Capital Trust Ltd. (india) · NSE:CAPTRUST
Capital Trust Ltd. (india) — Capital Trust — Q4 FY2024 Earnings Presentation
33 slides from Capital Trust Ltd. (india)'s earnings presentation, May 28, 2024
Slide 1: Q4 & FY2024 Investor Presentation
Informal MSME Lending in Rural India CAPITAL TRUST LIMITED Q4 & FY2024 INVESTOR PRESENTATION May 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 REFLECTING ON FY2024 07-13 INDUSTRY OVERVIEW 14-17 OPERATING MODEL 18-21 CAPITAL TRUST 2.0 22-27 FINANCIALS 28-30 KEY PARTNERSHIPS 31-32
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: Strength in Progress
Numbers at a Glance: Strength in Progress ASSETS UNDER MANAGEMENT BORROWINGS ₹ 280 Cr ₹ 81 Cr [YoY: + 86%] [YoY: - 16%] ON-BOOK PORTFOLIO CAPITAL ADEQUACY ₹ 87 Cr 29 % [YoY: + 100%] [YoY: - 30%] OFF-BOOK PORTFOLIO GNPA & NNPA ₹ 193 Cr 1.4 % & 0.4 % [YoY: + 80%] NET WORTH PROFIT BEFORE TAX ₹ 77 Cr ₹
Slide 7: Reflecting on FY2024
REFLECTING ON FY2024
Slide 8: Reflecting on FY2024: Financial Parameters
Reflecting on FY2024: Financial Parameters • Commitment received for ₹8.5 Cr Equity Infusion through Preferential Allotment in Q1FY25 Approval For • Signifying first tranche of larger Equity Raise planned in FY25 Equity Raise • Validation of company commitment to raise equity only for growth and not
Slide 9: Reflecting on FY2024: Operational Parameters
Reflecting on FY2024: Operational Parameters Asset Under Management (₹ in Crores) Continuous growth in AUM (86% YoY growth) 280 223 01 166 202 150 02 Highest ever monthly disbursement in March ‘24 (₹ 48Cr) 03 Q4 FY23 Q1 FY24 Q2 FY24 Q3 FY24 Q4 FY24 Highest ever quarterly disbursement in Q4FY24 (₹ 12
Slide 10: Reflecting on FY2024: Structural Parameters
Reflecting on FY2024: Structural Parameters 01 RBI Approval For Authentication 03 Thriving Business Model Of Providing Under Aadhaar Act Lending-As-A-Service In December 2023, RBI authorized Having disbursed over ₹ 530 Cr with 12 Capital Trust to employ Aadhaar- partners (1 Bank, 8 NBFCs, 3 P2Ps), b
Slide 11: Reflecting on FY2024: Funding Parameters
Reflecting on FY2024: Funding Parameters Successful Bullet Repayments in Term Loans / NCD Raised from BC / Co-Lending Partnership with Q1FY24 15 Institutions in FY24 8 Institutions in FY24 ₹ 45 Cr Sub-Debt repayment on 1st May ‘23 ₹ 32 Cr NCD + TL repayment on 30th April ‘23 11
Slide 12: Reflecting on FY2024: YoY Comparison (FY24 vs FY23)
Reflecting on FY2024: YoY Comparison (FY24 vs FY23) Assets Under Management (in Cr): Net Worth (in Cr.): Revenue (in Cr): 279.9 76.7 86.9 (86%) (3%) (-8%) 150.3 74.5 79.6 Expenses (in Cr): Profit Before Tax (in Cr) Profit After Tax (in Cr) 148.2 2.9 2.1 (-48%) 76.7 -61.3 -45.6 Capital Adequacy (in %
Slide 13: Reflecting on FY2024: QoQ Comparison (Q4FY24 vs Q3FY24)
Reflecting on FY2024: QoQ Comparison (Q4FY24 vs Q3FY24) Assets Under Management (in Cr): Net Worth (in Cr.): Revenue (in Cr): 279.9 76.7 22.5 (25%) (1%) (13%) 223.3 76.1 19.8 Expenses (in Cr): Profit Before Tax (in Cr) Profit After Tax (in Cr) 21.7 0.8 0.6 (14%) (11%) (1%) 19.1 0.7 0.6 Capital Adequ
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: Branch Network
Branch Network - Expansion into South India in Q4FY24 - Opening of first branch in Andhra Pradesh 27 8 1 29 27 47 59 27 35 4 20 1 - Total Branches: 287 - Actively Disbursing Branches: 193 - Collection-Only Branches: 94 Reason for Collection-Only Branches: - Bad geographical delinquency in past (ex:
Slide 22: Capital Trust 2.0
CAPITAL TRUST 2.0
Slide 23: Unique Selling Proposition
Unique Selling Proposition Providing Portfolio Quality Lending-As-A-Service - High quality, seasoned portfolio with - Inherent potential to disburse upwards 1.4% GNPA and 0.4% NNPA of ₹ 80 Crore monthly through existing branch network - Current product continues to show strength with ₹886 Cr total d
Slide 24: 1. Portfolio Quality
1. Portfolio Quality ₹ 280 Cr 300 99% 99% 100% 99% 98% 99% 97% 18 97% 97% 96% 97% 97% 250 18 19 200 27 150 55 100 126 50 0 Apr-23 May-23 Jun-23 Jul-23 Aug-23 Sep-23 Oct-23 Nov-23 Dec-23 Jan-24 Feb-24 Mar-24 BIH E UP ODS JHA MP PUN RAJ UP UKH CG DEL Companywide Collection Efficiency Portfolio Under M
Slide 25: 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 26: 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 27: 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 28: Financials
FINANCIALS ~ ”n = = is) = + i) aed
Slide 29: Key Highlights & Ratios
Key Highlights & Ratios (₹ in Crores) Particulars Q4 FY24 Q4 FY23 YoY % Q3 FY24 QoQ % FY24 FY23 YoY % Total Income 22.5 20.0 12% 19.8 13% 79.6 86.9 -8% Total Expense (excluding tax) 21.7 81.9 -74% 19.1 14% 76.7 148.2 -48% Profit / Loss Before Tax 0.8 -61.9 - 0.7 11% 2.9 -61.3 - Profit / Loss After T
Slide 30: Balance Sheet
Balance Sheet (₹ in Crores) Assets Q4FY24 Q3FY24 Q2FY24 Liabilities And Equity Q4 FY24 Q3 FY24 Q2 FY24 Financial Assets Financial Liabilities Cash and Cash Equivalents 12.2 18.5 9.2 Trade Payables 0.8 0.4 0.7 Debt Securities 9.2 5.4 0.0 Bank Balances other than Cash & 12.5 8.1 7.5 Borrowings other t
Slide 31: Key Partnerships
KEY PARTNERSHIPS
Slide 32: Funding & Partnerships
Funding & Partnerships Equity: 1 Co-Lending: 3 Business Correspondent: 5 On-Balance Sheet Funders: 16 32 BC Partners not currently live:
Slide 33: Thank You
THANK YOU Vinod Raina Chief Financial Officer Vinod.raina@capitaltrust.in Vahin Khosla Joint-Managing Director Vahin.khosla@capitaltrust.in 33