Capital Trust Ltd. (india) · NSE:CAPTRUST
Capital Trust Ltd. (india) — Capital Trust — Q4 FY2022 Earnings Presentation
44 slides from Capital Trust Ltd. (india)'s earnings presentation, May 30, 2022
Slide 1: Q4 & FY2022 Investor Presentation
Merging New-Age Fintech with Traditional Lending CAPITAL TRUST LIMITED Q4 & FY2022 INVESTOR PRESENTATION May 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 04-13 COMPETITIVE ADVANTAGES 14-19 DIGITAL JOURNEY 20-22 RURAL DOORSTEP-FINTECH 23-28 FINANCIALS 29-38 KEY PARTNERSHIPS 39-41 CAPITAL IMPACT 42-43
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 ₹ 301 Cr ₹ 121 Cr 43.8 % 5.0 % 0.0 % 315 2,138 *Own Book 90+ / Own Book Portfolio 6
Slide 7: Q4 FY2022 - Quarter At a Glance
Q4 FY2022 - Quarter At a Glance Sequential Improvement in Continuous Reduction in Highest Quarterly Steady Increase in Collection Profitability GNPA Disbursement since FY20 Efficiency 10% 58 9% 55 103% 92% 9% 0.9 1.0 1.6 23 22 46 88% 8% 8% 79% 18 7% 7% Q1 FY22 Q2 FY22 Q3 FY22 Q4 FY22 6% 11 5% 5% 4%
Slide 8: Capital Trust 2.0: Capital Digital Loans
Capital Trust 2.0: Capital Digital Loans 01 Driven by Faster Credit Unique Customer Low Risk - High Stringent Technology Delivery Profile Returns Credit Control Rural Doorstep Fintech Short Turn-Around-Time Serving the Better Robust Quality Company For Disbursement Missing Middle Rewards Checks ▪ Cl
Slide 9: Capital Digital Loans to Drive Future Growth
Capital Digital Loans to Drive Future Growth Accelerated growth in Rural Internet Users Better Collection Efficiency 01 28% 294 02 ~60% collections made Digitally 230 03 45% 352 Faster Turnaround Time 243 04 Lower Operating Cost 2019 2021 Rural India Urbran India 100% Digital Disbursements Increasin
Slide 10: 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 11: Our Clientele
Our Clientele Kirana Stores Dairy and Livestock Farmers Grocery Vendors Small Eateries Textile Stores Handicraft Manufacturers Utility Stores Salons Flower Vendors 11
Slide 12: Increasing our Reach in Rural India
Increasing our Reach in Rural India 46 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 Districts in 10 States of India 12
Slide 13: Our Products: Capital Digital Loans
Our Products: Capital Digital Loans Addressing a wide spectrum of customers, across needs and affluence Product Name Quick Digital Loan Capital Magic Loan Type of Loan Unsecured Digital Loan Unsecured Digital Loan Ticket Size (₹) 5,000 30,000 – 50,000 Tenure 3 months 12 – 18 months ROI Interest-Free
Slide 14: Competitive Advantages
COMPETITIVE ADVANTAGES
Slide 15: 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 16: 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 ₹ 4 - 10 Lakh ₹ 30,000 – 1Lac ₹ 3 - 4 L
Slide 17: 2. Technology Driven Operational Efficiency
2. Technology Driven Operational Efficiency Enabling Improved Disbursements & Collections 116% 114% 112% 113% 108% 106% 104% 100% 98% 97% 95% 96% 95% 96% 88% 89% 88% 89% 81% 83% 62% 57% 57% 59% 53% 54% 53% 54% 55% 52% Jun-21 Jul-21 Aug-21 Sep-21 Oct-21 Nov-21 Dec-21 Jan-22 Feb-22 Mar-22 Jun-21 Jul-2
Slide 18: 3. Prudent Risk Management
3. Prudent Risk Management Conservative ALM Practices and Diversified Funding Book NBFC, 28% BC, 19% Term Loan, 30% DFI, 6% DIVERSIFICATION PTC, 12% ACROSS… Public Sector DA, 6% Private Sector Banks, 17% Sub-Debt, 16% Banks, 46% ICD, 2% NCD, 11% OD, 3% Instruments Funders Asset Liability Position Up
Slide 19: 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 20: Digital Journey
DIGITAL JOURNEY
Slide 21: 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 22: 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 23: Rural Doorstep-Fintech Processes
RURAL DOORSTEP- FINTECH PROCESSES
Slide 24: 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 25: 3 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 26: 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 27: 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 28: 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 29: Financials
FINANCIALS ~ ”n = = is) = + i) aed
Slide 30: Product-Wise Portfolio
Product-Wise Portfolio ₹ 430 Cr Legacy Portfolio is coming ₹ 427 Cr down on the back of ₹ 401 Cr improved collections, no new disbursements and ₹ 337 Cr write-off** in Q4 FY22 ₹ 311 Cr ₹ 312 Cr ₹ 301 Cr Share of Capital Digital 355 297 Loans continuously 408 243 169 139 increasing and stands at 196
Slide 31: 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 69 ₹ 337 Cr 72 ₹ 311 Cr ₹ 312Cr 69 ₹ 301Cr 15 15 Q4 FY22 AUM declined 85 19 15 88 62 22 marginally in spite of 6% 85 51 QoQ growth in 52 45 55 68 disbursements
Slide 32: Portfolio Quality – Capital Digital Loans
Portfolio Quality – Capital Digital Loans Robust portfolio quality of loans disbursed post FY 20 (automated credit engine backed) (₹ in Crores) Despite Covid, there has been no restructuring or write-off in this product Total Disbursed: Portfolio Outstanding: 30+ DPD: 90+ DPD: ₹ 293 Cr ₹ 162 Cr 3.4%
Slide 33: Portfolio Quality - Companywide
Portfolio Quality - Companywide (₹ in Crores) 60 GNPA * 18% COMPANYWIDE 90+ ** 18% 16% 51 16% 52 15% 16% 50 14% 14% 13% 12% 39 39 40 11% 12% 37 12% 33 31 9% 10% 10% 8% 9% 29 30 8% 8% 7% 8% 8% 23 22 23 7% 20 18 5% 6% 6% 4% 12 12 4% 4% 10 2% 2% 0 0% 0% Q2FY21 Q3FY21 Q4FY21 Q1FY22 Q2FY22 Q3FY22 Q4FY22
Slide 34: Outstanding Provisions
Outstanding Provisions Cumulative Provisions of ₹ 41.7 Crores which accounts for 18.2% of the On-Balance Sheet Portfolio (₹ in Crores) Particulars Q4 FY21 Q1 FY22 Q2 FY22 Q3 FY22 Q4 FY22 FY 22 Standard Provisions (Stage 1 & 2) 4.4 4.7 1.3 1.1 11.0 11.0 COVID & Other Provisions (Including Stage 3) 31
Slide 35: Key Highlights & Ratios
Key Highlights & Ratios Asset Under Management (₹ in Crores) Net Worth (₹ in Crores) 155 157 158 157 471 467 131 430 427 117 118 119 121 401 337 311 312 301 Q4FY20 Q1FY21 Q2FY21 Q3FY21 Q4FY21 Q1FY22 Q2FY22 Q3FY22 Q4FY22 Q4FY20 Q1FY21 Q2FY21 Q3FY21 Q4FY21 Q1FY22 Q2FY22 Q3FY22 Q4FY22 Capital Adequacy
Slide 36: Key Highlights & Ratios
Key Highlights & Ratios Borrowings (₹ in Crores) Cost of Borrowing (%) 13.2% 13.4% 13.1% 13.1% 13.0% 13.1% 13.2% 12.8% 13.4% 272 285 280 255 259 240 234 237 228 Q4FY20 Q1FY21 Q2FY21 Q3FY21 Q4FY21 Q1FY22 Q2FY22 Q3FY22 Q4FY22 Q4FY20 Q1FY21 Q2FY21 Q3FY21 Q4FY21 Q1FY22 Q2FY22 Q3FY22 Q4FY22 Net Interest
Slide 37: Quarterly Consolidated P&L Update Q4 & FY22
Quarterly Consolidated P&L Update Q4 & FY22 (₹ in Crores) Particulars Q4 FY22 Q4 FY21 YoY % Q3 FY22 QoQ % FY22 FY21 YoY % Total Income 27.8 28.1 -1% 29.2 -5% 106.0 114.6 -8% Total Expense (excluding tax) 25.4 61.5 -59% 27.9 -9% 120.2 144.0 -17% Profit / Loss before tax 2.3 -33.3 - 1.3 82% -14.2 -29.
Slide 38: Quarterly Consolidated Balance Sheet Update Q4 & FY22
Quarterly Consolidated Balance Sheet Update Q4 & FY22 (₹ in Crores) Assets Mar-22 Dec-21 Sep-21 Liabilities And Equity Mar-22 Dec-21 Sep-21 Financial Assets Financial Liabilities Cash and Cash Equivalents 4.9 10.8 21.2 Trade Payables 0.9 0.6 0.1 Debt Securities 64.1 57.6 80.1 Bank Balances other tha
Slide 39: Key Partnerships
KEY PARTNERSHIPS
Slide 40: 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 40
Slide 41: Equity & Funding Partnerships
Equity & Funding Partnerships Equity: 1 Public Sector Banks: 5 Private Sector Banks: 2 DFI / NBFCs: 9 41
Slide 42: Capital Impact
CAPITAL IMPACT
Slide 43: 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 44: 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 44