Capital Trust Ltd. (india) · NSE:CAPTRUST
Capital Trust Ltd. (india) — Capital Trust — Q2 FY2023 Earnings Presentation
42 slides from Capital Trust Ltd. (india)'s earnings presentation, Nov 11, 2022
Slide 1: Q2 FY2023 Investor Presentation
Merging New-Age Fintech with Traditional Lending CAPITAL TRUST LIMITED Q2 FY2023 INVESTOR PRESENTATION November 2022
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 04-08 CAPITAL DIGITAL LOANS 09-17 COMPETITIVE ADVANTAGES 18-23 DIGITAL JOURNEY 24-26 RURAL DOORSTEP-FINTECH 27-32 FINANCIALS 33-40 KEY PARTNERSHIPS 41-42
Slide 4: Company Overview
> Capital Trust COMPANY OVERVIEW
Slide 5: Capital Trust - Financing with a Tech-Touch Balance
Capital Trust - 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 quick
Slide 6: Capital Trust – Numbers at a Glance
Capital Trust – Numbers at a Glance PORTFOLIO NET WORTH CAPITAL ADEQUACY BOOK VALUE NET NPA Q2 FY23 PAT EMPLOYEES ₹ 294.5 Cr ₹ 124.4 Cr 48.5 % ₹ 76.7 0.0 % ₹ 2.02 Cr 1716 6
Slide 7: Q2 FY2023 - Quarter At a Glance
Q2 FY2023 - Quarter At a Glance Sequential Improvement in Stability in Companywide Maintaining Robust Steady Increase in Profitability 90+ Numbers ^ 14% Collection Efficiency Total Quarterly Collections 13% 12% 103% 12% 97 2.0 39 39 1.9 10% 99% 86 8% 9% 77 75 78 1.6 96% 8% 28 8% 23 24 92% 6% 0.9 1.0
Slide 8: Q2 FY2023 - Quarter At a Glance (Q2 FY23 vs Q1 FY23)
Q2 FY2023 - Quarter At a Glance (Q2 FY23 vs Q1 FY23) Assets Under Management (in Cr): Net Worth (in Cr.): Profit After Tax (in Cr): 307 124 2.0 (-4%) (2%) (4%) 295 122 1.9 Capital Digital Loans AUM (in Cr): Off-Balance Sheet AUM (in Cr) Cost Of Borrowings (in Cr): 181 133 13.9 (-1%) (21%) (-5%) 179
Slide 9: Capital Digital Loans
CAPITAL DIGITAL LOANS
Slide 10: Capital Trust 2.0: Capital Digital Loans
Capital Trust 2.0: Capital Digital Loans 01 Driven by Faster Credit Unique Customer Low Risk - High Stringent Technology Delivery Profile Returns Credit Control Rural Doorstep Fintech Short Turn-Around-Time Serving the Better Robust Quality Company For Disbursement Missing Middle Rewards Checks ▪ Cl
Slide 11: Capital Digital Loans to Drive Future Growth
Capital Digital Loans to Drive Future Growth Accelerated growth in Rural Internet Users Better Collection Efficiency 01 28% 294 02 ~60% collections made Digitally 230 03 45% 352 Faster Turnaround Time 243 04 Lower Operating Cost 2019 2021 Rural India Urbran India 100% Digital Disbursements Increasin
Slide 12: Portfolio Quality – Capital Digital Loans
Portfolio Quality – Capital Digital Loans Robust portfolio quality of loans disbursed post FY 20 (automated credit engine backed) (₹ in Crores) Total Disbursed: Portfolio Outstanding: 30+ DPD: 90+ DPD: ₹ 433 Cr ₹ 179 Cr 3.0% (on POS) 2.2% (on POS) 1.2% (on Disbursement) 0.9% (on Disbursement) 5% 4.3
Slide 13: Lending-As-A-Service
Lending-As-A-Service Shift towards Off Balance Sheet partnerships for last 1 year in an aim to offer Lending-As-A-Service (LAAS) BC Disbursements done with: Total 30+ % 90+ % POS 30+ % 90+ % Disbursements (on (on (₹ in Cr) (on POS) (on POS) (₹ in Cr) Disbursement) Disbursement) 5 BC Partnerships 176
Slide 14: Our Products: Capital Digital Loans
Our Products: Capital Digital Loans Addressing a wide spectrum of customers, across needs and affluence Product Name Capital Magic Loan Type of Loan Unsecured Digital Loan Ticket Size (₹) 30,000 – 50,000 Tenure 12 – 18 months ROI 35%+ Repayment Digital followed by physical cash collection Why CTL? P
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 (local moneylenders) which currently account for MISSING 84% of all financing to MSMEs MI
Slide 16: Our Clientele
Our Clientele Kirana Stores Dairy and Livestock Farmers Grocery Vendors Small Eateries Textile Stores Handicraft Manufacturers Utility Stores Salons Flower Vendors 16
Slide 17: Increasing our Reach in Rural India
Increasing our Reach in Rural India 46 11 3 36 54 22 49 40 20 8 20 Expansion in customer base via diversification in New Geographies and Rural Semi-Urban Urban deeper penetration in existing 60 237 12 Geographies 309 Branches spread across 94 Districts in 10 States of India 17
Slide 18: Competitive Advantages
COMPETITIVE ADVANTAGES
Slide 19: Creating a Competitive Advantage to Increase Stakeholder Value
Creating a Competitive Advantage to Increase Stakeholder Value 1. Unique Business Model 3. Prudent Risk Management • With a deep understanding of target • Our conservative thought process towards customer segments, lean cost structures and financial engineering has helped us differentiated business
Slide 20: 1. Unique Business Model
1. Unique Business Model Financing the Overlooked Void TICKET SIZE UNSECURED SECURED ANNUAL INCOME > ₹ 10 Lakh New Age Fintechs Large SME Funding NBFCs / Banks > ₹ 10 Lakh MSME ₹ 1Lac - 10 Lakh Geographical Specialized MSME NBFCs Product Specialized MSME NBFCs ₹ 4 - 10 Lakh ₹ 30,000 – 1Lac ₹ 3 - 4 L
Slide 21: 2. Technology Driven Operational Efficiency
2. Technology Driven Operational Efficiency Enabling Improved Disbursements & Collections 116% 114% 116% 115% 112% 113% 108% 110% 111% 104% 106% 105% 105% 100% 100% 100% 98% 97% 97% 96% 96% 96% 93% 88% 89% 83% 62% 62% 63% 61% 63% 57% 57% 59% 58% 58% 54% 55% 52% Sep-21 Oct-21 Nov-21 Dec-21 Jan-22 Feb
Slide 22: 3. Prudent Risk Management
3. Prudent Risk Management Conservative ALM Practices and Diversified Funding Book NBFC, 26% Term Loan, 10% Sub-Debt, 17% Public Sector Banks, 15% DIVERSIFICATION BC, 49% ACROSS… P2P Lender, OD, 4% 28% NCD, 11% Private Sector PTC, 5% DA, 2% ICD, 2% DFI, 3% Banks, 26% Instruments Funders Asset Liabil
Slide 23: 4. Strong Governance
4. Strong Governance Being a Publicly Listed Systemically Important NBFC, We Try to Create Sustainable Value for Stakeholders BOARD Accountable for overall management and performance MANAGING DIRECTOR & CEO 1. Mr. Yogen Khosla Mr. Yogen Khosla 2. Mr. Sanjv Syal 3. Mr. Govind Saboo Delegate managemen
Slide 24: Digital Journey
DIGITAL JOURNEY
Slide 25: Pioneers of Digital Transformation in Rural India
Pioneers of Digital Transformation in Rural India Ready to Capture Next Phase Of Growth in Evolving Rural Ecosystem More Rural Internet Users (277 Mn) than Urban (227 Mn): Indian internet is more rural and local than ever Growing 3x Faster Than Urban India: Ready to capture rural digital growth as o
Slide 26: Evolution of Capital Trust's Digital Business Model
Evolution of Capital Trust’s Digital Business Model 2015 2016 2017 2018 2019 2019 2020 2020 2021 NOW 2012 Decision to go 100% Issuance of Geo-Tagged Decision to go 100% Incorporation of AI Enabled Launch of AI Enabled Cashless Disbursements Digital Receipts rather Cashless Collection as Credit Engin
Slide 27: Rural Doorstep-Fintech Processes
RURAL DOORSTEP- FINTECH PROCESSES
Slide 28: Meaning: Rural Doorstep-Fintech
Meaning: Rural Doorstep-Fintech 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. HYBRID CREDIT UNDERWRITING QR Code scan of Aadhaar Card Automated credi
Slide 29: 3 Pillars of Capital Trust
3 Pillars of Capital Trust 2. HYBRID DUAL CREDIT Automated credit (credit bureau checks and preset algorithms) supplemented with Traditional Safeguards of Branch Banking (physical verification of residence, business premise and cash flow analysis) 1. TECHNOLOGY 3. BUSINESS INTELLIGENCE Use of Techno
Slide 30: 1. Technology
1. Technology One of the first NBFCs to start cashless disbursement of all Cashless Disbursement & loans since 2015 and cashless collection as primary mode Collection of repayment since 2019 Automated closing of company and all branch books at Automation of Daily Cash 6PM daily through collation of
Slide 31: 2. Hybrid Dual Credit
2. 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 32: 3. Business Intelligence
3. Business Intelligence CREDIT ENGINE Automated decision making with Credit Scoring of the borrower based on Income, Credit History and Debt servicing capacity. The engine calibrates regional STAFF ENGINE differences in performance using Integrated tool for real time pin-code level data monitoring
Slide 33: Financials
FINANCIALS ~ ”n = = is) = + i) aed
Slide 34: Product-Wise Portfolio
Product-Wise Portfolio ₹ 725 Cr Legacy Portfolio is coming down on the back of improved collections, no new disbursements** ₹ 471 Cr ₹ 467 Cr ₹ 431 Cr ₹ 427 Cr ₹ 401 Cr Share of Capital Digital Loans continuously ₹ 337 Cr 725 ₹ 311 Cr ₹ 311 Cr increasing and stands at ₹ 301 Cr ₹ 307 Cr ₹ 294 Cr 61%
Slide 35: Portfolio Quality - Companywide
Portfolio Quality - Companywide GNPA * COMPANYWIDE 90+ ** (₹ in Crores) 60 18% 18% 16% 51 16% 52 15% 16% 50 14% 14% 14% 13% 12% 39 39 40 11% 12% 37 12% 33 31 9% 10% 9% 10% 8% 9% 29 30 8% 28 8% 8% 7% 8% 23 24 8% 23 22 22 7% 5% 6% 20 18 6% 6% 4% 12 12 12 4% 4% 10 2% 2% 0 0% 0% Q2 FY21 Q3 FY21 Q4 FY21
Slide 36: Key Highlights & Ratios
Key Highlights & Ratios Asset Under Management (₹ in Crores) Net Worth (₹ in Crores) 430 427 401 337 158 157 311 312 301 307 294 131 117 118 119 121 122 124 Q2 FY21 Q3 FY21 Q4 FY21 Q1 FY22 Q2 FY22 Q3 FY22 Q4 FY22 Q1 FY23 Q2FY23 Q2 FY21 Q3 FY21 Q4 FY21 Q1 FY22 Q2 FY22 Q3 FY22 Q4 FY22 Q1 FY23 Q2 FY23
Slide 37: Key Highlights & Ratios
Key Highlights & Ratios Borrowings (including BC / PTC as well) (₹ in Crores) Cost of Borrowing (%) 13.1% 13.1% 13.1% 13.2% 13.4% 13.9% 13.7% 13.0% 12.8% 285 280 266 259 263 234 237 228 240 Q2 FY21 Q3 FY21 Q4 FY21 Q1 FY22 Q2 FY22 Q3 FY22 Q4 FY22 Q1 FY23 Q2 FY23 Q2 FY21 Q3 FY21 Q4 FY21 Q1 FY22 Q2 FY2
Slide 38: Quarterly Consolidated P&L Update Q2 FY23
Quarterly Consolidated P&L Update Q2 FY23 (₹ in Crores) Particulars Q2 FY23 Q2 FY22 YoY % Q1 FY23 QoQ % Total Income 22.4 26.3 -15% 24.7 -9% Total Expense (excluding tax) 19.7 25.1 -22% 22.1 -11% Profit / Loss before tax 2.7 1.2 131% 2.6 4% Profit / Loss after tax 2.0 0.9 132% 1.9 4% Net Worth 124.4
Slide 39: Quarterly Consolidated Balance Sheet Update Q2 FY23
Quarterly Consolidated Balance Sheet Update Q2 FY23 (₹ in Crores) Assets Q2 FY23 Q1 FY23 Q4 FY22 Liabilities And Equity Q2 FY23 Q1 FY23 Q4 FY22 Financial Assets Financial Liabilities Cash and Cash Equivalents 9.1 9.7 4.9 Trade Payables 0.2 0.2 0.9 Debt Securities 41.9 48.7 64.1 Bank Balances other t
Slide 40: Key Partnerships
KEY PARTNERSHIPS
Slide 41: Equity & Funding Partnerships
Equity & Funding Partnerships Equity: 1 Public Sector Banks: 5 Private Sector Banks: 2 DFI / NBFCs / P2Ps: 12 41
Slide 42: Thank You
THANK YOU Vinod Raina Chief Financial Officer Vinod.raina@capitaltrust.in Vahin Khosla Executive Director Vahin.khosla@capitaltrust.in 42