Capital Trust reports highest quarterly disbursements post Covid; stock slips ~2%

13 Apr 2022 , 01:13 PM

Capital Trust Limited (Capital Trust), a digitally enabled non-banking finance company (NBFC) having specialization in providing income-generating micro business loans in tier 3-5 regions, has informed investors of its business update for the fourth quarter of FY22 and the full FY22.

Disbursements for Q4FY22 were reported at Rs58 crore and for FY22 stood at Rs170 crore, higher by 115% and 32% yoy, respectively. This was the company’s highest quarterly disbursements post COVID-19. This was mainly due to the company’s continuous focus on the rural doorstep fintech model, the strong customer connections, increased touchpoints via expansion in the branch network, which helped in catering to new customers and geographies, and improved traction from existing customers on the back of improved business sentiments and cash flows of customers.

Collection efficiency of Capital Digital Loans for the Q4FY22 remained strong at more than 97%, supported by digital integration and stringent quality checks, physical visits, continuous interaction with customers, and the backend automated decision-making process through artificial intelligence and Business Intelligence.

The company reported a strong liquidity position with Rs23 crore in cash/bank balance, liquid investments, and fixed deposits on March 31, 2022. Moreover, over Rs23 crore was raised in the last quarter from Manaveeya (Oiko Credit), Vivriti Capital, and Vedika Credit. These fundraise add further headroom for the Company’s growth.

The 30 plus DPD of Capital Digital Loans remains less than 3% and 90 plus DPD at 2.5% as of March 31, 2022, indicating the superior asset quality of the loan book.

Capital Trust is currently trading at Rs130.90 down by Rs2.15 or 1.62% from its previous closing of Rs133.05 on the BSE. The scrip has touched a high and low of Rs134.35 and Rs128.65 respectively.