TruCap Finance Limited · NSE:TRU

TruCap Finance — Valorem Advisors Annual Conference (March 2023)

37 slides from TruCap Finance's conference presentation, Mar 16, 2023

  1. Slide 1: Intimation of Analyst/Investor Meet to BSE

    March 16, 2023 To, BSE Limited Phiroze Jeejeebhoy Towers, Dalal Street, Mumbai - 400 001. Script Code: 540268 Subject: Presentation of Analyst/Investor Meet Dear Sir/Madam, This is in reference to our letter dated March 16, 2023, intimating the Exchange about the meeting with the Analyst/Investor at

  2. Slide 2: TruCap Finance Ltd

    TruCap Finance Ltd March, 2023

  3. Slide 3: Introduction

    Dhanvarsha is now TruCap Finance Introduction The genesis of Tru is based on a singular focus on Trust. Making credit accessible for everyone by deploying technology and capital to power the growth of MSMEs. To remove red tape, fear of leverage and empower entrepreneurs to win in life. Our endeavor

  4. Slide 4: Another milestone in TruCap's Journey

    Another milestone in TruCap’s Journey.

  5. Slide 5: TruCap Finance: Lender to India's MSME Needs

    Tru Cap Finance Lender to India’s MSME Needs TRU Promise TRUST TRANSPARENCY TECHNOLOGY We stand by the belief that technology & capital can be deployed to catalyze the growth journey of MSMEs. It can bring positive social impact by creating opportunities & supporting livelihoods through fostering of

  6. Slide 6: The MSME Credit Gap in India

    The MSME Credit Gap in India 63M MSMEs in India Contributing ~6.11% to India’s manufacturing GDP, MSME’s Contribution to India’s GDP 24.63% of the service GDP • Current: 30.74% • Projected (2025): 50% Less than 20% of MSMEs have access to Credit Number of People Employed by MSMEs in India Potential

  7. Slide 7: Challenges

    Challenges Challenges in Lending to MSME’s Difficult to Fragmented High cost of High understand Lack of set customer dependence on businesses / cash data of customers acquisition the ecosystem flows Challenges MSME Customers face when trying to get a loan Time-consuming Credit assessment Rigid colla

  8. Slide 8: Trucap's Solution

    Trucap’s Solution TruCap 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 without an

  9. Slide 9: TruCap At A Glance

    TruCap At A Glance Net Worth: AUM ( On & Off *Disbursals( 9 Months) Average Loan Ticket Size Active Lenders Total Debt: INR 2,1 Mn Balance sheet) INR 6,237 Mn INR 80K 28 INR 3,763 Mn INR 5,104 Mn ^Debt to Equity (x) 1.5x ^Debt to Equity is on fully diluted basis Branches Secured Off Book AUM (24% of

  10. Slide 10: Company Overview

    Company Overview 9

  11. Slide 11: Company Overview

    Company Overview  Trucap Finance Limited (Trucap), is promoted under the aegis of the 80-year-old Wilson Group and AUM and Total Revenue (INR Mn) has transformed into a technology-enabled financial services company focusing on MSME financing.  Wilson Group’s history traces back up to Pre-Independe

  12. Slide 12: Formation of Trucap

    Formation of Trucap Received Debt Capital Infusion of Line from State INR 658.3 Mn led Bank of India, by Aviator 1994 - Incorporated Capital Infusion of NCD Issuance of Emerging Market as a Private Limited Wilson Holdings INR 50 Mn from INR 25 Mn from Fund (AEMF) and Company offered to acquire Promo

  13. Slide 13: Our Values

    Our Values Equality & Reward for hard work Upskilling To further cement our resolve in An organization’s long-term success relies treating our people like owners, on not only attracting but also nurturing Trucap announced its Employee the next generation of bright minds. The Accountability Stock Opt

  14. Slide 14: Independent and Eminent Board comprising of Industry Stalwarts

    Independent and Eminent Board comprising of Industry Stalwarts…. Mr. Rakesh Sethi Mr. Nirmal Vinod Momaya Mr. Atwood Porter Collins Chairperson and Independent Director Independent Director Non-Executive Non-Independent Director Mr. Rakesh Sethi is a Gold Medalist in Master of Mr. Nirmal Vinod Momay

  15. Slide 15: Professional Management Team

    Professional Management Team Mr. Sanjay Kukreja Mr. Mahendra Kumar Servaiya Chief Financial Officer Principal Officer and Chief Credit Officer Mr. Kukreja has 27 years of experience in Financial Planning and Control, Profit Mr. Servaiya is one of the most experienced members of the core team with ov

  16. Slide 16: Our Product Offering

    Our Product Offering 15

  17. Slide 17: Business Loans

    Business Loans Business Loan  Trucap 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 locally while generating livelihood f

  18. Slide 18: Gold Loans

    Gold Loans Gold Loan  Trucap has launched Gold Loans to help customers access a loan quickly and through a transparent process using gold as collateral with a promise of delivery of funds under 30 minutes.  The company has 74 Branches as on December 2022 and plans to further expand its footprint a

  19. Slide 19: Asset, Liability and Distribution Strategy

    Asset, Liability and Distribution Strategy 18

  20. Slide 20: Asset & Liability Strategy

    Asset & Liability Strategy Capital Efficiency & risk management are at the forefront with a mix of on and off-balance sheet AUM Total Debt (INR Mn) Own balance sheet lending Lending as a Service Preferred Sourcing Partnership 3,763  Small Ticket  Higher IRR since it earns on 100% of  Solid sourci

  21. Slide 21: L-a-a-S: Partnerships in Play, Central Bank of India & More

    L-a-a-S: Partnerships in Play, Central Bank of India & More Contribution of L-a-a-S Portfolio to the overall AUM  The company has partnered with Central Bank of India for Co-lending of up to INR 24% 10 Bn to MSME Gold loan customers and it is now live across 50 + branches. 20%  Under this partners

  22. Slide 22: Distribution Strategy

    Distribution Strategy  The bedrock of the business is based on the loan book and an unrelenting focus Branches on 4C’s – Credit, Capital, Collections & Collaborations 74 Experiential Centres  Expanding network to cater to MSME customers for both Gold & Business Loans  The company has 74 Branches

  23. Slide 23: Client Acquisition Strategy

    Client Acquisition Strategy Offers Superior Value Tru Cap Finance has a team of Proposition for MSME Customers in BL & GL 300+ Strong Feet on Street Significantly increasing financial inclusion in 5 Key States These individuals play an instrumental role in accessing the end customer for MSME Business

  24. Slide 24: Growth with Robust Asset Quality

    Growth with Robust Asset Quality  Collection efficiency exceeds 100% after considering pre-payments & foreclosures Collection Efficiency Trend on the gold loan book. Collection Collection Payment & CE including  It’s important to note that pre-payments & foreclosures is a regular feature in Months

  25. Slide 25: DhanSetu: B2B Digital Platform for Channel Partners

    DhanSetu: B2B Digital Platform for Trucap Channel Partners to aid Seamless Customer Onboarding and Tracking… Offline to Online Channel Rule Engines: • Pin code Serviceability DhanSetu App Empowering channel partners to distribute all financial offerings on one • Age (B2B Customer Onboarding) platfor

  26. Slide 26: Web-App Platform for Trucap Channel Partners

    Enhanced by Launch of Web-App Platform for Trucap Channel Partners to Drive Accessibility Unlock Earnings Easy & Real Time Tracking Get a chance to unlock additional Track total loans disbursed by you earnings through referral and in a given time-frame and check promotion programs conversion ratio A

  27. Slide 27: Standardized Branch Score Card

    Standardized Branch Score Card Mitigate Risk and Maintain Quality Service Standard Branch Audit Score Card Mechanism Branch Score Matrix Standard scoring mechanism following weighted Risk Rating average mechanism based upon risk rating of 12 High C comprehensive processes and 130 checkpoints Medium

  28. Slide 28: Borrowers Inclusivity

    Incremental Impact Achieved in Solving Access to Credit Split by Occupation Gender Mix 27% Borrowers 73% 22% 78% Salaried Self Employed New to Credit Cumulative Borrowers: Livelihoods Improved Borrowers Non-Tier 1 Location Inclusivity 38,849+ 50,647+ ~ 3,20,000+ 27

  29. Slide 29: Financial Overview

    Financial Overview 28

  30. Slide 30: Standalone Income Statement

    Standalone Income Statement Income Statement ( INR Mn) FY20 FY21 FY22 9M- FY23 Interest Income 64 122 455 707 Less: Finance Cost 17 42 244 359 Net Interest Income 47 80 211 348 Fee & Other Income 129 122 246 205 Total Income 176 202 457 553 Operating Expenses 121 185 350 496 Profit Before Tax 55 17

  31. Slide 31: Consolidated Income Statement

    Consolidated Income Statement Income Statement ( INR Mn) FY20 FY21 FY22 9M- FY23 Interest Income 64 122 454 707 Less: Finance Cost 17 42 244 359 Net Interest Income 47 80 210 348 Fee & Other Income 129 178 306 202 Total Income 176 258 516 550 Operating Expenses 121 230 444 534 Profit Before Tax 55 2

  32. Slide 32: Standalone Balance Sheet

    Standalone Balance Sheet Balance Sheet (INR Mn) FY21 FY22 H1-FY23 Financial Assets 1,682 4,362 5,135 Cash and Investments 685 1,472 1,527 Gross Loans 1,044 2,937 3,655 Less: Impairment Loss Allowance 47 47 47 Net Loans 997 2,890 3,608 Non-Financial Assets 164 360 483 Total Assets 1,846 4,722 5,618 F

  33. Slide 33: Consolidated Balance Sheet

    Consolidated Balance Sheet Balance Sheet (INR Mn) FY21 FY22 H1-FY23 Financial Assets 1,663 4,150 4,846 Cash and Investments 666 1269 1,242 Gross Loans 1,044 2,928 3,651 Less: Impairment Loss Allowance 47 47 47 Net Loans 997 2,881 3,604 Non-Financial Assets 202 567 711 Total Assets 1,865 4,717 5,557

  34. Slide 34: 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 6,237 1.66 5,104 1.5 4,144 3,763 3,060 0.8 2,865 0.5 1,044 867 805 373 86 156 FY20 FY21 FY22 9M-FY23 FY20 FY21 FY22 9M-FY23 FY20 FY21 FY22 9M-FY23 *On & Off Balanc

  35. Slide 35: 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) 707 359 348 455 243 212 122 80 64 42 47 17 FY20 FY21 FY22 9M-FY23 FY20 FY21 FY22 9M-FY23 FY20 FY21 FY22 9M-FY23 Opex (in INR Mn) GNPA (%) & NNPA (%) Profit Before Tax

  36. Slide 36: Capital Market Graph

    Capital Market Graph Stock Performance upto 31st December 2022 60% 40% 20% 0% -20% -40% -60% -80% Jan-22 Feb-22 Mar-22 Apr-22 May-22 Jun-22 Jul-22 Aug-22 Aug-22 Sep-22 Oct-22 Nov-22 Dec-22 Sensex TFL Price Data (31st December, 2022) INR Shareholding Pattern as on 31st December, 2022 Face Value 2.0 F

  37. Slide 37: Disclaimer

    Trucap 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 all information

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