Capital Trust Ltd. (india) · NSE:CAPTRUST
Capital Trust Ltd. (india) — Capital Trust — Q4 FY2020 Earnings Presentation
39 slides from Capital Trust Ltd. (india)'s earnings presentation, Jun 22, 2020
Slide 1: Investor Presentation Q4 FY20
INVESTOR PRESENTATION Q4 FY20
Slide 2: Company Overview
> Capital Trust COMPANY OVERVIEW
Slide 3: About Capital Trust
ABOUT CAPITAL TRUST STORY ORIGINS MISSION VISION Capital Trust pioneers the Capital Trust is a publicly listed To provide financial assistance To become the first fully digital digitalization of the rural Systematically Important Non to India’s unbanked population and cashless, technology-enabled fi
Slide 4: Performance Milestones
PERFORMANCE MILESTONES ₹ 600Cr Co-Lending Partnership with a NBFC - Capital Digital Loans Initiative - Lending Partnership with IDFC Bank - ₹ 65Cr PE investment - ₹ 35Cr Promoter infusion through warrants - Acquisition of Microfinance subsidiary - Listing on NSE Ventured into MSME funding Started ru
Slide 5: COVID-19 Update
> Capital Trust COVID-19 UPDATE
Slide 6: COVID-19 Business Update
COVID-19 BUSINESS UPDATE With the Government of India declaring a National Lockdown on 25 March 2020 to tackle the global pandemic, update on key company parameters is provided below: • Have touched 66% collection efficiency in 2nd week of June Collections * • Up from 13% collection efficiency in Ap
Slide 7: COVID-19 Business Update: Liquidity
COVID-19 BUSINESS UPDATE • High Liquidity Buffers (actual and systematic) • ₹ 33Cr Opening Cash Balance in June Liquidity • Positive ALM • Business Correspondent Relationship with IDFC First Bank • Signed ₹600Cr Co-Lending Agreement with Poonawalla Finance during pandemic times (In ₹ Cr) 50 47 100%
Slide 8: COVID-19 Business Update: Fundamental Strengths
COVID-19 BUSINESS UPDATE: FUNDAMENTAL STRENGTHS • 47% Capital Adequacy • 1.76x Leverage Strong Solvency • Positive Asset Liability Position And Liquidity • Adequate Loan Pricing • Support from lenders in Moratorium (89% of lenders provided Moratorium 1.0) Inherently Strong • 73% of borrowers in Esse
Slide 9: COVID-19 Business Update: Tactical Planning and Thorough Execution
COVID 19-BUSINESS UPDATE: TACTICAL PLANNING AND THOROUGH EXECUTION • 15 Lakh calls made to 1.5 Lakh clients using in-house developed Calling Application Constant Client Contact • Frequent messages, notifications and videos sent through Client Facing Application • Client profiling and collection foll
Slide 10: COVID-19 Business Update: Plan Ahead
COVID-19 BUSINESS UPDATE: PLAN AHEAD Provisioning • Covid-19 Provisioning of 5% of overdue standard assets • Active client profiling exercise to identify portfolio risk and plan a response mix of collection Client Profiling strategy, new loans and provision buffers Automated Engines • Implementation
Slide 11: Target Segment
> Capital Trust TARGET SEGMENT
Slide 12: Serving the Unserved
SERVING THE UNSERVED Annual Income > ₹ 17Lakh ₹ 10-17 Lakh Banks and Large NBFCs ₹ 3.4-10 Lakh ₹ 2 - 3.4 Lakh Capital Trust Limited < ₹ 2 Lakh Capital Trust Microfinance Debt Shortfall in Microfinance + Micro of MSME: 11.1 Lac Crore** *NCAER-CMCR Annual Income Data **IFC Report on MSMEs (Nov 2018) 1
Slide 13: Financial Inclusion?
FINANCIAL INCLUSION? Formal Income Income Proof Filing Taxes Debt 12
Slide 14: Target Clientele
TARGET CLIENTELE Microfinance Through Capital Trust Microfinance, its 100% owned subsidiary Graduated from Microfinance 8% of the Microfinance clients graduate from the Microfinance sector each year and come and hit a wall New to Organized Credit Replacing traditional informal sources of MISSING fin
Slide 15: Typical Clientele
TYPICAL CLIENTELE General Stores Diary and Livestock Farmers Handloom Units Small Eateries Textile Stores Local Handicraft Producers Sewing Stores Hair Salons Utensil Stores 14
Slide 16: Unique Selling Proposition
UNIQUE SELLING PROPOSITION 15
Slide 17: Unique Selling Proposition
UNIQUE SELLING PROPOSITION Hybrid Fintech Model With Dual Credit Automated credit (QR scanning of Aadhaar card, immediate credit bureau check, algorithmic credit rule score) is supplemented with traditional safeguards of branch banking (physical verification of residence and business premise, cash f
Slide 18: Capital Trust Differentiators
CAPITAL TRUST DIFFERENTIATORS Collection Disbursement Collection Credit Check Client Interface Documentation Method Traditional MFI / MSME Funders Cash / Digital Cash Credit Bureau Joint Liability with Physical Paper Physical Center Meeting Passbook Capital Digital Loans Initiative 100% Digital Phys
Slide 19: Business Model
> Capital Trust BUSINESS MODEL
Slide 20: Branch Network
BRANCH NETWORK 39 13 6 33 62 26 10 24 8 20 Branches: 241 Districts: 63 States: 10 19
Slide 21: Evolution of Products
EVOLUTION OF PRODUCTS With loans to over 800,000 clients, company has experience of lending to Micro Enterprises in Rural India since 2008 MOVE TO DIGITAL COLLECTION Group Loan Individual Loan DISBURSEMENT Safety - One of the first rural NBFCs to start 100% cashless disbursement in 2015 COLLECTION E
Slide 22: Products Offered Today
PRODUCTS OFFERED TODAY Capital Magic Loan Micro Business Loan Unsecured Business Loan Unsecured Business Loan Ticket Size: ₹30,000 Ticket Size: ₹60,000 Tenure: 12 months Tenure: 24 months Repayment: Monthly NACH Repayment: Monthly NACH ₹ 21
Slide 23: Data Analytics & Business Intelligence
DATA ANALYSTICS & BUSINESS INTELLIGENCE Portfolio Risk Monitoring Engine: Early warning signals to monitor real time delinquency trends in actual portfolio and Performance Management System: factors that can have potential portfolio impact Real time use of data to segregate branch and staff into dif
Slide 24: Smart Credit
SMART 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 Verification No exceptions or manual by HO Credit Team
Slide 25: Information Technology Prowess
INFORMATION TECHNOLOGY PROWESS One of the first NBFCs to start cashless disbursement of all Cashless Disbursement & loans since 2015. Also started process of cashless Collection repayment for all loans (expect Microfinance) in 2019 Automated closing of company and all branch books at Automation of D
Slide 26: Portfolio Update
> Capital Trust PORTFOLIO UPDATE
Slide 27: Productwise Portfolio
PRODUCTWISE PORTFOLIO (In ₹ Cr) ₹ 795 Cr 900 ₹ 725 Cr 800 120 700 ₹ 555 Cr 89 56 600 55 ₹ 471 Cr 500 125 24 29 400 90 300 619 581 200 418 340 100 ₹134Cr Capital ₹2Cr Capital Digital Initiative 0 Digital Initiative FY '17 FY '18 FY '19 FY '20 Micro Rural* Microfinance Secured Enterprise *Further Clas
Slide 28: Statewise Portfolio
STATEWISE PORTFOLIO (In ₹ Cr) ₹ 795 Cr 900 ₹ 725 Cr 800 62 700 ₹ 555 Cr 37 600 ₹ 471 Cr 272 165 500 99 90 400 83 50 106 65 300 115 257 65 72 21 37 70 200 71 31 82 100 33 189 151 86 99 - FY '17 FY '18 FY '19 FY '20 PUN BIH ODI RJ MP UP JH UKH CH DEL 27
Slide 29: Companywide Portfolio Quality
COMPANYWIDE PORTFOLIO QUALITY COMPANYWIDE As on 31.03.20 AUM (₹ Cr.) 90+ DPD (₹ Cr.) 90+ DPD (%) Non-Demonetization Impacted States* 406.8 16.5 4.0% Demonetization Impacted States** 64.6 19.0 29.4% Total 471.4 35.5 7.5% *Punjab, Rajasthan, Madhya Pradesh, Bihar, Odisha, Chhattisgarh, Jharkhand ** Ut
Slide 30: Financials
> Capital Trust FINANCIALS
Slide 31: Annual Change (FY19 vs FY20)
ANNUAL CHANGE (FY19 vs FY20) Assets Under Management (in Cr): Capital Digital Initiative (in Cr.): Net Worth (in Cr): 795 134 155 (-41%) (6600%) (2%) 471 2 151 Book Value Per Share (in Rs): Capital Adequacy (in %): Leverage (in x): 95 47 3.2 (2%) (53%) (-45%) 93 31 1.8 Borrowings (in Cr): Cost Of Bo
Slide 32: Quarter Over Quarter Change (Q3FY20 vs Q4FY20)
QUARTER OVER QUARTER CHANGE (Q3FY20 vs Q4FY20) Assets Under Management (in Cr): Capital Digital Initiative (in Cr.): Net Worth (in Cr): 509 134 162 (-7%) (44%) (-4%) 471 93 155 Book Value Per Share (in Rs): Capital Adequacy (in %): Leverage (in x): 99 47 2.0 (-9%) (12%) (-10%) 95 42 1.8 Borrowings (
Slide 33: Key Financials
KEY FINANCIALS Line Item FY19 FY20 (YoY) Q3 FY20 Q4 FY20 (QoQ) Total Income 193.2 155.1 -20% 41.5 31.5 -24% Total Expense (excluding tax) 180.8 141.5 -22% 30.4 36.7 21% Profit / (loss) before tax 12.4 13.6 10% 11.1 -5.2 -146% Profit / (loss) after tax 8.6 4.3 -50% 8.2 -6.3 -177% Net Worth 151.1 154.
Slide 34: Key Ratios
KEY RATIOS Ratio (IND-AS) FY19 FY20 (YoY) Q3 FY20 Q4 FY20 (QoQ) Net Interest Margin 10.1% 9.2% -9% 10.7%* 7.8%* -27% Operating Cost to AUM Ratio 8.2% 10.5% 28% 12.4%* 15.9%* 29% Earning Per Share (Rs.) 5.3 2.6 -50% 20.3* -15.6* -77% Book Value Per Share (Rs.) 93.2 95.2 2% 99.1 95.2 -4% Return on Ass
Slide 35: Partners
> Capital Trust PARTNERS
Slide 36: Business Partnerships
BUSINESS PARTNERSHIPS MSME Client (Capital Magic Loan and Micro Business Loan) Portfolio Origination: Alignment of Credit Policies: Operational Integration: For quick identification of Sharing of information for CTL provides field support relevant clients eligible for disbursement and branch and sou
Slide 37: Partners
© PARTNERS > Capital Trust \ Bi iichtHouse He HDFC BANK @q® Qian MT SIDBI 7] Union Bank Bank of Maharashtra Bank of India © oe ey oe ‘SAL NDUSTRES DEVELOPMENT BANK OF OIA t © 9 SHRIRAM City uM QD Le MAGMA HINDUJA LEYLAND FINANCE MONEY WHEN YOU NEED IT MOST HeroFinCorp. nabhins Sad fl { ‘iainD NE tie
Slide 38: Thank You
> Capital Trust THANK YOU
Slide 39: 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