Capital Trust Ltd. (india) · NSE:CAPTRUST
Capital Trust Ltd. (india) — Capital Trust — Q3 FY2022 Earnings Presentation
43 slides from Capital Trust Ltd. (india)'s earnings presentation, Feb 14, 2022
Slide 1: Q3 & 9M FY2022 Investor Presentation
Merging New-Age Fintech with Traditional Lending CAPITAL TRUST LIMITED Q3 & 9M FY2022 INVESTOR PRESENTATION February 2022
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 04-12 COMPETITIVE ADVANTAGES 12-18 DIGITAL JOURNEY 19-21 RURAL DOORSTEP-FINTECH 22-27 FINANCIALS 28-37 KEY PARTNERSHIPS 38-40 CAPITAL IMPACT 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 GROSS NPA* NET NPA BRANCHES EMPLOYEES ₹ 312 Cr ₹ 119 Cr 41.3 % 8.3 % 0.0 % 315 2118 *Own Book 90+ / Own Book Portfolio (post November 2021 RBI circular) 6
Slide 7: Q3 FY2022 Quarter At a Glance
Q3 FY2022 Quarter At a Glance Increase in AUM for first Back-to-Back Quarters Of Increase in Capital Digital Highest Quarterly time since Q2 FY19 Profitability Loan* Initiative Proportion Disbursement since Q4 FY20 CDL Legacy 427 20 21 401 0.9 1.0 18 337 16 311 312 14 Q3 FY21 Q4 FY21 Q1 FY22 Q2 FY22
Slide 8: Capitalising on the Underserved Market Opportunity
Capitalising on the Underserved Market Opportunity Annual Household Income > ₹ 17 Lakh ₹ 10-17 Lakh Banks and MSME Focused NBFCs ₹ 3.5-10 Lakh ₹ 2 - 3.5 Lakh Capital Trust Limited Debt Shortfall in Micro of MSME: 87 Lakh Crore ($117Bn) ** < ₹ 2 Lakh Microfinance Institutions *NCAER-CMCR Annual Incom
Slide 9: 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 10: Our Clientele
Our Clientele Kirana Stores Dairy and Livestock Farmers Grocery Vendors Small Eateries Textile Stores Handicraft Manufacturers Utility Stores Salons Flower Vendors 10
Slide 11: Increasing our Reach in Rural India
Increasing our Reach in Rural India 7 New branches opened in Eastern UP 46 during Q3 FY22 11 4 35 51 32 49 40 19 8 20 Expansion in customer base via diversification in New Geographies and Rural Semi-Urban Urban deeper penetration in existing 55 237 23 Geographies 315 Branches spread across 94 Distri
Slide 12: Our Products: Capital Digital Loan Initiative
Our Products: Capital Digital Loan Initiative (Loans Disbursed Post FY20) Addressing a wide spectrum of customers, across needs and affluence Product Name Capital Magic Loan Micro Business Loan Type of Loan Unsecured Digital Loan Unsecured Digital Loan Ticket Size (₹) 30,000 – 50,000 60,000 Tenure 1
Slide 13: Competitive Advantages
COMPETITIVE ADVANTAGES
Slide 14: Creating a Competitive Advantage to Increase Stakeholder Value
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 15: 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 ₹ 3.5 - 10 Lakh ₹ 30,000 – 1Lac ₹ 2 - 3
Slide 16: 2. Technology Driven Operational Efficiency
2. Technology Driven Operational Efficiency Enabling Improved Disbursements & Collections 104% 113% 108% 88% 89% 88% 89% 96% 96% 98% 95% 95% 81% 83% 53% 62% 53% 54% 57% 54% 52% Jun-21 Jul-21 Aug-21 Sep-21 Oct-21 Nov-21 Dec-21 Jun-21 Jul-21 Aug-21 Sep-21 Oct-21 Nov-21 Dec-21 Companywide Collection Ef
Slide 17: 3. Prudent Risk Management
3. Prudent Risk Management Conservative ALM Practices and Diversified Funding Book BC, 9% DFI, 4% NBFC, 19% PTC, 10% Public Sector Term Loan, 35% Banks, 19% DA, 7% DIVERSIFICATION ICD, 3% ACROSS… Private Sector NCD, 11% Banks, 58% Sub-Debt, 16% OD, 9% Instruments Funders Asset Liability Position Upd
Slide 18: 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 19: Digital Journey
DIGITAL JOURNEY
Slide 20: 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 21: 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 22: Rural Doorstep-Fintech Processes
RURAL DOORSTEP- FINTECH PROCESSES
Slide 23: 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 24: 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 25: 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 26: 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 27: 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 28: Financials
FINANCIALS ~ ”n = = is) = + i) aed
Slide 29: Product-Wise Portfolio
Product-Wise Portfolio Legacy Portfolio is coming ₹ 430 Cr ₹ 427 Cr down on the back of ₹ 401 Cr improved collections and No Disbursements ₹ 337 Cr ₹ 311 Cr ₹ 312Cr Share of Capital Digital 297 Initiative continuously 355 408 169 increasing and stands at 243 196 46% in Q3 FY22 vs 16% of Loan Book in
Slide 30: State-Wise Portfolio
State-Wise Portfolio Cautious approach in ₹ 430 Cr ₹ 427 Cr Disbursement led to decline ₹ 401 Cr in Loan portfolio during 16 17 COVID-19 17 ₹ 337 Cr 69 72 ₹ 311 Cr ₹ 312Cr 69 15 15 Q3 FY22 AUM remained 85 19 88 62 steady in spite of 21% QoQ 85 51 52 growth in disbursements 55 68 due to healthy 54 65
Slide 31: Portfolio Quality
Portfolio Quality GNPA * COMPANYWIDE 90+ ** (₹ in Crores) 18% 18% 51 16% 16% 52 16% 15% 14% 14% 13% 39 39 12% 12% 37 12% 11% 33 31 10% 10% 9% 29 8% 9% 8% 8% 8% 23 7% 7% 22 18 6% 6% 4% 12 4% 4% 2% 2% 0% 0% Q2FY21 Q3FY21 Q4FY21 Q1FY22 Q2FY22 Q3FY22 Q2FY21 Q3FY21 Q4FY21 Q1FY22 Q2FY22 Q3FY22 GNPA GNPA (
Slide 32: Portfolio Quality – Capital Digital Loans Initiative
Portfolio Quality – Capital Digital Loans Initiative Robust portfolio quality of loans disbursed post April 2020 (automated credit engine backed) (₹ in Crores) Total Disbursed: Portfolio Outstanding: 90+ DPD: ₹ 235 Cr ₹ 142 Cr 2.3% 5% 142 4% 115 105 95 3% 72 2.3% 2% 1.7% 22 1% 0% Q2FY21 Q3FY21 Q4FY2
Slide 33: Outstanding Provisions
Outstanding Provisions Cumulative Provisions of ₹ 57.5 Crores which accounts for 21.6% of the On-Balance Sheet Portfolio (₹ in Crores) As on Particulars Q3 FY21 Q4 FY21 Q1 FY22 Q2 FY22 Q3 FY22 31.12.2021 Standard Provisions (Stage 1 & 2) 5.8 4.4 4.7 1.3 1.1 1.1 COVID & Other Provisions (Including St
Slide 34: Key Highlights & Ratios
Key Highlights & Ratios Asset Under Management (₹ in Crores) Net Worth (₹ in Crores) 162 155 157 158 157 509 131 471 467 430 427 401 117 118 119 337 311 312 Q3FY20 Q4FY20 Q1FY21 Q2FY21 Q3FY21 Q4FY21 Q1FY22 Q2FY22 Q3FY22 Q3FY20 Q4FY20 Q1FY21 Q2FY21 Q3FY21 Q4FY21 Q1FY22 Q2FY22 Q3FY22 Capital Adequacy
Slide 35: Key Highlights & Ratios
Key Highlights & Ratios Borrowings (₹ in Crores) Cost of Borrowing (%) 14.2% 13.4% 324 13.2% 13.1% 13.1% 13.0% 13.1% 13.2% 12.8% 272 285 255 259 240 234 237 228 Q3FY20 Q4FY20 Q1FY21 Q2FY21 Q3FY21 Q4FY21 Q1FY22 Q2FY22 Q3FY22 Q3FY20 Q4FY20 Q1FY21 Q2FY21 Q3FY21 Q4FY21 Q1FY22 Q2FY22 Q3FY22 Net Interest
Slide 36: Quarterly Consolidated P&L Update Q3 & 9M FY22
Quarterly Consolidated P&L Update Q3 & 9M FY22 (₹ in Crores) Particulars Q3 FY22 Q3 FY21 YoY % Q2 FY22 QoQ % 9M FY22 9M FY21 YoY % Total Income 29.2 31.2 -6% 26.3 11% 78.2 86.4 -10% Total Expense (excluding tax) 27.9 31.2 -11% 25.1 11% 94.7 82.5 15% Profit / Loss before tax 1.3 0.0 - 1.2 8% -16.5 3.
Slide 37: Quarterly Consolidated Balance Sheet Update Q3 & 9M FY22
Quarterly Consolidated Balance Sheet Update Q3 & 9M FY22 (₹ in Crores) Assets Dec-21 Sep-21 Jun-21 Liabilities And Equity Dec-21 Sep-21 Jun-21 Financial Assets Financial Liabilities Cash and Cash Equivalents 10.8 21.2 27.2 Trade Payables 0.6 0.1 0.5 Bank Balances other than cash & 49.7 51.9 41.1 Deb
Slide 38: Key Partnerships
KEY PARTNERSHIPS
Slide 39: Long-Term Funding Partnerships
Long-Term Funding Partnerships MSME Client through Business Correspondent Relationship Benefits of Long-Term Funding Secured Leveraging Enables Raise Of On-Tap Funding Increase Of ROE Partner’s Equity At Right Time Balance Sheet 39
Slide 40: Equity, Debt & Direct Assignment Partnerships
Equity, Debt & Direct Assignment Partnerships Equity: 1 Public Sector Banks: 5 Private Sector Banks: 2 DFI / NBFCs: 8 40
Slide 41: Capital Impact
CAPITAL IMPACT
Slide 42: Capital Plus
Capital Plus Working with a Double-Bottom Line mission, company does a lot of good on ground level Increase in Encouragement of self-sufficiency financial and discipline entrepreneurship Facilitating financial Mitigation of inclusion of the financial Financial Literacy unbanked and volatility un-ser
Slide 43: Thank You
THANK YOU Vinod Raina Chief Financial Officer Vinod.raina@capitaltrust.in Vahin Khosla Executive Director Vahin.khosla@capitaltrust.in Pushpa Mani/Chintan Mehta IR Consultants Email: capital.trust@dickensonworld.com Contact no.: +91 9911684123/9892183389 43