Capital Trust Ltd. (india) · NSE:CAPTRUST
Capital Trust Ltd. (india) — Capital Trust — Q1 FY2022 Earnings Presentation
42 slides from Capital Trust Ltd. (india)'s earnings presentation, Aug 20, 2021
Slide 1: Q1 FY2022 Investor Presentation
Merging New-Age Fintech with Traditional Lending CAPITAL TRUST LIMITED Q1 FY2022 INVESTOR PRESENTATION August 2021
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 04-11 COMPETITIVE ADVANTAGES 12-17 DIGITAL JOURNEY 18-20 RURAL DOORSTEP-FINTECH 21-26 FINANCIALS 27-36 KEY PARTNERSHIPS 37-39 CAPITAL IMPACT 40-41
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 income
Slide 6: Capital Trust – Numbers at a Glance
Capital Trust – Numbers at a Glance PORTFOLIO NET WORTH CAPITAL ADEQUACY GROSS NPA* NET NPA BRANCHES EMPLOYEES ₹ 337 Cr ₹ 117 Cr 45.2% 3.8% 0.0% 244 1728 *Stage 3 ECL Assets 6
Slide 7: Capitalising on the Underserved Market Opportunity
Capitalising on the Underserved Market Opportunity Annual Household Income > ₹ 17 Lakh ₹ 10-17 Lakh Banks and MSME Focused NBFCs ₹ 3.5-10 Lakh ₹ 2 - 3.5 Lakh Capital Trust Limited Debt Shortfall in Micro of MSME: 87 Lakh Crore ($117Bn) ** < ₹ 2 Lakh Microfinance Institutions *NCAER-CMCR Annual Incom
Slide 8: 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 9: Our Clientele
Our Clientele Kirana Stores Dairy and Livestock Farmers Grocery Vendors Small Eateries Textile Stores Handicraft Manufacturers Utility Stores Salons Flower Vendors 9
Slide 10: Increasing our Reach in Rural India
Increasing our Reach in Rural India 40 12 branches opened in 11 Eastern UP in Q1 FY22 4 31 65 26 29 10 8 20 10
Slide 11: Capital Digital Initiative: Our Products
Capital Digital Initiative: Our Products Addressing a wide spectrum of customers, across needs and affluence Product Name Capital Magic Loan Micro Business Loan Type of Loan Unsecured Digital Business Loan Unsecured Digital Business Loan Ticket Size (₹) 30,000 – 40,000 60,000 Tenure 12-18 months 24
Slide 12: Competitive Advantages
COMPETITIVE ADVANTAGES
Slide 13: 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 14: 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 ₹ 3.5 - 10 Lakh ₹ 30,000 – 1Lac ₹ 2 - 3
Slide 15: 2. Technology Driven Operational Efficiency
2. Technology Driven Operational Efficiency Enabling Improved Disbursements & Collections 100% 100% 100% 100% 100% 100% 100% 96% 96% 94% 95% 91% 90% 91% 91% 88% 88% 79% 81% 73% 75% 65% 54% 60% 53% 57% 50% 46% 48% 53% 54% 45% 35% Sep-20 Oct-20 Nov-20 Dec-20 Jan-21 Feb-21 Mar-21 Apr-21 May-21 Jun-21 J
Slide 16: 3. Prudent Risk Management
3. Prudent Risk Management Conservative ALM Practices and Diversified Funding Book BC, 11% DFI, 5% NBFC, 14% PTC, 5% Term Loan, 28% Public Sector Banks, 23% DA, 16% DIVERSIFICATION ACROSS… CC, 2% Sub-Debt, 14% Private Sector ICD, 4% Banks, 58% NCD, 10% OD, 10% Instruments Funders Asset Liability Pos
Slide 17: 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 18: Digital Journey
DIGITAL JOURNEY
Slide 19: 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 20: 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 21: Rural Doorstep-Fintech Processes
RURAL DOORSTEP- FINTECH PROCESSES
Slide 22: 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 23: 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 24: 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 25: 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 26: 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 27: Financials
FINANCIALS ~ ”n = = is) = + i) aed
Slide 28: Product-Wise Portfolio
Product-Wise Portfolio ₹ 795 Cr ₹ 725 Cr ₹ 555 Cr ₹ 471 Cr ₹ 401 Cr ₹ 337 Cr 795 723 338 555 235 194 166 143 134 FY 17 FY 18 FY 19 FY 20 FY 21 Q1FY22 Capital Digital Initiative* Legacy Portfolio** *Started 2019: Further split into Capital Magic, Micro Business Loan **Stopped in 2019: Further split i
Slide 29: State-Wise Portfolio
State-Wise Portfolio ₹ 795 Cr ₹ 725 Cr 13 62 7 37 ₹ 555 Cr 272 165 48 ₹ 471 Cr 99 12 ₹ 401 Cr 106 ₹ 337 Cr 50 115 6 65 25 90 1 5 52 83 65 22 257 57 43 72 21 70 48 70 62 33 189 151 99 80 31 66 86 71 82 85 68 37 FY 17 FY 18 FY 19 FY 20 FY 21 Q1FY22 BIH PUN ODI MP RAJ UP JH UKH CH DEL 29
Slide 30: Portfolio Quality
Portfolio Quality (₹ in Crores) Stage 3 ECL 90+ 8% 18% 7.5% 7.1% 52 16% 25 7% 15.3% 22 14% 6% 37 12% 5% 35 35 17 4.8% 32 33 10% 14 4.3% 14 4% 29 3.8% 27 8.7% 7.7% 8% 3.4% 7.5% 22 7.5% 7.2% 7.5% 10 3% 9 6.4% 6% 2.4% 1.9% 4.6% 2% 4.7% 11 4% 5 5 3.4% 7 2.8% 1.1% 1% 2.1% 2.1% 5 2% 3 4 0.8% 0% 0.1% 0% Q1
Slide 31: Portfolio Quality – New Capital Digital Loans
Portfolio Quality – New Capital Digital Loans Robust portfolio quality of loans which have disbursed post April 2020 (automated credit engine enabled ) (₹ in Crores) Total Disbursed: Portfolio Outstanding: 30+ DPD: 90+ DPD: ₹ 152.0 Cr ₹ 94.5 Cr 2.8% 0.3% 5% 105 95 4% 72 3% 2.8% 2% 22 1% 0 0.2% 0.3%
Slide 32: Outstanding Provisions
Outstanding Provisions Cumulative Provisions of ₹ 55.6 Crores which accounts for 21.9% of the On-Balance Sheet Portfolio (₹ in Crores) As on Particulars Q1 FY21 Q2 FY21 Q3 FY21 Q4 FY21 Q1 FY22 31.03.2021 Standard Provisions (Stage 1 & 2) 6.8 6.5 5.8 4.4 4.4 4.7 COVID & Other Provisions (Including St
Slide 33: Key Highlights & Ratios
Key Highlights & Ratios Asset Under Management (₹ in Crores) Net Worth (₹ in Crores) 631 162 577 155 155 157 158 157 509 471 467 131 430 427 401 122 117 337 Q1FY20 Q2FY20 Q3FY20 Q4FY20 Q1FY21 Q2FY21 Q3FY21 Q4FY21 Q1FY22 Q1FY20 Q2FY20 Q3FY20 Q4FY20 Q1FY21 Q2FY21 Q3FY21 Q4FY21 Q1FY22 Capital Adequacy
Slide 34: Key Highlights & Ratios
Key Highlights & Ratios Borrowings (₹ in Crores) Cost of Borrowing (%) 428 386 14.1% 14.2% 14.2% 13.2% 13.4% 324 13.1% 13.1% 13.0% 13.1% 272 255 259 234 237 228 Q1FY20 Q2FY20 Q3FY20 Q4FY20 Q1FY21 Q2FY21 Q3FY21 Q4FY21 Q1FY22 Q1FY20 Q2FY20 Q3FY20 Q4FY20 Q1FY21 Q2FY21 Q3FY21 Q4FY21 Q1FY22 Net Interest
Slide 35: Quarterly Consolidated P&L Update Q1FY22
Quarterly Consolidated P&L Update Q1FY22 (₹ in Crores) Particulars Q1 FY22 Q1 FY21 YoY % Q4 FY21 QoQ % Total Income 22.8 28.2 -19% 28.1 -19% Total Expense (excluding tax) 41.7 25.4 64% 61.5 -32% Profit / Loss before tax -19.0 2.8 -779% -33.3 -43% Profit / Loss after tax -13.8 2.1 -757% -26.2 -47% Ne
Slide 36: Quarterly Consolidated Balance Sheet Update June 21
Quarterly Consolidated Balance Sheet Update June 21 (₹ in Crores) Assets June-21 Mar-21 Mar-20 Liabilities And Equity June-21 Mar-21 Mar-20 Financial Assets Financial Liabilities Cash and Cash Equivalents 27.2 38.5 34.4 Trade Payables 0.5 0.5 0.8 Bank Balances other than cash & 41.1 40.9 29.2 Debt S
Slide 37: Key Partnerships
KEY PARTNERSHIPS
Slide 38: Long-Term Funding Partnerships
Long-Term Funding Partnerships MSME Client through Business Correspondent Relationship Benefits of Long-Term Funding Secured Leveraging Enables Raise Of On-Tap Funding Increase Of ROE Partner’s Equity At Right Time Balance Sheet 38
Slide 39: Equity, Debt & Direct Assignment Partnerships
Equity, Debt & Direct Assignment Partnerships Equity: 1 Public Sector Banks: 5 Private Sector Banks: 2 DFI / NBFCs: 9 39
Slide 40: Capital Impact
CAPITAL IMPACT
Slide 41: Capital Plus
Capital Plus Working with a Double-Bottom Line mission, company does a lot of good on ground level Increase in Encouragement of self-sufficiency financial and discipline entrepreneurship Facilitating financial Mitigation of inclusion of the financial Financial Literacy unbanked and volatility un-ser
Slide 42: Thank You
THANK YOU Vinod Raina Chief Financial Officer Vinod.raina@capitaltrust.in Vahin Khosla Executive Director Vahin.khosla@capitaltrust.in Pushpa Mani/Vikash Verma IR Consultants Email: capital.trust@dickensonworld.com Contact no.: +91 9911684123/9664009029 42