Trucap Finance Limited · NSE:TRU
Trucap Finance — Q3 FY24 Earnings Presentation
27 slides from Trucap Finance's earnings presentation, Feb 13, 2024
Slide 1: Earnings Presentation filing letter to exchanges
February 13, 2024 To, To, The General Manager The Manager Department of Corporate Services Department of Corporate Compliance BSE Limited National Stock Exchange of India Limited Phiroze Jeejeebhoy Towers, Exchange Plaza, Bandra Kurla Complex, Dalal Street, Mumbai – 400 001. Bandra (East), Mumbai –
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: Highlights of Q3 FY24
Highlights of Q3 FY24
Slide 6: Key Highlights – Q3 FY24
Key Highlights – Q3 FY24 INR Mn Particulars Jun’23 Sep’23 Dec’23 Disbursements (Excl. Renewal) 2,608 2,946 2,999 77% of quarterly disbursements driven by Gold Loan product. AUM 6,597 7,803 8,514 65% of Total AUM backed by Gold Loans. MSME Gold Loans AUM 4,049 5,012 5,518 Significant scale up in L-a-a
Slide 7: Quarterly Disbursements focused on MSME Business & Gold loans
Quarterly Disbursements focused on MSME Business & Gold loans Quarterly Disbursements INR Mn Active Customers Count 84,900 80,552 2,946 2,999 2,608 67,997 64,596 64,824 2,354 1,752 Dec-22 Mar-23 Jun-23 Sep-23 Dec-23 Dec-22 Mar-23 Jun-23 Sep-23 Dec-23 TRU has cumulatively disbursed INR 28.7 billion i
Slide 8: Granular & Capital Efficient Portfolio mix
Granular & Capital Efficient Portfolio mix Gross Loan Portfolio (AUM) INR Mn* Focused MSME Gold and Business Portfolio 8,514 17% 34% 5,810 40% 57% 61% 33% 64% 65% 3,059 44% 39% 1,044 36% 34% 34% 493 372 64% FY'19 FY'20 FY'21 FY'22 FY'23 9M FY'24 FY’21 FY’22 FY’23 Jun’23 Sep’23 Dec’23 LAP+PL MSME BL M
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 8,514 7,803 6,597 24% 3,467 28% 5,810 33% 3,075 39% 41% 5,104 2,209 1,611 1,217 76% 72% 5,047 67% 4,388 4,728 61% 59% 3,887 4,200 Dec'22 Mar'23 Jun'2
Slide 10: ~INR 11 billion of L-a-a-S Cumulative Disbursements
~INR 11 billion of L-a-a-S Cumulative Disbursements INR Mn Benefit for TRU Jun’22 Sep’22 Dec’22 Mar’23 Jun’23 Sep’23 Dec’23 Sourcing partnership with large lenders to L-a-a-S Disbursement (INR Mn) 470 574 645 1,258 2,057 2,048 2,023 realize last mile affordable credit inclusion. L-a-a-S Disbursement
Slide 11: Sturdy Improvement in Asset Quality...
Sturdy Improvement in Asset Quality... Asset Quality (GNPA%) 6.0% 5.1% 3.0% 3.0% 2.2% 1.4% FY'19 FY'20 FY'21 FY'22 FY'23 Q3 FY'24 GNPAs in the gold loan book are negligible at 0.1%; Business loan are currently 3.6% Gold taken to auctions are INR 0.1 Bn (0.5% of cumulative disbursements). GNPA is cal
Slide 12: Omnichannel Distribution Platform Powering Capital Efficient Loan Growth
Omnichannel Distribution Platform Powering Capital Efficient Loan Growth
Slide 13: 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 ~600 Strong Feet on Street Significantly enabling financial inclusion in 7 key states These individuals play an instrumental
Slide 14: … with Technology as a Strong Enabler
… with Technology as a Strong Enabler TRUSS Portal : Tech-enabled Efficiency Trust Security Reliability Automation The portal is being built as a critical asset to fulfill long-term requirements of internal & externals stakeholders while eliminating need for manual intervention in standardized but vol
Slide 15: Cluster-based Distribution Network…
Cluster-based Distribution Network… 128 Experiential Centres 33 Maharashtra 20 Madhya Pradesh 22 Rajasthan 18 Delhi NCR/ Haryana 16 Gujarat 11 Punjab 8 Goa Expanding network to cater to MSME customers for both Gold & Business Loans. The states of Maharashtra, Gujarat, MP, Haryana and Delhi-NCR compr
Slide 16: ...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 9MFY’24 State Mar’20 Mar’21 Mar’22 Mar'23 Jun'23 Sep'23 Dec'23 branches Delhi/NCR 3 4 Maharashtra 100% 81% 53% 36% 36%
Slide 17: Solving for Access and Inclusion..
Solving for Access and Inclusion.. Non-metro borrowers’ Entrepreneurs funded Potential Employment coverage (active borrowers) Generation 1,13,326 77,605 56,663 92,816 46,408 57,517 26,428 19,127 38,254 2,319 1,591 3,182 Mar’21 Mar’22 Mar’23 9MFY’24 Mar’21 Mar’22 Mar’23 9MFY’24 Mar’21 Mar’22 Mar’23 9
Slide 18: ..Including Women Entrepreneurs and new to credit borrowers
..Including Women Entrepreneurs and new to credit borrowers Women borrowers’ coverage Thinfile* women borrowers’ coverage 14,164 60,141 10,696 8,844 36,079 11,906 1,260 442 Mar'21 Mar'22 Mar'23 9MFY24 Mar'21 Mar'22 Mar'23 9MFY24 Active NTC borrowers’ coverage Borrowers having exposure below INR 5L ti
Slide 19: Risk & Governance
Risk & Governance
Slide 20: 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 21: 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 130 checkpoints High C RBI ten
Slide 22: 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 23: Shareholding Pattern
Shareholding Pattern Substantial management ownership in the company FII 4.6% Promoter - Wilson Group 46.8% Public 48.6% Promoter Group FII Public
Slide 24: Q3 FY'24 Results
Q3 FY’24 Results
Slide 25: Income Statement
Income Statement INR Mn Income Statement Jun’23 Sep’23 Dec’23 Interest Income 266 270 297 Strong revenue growth driven by consistent Less: Finance Cost 173 182 205 disbursement trajectory. Net Interest Income 93 88 92 Sturdy Q/Q growth in profits. Other Income 112 157 191 Operating Expenses 188 219 2
Slide 26: Balance Sheet
Balance Sheet INR Mn Balance Sheet Jun’23 Sep’23 Dec’23 Financials Assets 6,031 6,540 7,018 Low debt equity levels at 2.3x. Cash and Investments 865 867 889 Over 30 lenders have provided Gross Loans 4,388 4,728 5,047 debt to Tru. Less: Impairment Loss Allowance 31 35 45 Net Loans 4,357 4,693 5,002 O
Slide 27: Thank You
Thank You