Capital Trust Ltd. (india) · NSE:CAPTRUST
Capital Trust Ltd. (india) — Capital Trust — Q2 FY2022 Earnings Presentation
43 slides from Capital Trust Ltd. (india)'s earnings presentation, Nov 17, 2021
Slide 1: Q2 & H1 FY2022 Investor Presentation
Merging New-Age Fintech with Traditional Lending CAPITAL TRUST LIMITED Q2 & H1 FY2022 INVESTOR PRESENTATION November 2021
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 04-12 COMPETITIVE ADVANTAGES 12-18 DIGITAL JOURNEY 19-21 RURAL DOORSTEP-FINTECH 22-27 FINANCIALS 28-37 KEY PARTNERSHIPS 38-40 CAPITAL IMPACT 41-42
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 income
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 ₹ 311 Cr ₹ 118 Cr 42.6 % 3.8 % 0.0 % 315 2,094 *Stage 3 ECL Assets 6
Slide 7: Q2 FY2022 Quarter At a Glance
Q2 FY2022 Quarter At a Glance Return To Disbursement Back To Pre- New Capital Digital Initiative’s Geographical Expansion With Profitability 2nd Wave Levels Continued Resilience Opening Of 71 New Branches 94% 95% 96% 95% 96% 18 297 315 16 267 1 244 244 244 244 12 Q3 FY21 Q4 FY21 Q1 FY22 Q2 FY22 9 9
Slide 8: Capitalising on the Underserved Market Opportunity
Capitalising on the Underserved Market Opportunity Annual Household Income R I C % > ₹ 17 Lakh H 1 UPP ₹ 10-17 Lakh Banks and MSME Focused NBFCs MID ER DLE 5% L OW ₹ 3.5-10 Lakh MID ER 7% DLE ₹ 2 - 3.5 Lakh Capital Trust Limited A SPI RERS 30% Debt Shortfall in Micro of MSME: 87 Lakh Crore ($117Bn)
Slide 9: 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 10: Our Clientele
Our Clientele Kirana Stores Dairy and Livestock Farmers Grocery Vendors Small Eateries Textile Stores Handicraft Manufacturers Utility Stores Salons Flower Vendors 10
Slide 11: Increasing our Reach in Rural India
Increasing our Reach in Rural India 6 branches opened in 20 branches opened in Punjab in Q2 FY22 East UP in Q2 FY22 46 21 branches opened in 11 Bihar in Q2 FY22 3 37 76 51 40 23 8 20 11 branches opened in 13 branches opened in MP in Q2 FY22 Jharkhand in Q2 FY22 11
Slide 12: Capital Digital Initiative: Our Products
Capital Digital Initiative: Our Products Addressing a wide spectrum of customers, across needs and affluence Product Name Capital Magic Loan Micro Business Loan Type of Loan Unsecured Digital Business Loan Unsecured Digital Business Loan Ticket Size (₹) 30,000 – 50,000 60,000 Tenure 12 months 24 mon
Slide 13: Competitive Advantages
COMPETITIVE ADVANTAGES
Slide 14: 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 customer • Our conservative thought process towards segments, lean cost structures and differentiated financial engineering has helped us transform
Slide 15: 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 ₹ 3.5 - 10 Lakh ₹ 30,000 – 1Lac ₹ 2 - 3
Slide 16: 2. Technology Driven Operational Efficiency
2. Technology Driven Operational Efficiency Enabling Improved Disbursements & Collections 100% 100% 100% 96% 95% 96% 95% 96% 94% 91% 90% 91% 91% 89% 88% 88% 81% 65% 57% 60% 53% 54% 54% 54% 53% 53% 48% Jan-21 Feb-21 Mar-21 Apr-21 May-21 Jun-21 Jul-21 Aug-21 Sep-21 Jan-21 Feb-21 Mar-21 Apr-21 May-21 J
Slide 17: 3. Prudent Risk Management
3. Prudent Risk Management Conservative ALM Practices and Diversified Funding Book BC, 12% NBFC, 26% Term Loan, 25% DFI, 4% PTC, 17% DIVERSIFICATION ACROSS… Public Sector Banks, 21% DA, 7% Sub-Debt, 15% Private Sector Banks, 49% ICD, 3% NCD, OD, 10%10% Instruments Funders Asset Liability Position Up
Slide 18: 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 19: Digital Journey
DIGITAL JOURNEY
Slide 20: 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 21: 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 22: Rural Doorstep-Fintech Processes
RURAL DOORSTEP- FINTECH PROCESSES
Slide 23: 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 24: 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 25: 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 6PM daily through collation of issue
Slide 26: 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 27: 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 28: Financials
FINANCIALS
Slide 29: Product-Wise Portfolio
Product-Wise Portfolio ₹ 795 Cr ₹ 725 Cr ₹ 471 Cr ₹ 401 Cr ₹ 337 Cr 795 ₹ 311 Cr 723 338 235 194 164 166 143 146 ₹ 115 Cr New Capital 134 Digital Initiative *** FY 18 FY 19 FY 20 FY 21 Q1FY22 Q2FY22 Capital Digital Initiative* Legacy Portfolio** *Started 2019: Further split into Capital Magic, Micro
Slide 30: State-Wise Portfolio
State-Wise Portfolio ₹ 795 Cr ₹ 725 Cr 13 62 7 37 272 165 ₹ 471 Cr ₹ 401 Cr 12 ₹ 337 Cr 106 115 50 6 ₹ 311 Cr 65 25 90 1 5 52 1 83 22 3 65 22 72 57 43 21 41 70 48 70 43 62 51 189 151 99 80 66 61 71 82 85 68 65 37 FY 18 FY 19 FY 20 FY 21 Q1FY22 Q2FY22 BIH PUN ODI MP RAJ UP JH UKH CH DEL EUP 30
Slide 31: Portfolio Quality
Portfolio Quality (₹ in Crores) Stage 3 ECL 90+ 8% 16% 15.3% 22 7.1% 52 7% 14% 12.6% 6% 12% 39 37 5% 10% 14 4.8% 33 3.8% 8.7% 7.7% 29 7.5% 4% 7.9% 8% 3.8% 10 10 7.2% 3% 6% 1.9% 4.6% 5 2% 4% 11 11 2.8% 7 1% 2.1% 5 2% 4 0% 0% Q2FY21 Q3FY21 Q4FY21 Q1FY22 Q2FY22 Q2FY21 Q3FY21 Q4FY21 Q1FY22 Q2FY22 Stage
Slide 32: Portfolio Quality – New Capital Digital Initiative Loans
Portfolio Quality – New Capital Digital Initiative Loans Robust portfolio quality of loans disbursed post April 2020 (automated credit engine backed) (automated credit engine enabled ) (₹ in Crores) Total Portfolio 90+ DPD: Disbursed: Outstanding: 1.7% ₹ 186 Cr ₹ 115 Cr 5% 115 5% 105 4% 95 4% 72 3%
Slide 33: Outstanding Provisions
Outstanding Provisions Cumulative Provisions of ₹ 57.1 Crores which accounts for 22.4% of the On-Balance Sheet Portfolio (₹ in Crores) As on Particulars Q2 FY21 Q3 FY21 Q4 FY21 Q1 FY22 Q2 FY22 31.03.2021 Standard Provisions (Stage 1 & 2) 6.5 5.8 4.4 4.4 4.7 1.3 COVID & Other Provisions (Including St
Slide 34: Key Highlights & Ratios
Key Highlights & Ratios Asset Under Management (₹ in Crores) Net Worth (₹ in Crores) 577 155 162 155 157 158 157 509 471 131 467 430 118 427 401 117 337 311 Q2FY20 Q3FY20 Q4FY20 Q1FY21 Q2FY21 Q3FY21 Q4FY21 Q1FY22 Q2FY22 Q2FY20 Q3FY20 Q4FY20 Q1FY21 Q2FY21 Q3FY21 Q4FY21 Q1FY22 Q2FY22 Capital Adequacy
Slide 35: Key Highlights & Ratios
Key Highlights & Ratios Borrowings (₹ in Crores) Cost of Borrowing (%) 386 14.2% 14.2% 13.4% 324 13.2% 13.1% 13.1% 13.0% 13.1% 13.2% 272 255 259 234 237 228 240 Q2FY20 Q3FY20 Q4FY20 Q1FY21 Q2FY21 Q3FY21 Q4FY21 Q1FY22 Q2FY22 Q2FY20 Q3FY20 Q4FY20 Q1FY21 Q2FY21 Q3FY21 Q4FY21 Q1FY22 Q2FY22 Net Interest
Slide 36: Quarterly Consolidated P&L Update Q2 FY2022
Quarterly Consolidated P&L Update Q2 FY2022 (₹ in Crores) Particulars Q2 FY22 Q2 FY21 YoY % Q1 FY21 QoQ % Total Income 26.3 27.0 -3% 22.8 15% Total Expense (excluding tax) 25.1 25.9 -3% 41.7 -40% Profit / Loss before tax 1.2 1.1 9% -19.0 -106% Profit / Loss after tax 0.9 0.9 0% -13.8 -106% Net Worth
Slide 37: Quarterly Consolidated Balance Sheet Update Q2 FY2022
Quarterly Consolidated Balance Sheet Update Q2 FY2022 (₹ in Crores) Assets Q2 FY22 Q1 FY22 Mar-21 Liabilities And Equity Q2 FY22 Q1 FY22 Mar-21 Financial Assets Financial Liabilities Cash and Cash Equivalents 21.2 27.2 38.5 Trade Payables 0.1 0.5 0.5 Bank Balances other than cash & 51.9 41.1 40.9 De
Slide 38: Key Partnerships
KEY PARTNERSHIPS
Slide 39: 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 39
Slide 40: Equity, Debt & Direct Assignment Partnerships
Equity, Debt & Direct Assignment Partnerships Equity: 1 Public Sector Banks: 5 Private Sector Banks: 2 DFI / NBFCs: 10 40
Slide 41: Capital Impact
CAPITAL IMPACT
Slide 42: 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 and financial entrepreneurship discipline Facilitating financial Mitigation of inclusion of the financial Financial Literacy unbanked and volatility un-ser
Slide 43: Thank You
THANK YOU Vinod Raina Chief Financial Officer Vinod.raina@capitaltrust.in Vahin Khosla Executive Director Vahin.khosla@capitaltrust.in Pushpa Mani/Vikash Verma IR Consultants Email: capital.trust@dickensonworld.com Contact no.: +91 9911684123/9664009029 43