Trucap Finance Limited · NSE:TRU
Trucap Finance — Dhanvarsha Finvest — FY2021 Earnings Presentation
39 slides from Trucap Finance's earnings presentation, 2021
Slide 1: Dhanvarsha
3 Dhanvarsha
Slide 2: Disclaimer
Disclaimer This presentation is not a prospectus, a statement in lieu of a prospectus, an offering circular / memorandum, an advertisement, an offer, an invitation to offer or an offer document in terms of the Companies Act, 2013, the Securities and Exchange Board of India (Issue of Capital and Disc
Slide 3: Business Update
Lo | Business Update SOA
Slide 4: Covid-19 Update
Covid-19 Update INR Million Month Demand raised Collections Prepayments & Collection Collection received foreclosures efficiency (%) efficiency (%) received* without prepayments & foreclosures Jan-21 23 20 20 89% 175% Feb-21 25 22 18 90% 162% Mar-21 28 27 25 95% 182% Apr-21 34 29 25 87% 163% May-21
Slide 5: Financial Update
Financial Update INR Million Particulars March 2020 Dec 2020 March 2021 AUM 372.4 763.2 1,044.5 CRAR%* 69.2% 83.2% 71.4% Tier 1%* 69.2% 83.2% 71.4% Debt to Equity* 0.5x 0.4x 0.8x Interest Income 13.3 30.1 47.9 Total Revenue 58.5 88.5 108.3 Net Interest Margin 8.7% 7.8% 8.2% PBT 5.0 10.1 7.0 • Pristi
Slide 6: Business Goals Achieved
Business Goals Achieved INR Million Particulars March 2020 March 2021 Disbursement 86.8 880.3 Net Worth* 311.5 999.1 Debt Outstanding 156.1 805.3 Unused Debt Capacity 0 675.0 Credit Ratings BBB- (Stable) BBB (Stable) Lenders (Count) 1 12 Experiential Centers (Count) 2 16 Customers (Count) 403 7,186
Slide 7: Pristine balance sheet with debt from marquee lenders
Pristine balance sheet with debt from marquee lenders Current Equity (INR MN) Debt (INR MN) Equity Share Capital on March 31 999.1 Borrowings from Banks & FIs 755.3 Capital infusion led by Aviator NCD Borrowings 50.0 Emerging Market Fund (AEMF) including 658.0 a marquee list of investors such as Por
Slide 8: Robust Disbursements and Distribution
Robust Disbursements and Distribution Disbursement (INR Mn) 405 221 206 48 Jun-20 Sep-20 Dec-20 Mar-21 Distribution Strength 98 Experiential Centers Financial Inclusion Stores 16 2 0 Mar-20 Jun-21
Slide 9: Asset Quality & Provision Levels
Asset Quality & Provision Levels INR Million Particulars Mar 2020 Mar 2021 Gross NPA 18.9 30.8 Gross NPA % 5.07% 2.95% Net NPA 9.6 8.6 Net NPA % 2.59% 0.82% Gross Performing Assets 353.5 1,013.6 Gross Performing Assets % 94.93% 97.05% • Of the 30.8 million GNPA. 23.3 million comes from 8 legacy LAP
Slide 10: Company Overview: Governance & Mission
Company Overview: Governance & Mission
Slide 11: We don’t just lend money. We enable businesses by lending ‘hand’, ‘head’ & ‘heart’
We don’t just lend money. We enable businesses by lending ‘hand’, ‘head’ & ‘heart’ Ecosystem We are true business partners to our customers Growth & Wealth & Scalability Wellbeing For us, business are communities first. We help building ‘Social Capital’ We give equal importance to both ‘Social’ & ‘C
Slide 12: Deep sectoral expertise in MSME essential goods segments
Deep sectoral expertise in MSME essential goods segments MSME Focussed Lender Pristine Balance Sheet MSME Exposure by Category Serving the underserved Unlevered and liquid balance and underbanked sector sheet. Marquee lenders 15% which has >63 Mn MSME’s 26% 7% Significantly Tech Enabled Solid Promot
Slide 13: …with a Differentiated approach in lending
…with a Differentiated approach in lending Capital efficiency & risk management at the fore with a mix of on and off balance sheet AUM Own balance sheet lending Co-lending with FLDG Business correspondent Small ticket Solid sourcing in new geographies High fee generating business with with very low
Slide 14: Business Model
Business Model On Balance Sheet Off Balance Sheet Particulars Gold Loans Business Loans Medical loans Education Loans LAP* On DFL Balance sheet 100% 100% 100% 100% 0% On Investor Balance sheet 100% Yield 21.0% 20.0% 21.0% 19.0% 4.5% - Funding cost 12.0% 12.0% 12.0% 12.0% 0.0% Net interest spread 9.0
Slide 15: Product Profile
Product Profile On Balance Sheet Off Balance Sheet Particulars Gold Loans Business Loans Personal Loans LAP* Average Ticket Size Up to INR 5 Mn INR 0.40 Mn INR 0.15 Mn INR 2.7 Mn Interest Rate 15% - 22% 18% - 24% 18% - 24% 14% - 20% Tenure 12 Months 12 / 60 Months 12 / 36 Months 60 / 180 months Avg
Slide 16: Substantial Opportunity Ahead
Substantial Opportunity Ahead
Slide 17: Substantial Opportunity in Home State of Maharashtra
Substantial Opportunity in Home State of Maharashtra Dhanvarsha expects significant AUM and earnings growth led by: Go-Live of our omni-channel digital platform catering to MSME’s and the Blue-collar work force. Experiential center roll out in Maharashtra; Financial inclusion store expansion in Maha
Slide 18: Gold Loans – Experiential centers & Door-Step Disbursement
Gold Loans – Experiential centers & Door-Step Disbursement The company through ‘experiential centers’ and digitally optimised ‘door-step disbursement’ offers a superior value proposition to customers in gold financing. Contact Point Verification & Personal Discussion done at Customer’s house to conf
Slide 19: Gold Loans – Experiential Center Roll Out Plan
Gold Loans – Experiential Center Roll Out Plan Sourcing Customer Engagement / Offerings Customer Retention Experiential centres Gold Loan Schemes categorized as – Fixed, Repeat Customers benefit with better Interest in MSME centric locations Rebate, Step up and Upfront Interest Rates on fresh loans
Slide 20: Dhanvarsha Gold Loan Potential in Maharashtra
Dhanvarsha Gold Loan Potential in Maharashtra Customers AUM in INR MN 232,400 126,400 58,667 21,888 12,168 13,167 6,040 1,580 Mar-22 Mar-23 Mar-24 Mar-25 1 Projected plan may vary based on the Covid-19 situation at that prevailing time - Total Addressable Market for Gold Loan is estimated to grow at
Slide 21: Dhanvarsha MSME Loan Potential in Maharashtra
Dhanvarsha MSME Loan Potential in Maharashtra Customers AUM in INR MN 104,031 65,876 25,209 36,276 15,755 8,483 8,438 2,131 Mar-22 Mar-23 Mar-24 Mar-25 1 Projected plan may vary based on the Covid-19 situation at that prevailing time – Total Addressable Market for MSME Loan is estimated to grow at 1
Slide 22: Dhanvarsha Financial Inclusion Stores: Distribution with Scale
Dhanvarsha Financial Inclusion Stores: Distribution with Scale Financial Inclusion Stores – Distribution Potential Financial Inclusion Financial Inclusion Store ROA Store Model AUM (INR MN) Financial Inclusion Stores Count (Thousand) Yield 24.0% 18.1 - Funding cost 11.5% Net interest spread 12.5% -
Slide 23: Financial Inclusion Store Model
Financial Inclusion Store Model KYC / CIBIL Validated Fraud Investigation Future EMI Initiated – on Files Logged in Collections in average 10% Stores ‘Go’ / ‘No go’ decision co-ordination rejected given to stores in 5 mins with Stores Underwriting Initiated Onboard a Financial Successful Stores give
Slide 24: Co-Lending Partnerships
Co-Lending Partnerships Existing Partnerships Forthcoming Partnerships – Going Live by end of Jun-21 • Co-Lending partnerships with FLDG (first loss default guarantee) specifically in MSME, education and business loans • Partners in co-lending are chosen after extensive due diligence by the Credit C
Slide 25: Money Rabbit: Dhanvarsha’s Omni Channel Digital Platform
Money Rabbit: Dhanvarsha’s Omni Channel Digital Platform for MSME’s and Blue-Collar Work Force All-in-One Digital Digital Lending Financial Solution Platform Borrow, Invest, Pay & Grow With a Multi-Utility Wallet for Attractive Rewards and Cashback Democratise & Credit Health Tool Realtime Scorecard
Slide 26: Addressable Market for Blue Collar Work Force
Addressable Market for Blue Collar Work Force 350 million Blue Collared Workers India has 350 million* Blue-Collared workforce MSMEs employ > 110 million primarily in this category Potential Market Size is ` 1.75 trillion (with an Potential Market Size ` 1.75 Tn average ticket size of `5K). After ad
Slide 27: Enablers of Substantial Scale
Enablers of Substantial Scale
Slide 28: Robust Technology Platform and Architecture
Robust Technology Platform and Architecture CHANNELS EXTERNAL SYSTEMS Co-Lending Financial Digital Call Center DSA/FOS Branches CUSTOMER ONBOARDING Partners Inclusion Stores Marketing LENDING RELATED BANKING SYSTEMS Customer Info Payment Lending API Middleware Tally Books Envelope Master Data Databa
Slide 29: Proprietary Lending and Risk Advisory Engine
Proprietary Lending and Risk Advisory Engine Onboarding process Gathering of Data Dhanvarsha Customer Signup Create user Profile in API Application in LOS altimate engine Push SMS Call Logs GPS Device Info Useful Data Data processing Junk Data Classification of Data Yes Template Bank E-commerce KYC
Slide 30: Partnerships
Partnerships Lenders MSME lending FLDG partners Education lending FLDG partners Distribution partners and 100+ partners Minaxi Mehta Welfare Social Capital partners Foundation Mera Cashier Insurance partners Auditors Harikbhakti & Co
Slide 31: Focus on Governance & Best Practices
Focus on Governance & Best Practices Substantial management ownership in the company Independent and Eminent Board comprising of industry stalwarts High governance standards Rakesh Sethi Manjari Kacker Rajiv Kapoor Nirmal Momaya Stat Audit Haribhakti & Co Non-Executive Chairman Independent Director
Slide 32: Professional management team
Professional management team Karan Desai Joint Managing Director • Ex-investment banker with 15+ years of experience • Previously worked at Bank of America, PwC and Centrum Capital Rohanjeet Juneja Joint Managing Director • 17+ years of experience, in India & US. • An investment banker, hedge fund m
Slide 33: Mahendra Servaiya Credit Head & Principal Officer
Mahendra Servaiya Credit Head & Principal Officer • 32+ years of experience • Previously worked in the credit team of Union Bank of India for heading the South Mumbai division Sunil Ranpara Collections Head • 15+ years of experience across collections, litigation and recovery • Previously worked wit
Slide 34: Dhanvarsha is backed by a promoter group with rich heritage
Dhanvarsha is backed by a promoter group with rich heritage Group’s businesses Dhanvarsha Finvest Limited is a Bombay Stock Exchange Limited listed NBFC provides credit to the underbanked MSME sector in India About the group • Wilson Group’s history traces back up to Pre-Independence • Diversified c
Slide 35: Shareholding Pattern
Shareholding Pattern Public 30.0% Promoter 62.9% FII 7.1% Shareholding on fully diluted basis including CCDs issued in November 2020 and April 2021
Slide 36: Financials
> Financials
Slide 37: Balance Sheet
Balance Sheet • Strong liquidity profile coupled Balance Sheet (INR Million) Mar 2020 Mar 2021 with an under levered balance sheet will support higher Financials Assets 422.1 1,662.9 disbursement trajectory. Cash and Investments 93.5 665.8 • Company anticipates sturdy loan Gross Loans 372.4 1,044.5
Slide 38: Income Statement
Income Statement • Robust growth in interest income Income Statement (INR Million) Mar 20 Dec 20 Mar 21 with increasing disbursements. Operating Revenue 57.2 70.5 104.7 • Operating expenses have increased due to build out of branches and Less: Finance Cost 4.2 5.5 19.2 technology platform coupled wi
Slide 39: Thank You
Thank You