Trucap Finance Limited · NSE:TRU
Trucap Finance — Dhanvarsha Finvest — Q3 FY2020 Earnings Presentation
32 slides from Trucap Finance's earnings presentation, Feb 5, 2020
Slide 1: 3QFY20 Earnings Update
3QFY20 Earnings Update Dhanvarsha Finvest Ltd.
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: Q3 Update
Q3 Update Standalone
Slide 4: Highlights of Q3 FY20
Highlights of Q3 FY20 • 17% Q-o-Q rise in Total Revenue from INR 44 Mn to INR 51.3 Mn P&L Highlights • 62% Q-o-Q and 30% Y-o-Y rise in Net Profit to INR 16.7 Mn from INR 10.3 Mn in FY2Q20 and INR 12.9 Mn a year ago. • Strong balance sheet with no external debt; liquidity of INR 41 Mn to cater to rob
Slide 5: Disbursals and AUM
Disbursals and AUM • Disbursements of INR 25.8 million vs. INR 11.2 million Disbursal Summary (INR million) in the previous quarter and INR 0.4 million a year ago. • Robust pipeline for on balance sheet lending growth and syndication in retail cash and carry MSME segments. • Company’s focus is on bu
Slide 6: Portfolio Snapshot
Portfolio Snapshot Extremely granular loan book with significant reduction in 81% of our borrowers have 700+ CIBIL score ticket size and increase in borrower count . 19% 9% 72% >700 >800 <700 ▪ Number of borrowers more than doubled year over year. ▪ Strong underwriting criteria with over 80% of borr
Slide 7: Portfolio Snapshot
Portfolio Snapshot Diversified Portfolio with extremely low concentration risk Borrower use of funds predominantly for business expansion 9% 19% 13% 36% 72% 41% Manufacturer and Manufacturing Business Expansion Service Debt Consolidation & Expansion Trader & Trading Working Capital ▪ Almost 80% of t
Slide 8: Portfolio Snapshot
Portfolio Snapshot Portfolio Split Strong Focus on Priority Sector Lending 4% 16% 84% 96% Secured Unsecured Priority Non Priority ▪ Robust collateral as security from borrowers. ▪ Strong focus on disbursing loans that qualify for PSL status. ▪ Performance of unsecured book is extremely healthy ▪ Wil
Slide 9: Asset Quality Performance Snapshot
Asset Quality Performance Snapshot Gross NPA’s have bottomed out Relentless focus on Collections – No. of borrowers 180+ days 9 90-180 days 6 31-90 days 9 1-30 days 15 On time 289 ▪ Gross NPA’s in absolute numbers and percentage terms ▪ Major focus of collections team is to resolve early stage have
Slide 10: Financial Performance Snapshot
Financial Performance Snapshot Growing Revenue & Profit (INR Mn) - December 2019 Strong Balance Sheet (INR Mn) - December 2019 141 134 391 304 264 254 51 39 44 125 114 38 19 17 11 10 FY 19 Q1 FY20 Q2 FY20 Q3 FY20 9M FY20 FY 18 FY 19 YTD Dec19 Total Revenue Net Profit Net Worth Quasi Equity ▪ Profit
Slide 11: Financial Performance Snapshot
Financial Performance Snapshot Financial Metrics (INR Mn) FY3Q19 FY1Q20 FY2Q20 FY3Q20 Disbursement 0.4 142 112 258 AUM 642 394 376 363 Composition of AUM Secured Loans 72% 88% 87% 84% • Strength in disbursement Unsecured Loans 28% 12% 13% 16% with improving asset quality. Revenue • Focus on profitab
Slide 12: Income Statement
Income Statement Income Statement (INR Mn) Q3 FY20 Q2 FY20 Q1 FY20 FY19 Operating Income 51.3 44.0 38.6 190.4 Less: Finance Cost 3.3 3.9 5.5 51.8 • Total Income in 9M is Net Income 48.0 40.1 33.1 138.6 INR 121.7 Mn, which is 88% of FY19. Other Income 0.1 0.0 0.5 2.6 • YTD Dec’19 Cost Total Income 48
Slide 13: Balance Sheet
Balance Sheet Balance Sheet (INR Mn) Q3 FY20 Q2 FY20 Q1 FY20 FY19 Financials Assets 393.9 379.4 411.0 489.8 Cash and Investments 40.9 29.6 33.3 38.0 Loans 335.3 349.1 356.7 451.6 Other Financials Assets 17.7 0.6 21.1 0.2 Non Financials Assets 37.6 35.5 37.5 45.3 • Liquidity in place to Total Assets
Slide 14: Shareholding Pattern
Shareholding Pattern Shareholding % 0.40% Calculation of Outstanding Shares 2.36% Share issued and Outstanding 135,00,000 Add: Dilutive Instruments 40.33% Employee Stock Options 6,92,276 56.91% Warrants 7,75,200 Total Share (Fully Diluted Basis) 149,67,476 Promoters Resident Indian Non-Resident Indi
Slide 15: Company Overview
Company Overview
Slide 16: Key Highlights
Bridging the gap between underbanked MSME Key Highlights businesses, consumers & new age technology, keeping governance first! Highly experienced board with Asset light model with stalwarts from various backgrounds Professional focus on funding small management team, retail businesses from with pedi
Slide 17: Focus on Governance & Best Practices
Focus on Governance & Best Practices HIGH GOVERNANCE STANDARDS Completely Independent Board Stat Audit Haribhakti & Co Internal Audit Bansal & Bansal Rakesh Sethi Ashish Dalal Rajiv Kapoor Secretarial Audit Bhandari & Co. Non-Executive Chairman Non-Executive Director Independent Director Past experi
Slide 18: Dhanvarsha Backed by Seasoned Board & Management Team
Dhanvarsha Backed by Seasoned Board & Management Team Rohan Juneja Narendra Tater Karan Desai Joint MD Vijay Reddy CFO Joint MD CS & Compliance Officer Past experience: Past experience: Past experience: Past experience: An investment banker, hedge fund manager and Finance professional with 20+ Ex-in
Slide 19: What We Do
What We Do Secured Loans Unsecured Loans 84% Commenced Business: 2017 INR500k - INR4000k 60% Avg ROI of 15.3% Security: Self Occupied Resi/Comm Property INR500k - INR5000k Avg ROI of 17% Loan Book: INR 363 Mn Security: Self Occupied Resi/Comm Property 40% Industry Served: Retail MSME 16% INR100k - I
Slide 20: Business Pillars
Business Pillars Consolidated Income Business verticals to be Fund Based Non-Fund Based driven by (Balance Sheet) strong tech Small ticket secured & backbone, unsecured business loans with minimum Short tenor, high yield Retail Loan reliance on FLDG* products Syndication “feet on street PAN India, t
Slide 21: Strong Relationships & Collaborative Approach = Highly Scalable Model
Strong Relationships & Collaborative Approach = Highly Scalable Model Sources of Business Centralised Infrastructure Direct Customers Sales PAN India Small & tight sales team only with credit background coordinators for large Dhanvarsha channel partners – small field force Balance Small DSAs & Conne
Slide 22: Robust Underwriting and Technology Platform
Robust Underwriting and Technology Platform Underwriting Legal / Valuation Case File is logged Pre PD-Queries initiated Recommended to FI & FCU Sanction terms in Resolved (in case of LAP) Credit Head & MD (3rd Party) initiated complied CIBIL Spooling & PD Conducted Post PD Queries Approval Sanction
Slide 23: Using Technology to Fully Harness Dhanvarsha's Strengths
Using Technology to Fully Harness Dhanvarsha’s Strengths Customer / DSA Selects product & Upload basic registers on APP enters basic documents (KYC, requirements Banking, Income) Dhanvarsha Balance Sheet Proprietary Underwriting Loans - Syndication Each case gets matched Engine to either Dhanvarsha’
Slide 24: Technology Platform Illustration (1/2)
Technology Platform Illustration (1/2) Dhanvarsha Finvest Ltd.
Slide 25: Technology Platform Illustration (2/2)
Technology Platform Illustration (2/2) Dhanvarsha Finvest Ltd.
Slide 26: Dhanvarsha 03 Year Strategy Focus
Dhanvarsha 5 Year Strategy Our goal is to make a significant impact in the lives of micro small and medium enterprise 01 entrepreneurs by providing them access to timely, sustainable and affordable access to credit and financial services tools. With debt lines starting to open for the company and an
Slide 27: Our Mission
Our Mission Dhanvarsha aims to provide access to Timely Affordable Sustainable Credit solutions and in turn employment opportunities to every creditworthy small business & borrower in India Dhanvarsha Finvest Ltd. 27
Slide 28: Sample Client Business Images
Sample Client Business Images Paper & Boards Trader Catering Business General & Stationery Store Steel & Consumer Goods Trader Dhanvarsha Finvest Ltd.
Slide 29: Appendix: Opportunity in MSME and Ability to Make a Significant Social Impact
Appendix Opportunity in MSME and Ability to Make a Significant Social Impact Dhanvarsha Finvest Ltd.
Slide 30: SME and MSME's Comprise almost 70% of India's Working Population
SME and MSME’s Comprise almost 70% of India’s Working Population Working % of working Avg. income Avg. annual income Population population INR ₹ (2015) INR ₹ (2015) Movers 0.4 mn 0.08% ₹ 7560 ₹ 17,500k & Shakers Urban Middle Class 27 mn 5% ₹ 21,350 ₹ 795k Urban Masses: Our sweet spot 129 mn 25% ₹ 29
Slide 31: Providing Dhanvarsha an Opportunity to Make a Big Social Impact
Providing Dhanvarsha an Opportunity to Make a Big Social Impact 63 million Machinery investment less than INR 2.5 Mn Micro Enterprises form 99% of MSMEs MSMEs accounted for over Employs over 0.3Mn MSME INR 40k bn to India’s Gross Value Added 111 million people Small Categorization (GVA) in 2015-16 o
Slide 32: Thank You!
Thank You! Dhanvarsha Finvest Limited 2nd Floor, Building No.4, D J House, Old Nagardas Road, Andheri (East), Mumbai - 400 069.