TruCap Finance Limited · NSE:TRU
TruCap Finance — Q2 FY2023 Earnings Presentation
31 slides from TruCap Finance's earnings presentation, Nov 14, 2022
Slide 1: Cover letter to BSE: Earnings Presentation
November 14, 2022 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 TruCap Finance Limited (Formerly known as Dhanvar
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: TruCap Finance: Lender to India's MSME Needs
Tru Cap Finance 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
Slide 5: Portfolio Summary
Portfolio Summary
Slide 6: INR 10 billion of Cumulative Disbursements to over 100k Customers
TruCap Finance – INR 10 billion of Cumulative Disbursements to over 100k Customers Cumulative Disbursement (INR Mn) Customers Served 12,000 1,20,000 10,018 1,06,875 10,000 1,00,000 8,035 8,000 84,251 80,000 5,968 6,000 61,159 60,000 4,000 40,000 2,000 1,662 709 794 416 20,000 7,742 - 101 243 462 FY1
Slide 7: Major Focus on Granular MSME Gold and Business Loan Disbursement
Major Focus on Granular MSME Gold and Business Loan Disbursement TruCap Transformation - Changing Disbursement Mix Average Ticket size of portfolio (INR Mn) 120% 0.92 100% 80% 60% 59% 66% 75% 26% 40% 20% 38% 29% 33% 0.18 25% 0.09 0.09 0.08 0% FY21 FY22 Q1-23 Q2-23 FY20 FY21 FY22 Q1FY23 Q2FY23 MSME B
Slide 8: More than 90% of AUM in MSME Gold and Business Loans
Leading to more than 90% of AUM in MSME Gold and Business Loans Evolving Portfolio Mix Gross Loan Portfolio INR Mn 4,549 3,952 24% 35% 38% 40% 43% 47% 3,059 2,580 35% 2,395 38% 39% 44% 18% 46% 45% 14% 12% 24% 7% 4% 13% 11% 3% 9% 7% 5% Jun-21 Sep-21 Dec-21 Mar-22 Jun-22 Sep-22 Sep-21 Dec-21 Mar-22 Ju
Slide 9: Focus on Essential Goods Sector Improves Asset Quality
Increasing Focus on lending to ‘Essential Goods**’ Sector has led to Improvement in Asset Quality Essential Sector Portfolio Mix Asset Quality Performance (GNPA%) 6.0% 5.1% 60% 59% 56% 41% 3.0% 3.0% 3.1% 2.8% 32% 27% 28% FY-18 FY-19 FY-20 FY-21 FY-22 Q1FY-23 Q2FY-23 FY-19 FY-20 FY-21 FY-22 Q1FY-23 Q
Slide 10: Sectoral Portfolio Composition
Sectoral Portfolio Composition Sector Mix - Top10 Sector Composition 3% 4% 9% 5% Customer Engagement in Essential goods segments 9% 5% Deep Sectoral understanding Wide spread sourcing capabilities through technology & branch network 6% 8% 7% 8% FMCG Beauty / Fashion / Apparels Home / Office-Retail Agr
Slide 11: Expanding Geographic Customer Base with Growing Branch Network
Expanding Geographic Customer Base – Supported by Growing Branch Network AUM distribution Over the Years Increasing Branch Distribution with Focus on Tier II/III/IV State FY19 FY20 FY21 FY22 Q2FY23 FY20 FY21 FY22 Q2FY23 Maharashtra 100% 100% 81.3% 52.8% 39.6% Maharashtra 0 2 4 1 Madhya Pradesh 1.6%
Slide 12: 2QFY23 Quarterly Results
2QOFY23 Quarterly Results
Slide 13: Key Highlights – H1FY23
Key Highlights – H1FY23 INR Mn Particulars H1FY22 H1FY23 Y-o-Y Change Significant scale up in L-a-a-S partnership reflecting in Off-book AUM. Disbursements 1,891 4,051 2.2x AUM* 2,372 4,549 1.9x Disbursement growth has outpaced branch growth, as branch network has matured. MSME Gold Loans 822 2,120 2.
Slide 14: Key Financial Metrics
Key Financial Metrics Interest Income INR Mn Total Income INR Mn 247 220 305 145 261 133 233 116 203 150 Q2’FY22 Q3’FY22 Q4’FY22 Q1’FY23 Q2’FY23 Q2’FY22 Q3’FY22 Q4’FY22 Q1’FY23 Q2’FY23 Consistent growth in Income, led by interest earning assets Ability to integrate with other lenders to boost L-a-a-
Slide 15: Key Operational Metrics
Key Operational Metrics Customer Count Women Customer Count 12,549 57,152 45,985 9,121 33,427 6,208 5,415 5,725 22,599 23,952 Q2’FY22 Q3’FY22 Q4’FY22 Q1’FY23 Q2’FY23 Q2’FY22 Q3’FY22 Q4’FY22 Q1’FY23 Q2’FY23 Consistent growth in customer base, led by increasing reach Focused effort to cater to the wom
Slide 16: Income Statement
Income Statement INR Mn Substantial increase in interest income, Income Statement (INR Mn) Sep'20 Sep'21 Sep'22 ahead of AUM growth Interest Income 28.5 115.6 247.1 Increase in operating expenses due to continued addition to experiential center Less: Finance Cost 11.0 51.5 121.7 and technology build
Slide 17: Balance Sheet
Balance Sheet INR Mn Consistent build up of secured and Balance Sheet Sep'20 Sep'21 Sep'22 more granular loan assets Well capitalized and low gearing, ensures high Financials Assets 751 3,264 5,135 growth in future Cash and Investments 189 942 1,527 Debt provided by marquee financial institutions, Gr
Slide 18: Well Capitalized for Growth
Well Capitalized for Growth INR Mn INR Mn Equity (INR Mn) Debt (INR Mn) Current Equity (INR MN) 2,145 Borrowings from Banks & FIs 3,099 Capital infusion concluded in May'22, has a residual NCD & other debentures 221 infusion towards warrants. This round was led by Aviator 270 Emerging Market Fund (A
Slide 19: Lending-as-a-Service – Accretive & Accelerating
Lending-as-a-Service – Accretive & Accelerating
Slide 20: Differentiated Approach in Lending
TruCap Finance Differentiated Approach in Lending Capital efficiency & risk management at the fore Own balance sheet lending Lending as a Service (L-a-a-S) Preferred Sourcing Partnership MSME Business loans and Gold loans High IRR generating business with share Solid sourcing in new geographies of in
Slide 21: Increasing and Accelerating L-a-a-S Partnerships
Increasing and Accelerating L-a-a-S Partnerships What does it entail Commercial synergies Partnerships details across products Benefit for TruCap Finance Benefit for TruCap Finance TruCap Live Partnership with Sourcing partnership with large lenders to Superior Growth with High IRR Central Bank of Ind
Slide 22: Accelerating L-a-a-S Footprint
Accelerating L-a-a-S Footprint On Book Portfolio 20% Share of L-a-a-S AUM L-a-a-S Portfolio Currently Built with Single Partner 20% 12% 4% 1% 1% Sep 21 Dec 21 Mar 22 Jun 22 Sep 22 Sep’21 Dec’21 Mar’22 Jun’22 Sep-22 L-a-a-S AUM (INR Mn) 24 32 122 490 894 L-a-a-S AUM % 1% 1% 4% 12% 20%
Slide 23: L-a-a-S Bolstered by Multi Channel Distribution
L-a-a-S Bolstered by Multi Channel Distribution Built in the Last Few Years… Experiential Centers Offers Superior Value Proposition Captive Sales Team for MSME Customers in BL & GL Tru Cap Finance has a team of ~150 Strong Feet on Street Significantly increasing financial inclusion in 5 key states The
Slide 24: Experiential Centers to Drive Growth
Experiential Centers to Drive Growth Increasing Branch Presence 75 r'2 3 M a sb y c h e ra n 7 5b 59 h ave 56 59 Experiential Centres e t to g Tar Multi-city Presence Single-city Presence 37 34 31 Q2’FY22 Q3’FY22 Q4’FY22 Q1’FY23 Q2’FY23 Expanding network to cater to MSME customers for both Gold & Bu
Slide 25: Risk & Governance
Risk & Governance
Slide 26: Strong Collections – Testimony to Underwriting Strength
Strong Collections – Testimony to Underwriting Strength INR Mn Months Demand Collection Collection Payment & CE including for the done efficiency foreclosures prepyament Improving Asset Quality (GNPA%) month for the for the in the /part payment 7.0% month month month 6.0% 6.0% Jan-22 114 101 88.6% 11
Slide 27: 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 28: 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 29: 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 30: Shareholding Pattern
Shareholding Pattern Substantial management ownership in the company Public 30.3% Promoter - Wilson Holdings 59.7% FII 10% Promoter Group FII Public Shareholding on fully diluted basis as on Jun’22, including CCDs issued in April 2021 & equity and warrants issues in May’22
Slide 31: Thank You
Thank You