Capital Trust Ltd. (india) · NSE:CAPTRUST
Capital Trust Ltd. (india) — Capital Trust — Q1 FY2024 Earnings Presentation
29 slides from Capital Trust Ltd. (india)'s earnings presentation, Aug 14, 2023
Slide 1: Q1 FY2024 Investor Presentation
Merging New-Age Fintech with Traditional Lending CAPITAL TRUST LIMITED Q1 FY2024 INVESTOR PRESENTATION August 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 04-06 RECENT UPDATES 07-10 OPERATING MODEL 11-17 CAPITAL TRUST 2.0 18-23 FINANCIALS 24-26 KEY PARTNERSHIPS 27-28
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: Numbers at a Glance
Numbers at a Glance PORTFOLIO NET WORTH BORROWINGS CAPITAL ADEQUACY LEVERAGE GNPA & NNPA Q1 FY24 PBT ₹ 166 Cr ₹ 75 Cr ₹ 33 Cr 59 % 0.4 X GNPA: 0.9 % ₹ 0.64 Cr Off: ₹ 130 Cr NNPA: 0.0 % On: ₹ 36 Cr 6
Slide 7: Recent Updates
RECENT UPDATES
Slide 8: Q1 FY24 – Start of the Turnaround: Structural & Financial Updates
Q1 FY24 – Start Of The Turnaround: 1. Structural & Financial Updates 01 Merger of Subsidiaries 03 Successful Bullet Repayments Final merger of subsidiaries In Q1 FY24, Capital Trust successfully (Capital Trust Microfinance and repaid ₹77 Cr bullet repayments Capital Trust Housing) with the (₹45 Cr S
Slide 9: Q1 FY24 – Start of the Turnaround: Operational Updates
Q1 FY24 – Start Of The Turnaround: 2. Operational Updates Portfolio Growth for First Highest Quarterly Improvement in Portfolio Quality Increase in Time Since FY19 Disbursement since FY19 (30+ DPD% & 90+ DPD%) Branch Network 170 2% 166 74 166 1.4% 1% 306 165 1.3% 1% 160 1.0% 1% 0.9% 155 1% 32 150 15
Slide 10: Q1 FY24 vs Q4 FY23 Comparison
Q1 FY24 – Start Of The Turnaround: 3. Comparison of Q1 FY24 vs Q4 FY23 Assets Under Management (in Cr): Net Worth (in Cr.): Profit After Tax (in Cr): 166 75.0 0.5 (11%) (1%) 150 74.5 -46.0 Gross NPA (in %): Disbursements (in Cr) Cost Of Borrowings (in %): 1.0 74 14.9 (-10%) (131%) (-2%) 0.9 32 14.6
Slide 11: Operating Model
OPERATING MODEL
Slide 12: Rural Doorstep-Fintech Company
Rural Doorstep-Fintech Company 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. CREDIT UNDERWRITING QR Code scan of Aadhaar Card Automated credit bureau
Slide 13: Current Product Offering
Current Product Offering Product Name Capital Digital Loan Type of Loan Unsecured Income Generating Business Loan Ticket Size (₹) 30,000 – 75,000 Tenure 12 – 24 months ROI 32%+ Repayment Digital NACH followed by physical cash collection Why CTL? Production Optimization - Branch banking - Human conne
Slide 14: Market Segment
Market Segment CLASSIFICATION DOCUMENTATION TICKET SIZE ANNUAL INCOME UNSECURED SECURED > ₹ 10 Lakh > ₹ 10 Lakh Banks / Large SME - Income Tax Return New Age Fintechs Focused NBFCs - GST Certificate Formal MSME - Shop & Establishment - PAN Card - Udyam Aadhaar ₹ 1Lac - 10 Lakh ₹ 4Lac - 10 Lakh Geogr
Slide 15: 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 16: Typical Clientele
Typical Clientele Kirana Stores Dairy and Livestock Farmers Grocery Vendors Small Eateries Textile Stores Handicraft Manufacturers Utility Stores Salons Flower Vendors 16
Slide 17: Branch Network
Branch Network 39 10 3 33 51 37 52 34 20 7 20 Actively Disbursing Branches: 188 Collection-Only Branches: 118 Reason for Collection-Only Branches: Bad geographical delinquency in past, high DPD of other MFIs evident in pin code report, CDL delinquency crossing set 30+DPD benchmark 306 Branches sprea
Slide 18: Capital Trust 2.0
CAPITAL TRUST 2.0
Slide 19: Capital Trust 2.0: A Clean Slate
Capital Trust 2.0: A Clean Slate 1. Portfolio Details 3. Hybrid Dual Credit • High quality, seasoned AUM • Automated credit (credit with 0.9% GNPA and 0% bureau checks and preset NNPA algorithms) supplemented with Traditional Safeguards • Current product continues of Branch Banking (physical to show
Slide 20: Portfolio Details
1. Portfolio Details ₹ 166 Cr 160 100% 100% 99% 98% 99% 98% 99% 99% 10 96% 97% 97% 94% 11 140 13 120 17 100 19 80 31 60 40 60 20 0 Jul-22 Aug-22 Sep-22 Oct-22 Nov-22 Dec-22 Jan-23 Feb-23 Mar-23 Apr-23 May-23 Jun-23 BIH E UP MP PUN JHA ODS RAJ UP UKH CG DEL Companywide Collection Efficiency Portfolio
Slide 21: Pioneers in Technological Advancements
2. Pioneers in Technological Advancements 2015 2016 2017 2018 2019 2019 2020 2021 2023 NOW 2012 Decision to go 100% Issuance of Geo-Tagged Decision to go 100% Incorporation of Credit Launch of payment Cashless Disbursements Digital Receipts rather Cashless Collection as Engine (automated decision po
Slide 22: Hybrid Dual Credit
3. 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 23: Lending-As-A-Service
4. Lending-As-A-Service Shift towards Off Balance Sheet partnerships for last 2 years in an aim to offer Lending-As-A-Service (LAAS) BC / Co-Lending Disbursements done with: Co-Lending Business Correspondent Total 30+ % 90+ % POS 30+ % 90+ % Disbursements (on (on (₹ in Cr) (on POS) (on POS) (₹ in Cr
Slide 24: Financials
FINANCIALS ~ ”n = = is) = + i) aed
Slide 25: Key Highlights & Ratios
Key Highlights & Ratios (₹ in Crores) Particulars Q1 FY23 Q1 FY24 YoY % Q4 FY23 QoQ % Total Income 24.7 17.7 -28% 20.0 -11% Total Expense (excluding tax) 22.1 17.1 -23% 81.9 -79% Profit / Loss After Tax 1.9 0.5 -75% -46.0 Net Worth 122.5 75.0 -39% 74.5 1% On-Book Portfolio 197.5 35.9 -82% 43.4 -17%
Slide 26: Consolidated Balance Sheet
Consolidated Balance Sheet (₹ in Crores) Assets Q1 FY24 Q4 FY23 Q3 FY23 Liabilities And Equity Q1 FY24 Q4 FY23 Q3 FY23 Financial Assets Financial Liabilities Cash and Cash Equivalents 11.2 8.1 12.0 Trade Payables 0.5 0.8 0.8 Debt Securities 0.0 30.0 32.4 Bank Balances other than cash & 8.2 65.1 68.4
Slide 27: Key Partnerships
KEY PARTNERSHIPS
Slide 28: Equity & Funding Partnerships
Equity & Funding Partnerships Equity: 1 Public Sector Banks: 1 Private Sector Banks: 1 DFI / NBFCs / P2Ps: 13 28
Slide 29: Thank You
THANK YOU Vinod Raina Chief Financial Officer Vinod.raina@capitaltrust.in Vahin Khosla Executive Director Vahin.khosla@capitaltrust.in 29