Capital Trust Ltd. (india) · NSE:CAPTRUST
Capital Trust Ltd. (india) — Capital Trust — Q1 FY21 Earnings Presentation
38 slides from Capital Trust Ltd. (india)'s earnings presentation, Sep 15, 2020
Slide 1: Investor Presentation Q1 FY21
INVESTOR PRESENTATION Q1 FY21
Slide 2: Company Overview
COMPANY OVERVIEW COVID-19 UPDATE MARKET SEGMENT & CLIENT PROFILE UNIQUE SELLING PROPOSITION PRODUCT OFFERING OPERATING MODEL PORTFOLIO UPDATE FINANCIALS PARTNERS 1
Slide 3: About Capital Trust
ABOUT CAPITAL TRUST STORY ORIGINS MISSION VISION Capital Trust pioneers Capital Trust is a publicly listed To provide financial assistance to the To become the first fully digital and digitalization of the rural Systematically Important Non unbanked in deep interiors of rural cashless lending model
Slide 4: Performance Milestones
PERFORMANCE MILESTONES o ₹ 600Cr Co-Lending Partnership with PFPL o Capital Digital Loans Initiative o On-Tap Borrowing Partnership with IDFC Bank o ₹ 71Cr Promoter infusion o ₹ 65Cr PE investment o Listing on NSE o Acquisition of Microfinance subsidiary o Ventured into MSME funding o Started rural
Slide 5: COVID-19 Update
COMPANY OVERVIEW COVID-19 UPDATE MARKET SEGMENT & CLIENT PROFILE UNIQUE SELLING PROPOSITION PRODUCT OFFERING OPERATING MODEL PORTFOLIO UPDATE FINANCIALS PARTNERS 4
Slide 6: COVID-19 Business Update
COVID-19 BUSINESS UPDATE • Have increased month-on-month Collections * • Have touched 87% in the second week of September 100% 99% 99% 87% 80% 74% 63% 65% 60% 54% 40% 25% 20% 13% 0% January 20 February 20 March 20 April 20 May 20 June 20 July 20 August 20 Sep 20 2nd Week • Selective disbursement to
Slide 7: COVID-19 Liquidity Update
COVID-19 LIQUIDITY UPDATE • High Liquidity Buffers (actual and systematic) • Positive ALM • ₹ 25Cr Opening Cash Balance in September Liquidity • ₹ 30Cr Fresh NCD Disbursement from SBI in August 2020 • Business Correspondent Relationship with IDFC First Bank • Signed ₹600Cr Co-Lending Agreement with
Slide 8: Market Segment & Client Profile
COMPANY OVERVIEW COVID-19 UPDATE MARKET SEGMENT & CLIENT PROFILE UNIQUE SELLING PROPOSITION PRODUCT OFFERING OPERATING MODEL PORTFOLIO UPDATE FINANCIALS PARTNERS 7
Slide 9: Serving the Unserved Missing Middle
SERVING THE UNSERVED MISSING MIDDLE Annual 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 Income Data **IFC Report on MS
Slide 10: Target Clientele
TARGET CLIENTELE Graduated from Microfinance 8% of the Microfinance clients graduate yearly from the Microfinance sector New to Organized Credit Replacing traditional informal sources of financing (local moneylenders) MISSING MIDDLE ‘Micro’ of the MSME Unserved by MFIs (owing to RBI guidelines) and
Slide 11: Customer Segment
CUSTOMER SEGMENT 73% of clients are part of Essential Services Fresh disbursements only to clients in Essential Services Linked To Local Economy Non-Seasonal Businesses Businesses which are not part of larger supply Businesses which are active throughout chain economies but depend on local demand ye
Slide 12: Typical Clientele
TYPICAL CLIENTELE Kirana Stores Dairy and Livestock Farmers Grocery Vendors Small Eateries Textile Stores Local Handicraft Producers Utensil Stores Hair Salons Flower Sellers 11
Slide 13: Unique Selling Proposition
COMPANY OVERVIEW COVID-19 UPDATE MARKET SEGMENT & CLIENT PROFILE UNIQUE SELLING PROPOSITION PRODUCT OFFERING OPERATING MODEL PORTFOLIO UPDATE FINANCIALS PARTNERS 12
Slide 14: Unique Selling Proposition
UNIQUE SELLING PROPOSITION RURAL DOORSTEP-FINTECH COMPANY: One-of-a-kind business that finds the perfect balance between technology and traditional financing Hybrid Fintech-Physical Credit Model Use of a credit decision scorecard that merges automated credit (credit bureau and alternate data) with p
Slide 15: Rural Doorstep-Fintech Process
RURAL DOORSTEP-FINTECH PROCESS 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 Financial literacy of client 2. HYBRID CREDIT UNDERWRITING QR Code scan of
Slide 16: Evolution of Model (2008 - 2020)
EVOLUTION OF MODEL (2008 - 2020) MOVE TO DIGITAL COLLECTION Group Loan Individual Loan DISBURSEMENT Safety - One of the first rural NBFCs to start 100% cashless disbursement in 2015 COLLECTION Efficiency - Pioneered digital collection in rural lending in 2019 Cash Collection Digital Collection - Loa
Slide 17: Product Offering
COMPANY OVERVIEW COVID-19 UPDATE MARKET SEGMENT & CLIENT PROFILE UNIQUE SELLING PROPOSITION PRODUCT OFFERING OPERATING MODEL PORTFOLIO UPDATE FINANCIALS PARTNERS 16
Slide 18: Capital Digital Loans Offered
CAPITAL DIGITAL LOANS OFFERED Capital Magic Loan Micro Business Loan Unsecured Digital Business Loan Unsecured Digital Business Loan Ticket Size (₹): 10,000 – 50,000 Ticket Size (₹): 60,000 – 1,00,000 Tenure: 12-18 months Tenure: 24 months ROI: 40% ROI: 32% Repayment: Digital followed by Repayment:
Slide 19: Operating Model
COMPANY OVERVIEW COVID-19 UPDATE MARKET SEGMENT & CLIENT PROFILE UNIQUE SELLING PROPOSITION PRODUCT OFFERING OPERATING MODEL PORTFOLIO UPDATE FINANCIALS PARTNERS 18
Slide 20: Branch Network
BRANCH NETWORK 39 13 6 33 62 26 10 24 8 20 Branches: 241 Districts: 63 States: 10 19
Slide 21: Smart Credit
SMART 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 Verification No exceptions or manual by HO Credit Team
Slide 22: Information Technology Prowess
INFORMATION TECHNOLOGY PROWESS One of the first NBFCs to start cashless disbursement of all Cashless Disbursement & loans since 2015. Also started process of cashless Collection repayment for all loans (expect Microfinance) in 2019 Automated closing of company and all branch books at Automation of D
Slide 23: Business Intelligence
BUSINESS INTELLIGENCE We have developed a credit engine for internal rating of every client. The Credit Engine uses Artificial Intelligence and Credit Engine: 1 Machine Learning in an automated self-learning credit model that covers parameters on client demographics, financial condition and environm
Slide 24: Automated Risk Control
AUTOMATED RISK CONTROL Staff Engine Our staff engine is an integrated tool for real time monitoring of current staff availability and projected staff sufficiency at branch level. By looking at past attendance, this engine Performance Management Engine predicts staff shortfall in times to come Real t
Slide 25: Portfolio Update
COMPANY OVERVIEW COVID-19 UPDATE MARKET SEGMENT & CLIENT PROFILE UNIQUE SELLING PROPOSITION PRODUCT OFFERING OPERATING MODEL PORTFOLIO UPDATE FINANCIALS PARTNERS 24
Slide 26: Productwise Portfolio
PRODUCTWISE PORTFOLIO (In ₹ Cr) 900 ₹ 795Cr ₹ 725Cr 800 120 700 89 ₹ 555Cr 56 600 55 ₹ 471Cr ₹ 467Cr 500 125 24 23 29 28 400 90 300 619 581 200 419 417 340 100 ₹134Cr Capital ₹136Cr Capital ₹2Cr Capital Digital Initiative Digital Initiative Digital Initiative 0 FY '17 FY '18 FY '19 FY '20 Q1 FY '21
Slide 27: Statewise Portfolio
STATEWISE PORTFOLIO (In ₹ Cr) 900 ₹ 795Cr ₹ 725Cr 800 13 62 7 700 37 ₹ 555Cr 600 272 ₹ 471Cr 165 ₹ 467Cr 48 500 2 2 99 90 12 12 400 83 50 48 106 65 64 300 115 257 65 63 72 21 37 70 71 200 71 31 82 88 100 33 189 151 86 99 94 - FY '17 FY '18 FY '19 FY '20 Q1 FY '21 PUN BIH ODI RJ MP UP JH UKH CH DEL 2
Slide 28: Portfolio Quality
PORTFOLIO QUALITY COMPANYWIDE As on 30.06.20 AUM (₹ Cr.) 90+ DPD (₹ Cr.) 90+ DPD (%) Non-Demonetization Impacted States* 404.9 18.0 4.4% Demonetization Impacted States** 61.9 19.2 31.0% Total 466.8 37.2 8.0% *Punjab, Rajasthan, Madhya Pradesh, Bihar, Odisha, Chhattisgarh, Jharkhand ** Uttar Pradesh,
Slide 29: Financials
COMPANY OVERVIEW COVID-19 UPDATE MARKET SEGMENT & CLIENT PROFILE UNIQUE SELLING PROPOSITION PRODUCT OFFERING OPERATING MODEL PORTFOLIO UPDATE FINANCIALS PARTNERS 28
Slide 30: Annual Change (Q1 FY20 vs Q1 FY21)
ANNUAL CHANGE (Q1 FY20 vs Q1 FY21) Assets Under Management (in Cr): Capital Digital Initiative (in Cr.): Profit After Tax (in Cr): 631 136 2 (-26%) (548%) (118%) 467 21 -11 Net Interest Margin (in %): Return on Assets (in %): Earnings Per Share (in Rs): 12.1 1.8 1.3 (48%) (126%) (118%) 8.2 -6.8 -7.1
Slide 31: Quarterly Change (Q4 FY20 vs Q1 FY21)
QUARTERLY CHANGE (Q4 FY20 vs Q1 FY21) Assets Under Management (in Cr): Capital Digital Initiative (in Cr.): Profit After Tax (in Cr): 471 136 2 (0%) (1%) (133%) 467 134 -6 Net Interest Margin (in %): Return on Assets (in %): Earnings Per Share (in Rs): 12.1 1.8 1.3 (56%) (135%) (66%) 7.8 -5.1 -3.9 B
Slide 32: Key Financials
KEY FINANCIALS Line Item Q1 FY20 Q1 FY21 (YoY) Q4 FY20 Q1 FY21 (QoQ) Total Income 42.3 28.2 -33% 31.5 28.2 -10% Total Expense (excluding tax) 54.8 25.4 -54% 36.7 25.4 -31% Profit / (loss) before tax -12.5 2.8 -123% -5.2 2.8 -155% Profit / (loss) after tax -11.5 2.1 -119% -6.3 2.1 -134% Net Worth - 1
Slide 33: Key Ratios
KEY RATIOS Line Item Q1 FY20 Q1 FY21 (YoY) Q4 FY20 Q1 FY21 (QoQ) Net Interest Margin* 8.2% 12.1% 48% 7.8% 12.1% 56% Operating Cost to AUM Ratio* 7.9% 9.2% 16% 15.9% 9.2% -42% Earning Per Share (Rs.)* -28.3 5.2 -119% -15.6 5.2 -134% Book Value Per Share (Rs.) - 96.6 - 95.2 96.6 1% Return on Assets* -
Slide 34: Partners
COMPANY OVERVIEW COVID-19 UPDATE MARKET SEGMENT & CLIENT PROFILE UNIQUE SELLING PROPOSITION PRODUCT OFFERING OPERATING MODEL PORTFOLIO UPDATE FINANCIALS PARTNERS 33
Slide 35: Benefits of Long-Term Funding
BENEFITS OF LONG-TERM FUNDING MSME Client (Capital Magic Loan and Micro Business Loan) • Business Correspondent relationship • On-tap funding • ₹46Cr Disbursed under this arrangement • Co-Lending relationship • ₹600Cr limit for 1st year Benefits of Long-Term Funding Secured: Enables raise of Leverag
Slide 36: Debt & Direct Assignment Partnerships
DEBT & DIRECT ASSIGNMENT PARTNERSHIPS Public Sector Banks: 7 Private Banks: 2 NBFCs: 12 35
Slide 37: Thank You
> Capital Trust THANK YOU
Slide 38: Disclaimer
DISCLAIMER This presentation has been prepared by and is the sole responsibility of Capital Trust Limited. By accessing this presentation, you are agreeing to be bound by the trailing restrictions. This presentation does not constitute or form part of any offer or invitation or inducement to sell or