 500 619 Secured Enterprise 304 579 Microfinance 400 340 Magic Loan Yes Bank BC 300 186 116 200 81 95 125 120 100 89 38 56 68 93 34 56 55 0 FY '15 FY '16 FY '17 FY '18 FY '19 20
Slide 22: Statewise Portfolio
STATEWISE PORTFOLIO 900 795 725 800 13 62 700 21 555 37 37 DEL 600 83 72 CH JH 71 48 115 500 UKH 99 90 ODI 304 400 31 BIH 33 189 106 MP 300 186 7 86 RJ 13 151 PUN 200 UP 5 271 257 272 100 165 165 0 FY '15 FY '16 FY '17 FY '18 FY '19 21
Slide 23: Portfolio Quality
> Capital Trust PORTFOLIO QUALITY
Slide 24: Business as Usual Portfolio Quality
BUSINESS AS USUAL PORTFOLIO QUALITY BUSINESS AS USUAL (PUN, RJ, MP, ODS, BIH, JH, CH) As on 31.03.19 AUM (₹ Cr.) NPA (₹ Cr.) NPA (%) Unsecured 497.5 5.9 1.2% Secured (Now Discontinued) 19.1 0.6 2.9% Total 516.6 6.5 1.3% 23
Slide 25: Collection Only States Portfolio Quality
COLLECTION ONLY STATES PORTFOLIO QUALITY COLLECTION ONLY (UP, UKH, DEL) (NEW SOURCING DISCONTINUED) AUM as on 30.09.16 (₹ Cr.) NPA* as on 30.09.16 (%) AUM as on 31.03.19 (₹ Cr.) NPA* as on 31.03.19 (₹ Cr.) NPA* as on 31.03.19 (%) Unsecured 283 0.6% 139.3 18.6 13.3% Secured 116 5.1% 69.4 39.5 56.8% T
Slide 26: Companywide Portfolio Quality
COMPANYWIDE PORTFOLIO QUALITY COMPANYWIDE (PUN, RJ, MP, ODS, BIH, JH, CH, UP, UKH, DEL) As on 31.03.19 AUM (₹ Cr.) NPA (₹ Cr.) NPA (%) Unsecured 636.8 24.5 3.8% Secured (Now Discontinued) 88.6 40.0 45.2% Total 725.4 64.5 8.9% 25
Slide 27: Demonetisation Impact and Learnings
DEMONETISATION IMPACT AND LEARNINGS IMPACT LEARNINGS AND ACTION TAKEN Geographical Diversification & Introduction of Risk Metrics Diversification of business into 10 states. Formulation Geographical Concentration of risk metrics that cap maximum exposure to states 1 and sectors. Automatic stoppage o
Slide 28: Portfolio Quality of New Clients Since Learnings
PORTFOLIO QUALITY OF NEW CLIENTS SINCE LEARNINGS Performance Since FY17 BUSINESS AS USUAL (PUN, RJ, MP, ODS, BIH, JH, CH) As on 31.03.19 Disbursed (₹ Cr.) AUM (₹ Cr.) 30+ (₹ Cr.) 30+ (%) 60+ (₹ Cr.) 60+ (%) NPA (₹ Cr.) NPA (%) Unsecured 765.5 436.0 5.2 1.2% 3.8 0.9% 0.8 0.2% Secured (Now Discontinue
Slide 29: Financials
> Capital Trust FINANCIALS
Slide 30: Quarter-over-Quarter Growth (Q4FY19 vs Q3FY19)
QUARTER-OVER-QUARTER GROWTH (Q4FY19 vs Q3FY19) Assets Under Management (in Cr): Financing Income (in Cr.): Profit After Tax (in Cr): 741 46 11.9 (2%) (2%) (52%) 725 45 7.9 Net Worth (in Cr): Earnings Per Share (in Rs): Book Value(in Rs): 220 7.3 135 (6%) (52%) (6%) 208 4.8 127 States (in #): Number
Slide 31: Year-over-Year Growth (Q4FY19 vs Q4FY18)
YEAR-OVER-YEAR GROWTH (Q4FY19 vs Q4FY18) Assets Under Management (in Cr): Financing Income (in Cr.): Profit After Tax (in Cr): 795 56 11.9 (9%) (19%) (920%) 725 45 -1.2 Net Worth (in Cr): Earnings Per Share (in Rs): Book Value(in Rs): 220 7.3 135 (0%) (913%) (1%) 219 -0.7 134 States (in #): Number o
Slide 32: Key Financials and Ratios
KEY FINANCIALS AND RATIOS Line Item / Ratio Q4 FY18 Q4 FY19 (YoY) Q3 FY19 Q4 FY19 (QoQ) Total Income 56.0 44.3 -21% 46.4 44.3 -4% Total Expense (excluding tax) 54.2 28.7 -47% 36.1 28.7 -21% Profit / (loss) after tax -1.2 11.9 920% 7.9 11.9 52% Net Worth 218.8 220.2 1% 208.3 220.2 6% Micro-Enterprise
Slide 33: Way Forward
> Capital Trust WAY FORWARD
Slide 34: Way Forward: Capital Trust 2.0
WAY FORWARD: CAPITAL TRUST 2.0 Business Partnerships with Banks Decision to enter arrangements with banks for the uninterrupted flow of funds through Joint Lending / Business Correspondence. Plans to leverage the balance sheet of the larger institutions by looking at Direct Assignment and maintainin
Slide 35: Capital+
> Capital Trust CAPITAL+
Slide 36: Capital +
CAPITAL + Encouragement of self- Increase in financial sufficiency and discipline entrepreneurship Facilitating financial Mitigation of financial inclusion of the unbanked Financial Literacy volatility and un-serviced 35
Slide 37: Partners
> Capital Trust PARTNERS
Slide 38: Partnerships
© PARTNERSHIPS > Capital Trust V 6 3G TERT q> Qing MT bald iada State Bank of India wy ‘ONE FAMILY ONE BANK: Bi iichtHouse Equity Asia (ES OS) | Gen) o ~~ = ‘SHULL INDUSTRIES DEVELOPNEN BANK OF NDA i ®@ _ Seeuamayon’ A r imownsetnarnarce M@SHRIRAM City i l ia i) muth@Gt © NoNey WHEN you NEED IT Mo’
Slide 39: Thank You
> Capital Trust THANK YOU
Slide 40: 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