Capital Trust Ltd. (india) · NSE:CAPTRUST
Capital Trust Ltd. (india) — Capital Trust — Q1 FY2025 Earnings Presentation
32 slides from Capital Trust Ltd. (india)'s earnings presentation, Aug 13, 2024
Slide 1: Q1 FY2025 Investor Presentation
Informal MSME Lending in Rural India CAPITAL TRUST LIMITED Q1 FY2025 INVESTOR PRESENTATION August 2024
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 04-06 Q1 FY2025 UPDATES 07-13 INDUSTRY OVERVIEW 14-17 OPERATING MODEL 18-20 CAPITAL TRUST 2.0 21-26 FINANCIALS 27-29 KEY PARTNERSHIPS 30-31
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 "Rural Doorstep-Fintech Company” focused on providing financial inclusion services to underserved India by merging fintech and traditional financing. • Our digitized rural financing model offers micro busines
Slide 6: Numbers at a Glance
Numbers at a Glance ASSETS UNDER MANAGEMENT CAPITAL ADEQUACY * ₹ 294 Cr 34 % [YoY: +77%] [QoQ: +5%] [YoY: -28%] [QoQ: +17%] ON-BOOK PORTFOLIO GROSS NPA & NET NPA ₹ 91 Cr 1.64 % & 0.69% [YoY: +153%] [QoQ: +5%] OFF-BOOK PORTFOLIO Q1 FY2025 REVENUE ₹ 203 Cr ₹ 25 Cr [YoY: +56%] [QoQ: +6%] [YoY: +40%] [Q
Slide 7: Q1 FY2025 Updates
Q1 FY2025 UPDATES
Slide 8: Q1 FY2025: Vigilant, Steady Growth
Q1 FY2025: Vigilant, Steady Growth Q1 FY2025 - ₹8.1 Cr Equity Infusion through Preferential Allotment Vigilant, Steady Growth - Proactive Rather Than Reactive Approach To Challenging Market Conditions Q4 FY2024 - Highest Quarterly Disbursement Since FY19 Strength in Progress - Start of Operations in
Slide 9: Q1 FY2025: Vigilant, Steady Growth – Proactive Approach
Q1 FY2025: Vigilant, Steady Growth Proactive Rather Than Reactive Approach To Challenging Market Conditions 01 2024 General Elections 03 Overheating in Bihar, Eastern UP Over last two quarters, company has: Even prior to advisory on July 7th concerning rising leverage in Bihar and Eastern UP, the co
Slide 10: Q1 FY2025: Financial Parameters
Q1 FY2025: Vigilant, Steady Growth Financial Parameters: - Consistent quarterly revenue uptrend - Sequential increase seen in PBT and PAT numbers through all quarters Revenue (₹ in Crores) Profit After Tax (₹ in Crores) 24.7 22.5 0.7 19.6 19.8 17.7 0.6 0.5 0.6 0.5 Q1 FY24 Q2 FY24 Q3 FY24 Q4 FY24 Q1
Slide 11: Q1 FY2025: Operational Parameters
Q1 FY2025: Vigilant, Steady Growth Operational Parameters: - Continuous growth in AUM - Stability in 90 DPD % Asset Under Management (₹ in Crores) Clients (in #) 280 294 1,13,163 1,06,604 223 87,723 202 77,695 166 70,214 Q1 FY24 Q2 FY24 Q3 FY24 Q4 FY24 Q1 FY25 Q1 FY24 Q2 FY24 Q3 FY24 Q4 FY24 Q1 FY25
Slide 12: YoY Comparison (Q1 FY2025 vs Q1 FY2024)
YoY Comparison (Q1 FY2025 vs Q1 FY2024) Assets Under Management (in Cr): Net Worth (in Cr.): Revenue (in Cr): 294.2 85.4 24.7 (77%) (14%) (40%) 166.2 75.0 17.7 Expenses (in Cr): Profit Before Tax (in Cr): Profit After Tax (in Cr): 23.8 1.0 0.7 (39%) (53%) (52%) 17.1 0.6 0.5 Capital Adequacy (in %):
Slide 13: QoQ Comparison (Q1 FY2025 vs Q4 FY2024)
QoQ Comparison (Q1 FY2025 vs Q4 FY2024) Assets Under Management (in Cr): Net Worth (in Cr.): Revenue (in Cr): 294.2 85.4 24.7 (5%) (11%) (10%) 279.6 76.7 22.5 Expenses (in Cr): Profit Before Tax (in Cr): Profit After Tax (in Cr) 23.8 1.0 0.7 (10%) (21%) (22%) 21.7 0.8 0.6 Capital Adequacy (in %): *
Slide 14: Industry Overview
INDUSTRY OVERVIEW
Slide 15: 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 Untapped Market Above Microfinance Sector 03 Group Structure (Client Perspective) Existing: Existing: • Limited companies focusing specifically on • Clients assessed on c
Slide 16: Spearheading The Evolution
Spearheading The Evolution Untapped Market Above Microfinance Sector 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. Historic
Slide 17: 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 18: Operating Model
> Capital Trust SE PC
Slide 19: 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 20: Product Offering & Typical Clientele
Product Offering & Typical Clientele Product Name Capital Business Loan Target Clientele Type of Loan Unsecured income-generating business loan Graduated from 8% of the Microfinance clients graduate yearly Microfinance from the Microfinance sector and hit a wall Ticket Size (₹) 30,000 – 75,000 Repla
Slide 21: Capital Trust 2.0
CAPITAL TRUST 2.0
Slide 22: Unique Selling Proposition
Unique Selling Proposition Providing Portfolio Quality Lending-As-A-Service - High quality, seasoned portfolio with - Inherent potential to disburse upwards 1.64% GNPA of ₹ 80 Crore monthly through existing branch network - Current product continues to show strength with ₹986 Cr total disbursement -
Slide 23: 1. Portfolio Quality
1. Portfolio Quality ₹ 294 Cr 300 15 99% 98% 99% 97% 97% 97% 96% 97% 97% 250 21 96% 96% 96% 23 200 34 150 60 100 127 50 0 Jul-23 Aug-23 Sep-23 Oct-23 Nov-23 Dec-23 Jan-24 Feb-24 Mar-24 Apr-24 May-24 Jun-24 BIH E UP ODS MP JHA RAJ PUN UP UKH CG AP DEL Companywide Collection Efficiency Assets Under Ma
Slide 24: 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 25: 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 disposable income Disbursement Telephonic No exceptions or manual Verification by HO in
Slide 26: 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 30+ % 90+ % POS 30+ % 90+ % Disbursements (on (on (₹ in Cr) (on POS) (on POS) (₹ in
Slide 27: Financials
FINANCIALS ~ ”n = = ie) = [ok ia) i) aed
Slide 28: Key Highlights & Ratios
Key Highlights & Ratios (₹ in Crores) Particulars Q1 FY25 Q1 FY24 YoY % Q4 FY24 QoQ % Total Income 24.7 17.7 40% 22.5 10% Total Expense (excluding tax) 23.8 17.1 39% 21.7 10% Profit / Loss Before Tax 1.0 0.6 53% 0.8 21% Profit / Loss After Tax 0.7 0.5 52% 0.6 22% Net Worth 85.4 75.0 14% 76.7 11% On-
Slide 29: Balance Sheet
Balance Sheet (₹ in Crores) Assets Q1 FY25 Q4 FY24 Q3 FY24 Liabilities And Equity Q1 FY25 Q4 FY24 Q3 FY24 Financial Assets Financial Liabilities Trade Payables 0.5 0.8 0.4 Cash and Cash Equivalents 36.2 12.2 18.5 Debt Securities 6.7 9.2 5.4 Bank Balances other than Cash & Borrowings other than Debt
Slide 30: Key Partnerships
KEY PARTNERSHIPS
Slide 31: Funding & Partnerships
Funding & Partnerships Equity: 1 Co-Lending: 3 Business Correspondent: 3 On-Balance Sheet Funders: 17 BC Partners not currently live: 31
Slide 32: Thank You
THANK YOU Vinod Raina Chief Financial Officer Vinod.raina@capitaltrust.in Vahin Khosla Joint-Managing Director Vahin.khosla@capitaltrust.in 32