Capri Global Capital Limited · NSE:CGCL
Capri Global Capital — Investor Presentation (June 2024)
41 slides from Capri Global Capital's investor presentation, Jun 21, 2024
Slide 1: Exchange filing cover letter for analyst meet
June 21, 2024 The Secretary The Secretary BSE Limited National Stock Exchange of India Limited Pheeroze Jeejeebhoy Towers Exchange Plaza, 5th Floor Dalal Street, Fort Plot No- 'C' Block, G Block Mumbai - 400 001 Bandra-Kurla Complex, Bandra (East) Scrip Code: 531595 Mumbai – 400 051 Scrip Code: CGCL
Slide 2: Corporate Presentation June 2024
Corporate Presentation June 2024
Slide 3: Capri Global Capital Limited: Emerging As a Financial Powerhouse
Capri Global Capital Limited Emerging As a Financial Powerhouse 23 MSME Loans Lender Relationships New to Credit, First Time and NEW! Women Borrowers Insurance Housing Distribution Loans ~378,000 Self Employed Live Accounts Underbanked NEW! Cash Flow Small Capri 13 States & UT Business Gold Loans Ba
Slide 4: Bridging Financial Gaps: Transforming Lives
Bridging Financial Gaps: Transforming Lives ~37x Loan-Book Growth in Past 12 Years 2011 2013 2017 2021 2022 2023 Raised 4.5 Bn equity Ventured into fully Forayed into Commenced third Gold Loans business Raised Rs 1.44 Bn capital and started secured MSME Housing Finance party distribution of launched
Slide 5: Rapid Scaling and Operational Proficiency
Superior Execution Prowess Rapid Scaling and Operational Proficiency Launched Car Loan Started Co-Lending Loan Launched Gold Loan Distribution in Jan 2021 Distribution in Nov 2021 Business in Aug 2022 Car Loan Originations (INR Mn) Co-Lending AUM (% of Overall AUM) Gold Loan Book (INR Mn) 2.9x in 2
Slide 6: Complementary Asset Light Income Streams
Complementary Asset Light Income Streams Co-Lending, Distribution and Cross-Selling Car Loan Distribution o Gross Fee Income of INR 1.6 Bn generated in FY24 o Pan-India coverage through presence in 788 locations in 32 states & UTs Co-Lending Mechanism Diversifying Income Streams o Spread Income of I
Slide 7: Empowering Financial Inclusion and The Underserved
Empowering Financial Inclusion and The Underserved Supporting Throughout The Lifecycle Customer Requirement Capri Solutions Economic Impact Working Capital; Purchase of Loan against self occupied Empowering Entrepreneurship and MSME machinery, equipment and vehicles. residential or commercial proper
Slide 8: Underwriting Excellence
Underwriting Excellence Navigating Risk With Precision and Expertise Login to Sanction ~37% 115 bps – Long Term Credit Cost Prudent Lending Practices and Risk Management Proactive Approach to Manage Credit Risks Strong Safety of Margin Healthy asset quality (Net NPA) MSME Housing Gold CF MSME Housin
Slide 9: Commitment to Prudent Risk Practices
Commitment to Prudent Risk Practices Yields Improvement in Asset Quality Gross NPA (%) Net NPA (%) 3.3% 2.4% 2.4% 2.1% 1.9% 1.7% 1.7% 1.4% 1.2% 1.1% FY20 FY21 FY22 FY23 FY24 FY20 FY21 FY22 FY23 FY24 ✓ Approval rate guided by conservative policy parameters to ✓ ~99% Average Collection Efficiency post
Slide 10: Strong and Well Funded Balance Sheet
Strong and Well Funded Balance Sheet Foundation Laid for A Fast-Growing Business Consolidated Networth (₹ Mn) Capital Adequacy (%) 38,366 35,655 47.0 43.5 39.9 38.0 37.7 33.1 31.2 29.5 30.5 19,225 30,464 17,173 30,466 26.6 15,392 14,645 13,077 14,523 5,250 3,250 3,250 1,750 1,750 1,939 2,652 FY20 FY
Slide 11: Technology Led, Digital First Approach
Technology Led, Digital First Approach Driving Efficiency Through Innovation In-House LOS Sales Mobility Application ‘Swarnim’ LOS for Gold Loan business Application for new loan logins launched in Aug’23 Capri Business Partner Built Own OCR and KYC Engine An alternate leads channel live on Play sto
Slide 12: Overall Productivity Enhancement
Overall Productivity Enhancement Scaling Up By Investing in Technology Pragati- Sales App: EKYC & E-Signing; Increasing sales productivity by 25% Acquisition Capri Business Partner: 1,500 active partners; 9,000+ Leads Disbursed till date; 700Cr+ Disbursed Amount Capri Loans App: Self-assisted onboar
Slide 13: Technology: Building Support Infra for Capri 2.0
Technology Building Support Infra for Capri 2.0 Key Technology Enablers In-House Tech Artificial Machine Data Team Intelligence Learning Analytics Key Outcomes In Near Future Cross-Sell CLM Analytics Entire Tech Built Own Data Analytics Model Built Own OCR Footprint Cloud Analytics To identify cross
Slide 14: Outlook for Future: Charting Our Course of Success
Outlook for Future… Charting Our Course of Success Aim to reach ₹ 300bn AUM by FY27E Scaled-up Diversified NBFC Sizeable Diversified Play Maturity ❑ Rapid scale-up of business ❑ Deeper penetration of existing ❑ New products (Car Loan Distribution, products Co-Lending, Gold Loans), markets, Starting
Slide 15: Strategic Priorities
Strategic Priorities Our Path Ahead… AUM Growth With Focus on ROE Expansion Strategic Priorities Increasing Asset Light Diversification to New Deeper Penetration of Income Stream Financial Products Existing Verticals Digital Focus Operating Leverage for Branch Expansion with Cost Saving Expanded Geo
Slide 16: ESG at Core
ESG at Core To Grow Responsibly… Environmental Social Corporate Stewardship Responsibility Governance Integration of UPI payments from top Significant Women Borrowers serving as providers into CGCL system. Primary Applicants Occupational Health and Safety Equal Opportunity and No 16.5 % Discriminati
Slide 17: And Various CSR Initiatives
And Various CSR Initiatives Continue To Serve The Underprivileged 1,14,256 33,647 Health Initiatives Women Empowerment & Livelihood 19,523 23,527 315 Education Initiatives Sustainable Environment Animal Welfare Note: All figures relate to the number of beneficiaries / projects / initiatives under CG
Slide 18: Business Verticals
Business Verticals C A P R I G L O B A L 17
Slide 19: Diversified Business Verticals
Diversified Business Verticals Strong and Sustained Momentum Over The Years… Loan Book Segmental Break Up (₹ Mn) Loan Book Segmental Break Up (%) MSME Gold Housing CF IL MSME Gold Housing CF IL 3.2% 3.5% 3.3% 1,38,224 6.4% 4.7% 4,506 18.7% 19.0% 23.8% 18.0% 19.1% 26,213 97,735 23.8% 26.8% 27.2% 3,40
Slide 20: Superior Pace of Disbursement
Superior Pace of Disbursement New Growth Drivers Adding Momentum… Disbursements Segmental Break Up (₹ Mn) Disbursements Segmental Break Up (%) MSME Gold Housing CF IL MSME Gold Housing CF IL 1,60,112 7.6% 16.8% 15.9% 25,483 32.9% 41.1% 13.0% 33.2% 20,876 18.8% 11.8% 18,909 21.0% 16.9% 76,461 19.8% 1
Slide 21: MSME Lending
MSME Lending Small Loans, Big Opportunity Large & Growing Ecosystem Geographical Distribution MSME Loan Book (₹ Mn) UP Others 41,728 6% 4% 38,576 Share of MSME GVA % Maharashtra ~29% of overall GDP (FY22) 6% 31,911 Delhi 25,114 Rajasthan 3% 20,466 34% MSMEs share of total ~35% Credit exposure in Ind
Slide 22: Our Impact: MSME Finance
Our Impact: MSME Finance “From 4 wheels to 4 rooms: Championing breakfast for locals in Madhya Pradesh” In the hope of orchestrating a better future for his grandchildren, Rajendra Malvia partnered with Capri Global to expand his snacks business from a cart to a restaurant. Location: Madhya Pradesh
Slide 23: Affordable Housing
Affordable Housing Capitalizing on the Huge Demand Outlook Large & Growing Ecosystem Geographical Distribution Housing Loan Book (₹ Mn) Others 37,541 Expected CAGR of UP 6% affordable housing ~20% sector from 2022-2028 12% MP 33% 26,192 17,474 Housing shortage to Delhi ~90% LIG and EWS 6% 8,982 11,5
Slide 24: Our Impact: Housing Finance
Our Impact: Housing Finance “Building a house of dreams” Mamta Thakur, a headmistress in a government school, is teaching a lesson about financial independence and stability to all the single mothers around her through leading by example. Capri Global has been her partner of choice in materializing
Slide 25: Construction Finance
Construction Finance Building a Sustainable Future Large & Growing Ecosystem Geographical Distribution CF AUM (₹ Mn) Others 26,213 7% Delhi NCR India’s construction ~$738 Bn industry in 2022 9% Mumbai MMR 26% 18,301 Hyderabad 12,662 10% 9,619 8,735 Estimated annual ~6.2% growth rate from Bengaluru 2
Slide 26: Our Impact: Construction Finance
Our Impact: Construction Finance “Scaling up against all odds” Arvind dreamed big and emerged bigger and found Capri Global holding his hand on the way. With strong fundamentals and a market presence, Arvind entrusted Capri Global with his business expansion Location: Delhi NCR (Faridabad) Focus: Re
Slide 27: Car Loan Distribution
Car Loan Distribution Growing At Superior Pace Key Statistics PAN India Presence INR 1.6 Bn INR 1.0 Mn 3 14 Gross Fee Income Generated Average Ticket Size (Q4FY24) 25 4 In FY24 23 29 4 4 788 32 1 80 9 60 2 Total Locations States/UTs Presence 39 4 5 1 47 17 5 70 24 Partner Banks 12 20 50 16 17 8 77 4
Slide 28: Co-Lending Focus
Co-Lending Focus Huge Growth Opportunity Co-Lending AUM (₹ Mn) 11.7% 18,306 8.9% 7.8% 6.2% 6,674 5.3% 11,948 9,685 2,255 3,185 2,083 6,931 2,583 5,469 2,084 1,414 465 8,446 Co-originating loans in the MSME, Affordable Housing and 5,518 6,195 5,004 Gold Loan segment with partner banks based on RBI’s
Slide 29: Insurance
Insurance Newly Ventured Space License Approval Strategic Partnerships IRDAI Composite License Secured for Tied with 11 Insurance companies (5 Life, Non-Life, and Health Insurance Life Insurance, 4 Health Insurance and Distribution since Dec ‘23 2 General Insurance) Customized Solutions Capitalizing
Slide 30: Gold Loans
Gold Loans Scaling Fast, Significant Opportunity for Organized Players Large & Growing Ecosystem Geographical Distribution Gold Loan Book (₹ Mn) Others New Delhi 28,236 Expected Gold Loan 5% ₹6.6 Tn market in FY25 8% Rajasthan Maharashtra 24% Share of organized 9% 11,259 ~35% sector in Indian Gold L
Slide 31: Appendix: Financial Performance
Appendix: Financial Performance
Slide 32: Financial Performance
Financial Performance Steady Growth Over The Years Net Interest Income (₹ Mn) Net Income (₹ Mn) 13,689 9,869 9,080 6,361 5,087 6,319 3,872 3,848 4,305 4,484 FY20 FY21 FY22 FY23 FY24 FY20 FY21 FY22 FY23 FY24 Operating Profit (₹ Mn) Profit After Tax (₹ Mn) 4,569 2,794 3,783 3,330 2,050 2,047 2,964 1,7
Slide 33: Key Ratios
Key Ratios Consistent Improvement Spreads (%)1: Cycle Turning C/I (%) : Impacted By Gold Loan Opex 6.9 6.8 66.6 63.4 6.5 6.4 6.2 38.4 40.1 35.2 FY20 FY21 FY22 FY23 FY24 FY20 FY21 FY22 FY23 FY24 Return on Average Assets (%) : Short Term Impact Return on Average Equity (%) : Short Term Impact 3.7 3.6
Slide 34: CGCL Consolidated Income Statement
CGCL Consolidated Income Statement Annual Comparison Profit and Loss A/c FY20 FY21 FY22 FY23 FY24 ₹ Mn except stated Interest income 6,700 6,735 8,396 11,678 18,228 Interest expenses 2,828 2,887 3,308 5,317 8,359 Net interest income 3,872 3,848 5,087 6,361 9,869 New businesses Other income 433 636 1
Slide 35: CGCL Consolidated Balance Sheet
CGCL Consolidated Balance Sheet Annual Comparison Balance Sheet FY20 FY21 FY22 FY23 FY24 ₹ Mn except stated Ample leverage room to continue delivering robust growth. ~3.4x growth in balance sheet in 4 years. Addition of new products creating foundation for a strong and sustainable growth. ~3.4x grow
Slide 36: CGCL Consolidated Earnings
CGCL Consolidated Earnings Du Pont Analysis ROA Tree (%) FY20 FY21 FY22 FY23 FY24 Interest income 15.4 13.1 13.0 12.3 13.5 Interest expenses 6.5 5.6 5.1 5.6 6.2 Net interest income 8.9 7.5 7.8 6.7 7.3 Other income 1.0 1.2 1.9 2.9 2.8 Fees 0.9 1.2 1.7 1.2 0.8 Other income 0.1 0.0 0.2 1.6 2.0 Net inco
Slide 37: Shareholding
Shareholding ❑ Market capitalization1 : ₹ 166bn | US$ 1.99bn2 ❑ Cons. Networth3 (Q4FY24) : ₹ 38.4bn Promoter Group ❑ Paid-up Equity : ₹ 824.9mn 15.1% ❑ FV4 : ₹ 1 15.0% Institutional Shareholders ❑ Dividend Per Share (proposed) : ₹ 0.15 69.9% Other Public Shareholders Note: 1. Market capitalization N
Slide 38: Board Of Directors
Board Of Directors Lingam Venkata Prabhakar, Chairman & Independent Director Rajesh Sharma, Ex-MD & CEO Canara Bank and ex- Managing Director ED Punjab National Bank; rich Founder & Promoter with over 2.5 experience in banking and finance, decades of experience; Chartered AMCs, insurance companies;
Slide 39: Leadership Team
Leadership Team Retail Business Ravish Gupta Bhupinder Singh Technology & Data Analytics Satish Shimpi (Chief Compliance Officer) (Business Head – Gold Loans) (Head – Legal Litigation) Ex-Bajaj Finance, Bandhan Bank, Ex-IIFL Finance, GE Money, HDFC More than a decade experience IndusInd Bank, Bank o
Slide 40: Disclaimer
Disclaimer This presentation and the accompanying slides (the “Presentation”), which have been prepared by Capri Global Capital Limited (the “Company”), have been prepared solely for information purposes only and does not constitute any offer or invitation, directly or indirectly, in any manner, or
Slide 41: Thank You
Thank You For Further information, please contact : For Further information, please contact : Ravikant Pramod Bhat Shettigar Sheetal Khanduja Rajat Gupta Sheetal Khanduja Rajat Gupta ravikant.bhat@capriglobal.in pramod.shettigar@capriglobal.in sheetal@GoIndiaAdvisors.com rajat@GoIndiaAdvisors.com sh
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