Capital Trust Ltd. (india) · NSE:CAPTRUST
Capital Trust Ltd. (india) — Capital Trust — Q3 FY2025 Earnings Presentation
30 slides from Capital Trust Ltd. (india)'s earnings presentation, Feb 14, 2025
Slide 1: Q3 & 9MFY2025 Investor Presentation
Secured & Unsecured Informal MSME Lending in Rural India CAPITAL TRUST LIMITED Q3 & 9MFY2025 INVESTOR PRESENTATION February 2025
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 04-05 Q3 FY2025 UPDATES 06-11 INDUSTRY OVERVIEW 12-15 OPERATING MODEL 16-18 CAPITAL TRUST 2.0 19-24 FINANCIALS 25-28 KEY PARTNERSHIPS 28-29
Slide 4: Company Overview
> Capital Trust COMPANY OVERVIEW
Slide 5: Capital Trust – MSME Financing with a Tech-Touch Balance
Capital Trust – MSME Financing with a Tech-Touch Balance Company Snapshot • Publicly listed NBFC • Funded over ₹ 4000 Crore to 12,00,000+ clients since inception • Branch based financing model: 317 branches in 10 states • PE fund backed with 26 funders / partners What We Do • Informal MSME lending (
Slide 6: Q3 FY2025 Updates
Q3 FY2025 UPDATES
Slide 7: Q3 FY2025: Thoughtful Restraint With Forward Focus
Q3 FY2025: Thoughtful Restraint With Forward Focus CTL’s Strategic Decisions: Proactive Rather Than Reactive Approach To Challenging Market Conditions Dec 24 Strategy to strengthen capital with board - Board Approval for ₹49.9 Cr Equity Raise through Rights Issue (NSE approval received for rights is
Slide 8: Q3 FY2025: Financial Parameters
Q3 FY2025: Thoughtful Restraint With Forward Focus Financial Parameters: Revenue (₹ in Crores) Profit After Tax (₹ in Crores) 24.7 25.1 25.2 0.7 22.5 19.8 0.6 0.6 0.2 0.1 Q3 FY24 Q4 FY24 Q1 FY25 Q2 FY25 Q3 FY25 Q3 FY24 Q4 FY24 Q1 FY25 Q2 FY25 Q3 FY25 YoY: 27% QoQ: 0% YoY: -89% QoQ: -75% Profit Befor
Slide 9: Q3 FY2025: Operational Parameters
Q3 FY2025: Thoughtful Restraint With Forward Focus Operational Parameters: Asset Under Management (₹ in Crores) Clients (in #) 280 294 284 1,13,163 1,12,530 1,06,604 241 99,716 223 87,723 Q3 FY24 Q4 FY24 Q1 FY25 Q2 FY25 Q3 FY25 Q3 FY24 Q4 FY24 Q1 FY25 Q2 FY25 Q3 FY25 YoY: 8% QoQ: -15% YoY: 14% QoQ:
Slide 10: YoY Comparison (Q3 FY2025 vs Q3 FY2024)
YoY Comparison (Q3 FY2025 vs Q3 FY2024) Assets Under Management (in Cr): Own Book Portfolio (in Cr.): Off Book Portfolio (in Cr.): 240.5 97.5 153.4 (8%) (39%) (-7%) 223.3 69.9 143.0 Revenue (in Cr): Expenses (in Cr): Profit Before Tax (in Cr): 25.2 25.0 0.7 (27%) (31%) (-71%) 19.8 19.1 0.2 Net Worth
Slide 11: QoQ Comparison (Q3 FY2025 vs Q2 FY2025)
QoQ Comparison (Q3 FY2025 vs Q2 FY2025) Assets Under Management (in Cr): Own Book Portfolio (in Cr.): Off Book Portfolio (in Cr.): 283.6 108.0 175.6 (-15%) (-10%) (-19%) 240.5 97.5 143.0 Revenue (in Cr): Expenses (in Cr): Profit Before Tax (in Cr): 25.2 25.0 0.3 (0%) (1%) (-71%) 25.1 24.8 0.2 Net Wo
Slide 12: Industry Overview
INDUSTRY OVERVIEW
Slide 13: Need For Evolution In Rural Financing
Need For Evolution In Rural Financing Unchanged processes since early 2010s that have not kept up with evolving client demands 01 Financing The Overlooked Shopkeeper 03 Group Structure (Client Perspective) Existing: Existing: • Limited companies focusing specifically on • Clients assessed on collect
Slide 14: Spearheading The Evolution
Spearheading The Evolution Financing The Overlooked Shopkeeper Finetuned product (small ticket size, short tenure, optimal EMI) and target sector over a decade of exclusively serving business loans to MSMEs Technology 82% of own book loans disbursed within 2 days of client onboarding. Historical dat
Slide 15: Market Segment
Market Segment RBI recognizes Capital Trust’s target sector as the Informal Micro Enterprises Sector by placing it on par with the Formal MSME Sector, classifying it as Priority Sector Lending (RBI/2023-24/27: FIDD.MSME & NFS.BC.No.09/06.02.31/2023-24) CLASSIFICATION DOCUMENTATION TICKET SIZE ANNUAL
Slide 16: Operating Model
> Capital Trust SE PC
Slide 17: Rural Doorstep-Fintech Company Focused on MSME Lending
Rural Doorstep-Fintech Company Focused on MSME Lending 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
Slide 18: Product Offering & Typical Clientele
Product Offering & Typical Clientele Financing The Overlooked Shopkeeper Target Clientele Type of Loan Income-generating business loan Overlooked by formal financial institutions, the Shopkeepers company aims to support rural and semi-urban Unsecured: 50,000 – 1,50,000 Ticket Size (₹) shopkeepers Se
Slide 19: Capital Trust 2.0
CAPITAL TRUST 2.0
Slide 20: Unique Selling Proposition
Unique Selling Proposition Providing Portfolio Quality Lending-As-A-Service - High quality, seasoned portfolio with - Inherent potential to disburse upwards 4.69% GNPA of ₹ 80 Crore monthly through existing branch network - Current product continues to show strength with ₹1096 Cr total - 6 live Co-L
Slide 21: 1. Portfolio Quality
1. Portfolio Quality ₹ 241 Cr 250 97% 96% 96% 96% 95% 94% 93% 91% 91% 92% 17 200 14 25 150 32 43 100 50 93 0 Mar-24 Apr-24 May-24 Jun-24 Jul-24 Aug-24 Sep-24 Oct-24 Nov-24 Dec-24 BIH E UP ODS MP JHA RAJ PUN AP UP UKH CG DEL Companywide Collection Efficiency Total Assets Under Management ₹ 240.5 Cr 9
Slide 22: 2. 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 23: 3. 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 FOIR analysis Disbursement Telephonic No exceptions or manual Verification by HO interv
Slide 24: 4. 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) Co-Lending / BC Disbursements done with: Co-Lending: Business Correspondent: Total POS 90+ % 30+ % 90+ % Disbursements (₹ in Cr) (on POS) (on Disbursement) (on Disburs
Slide 25: Financials
FINANCIALS ~ ”n = = ie) = [ok ia) i) aed
Slide 26: Key Highlights & Ratios
Key Highlights & Ratios (₹ in Crores) Particulars Q3 FY25 Q2 FY25 QoQ % Q3 FY24 YoY % Total Income 25.2 25.1 0% 19.8 27% Total Expense (excluding tax) 25.0 24.8 1% 19.1 31% Profit / Loss Before Tax 0.2 0.3 -31% 0.7 -71% Profit / Loss After Tax 0.1 0.2 -75% 0.6 -89% Net Worth 85.9 85.8 0% 76.1 13% On
Slide 27: Balance Sheet
Balance Sheet (₹ in Crores) Assets Q3 FY25 Q2 FY25 Q1 FY25 Liabilities And Equity Q3 FY25 Q2 FY25 Q1 FY25 Financial Assets Financial Liabilities Trade Payables 0.5 0.5 0.5 Cash and Cash Equivalents 27.7 20.0 36.2 Debt Securities 18.2 16.5 6.7 Bank Balances other than Cash & Borrowings other than Deb
Slide 28: Key Partnerships
KEY PARTNERSHIPS
Slide 29: Funding & Partnerships
Funding & Partnerships Equity: 1 Co-Lending: 5 Business Correspondent: 3 On-Balance Sheet Funders: 20 BC Partners not currently live: 29
Slide 30: Thank You
THANK YOU Vinod Raina Chief Financial Officer Vinod.raina@capitaltrust.in Vahin Khosla Joint-Managing Director Vahin.khosla@capitaltrust.in 30