Capital Trust Ltd. (India) · NSE:CAPTRUST
Capital Trust Ltd. (India) — Capital Trust — Q2 FY2019 Earnings Presentation
33 slides from Capital Trust Ltd. (India)'s earnings presentation, Nov 14, 2018
Slide 1: Investor Presentation Q2 FY19
INVESTOR PRESENTATION Q2 FY19
Slide 2: Contents
CONTENTS SLIDE NO. COMPANY OVERVIEW 2 4 FACTORS AFFECTING NBFCs BUSINESS MODEL 8 12 OPERATING MODEL PORTFOLIO 17 24 WRITE-OFF FINANCIALS 26 29 PARTNERS
Slide 3: Company Overview
$ Capital Trust COMPANY OVERVIEW
Slide 4: About the Company
ABOUT THE COMPANY - Incorporated in 1985 - Promoted by prominent bankers including former Governor RBI, Chief Justice of India BACKGROUND - Initial business was advisory to foreign banks - Listed on BSE (in 1985) and NSE (in 2016) - Started providing Micro loans in 2008 As on 30.09.2018 Public Branc
Slide 5: Critical Factors Affecting NBFCs
CRITICAL FACTORS AFFECTING NBFCs: 1. ASSET LIABILITY POSITION 2. FUNDING TIE-UPS 3. SUPREME COURT AADHAAR VERDICT IMPLICATIONS 4
Slide 6: 1. Asset Liability Position
1. ASSET LIABILITY POSITION Q1 FY19 (Actual) Q2 FY19 (Actual) Q3 FY19 (Expected) Q4 FY19 (Expected) Quarterly Collection (Cr.) 164.5 180.1 180.4 166.8 Quarterly Repayment (Cr.) 85.8 90.9 89.5 85.0 Quarterly Surplus (Cr.) 78.7 89.2 90.9 81.8 Monthly Surplus (Cr.) 26.2 29.7 30.3 27.3 Borrowing Profile
Slide 7: 2. Funding Tie-ups
2. FUNDING TIE-UPS JOINT LENDING (in discussion with a financial institution) (Cr.) Capital Trust Baring Private Equity 75.0 MSME Client Hero FinCorp 15.0 Financial Institution Pool for Direct Assignment 39.2 Benefits of Joint Lending to CTL: Cash in Bank (30.09.18) 43.4 • In talks with a financial
Slide 8: 3. Supreme Court Aadhaar Verdict Implications
3. SUPREME COURT AADHAAR VERDICT IMPLICATIONS E-KYC QR READER • Owing to the company’s brick-and-mortar setup where physical verification of every client’s KYC documents and residential address is conducted, it is not affected by the recent SC verdict • Company uses advanced technology that retrieve
Slide 9: Business Model
$ Capital Trust BUSINESS MODEL
Slide 10: Unique Business Model
UNIQUE BUSINESS MODEL Capital Trust Microfinance Capital Trust Limited Banks and large NBFCs MFIs MISSING MIDDLE ASSET FINANCING (Rs. 25K – Rs. 1Lac) (Rs 10Lacs onwards) (Rs. 1Lac – Rs. 10Lacs) Rs. 1.05Lac loan Rs. 2Lac loan Rs. 3Lac loan Rs. 5Lac loan Footwear Business (Saharanpur) Yarn Production
Slide 11: Empowering Micro Enterprises
EMPOWERING MICRO ENTERPRISES DEBT SHORTFALL: MSME SECTOR DEBT SHORTFALL: 26 LAC CRORE ** 94% of India’s 2.65 Crore MSME’s are 2.5 LAC unregistered, hence don’t have access to CRORE * traditional banking 8% of all Microfinance clients graduate to the next economic level each year but do not have acce
Slide 12: Loan Products
LOAN PRODUCTS • Loans from Rs. 25,000 – Rs. 40,000 MICROFINANCE • Tenure: 24 months INDUSTRY • Joint Liability • Interest Rate: 24.5% • Loan of Rs. 1,05,000 Micro- • Tenure: 36 months Enterprise Loan • Joint Liability • Interest Rate: 26% - 28% MSME INDUSTRY • Loans from Rs. 1,00,000 – Rs. 10,00,000
Slide 13: Operating Model
$ Capital Trust OPERATING MODEL
Slide 14: Geographical Presence
GEOGRAPHICAL PRESENCE DELHI UTTARAKHAND Branches: 4 Branches: 17 Portfolio: 9 Crores Portfolio: 46 Crores PUNJAB UTTAR PRADESH Branches: 40 Branches: 65 Portfolio: 167 Crores Portfolio: 202 Crores RAJASTHAN BIHAR Branches: 33 Branches: 27 Portfolio: 100 Crores Portfolio: 62 Crores MADHYA PRADESH ODI
Slide 15: Branch Network
BRANCH NETWORK HUB-AND-SPOKE MODEL DISTRICT OFFICES Aligarh Bijnor ALIGARH DISTRICT Khanpur Sehore DISTRICT LEVEL BRANCH BLOCK LEVEL BRANCH 14
Slide 16: Organizational Structure
ORGANIZATIONAL STRUCTURE Board Of Directors Managing Director CFO COO Credit Business Training Audit Head Risk Head CTO HR Head Head Head Head State Credit Zonal Head Zonal Head State State Audit Manager (North) (East) Trainer Manager State Audit CVO Executive Head Field Cluster Cluster Cluster Head
Slide 17: Operational and IT Prowess
OPERATIONAL AND IT PROWESS Staff empowered with Client on-boarding and in- 100% Cashless Disbursement smartphones with access to principle approval from for all products since April 2015 customized mobile application scanning of client’s Aadhar card Information available to staff Paperless Audit and
Slide 18: Portfolio
+ Capital Trust PORTFOLIO
Slide 19: Productwise Portfolio
PRODUCTWISE PORTFOLIO 900 795 760 800 700 555 600 500 Micro Enterprise 619 591 Secured Enterprise 304 Microfinance 400 340 Yes Bank BC * 300 186 116 200 81 95 125 120 101 100 38 56 68 93 68 34 56 0 FY '15 FY '16 FY '17 FY '18 Q2 FY '19 * Microfinance Loan as a Business Correspondent 18
Slide 20: Company-wide Cumulative Collection
COMPANY-WIDE CUMULATIVE COLLECTION Collection Efficiency 107% 107% 106% 105% 107% 98% 99% 100% 80% 60% 40% 20% 0% Q2 FY18 Q3 FY18 Q4 FY18 Q1 FY19 July 2018 Aug 2018 Sep 2018 Collection Efficiency of Loans Disbursed FY17 Onwards 100% 98% 100% 99% 100% 100% 99% 99.3% 100% 80% 60% 40% 20% 0% Q2 FY18 Q3
Slide 21: Company-wide Portfolio Quality
COMPANY-WIDE PORTFOLIO QUALITY AUM (Cr.) 90+ (Cr.) 90+ (%) Non-Affected States (MP, RJ, 503.4 5.3 1.0 PN, BH, OD, CH, JH) Affected States (UP / UKH/ DEL) 257.0 61.2 23.8 Company-Wide 760.4 66.5 8.75 20
Slide 22: Productwise Portfolio Quality
PRODUCTWISE PORTFOLIO QUALITY AUM (Cr.) 90+ (Cr.) 90+ (%) Micro-Enterprise Loan 591.4 23.3 3.9 Secured-Enterprise Loan 100.6 41.7 41.4 Microfinance Loan 68.4 1.5 2.2 Total 760.4 66.5 8.75 100% 90% 78% 80% 70% 63% 60% 50% % Of Portfolio 40% 35% % Of NPA 30% 20% 13% 9% 10% 2% 0% MEL SEL MFL 21
Slide 23: Secured-Enterprise Loan Risk Mitigation
SECURED-ENTERPRISE LOAN RISK MITIGATION Even though there is a higher NPA in this product compared to the others, the risk is mitigated because of the following reasons: • Secured by self occupied residential or commercial properties with an maximum LTV of 50% • Average LTV of 22% (property with 4.4
Slide 24: 90+ NPA Movement
90+ NPA MOVEMENT 900 30% 27.84% 26.74% 795 796 800 760 24.69% 717 25% 700 662 589 600 20% 500 AUM 15% 90+ 400 11.07% Op 90+ 10.93% 300 10% 8.75% 200 164 177 177 5% 88 87 100 67 0 0% Q1 FY18 Q2 FY18 Q3 FY18 Q4 FY18 Q1 FY19 Q2 FY19 23
Slide 25: Write-off
+ Capital Trust WRITE-OFF
Slide 26: Why Now?
WHY NOW? With 72% of the company’s portfolio in Western Uttar Pradesh when demonetization took place, the company had to take a decision as to when to take a significant hit and write-off the affected portfolio. It has written off Rs. 49 Crores in FY18 and has written off Rs. 46 Crores in Q2 FY19 •
Slide 27: Financials
+ Capital Trust FINANCIALS
Slide 28: Year-over-Year Growth (Q2FY19 vs Q2FY18)
YEAR-OVER-YEAR GROWTH (Q2FY19 vs Q2FY18) Assets Under Management (in Cr): Financing Income (in Cr.): Profit After Tax (in Cr): 760 40 4.5 (15%) (1%) (-639%) 662 39 -24 Net Worth Cr): Earnings Per Share (in Rs): Total Borrowings (in Cr): 211 2.7 567 (5%) (-640%) (11%) 200 -14.7 511 States (in #): Num
Slide 29: Key Financials and Ratios
KEY FINANCIALS AND RATIOS Line Item / Ratio Q2FY18 Q2FY19 (YoY) Q1FY19 Q2FY19 (QoQ) Total Income 39.5 39.1 -1% 51.3 39.1 -24% Total Expense (excluding tax) 32.6 72.6 123% 41.6 72.6 75% Profit / (loss) after tax 4.5 -24.1 -639% 6.7 -24.1 -459% Net Worth 210.6 200.4 -5% 225.5 200.4 -11% Micro-Enterpri
Slide 30: Partners
+ Capital Trust PARTNERS
Slide 31: Partners
© PARTNERS + Capital Trust ZB iichtHouse Sw @q \ Baring Private soeae aati coe iesciaa i lil Equity Asia ‘SMALL INDUSTRIES DEVELOPMENT BANK OF NDA YES / BANK ans Wsuainamcity He a i) MONEY WHEN YOU NEED IT MOST HeroFinCorp. Pit ele in pebiine fe Bank of Maharashtra x (ONE FAMILY ONE BANK rr | Cass =
Slide 32: Thank You
+ Capital Trust THANK YOU
Slide 33: 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