Trucap Finance Limited · NSE:TRU
Trucap Finance — Dhanvarsha Finvest — Q1 FY2021 Earnings Presentation
30 slides from Trucap Finance's earnings presentation, June 2020
Slide 1: Dhanvarsha
34 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 Di
Slide 3: Table of Contents
Table of Contents 1. Highlights of 1QFY21 05 2. Performance Metrics 06 3. Asset Quality and Provision Levels 07 4. Business Model 08 5. Financial & Operating Highlights 10-14 6. Product Portfolio 16-19 7. Company Governance & Mission 21-23 8. Financial Metrics & Shareholding 25-30 3
Slide 4: 1QFY21 Update
ANS VAN 1QOFY21 Update
Slide 5: Highlights of 1QFY21
Highlights of 1QFY21 • Disbursements of INR 47.8 Mn versus INR 35.6 Mn in 4QFY20 and INR 14.2 Mn in the year ago quarter. Disbursements • Profit after Tax stood at INR 7.4 Mn in 1QFY21, up 117% Q-o-Q from INR 3.4 Mn in 4QFY20. & Income • AUM of INR 426 Mn up from INR 373 Mn in 4QFY20 as the company
Slide 6: Performance Metrics
Performance Metrics INR Million Particulars 1QFY20 4QFY20 1QFY21 AUM 401.3 372.4 425.9 Profit after Tax 10.6 3.4 7.4 CRAR % 66.3% 69.2% 67.6% Debt to Equity (x) 0.6 x 0.5 x 0.7 x Net NPA % 3.4% 2.6% 2.2% Number of borrowers* 259 403 448 Average ticket size of loans 1.5 0.9 0.9 * As of August 31, Pro
Slide 7: Asset Quality & Provision Levels
Asset Quality & Provision Levels INR Million Particulars 1QFY20 4QFY20 1QFY21 Gross NPA 28.1 18.9 20.5 Gross NPA % 7.0% 5.1% 4.8% Net NPA 13.6 9.6 9.4 Net NPA % 3.4% 2.6% 2.2% Gross Performing Assets 373.1 353.5 405.4 Gross Performing Assets % 93.0% 94.9% 95.2% ▪ The company carries a significant lo
Slide 8: Business Model
Business Model Business Medical Education Particulars LAP Gold Loans Loans loans Loans Yield 15.0% 21.0% 20.0% 19.0% 21.0% - Funding cost* 12.0% 12.0% 12.0% 12.0% 12.0% Net interest spread 3.0% 9.0% 8.0% 7.0% 9.0% - Credit cost 0.50% 3.0% 2.0% 2.0% 1.0% Risk adj spread 2.5% 6.0% 6.0% 5.0% 8.0% + Oth
Slide 9: Financial & Operating Highlights
Financial & Operating Highlights
Slide 10: Loan Portfolio Composition
Loan Portfolio Composition 1QFY21 27% 73% Secured UnSecured ▪ Robust collateral as security from borrowers. ▪ Performance of unsecured book is extremely healthy 10
Slide 11: Granular Loan Disbursements
Granular Loan Disbursements Disbursal Summary (INR Million) • Company’s focus is on building a secure, granular 160.0 148.4 and high-quality capital efficient loan book with 140.0 superior risk adjusted margins. 120.0 • AUM has started showing healthy growth again with robust pipeline for lending to
Slide 12: Strong Focus on PSL
Strong Focus on PSL 4% Priority 96% Non Priority ▪ Strong focus on disbursing loans that qualify for PSL status. ▪ Will enhance ability to sell down loans and generate liquidity in the long run 12
Slide 13: Lending Primarily for Business Expansion
Lending Primarily for Business Expansion 81% of our borrowers have 700+ CIBIL score Borrower use of funds predominantly for business expansion 13% 19% 15% 9% 72% 72% >700 >800 <700 Business Expansion Debt Consolidation & Expansion Working Capital 13
Slide 14: Liability Profile
Liability Profile 1QFY21 39% 4% 57% Other Liabilities Borrowings Shareholders' Funds ▪ INR 103 million or 42% of outstanding debt as of June 30th to be converted to equity shares upon closing of announced capital infusion transaction expected in the next one month. 14
Slide 15: Product Profile
ANS VAN Product Profile
Slide 16: Loan Against Property (LAP)
Loan Against Property (LAP) Average Ticket Size INR 2.75 Mn Avg Loan to Value (@ origination) 60% Interest Rate 15%-20% Tenure 60/180 months Primary Security Mortgage of property Repayment Type Monthly Amortization 16
Slide 17: Business Loans
Business Loans Average Ticket Size INR 0.36 Mn Avg Loan to Value (@ origination) 50% Interest Rate 18%-25% Tenure 12/60 Months Basis of Credit Approval Cash Flow Analysis Repayment Type Monthly Amortization 17
Slide 18: Personal Loans
Personal Loans Average Ticket Size INR 0.22 Mn Interest Rate 18%-30% Tenure 12/36 Months Average Age of Consumer 32 Years Basis of Credit Approval Banking Statement Repayment Type Monthly Amortization * Personal Loans include Medical Loans, Education Loans and other Consumer Loans 18
Slide 19: Gold Loans
Gold Loans Ticket Size Upto INR 0.5 Mn Average Karat 20KT – 22KT Avg Loan to Value (@ origination) 60-75% Interest Rate 18%-23% Tenure 12 Months Repayment Frequency Monthly/Quarterly * Business commenced in August 2020 19
Slide 20: Company Governance & Mission
Company Governance & Mission
Slide 21: Focus on Governance & Best Practices
Focus on Governance & Best Practices HIGH GOVERNANCE STANDARDS Completely Independent Board Rakesh Sethi Ashish Dalal Rajiv Kapoor Nirmal Momaya Stat Audit Haribhakti & Co Non-Executive Chairman Non-Executive Director Independent Director Independent Director Internal Audit Bansal Bansal & Co. Past
Slide 22: Our Mission & Vision
Our Mission & Vision We don’t just lend money. We enable businesses by lending ‘hand’, ‘head’ & ‘heart’ We are true business partners to our customers For us, businesses are communities first. We help build ‘Social Capital’ We give equal importance to both ‘Social’ & ‘Capital’ cif Growth & Scalabili
Slide 23: Sample Client Business Images
Sample Client Business Images Kirana Store Owner Paper & Boards Trader Catering Business General & Stationery Store Steel & Consumer Goods Trader Textile Tailoring Business 23
Slide 24: Financial Metrics
ANS VAN Financial Metrics
Slide 25: Income Statement
Income Statement Income Statement (INR Million) 4Q FY20 FY20 1Q FY21 • Net Interest Income in the quarter Operating Income 57.1 191.0 53.2 was impacted due to lockdown. Lending only re-started on May Less: Finance Cost 4.1 16.9 6.3 26th while interest cost on debt Net Interest Income 53.0 174.1 46.9
Slide 26: Balance Sheet
Balance Sheet Balance Sheet (INR Million) FY20 1Q FY21 Financials Assets 422.4 567.5 Cash and Investments 48.1 94.0 Gross Loans 372.4 425.9 • Strong balance sheet with robust Less: Impairment Loss Allowance 43.8 47.1 liquidity and capitalization for on- Net Loans 328.5 378.9 ward lending. Other Fina
Slide 27: Key Financial Metrics
Key Financial Metrics Particulars Units FY19 FY20 1QFY21 NIM % 7.7% 9.3% 8.0% Capital Adequacy Ratio % 55.2% 69.2% 67.6% Debt to Equity x 1.0 x 0.5 x 0.7 x Pre-tax ROA % 4.5% 10.9% 7.3% 27
Slide 28: Productivity Ratios
Productivity Ratios Particulars Units FY19 FY20 1QFY21 No. of Employees # 54 88 103 Pre-Tax Profit per Employee1 INR Mn 0.4 0.6 0.4 Asset per Employee INR Mn 10.0 5.5 6.2 No. of Loans Disbursed2 # 143 219 48 1 Annualized for 1Q21. 2 Number of loans disbursed negatively impacted in 1Q21 due to lockdo
Slide 29: Shareholding Pattern
Shareholding Pattern Public Shareholders 43% Promoters 57% As on 30th June 2020 29
Slide 30: Dhanvarsha Finvest Ltd.
Dhanvarsha Finvest Ltd. 2nd Floor, Building No.4, Wilson House, Old Nagardas Road, Andheri (East), Mumbai - 400 069.