Capital Trust records loss of Rs13.8cr in Q1FY22; Stock trades flat

The company’s AUM declines 28% yoy to Rs337.4cr in Q1FY22. NII was Rs10.1cr, a decline of 29% yoy.

Aug 17, 2021 09:08 IST India Infoline News Service

Capital Trust Limited, a digitally enabled non- banking finance company (NBFC), specialising in providing income generating micro business loans in tier 3-5 regions, announced on Monday its financial results for the quarter ended June 30, 2021.

Assets Under Management (AUM) for Q1FY22 stood at Rs337.4cr, a decline of 28% yoy from Rs466.8cr in Q1FY21. Total disbursement was Rs11cr compared to nil in Q1FY21. Net Interest Income was Rs10.1cr, a decline of 29% yoy compared to Rs14.2cr in Q1FY21. The company recorded a loss of Rs13.8cr, a decline of 749% yoy compared to Rs2.1cr in Q1FY21.

At around 9:42 am, Capital Trust Ltd was trading at Rs96 per piece down by Rs0.2 or 0.21% from its previous closing of Rs96.20 per piece on the BSE.

“The second wave of Covid-19 has had a severe impact on the Semi-Urban & Rural Market during the quarter where the Company has its major operations. Despite the disruptions, our rural-doorstep fintech business model helped us to navigate successfully through the challenges. Collection efficiency of post lockdown 1.0 portfolio (that is backed by in-house developed automated credit engine) initially declined during the month of April and May 2021, only to rebound sharply from the month of June 2021 and which gained further momentum to reach around 95% in the month of July 2021,” Yogen Khosla, Managing Director, Capital Trust Limited, said.

He further added, “the company remained cautious in disbursement of loans to new customers and followed stringent underwriting processes. The Company enjoys adequate liquidity and has a healthy Balance Sheet position which makes it well-positioned and agile to achieve growth over the medium to long term, while the demand remains strong. Moreover, keeping in line with our light Balance Sheet business model, we entered into 3 new Business Correspondent relationships in Q1 which expanded the company reach to territories in Eastern UP. The Company now has a network of 244 branches spread across 73 districts covering 10 states and is well positioned to deliver best in class and uninterrupted services to its customers.”

Consolidated Financial Highlights:
  • April, May, June, July collection efficiency was 91%, 65%, 81%, 88% for the Company and 99%, 92%, 94%, 95% for digital loans sourced post-first lockdown.
  • Net worth as on June 30 was at Rs116.9.cr.
  • Finance cost during Q1FY22 was Rs8.06cr which were increased by Rs0.35cr as compared to Q4 FY21.
  • Total Provisions outstanding was Rs55.59cr as on June 30, 21; ECL provision was Rs8.49cr and COVID related provision was Rs47.1cr.
  • Strong liquidity position with Rs109.89cr in cash/bank balance, liquid investments, and fixed deposit.
  • Total operational branches as on June 30, 2021, stood at 244 covering 73 districts across 10 states.
  • Business Correspondent Partnership ties ups with IDFC First Bank, MAS Financials, Dhanvarsha Finvest and OML P2P

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