TruCap Finance Limited · NSE:TRU
TruCap Finance — Dhanvarsha Finvest — Q2 FY2022 Earnings Presentation
48 slides from TruCap Finance's earnings presentation, Nov 1, 2021
Slide 1: Dhanvarsha earnings presentation cover letter to BSE
3 Dhanvarsha November 01, 2021 To The General Manager Department of Corporate Services BSE Limited P.J. Towers, Dalal Street, Mumbai - 400 001. Scrip Code: 540268 Subject: Earnings Presentation Dear Sir/Madam, This is to inform you that the Board of Directors of Dhanvarsha Finvest Limited at its mee
Slide 2: Dhanvarsha
34 Dhanvarsha
Slide 3: Disclaimer
Disclaimer This presentation is not a prospectus, a statement in lieu of a prospectus, an offering circular / memorandum, an advertisement, an offer, an invitation to offer or an offer document in terms of the Companies Act, 2013, the Securities and Exchange Board of India (Issue of Capital and Disc
Slide 4: Financial & Business Update
NY Financial & Yu“ Business Update
Slide 5: Financial Update
Financial Update INR Million • Solid balance sheet with robust liquidity, Particulars Sep’20 Jun’21 Sep’21 high capital adequacy, and low leverage. • Disbursement of INR 1.45 billion, AUM 609.2 1,313.7 2,371.9 up 621% Y/Y led by secured Gold & FLDG Disbursement 205.8 409.0 1,484.2 backed MSME loans.
Slide 6: Dhanvarsha is a Rapidly Growing Lending Business
Dhanvarsha is a Rapidly Growing Lending Business 17,846 Number of Loans Disbursed 8,792 6,155 1,741 1,945 18 21 25 33 80 June'19 Sep'19 Dec'19 Mar'20 June'20 Sep'20 Dec'20 Mar'21 June'21 Sep'21 23,498 Number of Borrowers 10,955 7,186 2,315 1,318 259 280 328 403 448 June'19 Sep'19 Dec'19 Mar'20 June'
Slide 7: Dhanvarsha is a Rapidly Growing Lending Business
Dhanvarsha is a Rapidly Growing Lending Business 2,371 AUM (INR Mn) 1,314 1,044 763 609 426 June'20 Sep'20 Dec'20 Mar'21 June'21 Sep'21 1,484 Disbursement (INR Mn) 405 409* 206 221 48 June'20 Sep'20 Dec'20 Mar'21 June'21 Sep'21 *Flat disbursement in June 2021 quarter was due to nationwide lockdown i
Slide 8: Strong Quarterly Disbursement...
Strong Quarterly Disbursement... Sep 2021 clocked the highest disbursement quarter in the history of Dhanvarsha led by Gold and FLDG backed MSME loans 1,484 Disbursement (INR Mn) 405 409 206 221 48 June'20 Sep'20 Dec'20 Mar'21 June'21 Sep'21 Personal Loans MSME Loans Gold Loans 256 245 233 200 175 1
Slide 9: Resulting in Robust Revenue Growth with Increasing Efficiency
Resulting in Robust Revenue Growth with Increasing Efficiency 115 Interest Income (INR Mn) 62 48 29 30 16 June'20 Sep'20 Dec'20 Mar'21 June'21 Sep'21 Cost to Income (%) 82.3% 77.0% 75.9% 68.8% 53.9% 48.5% June'20 Sep'20 Dec'20 Mar'21 June'21 Sep'21
Slide 10: Pristine balance sheet with debt from marquee lenders
Pristine balance sheet with debt from marquee lenders Current Equity (INR MN) Debt (INR MN) Equity Share Capital on March 31 993.6 Borrowings from Banks & FIs 1,295.1 Capital infusion led by Aviator NCD & other debentures 500.0 Emerging Market Fund (AEMF) including 658.0 a marquee list of investors
Slide 11: Superior Asset Quality and Collection Efficiency
Superior Asset Quality and Collection Efficiency Particulars Sep’20 Jun’21 Sep’21 Gross NPA % 5.0% 3.2% 2.9% Net NPA % 2.3% 1.2% 1.4% Gross Performing Assets % 95.0% 96.8% 97.1% Collection Efficiency* % 103% 194% 163% GNPA and NNPA are reported on 90+ days • As per recently released RBI Scaled Based
Slide 12: Robust in-House Collection Vertical with Strong Controls
Robust in-House Collection Vertical with Strong Controls Prepayments Collection efficiency Collection Demand Collections Month & Foreclosure (%) without prepayments Efficiency (%) raised received Received* & foreclosures Jan-21 23 20 20 89% 175% Feb-21 25 22 18 90% 162% Mar-21 28 27 25 95% 182% Apr-
Slide 13: Conservative Underwriting Processes: Built for the Customer Segment
Conservative Underwriting Processes: Built for the Customer Segment Standard • Case evaluation benchmarks are objective parameters and processes • Plug-and-play model which can be adapted to different products, cohorts and partnerships Significantly • 95%+ of documentation is digital and can be acco
Slide 14: Risk and Governance
Risk and Governance …driven by a team with strong experience Risk mitigated portfolio approach… in risk and controls ~40% of AUM is backed by Gold resulting in • Mr. Mahendra Servaiya is one of the most superior asset quality experienced members of the core team. • 3+ decades of banking experience.
Slide 15: Product Suite and Distribution Strategy
Product Suite and Distribution Strategy
Slide 16: A Differentiated approach in lending
A Differentiated approach in lending… Capital eficiency & risk management at the fore Own balance sheet lending Co-lending with FLDG Lending as a Service Small ticket Solid sourcing in new geographies High fee generating business with with very low acquisition cost share of interest & fee Short teno
Slide 17: With Curated Products Catering to Unmet Demand for Credit
…With Curated Products Catering to Unmet Demand for Credit AUM of INR ~2,372 million as of 30 Sep 2021 Loan Book that is diversified across …straddling across products to maximize MSME focused segments… profitability while mitigating risk 35% 38% 34% 35% 13% 14% 13% 18% Secured against Gold Secured
Slide 18: Product Distribution: Omni-channel Strategy for Substantial Scale
Product Distribution…Omni-channel Strategy for Substantial Scale Financial Inclusion Technology Assets Experiential Centres Captive Sales Team Direct Selling Agents Centres Differentiated assets Offers a superior Dhanvarsha has a Capex light business Strong network of to scale organic value proposit
Slide 19: Pioneering the Distribution of Financial Products by Leveraging Robust Technology
Pioneering the Distribution of Financial Products by Leveraging Robust Technology MoneyRabbit® – an AI-powered Dhanvarsha Neo Bank will enable proprietary credit health and financial customers to access multiple financial wellness platform that also enables products like lending, savings, borrowing
Slide 20: Money Rabbit: Omni Channel Digital Platform
Money Rabbit: Dhanvarsha’s Omni Channel Digital Platform for MSME’s and Blue-Collar Work Force Virtual & Physical Card Get your own Personalized Ru-pay card which can be used at any Credit Health Check Tool online/offline merchants Get to know your latest Bureau Score and other Micro Loans credit de
Slide 21: Money Rabbit: Credit Health and Financial Wellness Tool
Money Rabbit: Credit Health and Financial Wellness Tool Demystifying credit score for masses and in turn promoting financial literacy and inclusion Financial Wellness and Credit Health platform for Dhanvarsha’s target audience (as some may not be using Bureau Reports often nor have knowledge of them
Slide 22: Money Rabbit: Proprietary AI Engine Powered Decision Making
Money Rabbit: Proprietary AI Engine Powered Decision Making MoneyRabbit® uses its proprietary AI engine, AI-RITE™ which gathers real-time data & insights on the customers, thereby minimizing dependence on limited data set available from Credit Bureau reports to ascertain loan eligibility. There is a
Slide 23: Dhanvarsha Neo Bank
Dhanvarsha Neo Bank All your Banking needs ‘On the Go’ Unified Lending Platform Savings Account • Personal Loans • Zero Balance • Business Loans Savings • Gold Loans • Account opening • BNPL NEO BANK Investments • Mutual Funds Insurance • Systematic Term Plan • General Insurance • Systematic • Life
Slide 24: DhanOne: Intelligent Lead Origination Platform
DhanOne: Intelligent Lead Origination Platform for Dhanvarsha and its Trusted Partners Loan for all segments: • Business Loans • Gold Loans • Personal Loans • Women Empowerment (Nari-Shakti) Loans Simplified loan application process on-the-go: • Easy & intuitive process • Hassle free documentation •
Slide 25: DhanSetu: Digital Platform for Channel Partners
DhanSetu: Digital Platform for Dhanvarsha Channel Partners to aid Seamless customer onboarding and tracking Easy & Real Time Unlock Earnings: Tracking: Get a chance to Track Total Loans unlock additional disbursed by you in a earnings through given time-frame and referral and promotion check convers
Slide 26: An Integrated LOS and LMS (LOMS) Focusing on Automation
An Integrated LOS and LMS (LOMS) Focusing on Automation A world class platform enabling seamless onboarding, underwriting, servicing, monitoring and on-time collections. CHANNELS EXTERNAL SYSTEMS Co-Lending Financial Digital Call Center DSA/FOS Branches CUSTOMER ONBOARDING Partners Inclusion Stores
Slide 27: Physical Presence Across Key Markets in India
Physical Presence Across 8 Key Markets in India… # 31 Experiential Centres as at 30 Sep 2021 India’s overall gold financing penetration is ~10% with penetration in the western and northern states being even lower However, the these two markets together hold ~45% of the gold in the country Dhanvarsha
Slide 28: Gold Loans: Experiential centers & Door-Step Disbursement
Gold Loans: Experiential centers & Door - Step Disbursement The company through ‘experiential centers’ and digitally optimised ‘door-step disbursement’ offers a superior value proposition to customers in MSME gold financing. The company has disbursed more than INR 1.2 billion of gold loans through e
Slide 29: Dhanvarsha Financial Inclusion Stores: Distribution with Scale
Dhanvarsha Financial Inclusion Stores: Distribution with Scale Personal Loans and Business Loans - Leveraging existing neighbourhood stores and community centers to ease access to credit services Business Model: Key attractions of the format • Neighborhood stores that help take credit • Capex light
Slide 30: Co-lending Partnerships: A Risk-Mitigating Strategy
Co-lending Partnerships: A Risk-Mitigating Strategy to Enhance Reach and Product Bouquet Co-Lending partnerships with FLDG (first loss default guarantee) specifically in MSME, business and education loans. Partners in co-lending are chosen after extensive due diligence by the Personal loans, 35.6% C
Slide 31: Lending-as-a-Service (L-a-a-S)
Lending-as-a-Service (L-a-a-S): Superior Growth enabled by Lending-as-a-Service enhances Capital Efficiency on Balance Sheet • Sourcing partnerships with large lenders to realize • Dhanvarsha contributes between 10% to 20% last-mile credit inclusion & capital efficiency of loan amount while remainde
Slide 32: L-a-a-S: Partnership with Central Bank of India
L-a-a-S: Partnership with Central Bank of India The Company has recently partnered with Central Bank of India for Co-lending of up to INR 10 billion to MSME Gold loan customers. Under the partnership, Dhanvarsha will originate, service and collect MSME gold loans and will retain 20% of loan balances
Slide 33: Financials
= Financials
Slide 34: Balance Sheet
Balance Sheet • Strong liquidity profile coupled Balance Sheet (INR Million) Sep’20 June’21 Sep’21 with an un-levered balance sheet will support higher disbursement Financials Assets 751.1 2,611.6 3,264.1 trajectory. Cash and Investments 188.9 1,347.6 942.0 • Company anticipates continued Gross Loan
Slide 35: Income Statement
Income Statement • Robust growth in profits driven by Income Statement (INR Million) Sep’20 Jun’21 Sep’21 healthy disbursement trajectory. Interest Income 28.5 61.8 115.6 • Investments in technology and branch infrastructure starting to Less: Finance Cost 11.0 35.1 51.5 bear fruit with improving eff
Slide 36: Annexure
Annexure
Slide 37: Company Overview: Governance & Mission
Company Overview: Governance & Mission
Slide 38: Deep sectoral expertise in MSME essential goods segments
Deep sectoral expertise in MSME essential goods segments MSME Focussed Lender Pristine Balance Sheet Serving the underserved Unlevered and liquid balance 15% and underbanked sector sheet. Marquee lenders 26% which has >63 Mn MSME’s 7% Significantly Tech Enabled Solid Promoter Backing MSME Exposure L
Slide 39: Product Profile
Product Profile On Balance Sheet Off Balance Sheet Particulars Gold Loans Business Loans Personal Loans LAP* Average Ticket Size Up to INR 5 Mn INR 0.40 Mn INR 0.15 Mn INR 2.7 Mn Interest Rate 15% - 22% 18% - 24% 18% - 24% 14% - 20% Tenure 12 Months 12 / 60 Months 12 / 36 Months 60 / 180 months Avg
Slide 40: We don't just lend money
We don’t just lend money. We enable businesses by lending ‘hand’, ‘head’ & ‘heart’ Ecosystem We are true business partners to our customers Growth & Wealth & Scalability Wellbeing For us, business are communities first. We help building ‘Social Capital’ We give equal importance to both ‘Social’ & ‘C
Slide 41: ESG Integration Framework for Building Social Capital
ESG Integration Framework for Building Social Capital Lending Hand-Head-Heart We’re proud to support Nilima Mr. Jagdish Roy’s will to fight Dhanvarsha has empowered Rasal in her dream to expand her adversity and empower employees, Mr. Kamalkant, a small business manufacturing unit to increase predom
Slide 42: Partnerships
Partnerships Lenders MSME lending FLDG partners Distribution partners and 100+ partners Minaxi Mehta Welfare Social Capital partners Foundation Mera Cashier Insurance partners Auditors Bhandari & Co.
Slide 43: Focus on Governance & Best Practices
Focus on Governance & Best Practices Substantial management ownership in the company Independent and Eminent Board comprising of industry stalwarts High governance standards Rakesh Sethi Rajiv Kapoor Nirmal Momaya KP Raghuvanshi Statutory Auditor Bansal Bansal & Co. Non-Executive Chairman Independen
Slide 44: Led by a Professional Management Team
Led by a Professional Management Team… Karan Desai Rohanjeet Juneja Joint Managing Director Joint Managing Director • Ex-investment banker with 15+ years • 17+ years of experience, in India & US. of experience • An investment banker, hedge fund • Previously worked at Bank of manager and Head of Stra
Slide 45: Management team with substantial financial services experience
…who bring substantial experience in the financial services space Lalit Chendvankar Namita Pradhan Chief Compliance Officer Human Capital Management 16+ years robust experience in handling Mergers • 6+ years - a seasoned HR professional & Acquisitions, IPOs, Corporate Restructuring, • Previously ass
Slide 46: Dhanvarsha is backed by a promoter group with rich heritage
Dhanvarsha is backed by a promoter group with rich heritage Group’s businesses Dhanvarsha Finvest Limited is a Bombay Stock Exchange Limited listed NBFC provides credit to the underbanked MSME sector in India About the group • Wilson Group’s history traces back up to Pre-Independence • Diversified c
Slide 47: Shareholding Pattern
Shareholding Pattern Public 29.2% Promoter 62.8% FII 8.0% Shareholding on fully diluted basis including CCDs issued in November 2020 and April 2021
Slide 48: Thank You
Thank You