Trucap Finance Limited · NSE:TRU
Trucap Finance — Q1 FY2023 Earnings Presentation
32 slides from Trucap Finance's earnings presentation, Aug 10, 2022
Slide 1: Cover letter to BSE on earnings presentation
August 10, 2022 To, The General Manager Department of Corporate Services BSE Limited P.J. Towers, Dalal Street, Mumbai - 400 001 . Scrip Code: 540268 Subject: Earnings Presentation Dear Sir I Madam, This is to inform you that the Board of Directors of TruCap Finance Limited (Formerly known as Dhanva
Slide 2: TruCap Finance Ltd
TruCap Finance Ltd
Slide 3: Safe Harbor
Safe Harbor This presentation is not a prospectus, a statement in lieu of a prospectus, an ofering circular / memorandum, an advertisement, an ofer, an invitation to ofer or an ofer document in terms of the Companies Act, 2013, the Securities and Exchange Board of India (Issue of Capital and Disclos
Slide 4: Dhanvarsha is now TruCap Finance - Introduction
Dhanvarsha is now TruCap Finance Introduction The genesis of Tru is based on a singular focus on Trust. Making credit accessible for everyone by deploying technology and capital to power the growth of MSMEs. To remove red tape, fear of leverage and empower entrepreneurs to win in life. Our endeavor
Slide 5: TruCap Finance: Lender to India's MSME Needs
Tru Cap Finance Lender to India’s MSME Needs TRUST TRU Promise T TRANSPARENCY TECHNOLOGY We stand by the belief that technology & capital can be employed to catalyze the growth journey of MSMEs. It can bring positive social impact by creating opportunities & supporting livelihoods through fostering
Slide 6: Executive Summary
Executive Summary
Slide 7: Key Highlights
Key Highlights INR Million Technology & branch network leads to ~3x increase Particulars Jun’21 Jun’22 Y-o-Y Change in disbursements Disbursements 417 1,621 3.9x TruCap increased customer count by over 4x, with AUM* 1,318 3,952 3x focus on women customers that moved up 4.7x MSME Business Loans 550 1
Slide 8: A Differentiated approach in lending
A Differentiated approach in lending Capital efficiency & risk management at the fore Own balance sheet lending Lending as a Service (L-a-a-S) Preferred Sourcing Partnership MSME Business loans and Gold loans High IRR generating business with share Solid sourcing in new geographies of interest & fee
Slide 9: Lending as a Service (L-a-a-S) Resulting in Capital Light Growth
Lending as a Service (L-a-a-S) Resulting in Capital Light Growth Last Mile Financial Inclusion Highly Accretive Partnerships Capital Efficiency & Profitability Benefit for TruCap Finance TruCap Finance Partnerships Ecosystem Benefit for TruCap Finance Sourcing partnership with large lenders to Co-Lendin
Slide 10: L-a-a-S: Substantial MSME Gold Co-Lending Partnership
L-a-a-S: Substantial MSME Gold Co-Lending Partnership The company has partnered with Central Bank of India across Madhya Pradesh, Maharashtra, Goa and Delhi-NCR for Co-lending of up to INR 10 billion to MSME Gold loan customers. The company has recently also partnered with EZ Capital for co-lending
Slide 11: Increasing L-a-a-S Footprint
Increasing L-a-a-S Footprint Portfolio Mix 12% Share of L-a-a-S AUM On Book Portfolio L-a-a-S Portfolio 12% 4% 1% 1% 0 Jun 21 Sep 21 Dec 21 Mar 22 Jun 22 2 4 Across Pvt. Banks, PSU Banks, SFB’s & NBFC Live Partnerships Active Discussions
Slide 12: Distribution Strategy
Distribution Strategy
Slide 13: Multi Channel Approach Empowered with Technology
Multi Channel Approach Empowered with Technology Experiential Centers Offers Superior Value Proposition Captive Sales Team for MSME Customers in BL & GL Tru Cap Finance has a team of ~150 Strong Fleet on Street Significantly increasing financial inclusion in 4 Key States These individuals play an inst
Slide 14: Pillars of Digital Strategy
Pillars of Digital Strategy Build Future Multi-Product Collaborative User Ready Organization Penetration Acquisition Risk Mitigation Connecting Assets Build a future ready Leverage various digital Collaborate with partners Focus on data driven Connecting all digital organization focused on platforms
Slide 15: Digital Architecture - Full Stack
Digital Architecture - Full Stack TruCap Finance Core: LOMS B2B App B2C Apps Digital Assets Third Party API Integrations Loans & Payment Micro Loans & Loans & Value Credit Health Added Services CRM System User Facing LOS & LMS Applications Workflow Reporting & Leads Customer Automation Analytics Mana
Slide 16: Experiential Centers to Drive Growth
Experiential Centers to Drive Growth Increasing Branch Presence 56 56 Experiential Centres 2.3X increase in 1 Year Multi-city Presence 37 Single-city Presence 34 31 24 Experiential Centers ( Count) India’s overall formal gold financing penetration is ~10% with penetration in the western and northern
Slide 17: Portfolio Highlights
Portfolio Highlights
Slide 18: Sustainable Growth in AUM
Sustainable Growth in AUM… Gross Loan Portfolio INR Mn 3,952 3,059 2,580 2,395 Growth spread across products Prime focus on profitable lending Fuelled by enhancing tech & branch reach 1,318 With increasing share of L-a-a-S AUM Q1’22 Q2’22 Q3’22 Q4’22 Q1’23 Jun’21 Sep’21 Dec’21 Mar’22 Jun-22 L-a-a-S A
Slide 19: Resulting in Robust Income Growth
...Resulting in - Robust Income Growth Total Income INR Mn 261 233 Consistent growth in Income 203 Led by interest earning assets 150 Backed by Fee generation 114 Front ending of Capex will Bear Fruits In terms of higher Customer growth Ability to integrate with other lenders to boost L-a-a-S income
Slide 20: Portfolio Breakup: Focussed MSME Lender
Portfolio Breakup: Focussed MSME Lender Focussed MSME & Gold Loan Portfolio Gold Loans MSME Business loans PL LAP 24% 35% 38% 40% 43% 35% 38% 39% 44% 18% 46% 14% 12% 24% 7% 13% 4% 11% 9% 7% Jun’21 Sep’21 Dec’21 Mar’22 Jun’22 INR Mn Including managed book
Slide 21: Sectoral Portfolio Composition
Sectoral Portfolio Composition Sector Mix - Top10 3% 3% 10% 5% Customer Engagement in Essential goods segments 5% Deep Sectoral understanding 8% Wide spread sourcing capabilities through technology & branch network 5% 8% 5% 6% FMCG Beauty / Fashion / Apparels Home / Office-Retail Agriculture Garments
Slide 22: Risk & Governance
Risk & Governance
Slide 23: Growth with Robust Asset Quality
Growth with Robust Asset Quality Collection Efficiency Trend 299% Improving Asset Quality 9.6%* 169% 83% 86% 89% 3.2% 3.1% 79% Jun’20 Jun’21 Jun’22 Jun’20 Jun’21 Jun’22 (%) Current With prepayments & foreclosures (%) GNPA Collection efficiency exceeds 100% after considering pre-payments & foreclosures
Slide 24: Comprehensive Risk Management Framework
Comprehensive Risk Management Framework Action Undertaken Aspects Covered Objective Achieved / To Be Achieved Risk Assessment Framework Credit, liquidity, solvency, financial, Common standards for management and information security risks of various risks at portfolio level Independent unit for inter
Slide 25: Standardised Branch Score Card Mitigate Risk and Maintain Quality Service
Standardised Branch Score Card Mitigate Risk and Maintain Quality Service Standard Branch Audit Score Branch Score Matrix Card Mechanism Standard scoring mechanism following weighted Risk Rating average mechanism based upon risk rating of 12 comprehensive processes and 130 checkpoints High C RBI ten
Slide 26: Focus on Governance
Focus on Governance Independent and Eminent Board Comprising of Industry Stalwarts Rakesh Sethi Nirmal Momaya Atwood Porter Collins Rajiv Kapoor KP Raghuvanshi Non-Executive Chairman Independent Director Non-executive Director Non-executive Director Independent Director Past experience: Past experie
Slide 27: Financials
Financials
Slide 28: Income Statement
Income Statement INR Million Substantial increase in interest income, Income Statement Jun'20 Jun'21 Jun'22 on the back of rising AUM Interest Income 16.0 61.8 219.7 Upfronting of branch roll-out, sets runway for higher disbursements Less: Finance Cost 6.3 35.1 99.9 Profit surge as operating efficienc
Slide 29: Balance Sheet
Balance Sheet INR Million Sturdy growth across MSME Business loans Balance Sheet Jun'20 Jun'21 Jun'22 and MSME loans backed by Gold Extremely liquid balance sheet driven by Financials Assets 568 2,612 4,918 capital infusion in May ‘22 Cash and Investments 189 1,348 733 Robust capital adequacy and &
Slide 30: Well Capitalized for Growth
Well Capitalized for Growth INR Million INR Million Current Equity Debt Current Equity (INR MN) on June 30 2,110 Borrowings from Banks & FIs 2,727 Capital infusion concluded in May '22. Led by Aviator NCD & other debentures 388 Emerging Market Fund (AEMF) backed by marquee *622 investors such as Por
Slide 31: Shareholding Pattern
Shareholding Pattern Substantial management ownership in the company Public 29.7% Promoter-Wilson Group 60.8% FII 9.5% Shareholding on fully diluted basis as on Jun’22, including CCDs issued in April 2021 & equity and warrants issues in May’22
Slide 32: Thank You
Thank You