Capri Global Capital Limited · NSE:CGCL

Capri Global Capital — Investor Presentation (June 2021)

47 slides from Capri Global Capital's investor presentation, Jun 23, 2021

  1. Slide 1: Capri Global cover letter to stock exchanges

    CAPRI GLOBAL June 23, 2021 The Secretary The Secretary BSE Limited National Stock Exchange of India Limited Pheeroze Jeejeebhoy Towers Exchange Plaza, 5‘* Floor Dalal Street, Fort . Plot No- 'C' Block, G Block Mumbai - 400 001 Bandra-Kurla Complex, Bandra (East) Scrip Code: 531595 Mumbai — 400 051 S

  2. Slide 2: Responsible. Resilient. Ready. Investor Presentation June 2021

    Responsible. Resilient. Ready. INVESTOR PRESENTATION JUNE 2021 CAPRIGLOBAL 1

  3. Slide 3: Disclaimer

    Disclaimer This presentation is for information purposes only and does not constitute an offer, solicitation or advertisement with respect to the purchase or sale of any security of Capri Global Capital Limited (the “Company”) and no part of it shall form the basis of or be relied upon in connection

  4. Slide 4: Capri Global Capital: Banking The Unbanked

    Capri Global Capital: Banking The Unbanked A Non-Banking Financial Company (NBFC) with presence across high growth segments like MSME, Affordable Housing, Construction Finance, and Indirect Lending segments Promoted by first generation entrepreneur, Mr. Rajesh Sharma, Capri Global Capital Limited (C

  5. Slide 5: Executive Summary: Our Journey

    Executive Summary: Our Journey Expanding Business Verticals Housing Finance entry • Ventured into MSME • Forayed into Housing Finance lending • Branch network jumps to 66; Workforce count of 1,350 2011 2013 2016 2017 2021 Journey Begins Widening Outreach Expanded Scale • Raised Capital of INR 4.45 B

  6. Slide 6: Capri Global Capital: Brief Overview

    Capri Global Capital: Brief Overview FY21 INR 48.5 Bn INR 1,769 Mn INR 17.2 Bn Total AUM PAT Net Worth (consolidated) Geographic Expanse 85 8 1,900+ Branches States/Union Team Size Territories Customer Base 16,200+ 11,250 29,400+ Businesses Families Live Accounts Financed Empowered CAPRIGLOBAL 5

  7. Slide 7: Business Overview: Diversified Portfolio

    Business Overview: Diversified Portfolio MSME Housing Finance Construction Finance Indirect Lending Product portfolio: Business loan Product portfolio: Home loans Product portfolio: Construction- Product portfolio: against residential, commercial for – Purchase of residential linked loans to small a

  8. Slide 8: CGCL Advantage: What Sets Us Apart

    CGCL Advantage: What Sets Us Apart Focus on SENP Borrower Own Sourcing Model Adequate Liquidity o Strong focus on self employed non- o 100% sourcing is done by regularly o Positive ALM in <1 Year, 1-5 Years professional borrower; carved out a trained in-house Direct Sales Team and >5 years. niche in

  9. Slide 9: Operating Efficiency: Adopting Low-Cost Hub & Spoke Model

    Operating Efficiency: Adopting Low-Cost Hub & Spoke Model Area Managers • Sales and Credit • Branch Manager • Operations • Relationship Hub • FCU, Legal, Technical and Spoke • Mangers (DSTs) Collections • Credit Resource • Spoke branch functions • Direct connect with customers Benefits of Hub & Spok

  10. Slide 10: Digitised Workflow & Analytics Driven Underwriting

    Digitised Workflow & Analytics Driven Underwriting Mobility Applications Verification & Screening Tools Digitisation & Score carding Bureau Scrubs • Sales Application Disbursement with minimal or no Digital, cloud based application which unifies Regular bureau scrubs enables assessment ✓ Paperless o

  11. Slide 11: Digital Payments Infrastructure & Technology Initiatives

    Digital Payments Infrastructure & Technology Initiatives Evolved e-payment solutions for Customer Relationship through self service Capri Learning Application both disbursements & collections portal & effective communication modes • Mandate registration prior to disbursement With management principl

  12. Slide 12: AUM Growth Rebounding

    AUM Growth Rebounding AUM Segmental Break Up (INR Mn) MSME HF CF IL 28,390 41,032 40,347 48,480 25,114 20,466 19,709 15,413 12,009 11,553 9,427 8,982 9,619 8,734 7,926 2,450 3,079 1,100 1,388 1,280 FY18 FY19 FY20 FY21 CAPRIGLOBAL 11

  13. Slide 13: Driven By Healthy Disbursals

    …Driven By Healthy Disbursals Disbursals ( INR Mn) MSME HF CF IL 20,197 23,600 12,763 15,364 8,860 8,240 8,050 7,871 7,091 5,090 5,040 4,220 4,169 3,724 2,986 2,533 1,600 1,100 970 380 FY18 FY19 FY20 FY21 CAPRIGLOBAL 12

  14. Slide 14: Business Segments

    BUSINESS SEGMENTS CAPRIGLOBAL 13

  15. Slide 15: MSME Lending: A Huge Unexplored Opportunity

    MSME Lending: A Huge Unexplored Opportunity MSME – Huge Addressable Credit Gap FY16 H1FY21 INR MSME Systemic 9.6 Tn 19.1 Tn 17.3 Tn Credit (INR) INR INR 19.4 Tn 52.0 Tn Non-Banks Market Addressable Credit Gap of INR 19.4 Tn 8% 13% Share refers to tappable portion out of INR 52 Tn of Informal Channel

  16. Slide 16: MSME: Small Loans, Big Opportunity

    MSME: Small Loans, Big Opportunity 2% 2% 12% 25% Delhi-NCR Maharasthra Gujarat Focus Area MP 23% Rajasthan • Self Employed Individuals – Provision stores, retail outlets, 14% Punjab handicrafts etc Haryana • Small enterprises with inadequate income documentation 23% proof; Sourced directly • In-hous

  17. Slide 17: MSME: CGCL's Growth Driver

    MSME: CGCL’s Growth Driver Average Ticket Size (INR Mn) Live Accounts (nos.) 2.6 16,141 12,578 11,051 1.6 1.7 1.5 6,100 FY18 FY19 FY20 FY21 FY18 FY19 FY20 FY21 Loan to Value (%) Loan Yields (%) 16.7 16.1 60 15.8 13.8 48 48 50 FY18 FY19 FY20 FY21 FY18 FY19 FY20 FY21 CAPRIGLOBAL 16

  18. Slide 18: Affordable Housing: Large Demand & Low Formal Financing

    Affordable Housing: Large Demand & Low Formal Financing Ramp-up Expected in Indian Mortgage Market Housing Shortage – Socio Economic Group Wise 36.9 (Loan Assets in INR Tn) 8% 31.0 26.1 12% 21.9 EWS 19.1 LIG 16.6 14.2 MIG & Above 80% Mar-17 Mar-18 Mar-19 Mar-20 Mar-21E Mar-22E Mar-23E • Under penetr

  19. Slide 19: Housing Finance: Capitalising on Affordable Housing Opportunity

    Housing Finance: Capitalising on Affordable Housing Opportunity Focus Area 11% 30% Maharashtra • Serves middle and lower middle income population Gujarat in Tier 2 and 3 cities 27% Delhi-NCR MP Rajasthan • Ventured in 2016 through its subsidiary – Capri 22% 11% Global Housing Finance Limited • Targe

  20. Slide 20: Housing Finance: Exponential Growth Potential

    Housing Finance: Exponential Growth Potential Average Ticket Size (INR Mn) Live Accounts (nos.): 71% CAGR between FY18-FY21 1.5 13,149 1.1 10,207 1.0 1.0 8,637 2,621 FY18 FY19 FY20 FY21 FY18 FY19 FY20 FY21 Stable Loan to Value (%) Loan Yields (%) 14.0 60.0 59.0 58.7 13.4 13.3 55.0 12.2 FY18 FY19 FY2

  21. Slide 21: Construction Finance: Building a Sustainable Future

    Construction Finance: Building a Sustainable Future Mumbai MMR Focus Area Ahmedabad 4% 3% 5% Delhi-NCR • Construction linked loans to small and midsize real 25% 6% Pune estate developers 7% Bangalore Vijayawada • Comprehensive framework for project selection and 8% credit appraisal Surat 19% Hyderab

  22. Slide 22: Construction Finance: High Yield, Low Risk

    Construction Finance: High Yield, Low Risk Average Ticket Size (INR Mn) No. of Projects 146 99.2 134 126 80.0 70.2 69.4 98 FY18 FY19 FY20 FY21 FY18 FY19 FY20 FY21 LTV (%) Loan Yields (%) 50.0 50.0 50.0 18.4 32.3 17.7 17.2 16.8 FY18 FY19 FY20 FY21 FY18 FY19 FY20 FY21 CAPRIGLOBAL 21

  23. Slide 23: Capital and Liquidity

    CAPITAL AND LIQUIDITY CAPRIGLOBAL 22

  24. Slide 24: Well Capitalized For Medium Term Growth

    Well Capitalized For Medium Term Growth Current Assets (INR Mn) Capital Adequacy (%) Investments Cash Equivalents 53 8,081 39.3 38.0 37.7 34.2 3,616 2,242 1,691 567 483 742 415 114 104 FY17 FY18 FY19 FY20 FY21 FY17 FY18 FY19 FY20 FY21 Undrawn credit lines Comfortable liquidity + + = Adequate cash St

  25. Slide 25: Liquidity Position: Continue to Maintain Adequate Buffer

    Liquidity Position : Continue to Maintain Adequate Buffer Particulars (INR Mn) CGCL (Standalone) CGHFL Consolidated Limits Sanctioned 37,150 17,650 54,800 Limits Availed 33,200 13,710 46,910 Un-Drawn 3,950 3,940 7,890 Repaid 6,923 2,052 8,976 Outstanding 26,277 11,658 37,935 Total no. of relationshi

  26. Slide 26: Liquidity Position: Repayment of High-Cost Loans

    Liquidity Position : Repayment of High-Cost Loans Particulars (INR Mn) CGCL (Standalone) CGHFL Consolidated Dues during FY2020-21 6,004 1,446 7,450 Payment made as per Schedule (A) 1,989 704 2,693 Prepayments made for the year (B) 4,016 742 4,757 Total repayments/prepayments (A+B) 6,004 1,446 7,450

  27. Slide 27: Asset-Liability Split: Maturity Buckets Are Well Balanced

    Asset-Liability Split : Maturity Buckets Are Well Balanced Asset-Liability Mix (INR Mn); Ensuring Optically Matched Balance Sheet 50,421 22,228 21,470 16,328 15,918 9,800 6,654 6,296 5,403 4,347 4,515 754 1,489 1,924 upto 1 month >1-3 months >3-6 months >6-12 months 1-3 years 3-5 years >5 years Tota

  28. Slide 28: Liability Mix: Bank Borrowings Key Source Of Funds

    Liability Mix: Bank Borrowings Key Source Of Funds Total Borrowings (INR Mn) and Borrowing Mix 7,280 15,661 27,687 28,370 37,980 97% 95% 83% 85% 82% 18% 7% 10% 10% 5% 3% 5% FY17 FY18 FY19 FY20 FY21 Bank Borrowings NCDs CPs o Nil exposure to short-term money market signifies no probability of default

  29. Slide 29: Asset Quality

    ASSET QUALITY CAPRIGLOBAL 28

  30. Slide 30: Asset Quality: Stage Analysis As per IND-AS

    Asset Quality : Stage Analysis As per IND-AS All amount in INR Mn except stated ECL Analysis as per INDAS Q4FY21 Q3FY21 Q4FY20 Stage 1 & 2 - Gross 46,870 39,515 39,398 Stage 1 & 2 – ECL Provisions 730 603 345 Stage 1 & 2 - Net 46,140 38,912 39,053 Stage 1 & 2 – ECL Provisions % 1.6% 1.5% 0.88% Stage

  31. Slide 31: NPA Analysis: Short Term Challenges

    NPA Analysis : Short Term Challenges CGCL (Consolidated) GNPA Product Segment wise – FY21 FY18 FY19 FY20 FY21 (INR MN) GNPA 440 561 952 1,609 Product Segment GNPA % NNPA % Total ECL Provisions 54 116 640 1,175 MSME 5.5% 1.9% NNPA 386 445 312 434 Construction Finance 0.2% - Gross NPA% 1.7% 1.5% 2.4%

  32. Slide 32: Asset Quality: Stable Net NPAs

    Asset Quality : Stable Net NPAs MSME (%) Housing Finance (%) 1.8 1.9 0.43 1.7 0.40 1.1 0.15 - FY18 FY19 FY20 FY21 FY18 FY19 FY20 FY21 Construction Finance (%) 0.03 FY18 FY19 FY20 FY21 (0.46) (0.60) (0.83) CAPRIGLOBAL 31

  33. Slide 33: Collection Efficiency: Sizeable Improvement in EMI Servicing

    Collection Efficiency : Sizeable Improvement in EMI Servicing MSME Collection Efficiency (by POS) MSME: Slow Reversion to Normalcy • MSME portfolio showed a steady and improving trend in collections during Q4FY21. 83% 84% 81% • However there remain challenges in getting back to normalcy in collectio

  34. Slide 34: Over The Years…

    Over The Years… NIM (%) : Affected by Excess Liquidity and Delayed Cost-Income (%) : Continued Improvement Growth in FY21, Expected To Stabilise and Rebound 9.5 52.1 9.3 9.3 46.6 38.4 35.2 8.7 FY18 FY19 FY20 FY21 FY18 FY19 FY20 FY21 NII (INR Mn) PAT (INR Mn) 3,872 3,848 1,770 1,612 3,236 1,357 2,252

  35. Slide 35: Over The Years…

    Over The Years… Return on Average Assets (%) : Stable In A Return on Average Equity (%) : Stable In A Challenging Year Challenging Year 3.7 3.7 3.5 11.0 10.9 10.3 2.6 5.4 FY18 FY19 FY20 FY21 FY18 FY19 FY20 FY21 Total Assets (INR Mn) Capital Adequacy (%) 39.3 58,131 38.0 37.7 42,770 44,455 29,710 34.

  36. Slide 36: Consolidated Income Statement

    Consolidated Income Statement Particulars (INR Mn) FY18 FY19 FY20 FY21 Interest earned 3,219 5,307 6,700 6,735 Interest expensed 967 2,071 2,828 2,887 Net Interest Income 2,252 3,236 3,872 3,848 Non-Interest Income 292 606 495 637 Net Income 2,544 3,842 4,367 4,484 Operating Expenses 1,393 1,877 1,8

  37. Slide 37: Consolidated Balance Sheet

    Consolidated Balance Sheet Particulars (INR Mn) FY18 FY19 FY20 FY21 Share Capital 350 350 350 350 Reserves and Surplus 12,166 13,477 15,042 16,833 Net Worth 12,517 13,827 15,392 17,173 Borrowings 15,661 27,687 28,366 37,688 Other Liabilities and Provisions 1,533 1,256 697 3,269 Total liabilities & s

  38. Slide 38: CGHFL Income Statement

    CGHFL Income Statement Particulars (INR Mn) FY18 FY19 FY20 FY21 Interest earned 107 679 1,265 1,391 Interest expensed 16 372 668 802 Net Interest Income 91 307 590 597 Non-Interest Income 48 210 130 245 Net Income 139 517 726 834 Operating Expenses 203 400 360 317 - Employee Expenses 108 201 212 168

  39. Slide 39: CGHFL Balance Sheet

    CGHFL Balance Sheet Particulars (INR Mn) FY18 FY19 FY20 FY21 Share Capital 369 369 607 607 Reserves and Surplus 636 1,465 1,708 2,043 Net Worth 1,005 2,072 2,315 2,658 Borrowings 1,086 6,764 7,743 11,557 Other Liabilities and Provisions 490 383 86 575 Total liabilities & stockholders' equity 2,581 9

  40. Slide 40: Way Forward...

    N Way Forward... © CAPRI GLOBAL CAPITAL LIMITED

  41. Slide 41: Way Forward…

    Way Forward… H1FY22 shall be one of muted growth H2FY22 is likely to present better growth opportunities. Credit costs to remain elevated during H1FY22. Lockdowns have hurt small businesses and it is likely to show up in earnings. CGCL has amongst the strongest capital adequacy ratios, a healthy cor

  42. Slide 42: Medium Term Vision – Scale And Profitability

    Medium Term Vision – Scale And Profitability Diversified Financial Conglomerate Maturity Rapid scale-up of business Starting Point • Deeper penetration of existing products Strategic plan being devised to • Leverage cross-sell • Drive growth through new products, markets, and channels, potential • C

  43. Slide 43: Leadership

    N Leadership © CAPRI GLOBAL CAPITAL LIMITED

  44. Slide 44: Board of Directors & Strong Corporate Governance

    Board of Directors & Strong Corporate Governance Corporate Governance Rajesh Sharma, Managing Director Beni Prasad Rauka, Independent Director Founder & Promoter with over 2.5 Group CFO- Advanced Enzyme Philosophy decades of experience, Chartered Technologies; over 2.5+ decades of Accountant experie

  45. Slide 45: Stable Leadership Team

    Stable Leadership Team MSME/Housing Finance Construction Finance Corporate Functions Amar Rajpurohit (Business Head – Surender Kumar Sangar (Head – Raj Ahuja (ED & Group CFO) MSME & Home Loan) Ex-AU CF) Ex-MD – Tourism Finance More than three decades of Financiers, Gruh Finance, DHFL Corporation of

  46. Slide 46: Key Partnerships

    Key Partnerships Lenders Auditors & Advisors CAPRIGLOBAL 45

  47. Slide 47: Thank you

    Se APRI GLOBAL CAPITAL LIMITED Thank you

Capri Global Capital — Investor Presentation (June 2021) on 6ix