Capri Global Capital Limited · NSE:CGCL

Capri Global Capital — Investor Presentation (December 2020)

16 slides from Capri Global Capital's investor presentation, Dec 18, 2020

  1. Slide 1: Exchange disclosure letter: Analyst Meet Presentation

    PRIGLOBAL December 18, 2020 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, Sandra (East) Scrip Code: 531595 Mumbai -400 051 Scr

  2. Slide 2: Construction Finance: A Retail Way of Doing Business

    Construction Finance A Retail Way of Doing Business Dec 2020 CAPRIGLOBAL 1

  3. Slide 3: Overview

    Overview Industry Update Construction Finance Overview Developer, Collections and Business Update Monitoring Strategy leading to zero NPA’s Plans Going Forward CAPRIGLOBAL 2

  4. Slide 4: Rising Housing Demand Post Unlocking

    Rising Housing Demand Post Unlocking Source : Anarock (PAN India Data) New Launches Sales Trend 1,00,000 70000 1,00,000 80000 90,000 90,000 70000 60000 80,000 80,000 60000 70,000 50000 70,000 60,000 60,000 50000 40000 50,000 50,000 40000 40,000 30000 40,000 30000 30,000 20000 30,000 20000 20,000 20,

  5. Slide 5: Affordable Housing Segment Makes a Comeback

    Affordable Housing Segment Makes a Comeback Source : Anarock (PAN India Data) Budget Segmentation of Supply 100% 3% 3% 3% 3% 2% 4% 3% 4% 3% 4% 3% 3% 4% 6% 5% 8% 3% 6% 6% 6% 4% 6% 4% 5% 5% 8% 7% 90% 12% 9% 10% 14% 20% 13% 15% 16% 19% 15% 16% 17% 80% 15% 19% 20% 20% 70% 60% 46% 32% 31% 32% 33% 40% 36%

  6. Slide 6: Inventory Level Decrease Dramatically Over Last 3-4 Years

    Inventory Level Decrease Dramatically Over Last 3-4 Years Source : Anarock (PAN India Data) Unsold Inventory 8,00,000 7,80,000 7,60,000 7,40,000 No. of Units 7,20,000 7,00,000 6,80,000 6,60,000 6,40,000 6,20,000 6,00,000 Q1 2017 Q2 2017 Q3 2017 Q4 2017 Q1 2018 Q2 2018 Q3 2018 Q4 2018 Q1 2019 Q2 2019

  7. Slide 7: Industry Issues of the Past

    Industry Issues of the Past Siphoning of Money Project Money Diversion to buy more land Meeting project deadlines, delivering the project on time Late Payment, Poor Cashflow Management and Insufficient financial resources Defaults and Bankruptcies of firms like DHFL, IL&FS, Reliance Capital etc CAPR

  8. Slide 8: Our Learnings have Reaped in Huge Benefits

    Our Learnings have Reaped in Huge Benefits Small and granular ticket size lending to our developers aiding in near zero NPAs Presence for the CF business is in the cities where there is a good demand for affordable and mid- segment housing, where approvals are in place Cash Flow backed disbursements

  9. Slide 9: Construction Finance – Product Overview

    Construction Finance – Product Overview o Cash Flow Backed / Asset Backed Financing Product Focus o Good promoter track record and project location o Sanction Ticket between INR 10 crores to INR 25 crores for a tenor of 1 to 4 years o North Zone – NCR, Jaipur Geographical o Gujarat – Ahmedabad, Sura

  10. Slide 10: Construction Finance – Credit Appraisal Overview

    Construction Finance – Credit Appraisal Overview Promoter / Group o Strong promoters having project completion history along with ongoing projects o Previous / existing borrowing track record Selection o Satisfactory net worth Criteria Project o Affordable and marketable location o Mortgage rights a

  11. Slide 11: Construction Finance – Risk Management Overview

    Construction Finance – Risk Management Overview o Detailed IC note proposed by local credit, reviewed by central credit and recommended by Credit Head IC approval and to IC Committee for approval Documentation o Execution of facility documents vetted by inhouse legal team o Detailed compliance check

  12. Slide 12: Regular Monitoring Leading to ~NIL NPAs

    Regular Monitoring Leading to ~NIL NPAs Early Warning Signals through Compliances and Milestone Tracking • Site Inspection Reports • Follow-up for timely submission of Monthly MIS and MIS analysis. • Cashflow Analysis Reports • Ensuring that all the collections are • Account Conduct Reports routed i

  13. Slide 13: Going Slow Even Before the COVID Pandemic Hit Us

    Going Slow Even Before the COVID Pandemic Hit Us AUM Trend (INR Cr) Sanctions Trend Disbursements Trend (INR Cr) 1,300 120 70 1,250 1,200 100 60 1,150 50 80 1,100 40 1,050 60 1,000 30 40 950 20 900 20 10 850 800 - - Apr Jun Aug Oct Dec Feb Apr Jun Aug Oct Dec Feb Apr Jun Aug Oct Dec Feb CF Disbursem

  14. Slide 14: Demand for Projects Finance Back to Pre Covid Levels

    Demand for Projects Finance Back to Pre Covid Levels Area Sold (000 Sq.Ft) Project Sales Collection (Rs in Crs) 400 180 353 158 350 160 140 300 120 250 96 100 194 200 80 159 157 64 149 145 150 60 49 43 44 47 111 89 93 98 36 100 85 40 29 31 77 69 71 19 21 21 25 20 50 - - Ahmedabad Surat Pune Mumbai B

  15. Slide 15: Plans Going Forward

    Plans Going Forward Maintain portfolio level and its quality o CF Portfolio peaked out in Mar-19 at INR 1200 crores and since then its been a continuous reduction due to; • IL&FS crisis – Oct-2018 • Maintaining balance of CF Book vis a vis overall AUM. • Liquidity crisis – May-19 • Pandemic – Mar-20

  16. Slide 16: Thank you

    Ne APRI GLOBAL CAPITAL LIMITED Thank you

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