Tata Capital Ltd. · NSE:TATACAP
Tata Capital — FY2024 Earnings Presentation
60 slides from Tata Capital's earnings presentation, May 23, 2024
Slide 1: Exchange intimation letter under Regulation 51
May 23, 2024 To, To, The Listing Department The Listing Department BSE Limited, National Stock Exchange of India Ltd., Phiroze Jeejeebhoy Towers, Exchange Plaza, Bandra Kurla Complex, Dalal Street, Bandra (East), Mumbai – 400001 Mumbai – 400051 Dear Sir / Madam, Subject: Disclosure under Regulation
Slide 2: Tata Capital Limited Results: FY 2023-24
Tata Capital Limited Results: FY 2023-24
Slide 3: Our Purpose
Our Purpose Responsible financial partner fulfilling India's aspirations 2
Slide 4: Our Purpose Pillars
Our Purpose Pillars 1 2 3 4 5 6 Lead Better Capital Delivering Futuready Faster forward & More with Trust Together Delight We respect and We actively We innovate and We bring speed We serve the We go above and reinforce the collaborate with leverage and simplicity; customer through beyond to care an
Slide 5: Tata Capital: Flagship Financial Services Company of the Tata Group
Tata Capital: Flagship Financial Services Company of the Tata Group INR 1,57,761 Cr 85%+ 723 4.5 Mn Loan book Retail+SME Branches Customers Profitable since Rated BBB- by S&P Rated AAA by Crisil, ICRA, inception Global and Fitch Ratings CARE, India Ratings 4
Slide 6: Tata Capital poised to capture the India lending opportunity
Tata Capital poised to capture the India lending opportunity India’s credit penetration is one of the lowest among peers Debt to GDP (%) Growth Potential 70% 119% Huge market opportunity of 138% >INR 500 Lakh Cr 164% 171% Source: RBI’s Sectoral Deployment of Credit; MOSPI’s GDP estimates; World Bank
Slide 7: Our Brand Promise: Count on Us
Our Brand Promise: Count on Us Why Count On Us? Customer centric Research indicated that “delivering on promises” is a key factor for customers to choose a financial services provider. Relevant to our evolved Purpose and values Consolidates internal efforts and drives customer expectations Exudes th
Slide 8: Major milestones in the Tata Capital journey
Major milestones in the Tata Capital journey TCL commences Tata Capital Financial TCL reorganised as CIC; NBFC operations Services Ltd (TCFSL) transferred its NBFC Loan Book crosses Loan Book crosses in 2007 incorporated business to TCFSL INR 50k Cr mark INR 1 Lakh Cr mark 2007 2010 2016 2022 2012 2
Slide 9: Corporate Structure – Lending business w.e.f. Jan 1st, 2024
Corporate Structure – Lending business w.e.f. Jan 1st, 2024 Tata Capital Ltd.1 (TCL) NBFC 100% Tata Capital Housing Finance Ltd. (TCHFL) HFC Note: Tata Capital Financial Services Limited ("TCFSL"), a wholly owned subsidiary of Tata Capital Limited (“TCL”) and Tata Cleantech Capital Limited ("TCCL"),
Slide 10: Diversified NBFC serving customers across spectrum
Diversified NBFC serving customers across spectrum Portfolio: INR 1,57,761 Cr Retail portfolio break-up Other Corporate retail 13% 9% Auto Retail 19% SME 63% Mortgages 24% 50% Unsecured 21% 9
Slide 11: … with a deep focus on Retail & SME customers
… with a deep focus on Retail & SME customers 63% Retail 24% SME 13% Corporate 38% 1,00,051 72,758 39% 37,293 19% 20,416 26,903 17,129 1 Mar'23 Mar'24 Mar'23 Mar'24 Mar'23 Mar'24 Mortgage Loans Unsecured Loans • Channel Finance • Corporate Loans • Home Loan • Personal Loan • Invoice Discounting • Cl
Slide 12: Home Loan
Home Loan Presence in Metro, Tier-1,2,3 Lower cost of acquisition with Digital disbursals up by Driving fee income through cities; catering to both salaried usage of data analytics and 28% YoY; large penetration cross-sell and focus on & self-employed customers technology in the builder segment sust
Slide 13: Affordable Home Loan
Affordable Home Loan Reaching customers directly Presence in 160+ Tier-1, Agile policy & risk Focus on high-yield segments using an activity-based 2, 3 & 4 cities; expanded management framework through presence in micro- sourcing approach; helping to 18 new locations in with tailor-made products hou
Slide 14: Loan Against Property
Loan Against Property Offering loans to both self- Balanced portfolio mix Launched hybrid OD Acceptance of wide employed and salaried with focus on deepening product to tap into the range of collaterals customer class through penetration in top-8 SME segment for their across residential, various und
Slide 15: Personal Loans
Personal Loans Focused growth through Strong network of 300+ pan Utilizing data analytics to E2E digital onboarding organic business by building India locations focusing on deep mine existing journey; launched overdraft DIY journeys and sourcing deeper geographies customer base; 35% withdrawal facil
Slide 16: Business Loans
Business Loans Focus on right segmental mix Building low-cost direct Enhancing productivity with E2E API stack for partners (micro / small / medium sourcing channels; WhatsApp customer segmentation with direct access to borrower enterprises and self- journey available for new scorecards; backed by n
Slide 17: Two-wheeler Loans
Two-wheeler Loans Widespread distribution Market reach: 65:35 Emerging 100% digital onboarding of Fast-track process ensuring with 650+ locations and vs Top, with extensive customers; E2E digital journey same-day disbursements to 4,000+ channels presence in Tier 3, 4 towns incl. Digital KYC, Live Ph
Slide 18: Used Car Loans
Used Car Loans Growing business through Maintaining a balanced mix Winning combination of Launch of website journey to expansion of dealer network of repurchase & refinance, tech and process: help increase the digital with focus on OEM ensuring industry leading scorecard usage and outreach and bespo
Slide 19: Microfinance Business
Microfinance Business Doubled the geographical E2E digital paperless journey Customer Centricity: Nirikshan – Centralized presence to 370+ branches in with geo-fencing and geo- 6 vernacular languages for oversight (monitoring & 11 states covering 180 tagging coupled with customer communications & tr
Slide 20: Supply Chain Finance
Supply Chain Finance Loans extended for working Offerings in the form of Seamless customer experience 1st amongst peers to start capital and capital channel finance, vendor through ease of documentation - offering Factoring as an expenditure requirements finance, factoring ranging 75% new cases thro
Slide 21: Leasing
Leasing Only multi-asset leasing Only leasing solution provider Launch of digital platform for Unmatched customer centric solution provider - IT, across SME and Corporate, low ticket size cases especially approach that is asset Healthcare, Plant & MNC customers; focus on for Car & IT leasing agnosti
Slide 22: Equipment Financing
Equipment Financing Present in niche space of OE Increasing granularity Customized solutions for Digital journey for quick driven equipment finance; through lower ticket size & imported machines - L/C , sanctions and disbursals catering to diverse asset digital penetration (0 – 2 Cr B/C and supplier
Slide 23: Construction Equipment & CV loan
Construction Equipment & CV loan Construction equipment Large network of 150+ Leveraging the digital Offering customized E2E demand driven by channel partners and multi- journeys via CEQ Tatkal solutions to OEMs and infrastructure investments; locational presence and Instant CV for E2E their Custome
Slide 24: Cleantech Loans
Cleantech Loans Tata Capital along with IFC Strong sector / domain Keeping the loan book young Strong brand creation in established a separate knowledge in Cleantech & & granular by enhancing cleantech & infrastructure financing arm called Tata Infra sectors; market geographical reach, deeper & fina
Slide 25: Emerging & Mid Corp Loans
Emerging & Mid Corp Loans Catering to corporates Penetrating newer markets Focus on emerging sectors Focus on diversification with turnover ranging with region-specific and product mix to drive across sectors such as between INR 5 Cr – INR industry approach; profitability; dedicated auto, electronic
Slide 26: Construction Finance
Construction Finance Opportunistic deals with Leverage network of Focus on Early Warning Aim to expand Category A / B and corporate 3,500+ retail sales team Signals activity by driving geographical presence developers to refer approved Asset Quality Review to select new Tier-II project funding leads
Slide 27: Financial Performance (Consolidated)
Financial Performance (Consolidated)
Slide 28: Performance Highlights
Performance Highlights FY24 INR 1,05,244 Cr INR 1,57,761 Cr INR 8,069 Cr 0.4% INR 3,150 Cr 2.4% 17.6% 40% 35% 31% 37% 10 bps 40 bps Disbursals Loan Book NIM + Fee Net NPA PAT RoA RoE INR 74,996 Cr INR 1,16,789 Cr INR 6,157 Cr 0.4% INR 2,300 Cr1 2.3%1 17.3%1 SH FY23 1PAT excludes one-time gain of INR
Slide 29: Disbursals & Loan Book
Disbursals & Loan Book Disbursals: 40% Y-o-Y Growth1 Loan Book: 35% Y-o-Y Growth 1,57,761 1,05,244 74,996 1,16,789 Mar'23 Mar'24 Mar'23 Mar'24 Numbers in INR Cr 1Excludes disbursement for short term products such as Channel Finance, Invoice Discounting and Factoring business 28
Slide 30: Asset Quality
Asset Quality Gross Stage III (%) Net Stage III (%) PCR (%) Credit Cost (%) 77% 74% 1.7% 1.5% 0.6% 0.5% 0.4% 0.4% Mar'23 Mar'24 Mar'23 Mar'24 Mar'23 Mar'24 FY23 FY24 29
Slide 31: Liability Mix
Liability Mix Diversified funding mix including ECBs as well as 1% 1% public NCDs 6% 6% 7% 8% Well-articulated capital raising plan with a focus on raising more granular, sticky liabilities 43% 40% Maintained adequate liquidity along with a well- managed ALM 43% 45% Domestic ratings: Int’l ratings:
Slide 32: Financial Performance
Financial Performance Y-o-Y INR Cr FY23 FY24 Growth Loan book 1,16,789 1,57,761 35% NIM + Fee 6,157 8,069 31% Investment income 879 561 - NIM + Other Revenue 7,037 8,630 22% Operating expenses 2,665 3,624 36% Credit cost 582 603 4% Profits before tax 3,790 4,403 18% Profits after tax (incl. one-time
Slide 33: Well positioned for long-term Success
Expanding footprint in Tier II cities & beyond Well Expanding reach across mediums positioned Digital @ heart of our transformation for long-term Analytics across Customer life cycle Success Strong risk culture embedded across organization Synergies from diversified Tata ecosystem
Slide 34: Expanding footprint in Tier II cities & beyond
Expanding footprint in Tier II cities & beyond Rapidly expanding branch Chandigarh 3 1 Jammu & Kashmir presence over the last 3 years 1 Himachal Pradesh Punjab 8 5 Uttarakhand 4.9x 70 Uttar Pradesh Haryana 26 4 Assam Delhi/NCR 12 63 Bihar Rajasthan 49 723 Gujarat 38 438 Madhya Pradesh 25 267 148 10
Slide 35: Expanding reach across mediums
Expanding reach across mediums #KhoobsuratChinta Social Media Campaigns Home Loan Brand Film Personal Loan Two-Wheeler Loan Business Loan Other Digital Campaigns #LoanNoLoan #PalakJhapkaoLoanPao Moneyfy #PhatseHomeLoans #WPL 34
Slide 36: 'Digital' @ heart of our transformation
Digital @ Tata Capital ‘Digital’ @ heart of our transformation Reimagining Bringing Rethinking Simplifying Embracing customer delight to how we partner ecosystems experience service operate journeys for growth Enabling unified Gen AI powered bot Using intelligent ‘Smart Assist’ platform Leverage par
Slide 37: Digital as a Business catalyst
Digital @ Tata Capital Digital as a Business catalyst 1.6x Y-o-Y growth in web traffic via optimized webpages Enhanced pre-approved offers; 20 Lakhs+ offers monthly Significant growth in mobile app downloads Digital tools & enablers for faster & efficient customer Segment based customer & channel pa
Slide 38: Digital as an Efficiency enabler
Digital @ Tata Capital Digital as an Efficiency enabler Underwriting Collections Data & AI/ML led allocation strategy: pre-delinquency Data from source via APIs enabling rule-based underwriting management, delinquency recovery – 40+ models used across collections management Banking Analysis: Account
Slide 39: Digital as an Experience driver
Digital @ Tata Capital Digital as an Experience driver Customer Channel New age Digital Experience: Upgraded to Modern UI including dark mode Agent Productivity: Paperless workflow management Omni-Channel Presence: Website, App, WhatsApp, IVR, SMS (link- for agents based loan service) Convenient Sup
Slide 40: Retail: Seamless digital experience
Digital @ Tata Capital Retail: Seamless digital experience Efficiency at its core: “Building Reliable and scalable Online Platforms” Loan & wealth App Customer Portal Encompassing… 165+ Services 25+ Customer journeys Scan to download 15+ Product offerings Digital Onboarding Customer friendly Journey
Slide 41: Retail: Instant Unsecured Loan journey
Digital @ Tata Capital Retail: Instant Unsecured Loan journey 40
Slide 42: Retail: Scaling up Account Aggregator based use case
Digital @ Tata Capital Retail: Scaling up Account Aggregator based use case ~0.5 Mn Account Aggregator registrations through different products in last 2 years Home Business Loan Loan Personal Channel Loan Finance 41
Slide 43: Retail: Customer experience redefined
Digital @ Tata Capital Retail: Customer experience redefined Dashboard Categorized Service Requests Profile update Service Requests 42
Slide 44: One Stop Digital Solution for all financial needs
Digital @ Tata Capital One Stop Digital Solution for all financial needs Invest • Mutual Funds • Small Case Quick KYC & Onboarding • Corporate FDs • Bonds • Stocks Track transactions Bill Pay • Utilities • Subscriptions • Recharges • Taxes 360 portfolio view • EMI Payments Borrow On Call Assistance
Slide 45: SME & Corporate: Seamless digital experience
Digital @ Tata Capital SME & Corporate: Seamless digital experience Efficiency at its core: “Building Reliable and scalable Online Platforms” SME & Corporate App Customer Portal Encompassing… 100+ Services 20+ Customer journeys Scan to download 15+ Product offerings Digital Onboarding Scorecard asse
Slide 46: SME & Corporate: Loan Origination System 2.0
Digital @ Tata Capital SME & Corporate: Loan Origination System 2.0 Sales Multiple API Digital Multiple Customer DIY integration - KYC product/facility Journey PAN, GST, CIN offering ability enablement Credit underwriting Third party integration – Automated Data enrichment eligibility calculation Co
Slide 47: SME & Corporate: Superior customer experience
Digital @ Tata Capital SME & Corporate: Superior customer experience Instant Drawdown Additional & Disbursal Limits Activation Digitized service journeys End to end architecture including available for all SME & internal processes to maximize View Loan Transaction & Update Stock & Corporate products
Slide 48: Analytics across customer lifecycle
Analytics across customer lifecycle Acquisition & Cross-sell Better conversion Leads from Prospect Pre-approved Segmentation and pricing existing base Marketing offers and profitability & group models ecosystem Improve cross-sell & Products per Customer Underwriting & Disbursement Decision Decision
Slide 49: Strong Risk culture embedded across organization
Strong Risk culture embedded across organization Strong risk management framework, with rigorous oversight, multiple layers of defense, robust through-the-cycle credit risk framework supplemented by data analytics capabilities Agile & responsive risk function fostering a strong risk culture across t
Slide 50: Synergies from diversified Tata Ecosystem
Synergies from diversified Tata Ecosystem Tata Capital, as the flagship financial services of the Group, plays a pivotal role in Tata group’s focus on domestic consumption as a key theme in their growth philosophy Metals IT Shared brand and synergies Financial with various Tata Group companies and p
Slide 51: Lending Subsidiary (Tata Capital Housing Finance Ltd.)
Lending Subsidiary (Tata Capital Housing Finance Ltd.)
Slide 52: TCHFL – Business overview
TCHFL – Business overview About TCHFL Disbursements (INR Cr) 100% subsidiary of Tata Capital, dedicated towards Housing finance business 26,341 Growing steadily Serving the Underserved Impetus on Digitization 52% 17,338 Phygital model with a mix Increased focus on Shorter TAT, increased of leveragin
Slide 53: TCHFL – Financial performance
TCHFL – Financial performance Y-o-Y INR Cr FY23 FY24 Growth Loan book 36,917 51,402 39% NIM + Other Revenue 1,767 2,254 28% Operating expenses 634 863 36% Credit cost 32 (148) ~ Profits before tax 1,101 1,539 40% Profits after tax 821 1,148 40% Ratios FY23 FY24 NIM + Other Revenue (%) 5.6% 5.3% Cost
Slide 54: Serving India 'Responsibly'
Impacting Lives Serving India Financing green projects ‘Responsibly’ Serving the Underserved
Slide 55: Impacting Lives
Impacting Lives Climate Action Health Education | Skilling Water security Cancer Care Scholarships Treatment Renewable energy Quality Primary Eradication of Education curable blindness Financial Literacy 4,00,000+ 7,85,000+ 3,35,000+ lives impacted lives impacted lives impacted 15,20,000+ ▪ Aligned
Slide 56: Financing green projects through Cleantech Finance
Financing green projects through Cleantech Finance • Tata Capital along with IFC had established a separate financing arm called Tata Cleantech in 2012 with a clear focus on Green or Sustainable financing • First Indian entity to join the Global Green Bank Network comprising National Green Banks fro
Slide 57: Serving the Underserved
Serving the Underserved Tata Capital makes essential financing available for underbanked individuals or businesses through multiple products Microfinance MSME loans • Microfinance customers are typically unbanked individuals who • Business loans provided to small businesses in India which are a do n
Slide 58: Awards & Recognition
Awards & Recognition ‘Best innovation in Outstanding Financial Award for Best use of Multiple awards at Multiple awards at ET BFSI Excellence award Asset Finance Company Upper Layer NBFC for Institution for Green Predictive Modeling in Digital Customer Banking Frontiers – Microfinance Team, of the Y
Slide 59: Disclaimer
Disclaimer This presentation is being furnished solely for your information and may not be reproduced or redistributed to any other person. This presentation should not be distributed, reproduced, or used without the express consent of Tata Capital Ltd. (“Company”). The term “Company” shall include
Slide 60: Thank you
TATA CAPITAL Count on us Thank you