Trucap Finance Limited · NSE:TRU
Trucap Finance — Q4 FY2023 Earnings Presentation
27 slides from Trucap Finance's earnings presentation, May 23, 2023
Slide 1: Earnings Presentation cover letter to BSE
May 23, 2023 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/Madam, This is to inform you that the Board of Directors of TruCap Finance Limited (formerly known as Dhanvarsha F
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: TRU Lender to India's MSME Needs
TRU 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 of talent an
Slide 5: Significant Milestones Achieved in FY'23
Significant Milestones Achieved in FY’23
Slide 6: Cumulative Disbursements of over 16 bn Focussed on MSME Gold loans
Cumulative Disbursements of over 16 bn Focussed on MSME Gold loans Cumulative Disbursement INR Mn. TRU Disbursement Mix* 16,035 59% 66% 75% 73% 86% 26% 5,968 1,662 709 794 416 38% 29% 33% 25% 27% 14% FY’18 FY’19 FY’20 FY’21 FY’22 FY’23 FY’21 FY’22 Jun’22 Sep’22 Dec’22 Mar’23 MSME BL MSME GL Unsecure
Slide 7: Large number of Customers Served with Expanding Phygital Presence
Large number of Customers Served with Expanding Phygital Presence Customers Served Increasing Branch Presence un' 23 s by J 89 r a n che 00 b 1 o have 79 get t 1,55,294 Tar 74 59 56 37 61,159 7,742 101 243 462 FY’18 FY’19 FY’20 FY’21 FY’22 FY’23 Mar’22 Jun’22 Sep’22 Dec’22 Mar’23 May’23 TRU’s demons
Slide 8: Granular & Capital Efficient Portfolio mix
Granular & Capital Efficient Portfolio mix Gross Loan Portfolio (AUM) INR Mn* Focused MSME Gold and Business Loan Portfolio* 5,810 17% 40% 43% 47% 50% 57% 33% 3,059 44% 46% 45% 44% 1,044 39% 416 493 372 FY’18 FY’19 FY’20 FY’21 FY’22 FY’23 FY’21 FY’22 Jun’22 Sep’22 Dec’22 Mar’23 MSME BL MSME GL Unsecu
Slide 9: Loan growth with Increasing Capital Efficiency through L-a-a-S Partnerships
Loan growth with Increasing Capital Efficiency through L-a-a-S Partnerships Gross Loan Portfolio (AUM) INR Mn* L-a-a-S AUM (INR Mn) as a % of Total AUM 28% 5,810 24% 5,104 20% 1,611 4,549 1,217 12% 3,952 894 490 4% 3,059 112 4,200 3,887 3,462 3,655 2,937 Mar’22 Jun’22 Sep’22 Dec’22 Mar’23 Mar’22 Jun’
Slide 10: Over INR 3.0 billion of L-a-a-S Disbursements
Over INR 3.0 billion of L-a-a-S Disbursements Benefit for TRU Mar’22 Jun’22 Sep’22 Dec’22 Mar’23 Sourcing partnership with large lenders to L-a-a-S Disbursement (INR Mn) 306 470 574 645 1,258 realize last mile affordable credit inclusion. L-a-a-S Disbursement % 22% 23% 29% 30% 33% TRU serves as the m
Slide 11: Substantial Improvement in Asset Quality
Substantial Improvement in Asset Quality Asset Quality (GNPA%) 6.0% 5.1% 3.0% 3.0% 2.2% < 1% FY’19 FY’20 FY’21 FY’22 FY’23 May’23* GNPAs in the gold loan book are negligible; business loan are currently 1.6% Gold taken to auctions are less than INR 38 Mn (0.4% of cumulative disbursements). Resolutio
Slide 12: Robust Collection Efficiency driven by Gold Loans
Robust Collection Efficiency driven by Gold Loans INR Mn Month Demand Collection Collection Payment & CE including for the done efficiency foreclosures prepyament month for the (CE) for the in the /part payment month month month Apr-22 129 116 89.8% 358 366.5% May-22 143 127 88.9% 291 293.1% Jun-22 15
Slide 13: Omnichannel Distribution Platform Powering Capital Efficient Loan Growth
Omnichannel Distribution Platform Powering Capital Efficient Loan Growth
Slide 14: Multi Channel Distribution Built in the Last Few Years
Multi Channel Distribution Built in the Last Few Years… Experiential Centers Offers Superior Value Proposition Captive Sales Team for MSME Customers in GL & BL TRU has a team of ~400 Strong Feet on Street Significantly enabling financial inclusion in 6 key states These individuals play an instrumental
Slide 15: With Technology as a Strong Enabler
... with Technology as a Strong Enabler... TRU Digital Assets Third Party Core: LOMS B2B App B2C Apps 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 Manage
Slide 16: Cluster-based Distribution Network through Experiential Centres
... And Cluster-based Distribution Network through Experiential Centres... 28 Maharashtra 23 Madhya Pradesh 18 Delhi NCR/ Haryana 10 Gujarat 7 Goa 3 Rajasthan Expanding network to cater to MSME customers for both Gold & Business Loans The states of Maharashtra, Gujarat, Haryana and Delhi-NCR compris
Slide 17: Focused Largely in Tier II/III/IV Towns
...Focused Largely in Tier II/III/IV Towns Increasing Branch Distribution with Focus on Tier II/III/IV AUM distribution Over the Years Total Branch additions FY’20 FY’21 FY’22 FY’23 May’23 State Mar’19 Mar’20 Mar’21 Mar’22 Sep’22 Dec’22 Mar’23 branches MH - 3 4 5 - Maharashtra 100% 100% 81.3% 52.8%
Slide 18: FY23 Results
FY23 Results
Slide 19: Key Highlights – FY23
Key Highlights – FY23 INR Mn Particulars Mar’21 Mar’22 Mar’23 Significant scale up in L-a-a-S partnership with addition of large and reputable financial institutions Disbursements 867 4,308 10,063 AUM 1,046 3,059 5,810 Disbursement growth has outpaced branch growth, reflecting scaling up of vintage bra
Slide 20: Income Statement
Income Statement INR Mn INR Mn Q-o-Q Income Statement Mar’21 Mar’22 Mar’23 Income Statement QE Dec'22 QE Mar'23 Change% Interest Income 122 455 932 Interest Income 241 225 -7% Less: Finance Cost 42 244 508 Less: Finance Cost 137 149 8% Net Interest Income 80 211 424 Net Interest Income 103 76 -26% O
Slide 21: Balance Sheet
Balance Sheet INR Mn Consistent build up of secured and more Balance Sheet Mar’21 Mar’22 Mar’23 granular loan assets led by gold Well capitalized and low gearing, to enable high Financials Assets 1,682 4,362 6,299 growth in future Cash and Investments 496 1,085 1,183 Reduction in impairment allowanc
Slide 22: Risk & Governance
Risk & Governance
Slide 23: 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 24: 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 148 checkpoints High C RBI ten
Slide 25: 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 26: Shareholding Pattern
Shareholding Pattern Substantial management ownership in the company Public 33.5% Promoter - Wilson Group 57.1% FII 9.4% Promoter Group FII Public Shareholding on fully diluted basis as on Mar’23
Slide 27: Thank You
Thank You