29 slides from Capital Trust Ltd. (india)'s earnings presentation, Nov 8, 2023
Slide 1: Q2 & HY2024 Investor Presentation
Merging New-Age Fintech with Traditional Lending CAPITAL TRUST LIMITED Q2 & HY2024 INVESTOR PRESENTATION November 2023
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 RECENT UPDATES 07-10 OPERATING MODEL 11-17 CAPITAL TRUST 2.0 18-23 FINANCIALS 24-26 KEY PARTNERSHIPS 27-28
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 • 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 m
Slide 6: Numbers at a Glance
Numbers at a Glance PORTFOLIO NET WORTH BORROWINGS CAPITAL ADEQUACY LEVERAGE GNPA & NNPA Q2 FY24 PBT ₹ 202 Cr ₹ 76 Cr ₹ 46 Cr 59 % 0.6 X GNPA: 1.0 % ₹ 0.7 Cr Off: ₹ 145 Cr NNPA: 0.0 % On: ₹ 57 Cr 6
Slide 7: Recent Updates
RECENT UPDATES
Slide 8: Q2 FY24 – Continuation Of The Turnaround: Financial & Structural Updates
Q2 FY24 – Continuation Of The Turnaround: 1. Financial & Structural Updates 01 Upward Trajectory in Revenue 03 Validation Of & Profitability Metrics Lending-As-A-Service Model Capital Trust has sustained its Disbursing through 3 Co-Lending Partnerships positive momentum, achieving a (TruCap Finance,
Slide 9: Q2 FY24 – Continuation Of The Turnaround: Operational Updates
Q2 FY24 – Continuation Of The Turnaround: 2. Operational Updates Successive Quarter Highest Quarterly Stability in Portfolio Quality Increase in Portfolio Growth Disbursement since FY19 (30+ DPD% & 90+ DPD%) Disbursing Branch Network 250 2% QoQ: QoQ: 89 1.4% +22% 202 +20% 1.3% 202 1.4% 1% 200 74 1%
Slide 10: Q2 FY24 – Continuation Of The Turnaround: Comparison of Q2 FY24 vs Q1 FY24
Q2 FY24 – Continuation Of The Turnaround: 3. Comparison of Q2 FY24 vs Q1 FY24 Assets Under Management (in Cr): Net Worth (in Cr.): Revenue (in Cr): 202 75.5 19.6 (22%) (1%) (10%) 166 75.0 17.7 Expenses (in Cr): Profit Before Tax (in Cr) Profit After Tax (in Cr) 18.9 0.7 0.51 (10%) (7%) (6%) 17.1 0.6
Slide 11: Operating Model
OPERATING MODEL
Slide 12: 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 13: Current Product Offering
Current Product Offering Product Name Capital Digital Loan Sector MSME Type of Loan Unsecured Income Generating Business Loan Ticket Size (₹) 30,000 – 75,000 Tenure 12 – 24 months ROI 32%+ Repayment Digital NACH followed by physical cash collection Why CTL? Production Optimization - Branch banking -
Slide 14: Market Segment
Market Segment CLASSIFICATION DOCUMENTATION TICKET SIZE ANNUAL INCOME UNSECURED SECURED > ₹ 10 Lakh > ₹ 10 Lakh Banks / Large SME - Income Tax Return New Age Fintechs Focused NBFCs - GST Certificate Formal MSME - Shop & Establishment - PAN Card - Udyam Aadhaar ₹ 1Lac - 10 Lakh ₹ 4Lac - 10 Lakh Geogr
Slide 15: 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 MSME (local moneylenders) which currently account for 84% of all financing to MSMEs MISSI
Slide 16: Typical Clientele
Typical Clientele Kirana Stores Dairy and Livestock Farmers Grocery Vendors Small Eateries Textile Stores Handicraft Manufacturers Utility Stores Salons Flower Vendors 16
Slide 17: Branch Network
Branch Network 39 10 3 33 51 56 52 34 20 7 20 Actively Disbursing Branches: 210 Collection-Only Branches: 115 Reason for Collection-Only Branches: Bad geographical delinquency in past, high DPD of other MFIs evident in pin code report, CDL delinquency crossing set 30+DPD benchmark 325* Branches spre
Slide 18: Capital Trust 2.0
CAPITAL TRUST 2.0
Slide 19: Capital Trust 2.0: A Clean Slate
Capital Trust 2.0: A Clean Slate 1. Portfolio Details 3. Hybrid Dual Credit • High quality, seasoned AUM • Automated credit (credit with 1.0% GNPA and 0% bureau checks and preset NNPA algorithms) supplemented with Traditional Safeguards • Current product continues of Branch Banking (physical to show
Slide 20: 1. Portfolio Details
1. Portfolio Details ₹ 202 Cr 200 11 97% 99% 97% 98% 99% 98% 99% 99% 98% 98% 98% 12 94% 14 150 21 23 100 36 50 81 0 Oct-22 Nov-22 Dec-22 Jan-23 Feb-23 Mar-23 Apr-23 May-23 Jun-23 Jul-23 Aug-23 Sep-23 BIH E UP PUN MP JHA RAJ ODS UP UKH CG DEL Companywide Collection Efficiency Portfolio Under Manageme
Slide 21: 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 22: 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 23: 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 24: Financials
FINANCIALS ~ ”n = = is) = + i) aed
Slide 25: Key Highlights & Ratios
Key Highlights & Ratios (₹ in Crores) Particulars Q2 FY24 Q1 FY24 QoQ % Q2 FY23 YoY % Total Income 19.6 17.7 10% 22.4 -13% Total Expense (excluding tax) 18.9 17.1 10% 19.7 -4% Profit / Loss After Tax 0.5 0.5 6% 2.0 -75% Net Worth 75.5 75.0 1% 124.4 -39% On-Book Portfolio 57.5 35.9 60% 161.3 -64% Off
Slide 26: Consolidated Balance Sheet
Consolidated Balance Sheet (₹ in Crores) Assets Q2 FY24 Q1 FY24 Q4 FY23 Liabilities And Equity Q2 FY24 Q1 FY24 Q4 FY23 Financial Assets Financial Liabilities Cash and Cash Equivalents 9.2 11.2 8.1 Trade Payables 0.7 0.5 0.8 Debt Securities 0.0 0.0 30.0 Bank Balances other than Cash & 7.5 8.2 65.1 Bo
Slide 27: Key Partnerships
KEY PARTNERSHIPS
Slide 28: Equity & Funding Partnerships
Equity & Funding Partnerships Equity: 1 Banks: 2 DFI / NBFCs / P2Ps: 16 28
Slide 29: Thank You
THANK YOU Vinod Raina Chief Financial Officer Vinod.raina@capitaltrust.in Vahin Khosla Executive Director Vahin.khosla@capitaltrust.in 29