Capital Trust Ltd. (india) · NSE:CAPTRUST
Capital Trust Ltd. (india) — Capital Trust — Q3 FY2019 Earnings Presentation
38 slides from Capital Trust Ltd. (india)'s earnings presentation, Feb 13, 2019
Slide 1: Investor Presentation Q3 FY19
INVESTOR PRESENTATION Q3 FY19
Slide 2: Contents
CONTENTS SLIDE NO. COMPANY OVERVIEW 2 4 RECENT UPDATES BUSINESS MODEL 8 12 OPERATING MODEL PORTFOLIO 17 21 PORTFOLIO QUALITY FINANCIALS 31 34 PARTNERS
Slide 3: Company Overview
> Capital Trust COMPANY OVERVIEW
Slide 4: About the Company
ABOUT THE COMPANY - Incorporated in 1985 - Promoted by prominent bankers including former Governor RBI, Chief Justice of India BACKGROUND - Initial business was advisory to foreign banks - Listed on BSE (in 1985) and NSE (in 2016) - Started providing Micro loans in 2008 As on 31.12.2018 Public Emplo
Slide 5: Recent Updates
> Capital Trust RECENT UPDATES
Slide 6: Company Update
1. COMPANY UPDATE Agreement signed with a Private Sector Bank for Joint-Lending Launch of company’s digital loan, Capital Magic Highlights Capital Trust Limited “BBB+” rating maintained by CARE Capital Trust Microfinance assigned “BBB+” rating and “MFI 3+” grading by CARE Appointment of Amit Kumar a
Slide 7: Asset Liability Position Update
2. ASSET LIABILITY POSITION UPDATE Q1 FY19 (Actual) Q2 FY19 (Actual) Q3 FY19 (Actual) Q4 FY19 (Expected) Quarterly Collection (Cr.) 164.5 180.1 169.2 166.8 Quarterly Repayment (Cr.) 85.8 90.9 91.1 85.0 Quarterly Surplus (Cr.) 78.7 89.2 78.1 81.8 Monthly Surplus (Cr.) 26.2 29.7 26.0 27.3 Borrowing Pr
Slide 8: Funding Update
3. FUNDING UPDATE Apart from untapped sanctions of Rs. 120 Crores, the company has signed an agreement with a Private Sector Bank to joint-lend to prospective MSME clients Capital Trust MSME Client Financial Institution Benefits of Joint Lending to CTL: • Agreement signed with a financial institutio
Slide 9: Business Model
> Capital Trust BUSINESS MODEL
Slide 10: Unique Business Model
UNIQUE BUSINESS MODEL Capital Trust Microfinance Capital Trust Limited Banks and large NBFCs MFIs MISSING MIDDLE ASSET FINANCING (Rs. 25K – Rs. 1Lac) (Rs 10Lacs onwards) (Rs. 1Lac – Rs. 10Lacs) Rs. 1.05Lac loan Rs. 2Lac loan Rs. 3Lac loan Rs. 5Lac loan Footwear Business (Saharanpur) Yarn Production
Slide 11: Empowering Micro Enterprises
EMPOWERING MICRO ENTERPRISES DEBT SHORTFALL: MSME SECTOR DEBT SHORTFALL: 26 LAC CRORE ** 94% of India’s 2.65 Crore MSME’s are 2.5 LAC unregistered, hence don’t have access to CRORE * traditional banking 8% of all Microfinance clients graduate to the next economic level each year but do not have acce
Slide 12: Loan Products
LOAN PRODUCTS • Loans from Rs. 25,000 – Rs. 40,000 MICROFINANCE • Tenure: 24 months INDUSTRY • Joint Liability • Interest Rate: 24.5% • Loans from Rs. 10,000 – Rs. 50,000 Magic Loan • Tenure: 3 – 12 months • Individual digital loan • Interest Rate: 30% - 32% • Loan of Rs. 1,05,000 MSME Micro- • Tenu
Slide 13: Operating Model
> Capital Trust OPERATING MODEL
Slide 14: Geographical Presence
GEOGRAPHICAL PRESENCE DELHI UTTARAKHAND Branches: 4 Branches: 17 Portfolio: 10 Crores Portfolio: 41 Crores PUNJAB UTTAR PRADESH Branches: 40 Branches: 65 Portfolio: 156 Crores Portfolio: 180 Crores RAJASTHAN BIHAR Branches: 33 Branches: 27 Portfolio: 100 Crores Portfolio: 71 Crores MADHYA PRADESH OD
Slide 15: Branch Network
BRANCH NETWORK HUB-AND-SPOKE MODEL ALIGARH DISTRICT DISTRICT LEVEL BRANCH BLOCK LEVEL BRANCH 14
Slide 16: Organizational Structure
ORGANIZATIONAL STRUCTURE Board Of Directors Managing Director CFO COO CSO Credit Business Training Audit Head Risk Head CTO HR Head Head Head Head State Credit Zonal Head Zonal Head State State Audit Manager (North) (East) Trainer Manager State Audit CVO Executive Head Field Cluster Cluster Cluster
Slide 17: Operational and IT Prowess
OPERATIONAL AND IT PROWESS Staff empowered with Client on-boarding and in- 100% Cashless Disbursement smartphones with access to principle approval from for all products since April 2015 customized mobile application scanning of client’s Aadhar card Information available to staff Paperless Audit and
Slide 18: Portfolio
> Capital Trust PORTFOLIO
Slide 19: Productwise Portfolio
PRODUCTWISE PORTFOLIO 900 795Cr 741Cr 800 700 555Cr 600 Micro Enterprise 500 619 Secured Enterprise 579 304Cr Microfinance 400 340 Yes Bank BC* 186Cr 300 116 200 81 125 95 120 94 100 38 56 93 68 56 68 34 0 FY '15 FY '16 FY '17 FY '18 Q3 FY '19 * Microfinance Loan as a Business Correspondent (All val
Slide 20: Statewise Portfolio
STATEWISE PORTFOLIO 900 795Cr 741Cr 800 62 700 21 37 41 555Cr 65 DEL 83 600 CH 71 JH 48 115 500 UKH 89 99 ODI 304Cr 400 BIH 31 100 33 189 MP 186Cr RJ 300 86 13 PUN 156 UP 200 5 271 257 272 100 180 165 0 FY '15 FY '16 FY '17 FY '18 Q3 FY '19 (All values in Crores) 19
Slide 21: Why Portfolio Growth Is Restrained in FY19
WHY PORTFOLIO GROWTH IS RESTRAINED IN FY19 • FUNDING CONSTRAINTS • 4 out of 7 Public Sector Banks on board under Prompt Corrective Action (PCA) • IL&FS Crisis • ELECTIONS AND FARM LOAN WAIVER RUMOURS • Rajasthan (100 Crore portfolio), Madhya Pradesh (89 Crore portfolio) and Chhattisgarh (10 Crore po
Slide 22: Portfolio Quality
> Capital Trust PORTFOLIO QUALITY
Slide 23: Statewise Portfolio and 90+
STATEWISE PORTFOLIO AND 90+ 600 Affected States (31% of company portfolio) account for 92% of company 90+ portfolio 500 400 300 AUM 510 Cr 90+ 200 231 100 Cr 61 5 Cr Cr 0 Non Affected States Affected States (PUN, RJ, MP, BIH, ODI, CH, JH) (UP, UKH, DEL) (All values in Crores) 22
Slide 24: Statewise Portfolio Quality
STATEWISE PORTFOLIO QUALITY AUM (Cr.) 90+ (Cr.) 90+ (%) Non-Affected States (PUN, 510.5 5.4 1.1 RJ, MP, BIH, ODI, CH, JH) Affected States (UP, UKH, 230.9 61.0 26.4 DEL) Company-Wide 741.4 66.4 8.9 23
Slide 25: Productwise Portfolio and 90+
PRODUCTWISE PORTFOLIO AND 90+ 700 Secured products (13% of company portfolio) account for 57% of company 90+ portfolio 600 500 400 AUM 647 300 Cr 90+ 200 100 94 Cr 38 Cr 28 Cr 0 Unsecured Products Secured Product (MEL, MFL) (SEL) (All values in Crores) 24
Slide 26: Productwise Portfolio Quality
PRODUCTWISE PORTFOLIO QUALITY AUM (Cr.) 90+ (Cr.) 90+ (%) Unsecured Products (Micro- 647.5 28.4 4.4 Enterprise, Microfinance Loan) Secured Product (Secured- 93.9 38.0 40.5 Enterprise Loan) Company-Wide 741.4 66.4 8.9 25
Slide 27: New Clients Sourced Pre / Post FY17 Portfolio and 90+
NEW CLIENTS SOURCED PRE / POST FY17 PORTFOLIO AND 90+ 500 Clients sourced pre FY17 (39% of company portfolio) 450 account for 97% of company 90+ portfolio 400 350 300 AUM 250 450 90+ Cr 200 150 291 Cr 100 50 64 2 Cr Cr 0 Post FY17 Pre FY17 (All values in Crores) 26
Slide 28: New Clients Sourced Pre / Post FY17 Portfolio Quality
NEW CLIENTS SOURCED PRE / POST FY17 PORTFOLIO QUALITY AUM (Cr.) 90+ (Cr.) 90+ (%) Sourced Post FY17 450.5 2.2 0.5 Sourced Pre FY17 290.9 64.2 22.1 Company-Wide 741.4 66.4 8.9 27
Slide 29: 90+ Portfolio Movement
90+ PORTFOLIO MOVEMENT 900 30% 27.84% 26.74% 795 796 800 760 24.69% 741 717 25% 700 662 589 600 20% 500 AUM 15% 90+ 400 Op 90+ 11.07% 10.93% 300 8.75% 10% 8.95% 200 164 177 177 Reduction in absolute value 5% 88 87 100 67 66 0 0% Q1 FY18 Q2 FY18 Q3 FY18 Q4 FY18 Q1 FY19 Q2 FY19 Q3 FY19 (All values in
Slide 30: Cumulative Collection
CUMULATIVE COLLECTION Collection Efficiency 107% 107% 106% 105% 99% 101% 98% 100% 80% 60% 40% 20% 0% Q3 FY18 Q4 FY18 Q1 FY19 Q2 FY19 Oct 2018 Nov 2018 Dec 2018 Collection Efficiency of Loans Disbursed Post FY17 98% 100% 99% 100% 101% 96% 99% 99% 100% 80% 60% 40% 20% 0% Q3 FY18 Q4 FY18 Q1 FY19 Q2 FY1
Slide 31: Secured-Enterprise Loan Risk Mitigation
SECURED-ENTERPRISE LOAN RISK MITIGATION Even though there is a higher NPA in this product compared to the others, the risk is mitigated because of the following reasons: • Secured by self occupied residential or commercial properties with an maximum LTV of 50% • Average LTV of 22% (property with 4.4
Slide 32: Financials
> Capital Trust FINANCIALS
Slide 33: Quarter-over-Quarter Growth (Q3FY19 vs Q2FY19)
QUARTER-OVER-QUARTER GROWTH (Q3FY19 vs Q2FY19) Assets Under Management (in Cr): Financing Income (in Cr.): Profit After Tax (in Cr): 760 46 8 (2%) (19%) (133%) 741 39 -24 Net Worth (in Cr): Earnings Per Share (in Rs): Book Value(in Rs): 208 5 128 (4%) (133%) (4%) 200 -15 123 States (in #): Number of
Slide 34: Key Financials and Ratios
KEY FINANCIALS AND RATIOS Line Item / Ratio Q3FY18 Q3FY19 (YoY) Q2FY19 Q3FY19 (QoQ) Total Income 49.7 46.4 -7% 39.1 46.4 19% Total Expense (excluding tax) 33.7 36.1 7% 72.6 36.1 -50% Profit / (loss) after tax 9.4 7.9 -17% -24.1 7.9 133% Net Worth 220.0 208.3 -5% 200.4 208.3 4% Micro-Enterprise Loan
Slide 35: Partners
> Capital Trust PARTNERS
Slide 36: Partners
© PARTNERS > Capital Trust Bi iichtHouse Se Baring Private Sp Pens A rpy sipB AMY Equity Asia ia SIDBI enrol In) Union Bank com cles om (il DBIBAN BANK | oo " YES / BANK fee Wsuainamcity KE a i) MONEY WHEN YOU NEED IT MOST HeroFinCorp. IN| tg ime nk inl mabtine RELIANCE WFR Ga) —O1KO ) hisomiifiannd
Slide 37: Thank You
> Capital Trust THANK YOU
Slide 38: Disclaimer
DISCLAIMER This presentation has been prepared by and is the sole responsibility of Capital Trust Limited. By accessing this presentation, you are agreeing to be bound by the trailing restrictions. This presentation does not constitute or form part of any offer or invitation or inducement to sell or