Capri Global Capital Limited · NSE:CGCL
Capri Global Capital — Q2 FY2020 Earnings Presentation
46 slides from Capri Global Capital's earnings presentation, Nov 11, 2019
Slide 1: Capri Global Capital Limited – Filing Cover Letter
CAPRI GLOBAL ◄0 .... CAPITAL LIMITED ,. ► Unlocking po�tia/s, Empowerin9 people November 11, 2019 The Secretary The Secretary BSE Limited National Stock Exchange of India Limited Pheeroze Jeejeebhoy Towers Exchange Plaza, 5 th Floor Dalal Street, Fort Plot No- 'C' Block, G Block Mumbai - 400 001 Ban
Slide 2: Q2FY20 Earnings Presentation
Q2FY20 Earnings Presentation 08th November 2019
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
Slide 4: Capri Global Capital: An Introduction
Capri Global Capital: An Introduction A diversified Non-Banking Financial Company (NBFC) with presence across high growth segments like MSME, Construction Finance, Affordable Housing and Indirect Retail Lending segments Promoted by first generation entrepreneur, Mr. Rajesh Sharma, Capri Global C
Slide 5: Executive Summary: Emerging as a Stronger Institution
Executive Summary: Emerging as a Stronger Institution Journey Begins Building an Credibility Institution 2011 2016 2019 o AUM of INR 220 o Forayed into Bn with a CAGR Housing of 40% Finance o Expanding our o Raised Capital of INR o Branch reach to the 4.45 Bn network underserved o Branch network o A
Slide 6: Guidance; Adopting a Safer Approach
Guidance; Adopting a Safer Approach Projected AUM (INR Mn) along with FY20 GUIDANCE Branch Expansion 3,00,000 300 Total AUM target at INR 50,000+ Mn 245 2,50,000 250 223,259 210 Aim to grow loan book at a CAGR of ~40% 2,00,000 200 175 153,898 1,50,000 135 150 Segment Projected Yield 105,961 MSME 15.
Slide 7: Branch Network Expansion; Adopting Low Cost Hub & Spoke Model
Branch Network Expansion; Adopting Low Cost Hub & Spoke Model Area Managers - Sales - Branch Manager - Credit - Relationship Mangers (DSTs) - Operations - Credit Resource Hub - FCU , Legal Spoke Technical and - Direct connect Collections with customers - Spoke branch functions Benefits of Hub & Spok
Slide 8: Well Capitalized Business Model: Aid to Expansion
Well Capitalized Business Model: Aid to Expansion Current Assets (INR Mn) Capital Adequacy (%) 79.7 1,691 1,410 53 1,230 39.3 34.5 36.2 825 567 415.4 483.3 181.2 114.1 104.2 FY16 FY17 FY18 FY19 H1FY20 FY16 FY17 FY18 FY19 H1FY20 Investments Cash Equivalents Comfortable liquidity Average quarterly Opt
Slide 9: Q2FY20 Review: Building Business Strength for Stronger H2FY20
Q2FY20 Review: Building Business Strength for Stronger H2FY20 Managing liquidity for stronger Focusing on operating Cautious lending and loan H2 efficiencies sourcing approach • Addition of new bank lines • Optimised Operational structure • Cautious approach in CF lending: of 5,750 Mn in Q2FY20; by
Slide 10: Q2FY20 & H1FY20 Performance and Analysis
Q2FY20 & H1FY20 Performance and Analysis 9
Slide 11: Capri Global Capital: Banking The Unbanked
Capri Global Capital: Banking The Unbanked H1FY20 At A Glance Total AUM* INR 39.57 billion MSME AUM 20,200 + Live Accounts INR 19.83 billion CF + IRL AUM INR 11.29 billion 1,550+ Employees HL AUM INR 8.44 billion 8 States Total Disbursements INR 4.97 billion 85 PAT Branches INR 766 million Net Worth
Slide 12: Q2FY20: At a Glance..
Q2FY20: At a Glance.. Consolidated numbers NII (INR MN) PAT (INR MN) AUM (INR MN) 39,570 1,012 389 757 244 34,888 Q2FY19 Q2FY20 Q2FY19 Q2FY20 Q2FY19 Q2FY20 Capital Adequacy Ratio* (%) Gross NPA (%) Net NPA (%) MSME + CF + IRL HF MSME + CF + IRL HF 37% 2.56 1.79 1.25 1.05 36% 1.14 0.65 0.41 0.22 Q2FY
Slide 13: Q2FY20: Key Highlights
Q2FY20: Key Highlights Consolidated numbers AUM - Segmental Breakup Disbursements - Segmental Portfolio Yield (%) (INR Mn) Breakup (INR Mn) 18.7% 16.8% 2,463 15.6% 15.13% 19,830 2,367 14.6% 13.5% 14.1% 17,630 12.3% 1,552 10,495 10,810 1,221 8,444 950 5,106 630 414 1,655 480 - Q2FY19 Q2FY20 Q2FY19 Q2
Slide 14: H1FY20: Key Highlights
H1FY20: Key Highlights Consolidated numbers NII (INR MN) PAT (INR MN) Cost – Income (%) 50 1,948 766 682 515 42 H1FY19 H1FY20 H1FY19 H1FY20 H1FY19 H1FY20 Book Value Per Share (Rs.) Return on Assets (%) Return on Net Worth (%) 83 10.81 3.61 8.08 74 3.09 H1FY19 H1FY20 H1FY19 H1FY20 H1FY19 H1FY20 13
Slide 15: Q2FY20: Performance Summary
Q2FY20: Performance Summary All amounts in INR Mn except stated Particulars Q2FY20 Q2FY19 Y-o-Y (%) Q1FY20 Q-o-Q (%) Interest Earned 1,724 1,226 41% 1,636 5% Interest Expense 712 469 52% 700 1% Net Interest Income 1,012 757 34% 936 8% Net Interest Margin (NIM)% 10.1% 9.2% 0.9% 9.1% 1.0% PAT 389 244
Slide 16: Stable Asset Quality: Stage Analysis As per IND-AS
Stable Asset Quality: Stage Analysis As per IND-AS All amounts in INR Mn except stated ECL Analysis as per INDAS Q2FY20 Q1FY20 Q4FY19 Stage 1 & 2 - Gross 38,679 40,144.4 32,605 Stage 1 & 2 – ECL Provisions 207 204.6 19.7 Stage 1 & 2 – Net 38,471 39,940 32,408 Stage 1 & 2 – ECL Provisions % 0.54% 0.5
Slide 17: Asset-Liability Split: Consistent Mix
Asset-Liability Split: Consistent Mix All amounts in INR Mn 30th September, 2019 31st March, 2019 19,789 18,104 19,421 19,044 ❖ Have consistently 14,327 20,905 14,090 13,180 16,098 remained cautious about 15,984 short-term asset & 11,063 liability mismatches by ensuring optimally 7,350 matched Balan
Slide 18: Liability Mix: The Low Cost Benefit
Liability Mix: The Low Cost Benefit Total Borrowings (INR Mn) & Borrowing Mix Higher Share of Bank Borrowing >> Lower Overall Cost of Borrowing 7,280 15,661 27,687 26,995 28,603 ▪ Nil exposure to short-term money market signifies no probability of default 97% 100% ▪ CGCL’s prudence in higher borrowi
Slide 19: NPA Analysis: Prudent Lending Practises
NPA Analysis: Prudent Lending Practises CGCL (Standalone) FY16 FY17 FY18 FY19 (INR MN) GNPA Product Segment wise – Q2FY20 NPA Recognition 150 DPD 120 DPD 90 DPD 90 DPD Norms GNPA 97 178 439 560 Product Segment GNPA % NNPA % NNPA 83 152 374 202 MSME 3.94% 2.34% Provisions 14 26 64 358 Total Assets 13
Slide 20: Small Loans: Niche Capabilities
Small Loans: Niche Capabilities MSME Construction Finance Housing Finance Indirect Lending ~ 50 % of AUM ~ 27 % of AUM ~ 21 % of AUM ~ 2 % of AUM • Focus on Tier II & III • Project outreach: 144 • Affordable housing • NBFC Outreach: 7 cities; Customer • Key markets: customers in Tier II & • Financin
Slide 21: Annexure: About CGCL & Industry Scenario
Annexure: About CGCL & Industry Scenario 20
Slide 22: Capri Global Capital In a Nutshell
Capri Global Capital In a Nutshell An upcoming Diversified NBFC with OUR MISSION OUR BUSINESS MODEL presence across high growths segments ‘Our mission is to shape this future • Small-ticket, retail-focused like MSME, Construction Finance, and create a solid social impact segments: MSME financing,
Slide 23: Business Overview: Diversified Portfolio
Business Overview : Diversified Portfolio Our Solutions and Offerings MSME Finance Construction Finance Housing Finance o Cash flow-based lending to self employed o Home Loan for purchase of o Construction Finance/Project Finance, Cash MSME for Business loan against ready/under-construction resident
Slide 24: CGCL Advantage: What Sets us Apart
CGCL Advantage: What Sets us Apart 1 Focus on SENP Borrower 4 Multi Layered Credit Approach o Strong focus on self employed non-professional borrower; carved o Customized underwriting approach basis the customer’s out a niche in this segment. profile; Credit team personally spends time with customer
Slide 25: MSME Lending: A Huge Unexplored Opportunity
MSME Lending: A Huge Unexplored Opportunity MSME credit to grow at 12-14% over 5 years: The NBFC Advantage in MSME Funding ICRA ▪ Lack of formal avenues for financing ensures low penetration from banks Non-bank share in MSME credit pie should expand to 22-23% ▪ Banks face issues in financing MSMEs d
Slide 26: MSME: Small Loans, Big Opportunity
MSME: Small Loans, Big Opportunity Focus Area MSME Assets by Geography 2% 8% 3% Delhi NCR 34% Maharashtra 13% Gujarat Micro Enterprise Small Enterprise MP • Self Employed Individuals – • Small enterprises with Rajasthan Provision stores, retail formal income Punjab outlets, handicrafts etc documenta
Slide 27: MSME: CGCL's Growth Driver
MSME: CGCL’s Growth Driver Disbursals (INR Mn) Live Accounts 11,051 11,264 7,910 7,720 6,100 1,980 FY18 FY19 H1FY20 FY18 FY19 H1FY20 Direct Sourcing (AUM) 73% 73.70% 55% FY18 FY19 H1FY20 26
Slide 28: Affordable Housing: Large Demand & Low Formal Financing
Affordable Housing: Large Demand & Low Formal Financing Housing Shortage Urban Housing shortage pegged to reach 34.1 million 43.7 96% shortage in units by 2022 EWS & LIG 95%+ of the shortage corresponds to Lower Income LIG, 40% 18.8 Group (LIG) & Economically Weaker Sections (EWS) EWS, 56% In 2015,
Slide 29: Housing Finance: Capitalising on Affordable Housing Opportunity
Housing Finance: Capitalising on Affordable Housing Opportunity Focus Area HF Lending Portfolio by Geography • Serves middle and lower middle income population in Tier 2 and 3 cities 11% • Ventured in 2016 through its subsidiary 36% Maharashtra – Capri Global Housing Finance Limited 18% Gujarat Delh
Slide 30: Housing Finance: Exponential Growth Potential
Housing Finance: Exponential Growth Potential Disbursals (INR Mn) Live Accounts 5,090 8,637 8,785 2,404 1,318 2,621 FY18 FY19 H1FY20 FY18 FY19 H1FY20 Portfolio Yield (%) 14.10% 13.38% 12% FY18 FY19 H1FY20 29 Note: FY18 was the 1st full year of operations
Slide 31: Urban Construction Finance: Significant Scope of Growth
Urban Construction Finance: Significant Scope of Growth Recent Government Initiatives to promote affordable Demand Drivers for Growth in Indian Mortgage Market housing construction • 100% tax exemption on affordable housing • 66% of India’s population is aged below 35 years, construction projects fo
Slide 32: Construction Finance: The Retail Way
Construction Finance: The Retail Way • Exposure to Mumbai region at 25 % Addressing Concentration • Reduced average interest rates to in H1FY20 vs 69% in FY16 Risk 14-17% from 18-20% to target larger • New geographies added in past 2 developer audience years: Ahmedabad, Chennai, • Aim to specialise
Slide 33: Construction Finance: Building a Sustainable Future
Construction Finance: Building a Sustainable Future Focus Area CF Lending Portfolio by Geography 2% 1% • Construction linked loans to small and 3% midsize real estate developers 2% 6% Mumbai 25% Pune • Comprehensive framework for project Bangalore 8% selection and credit appraisal Ahmedabad Delhi-NC
Slide 34: Construction Finance: High Yield, Low Risk
Construction Finance: High Yield, Low Risk Disbursals (INR Mn) Number of projects 8,860 146 144 8,240 98 1,670 FY18 FY19 H1FY20 FY18 FY19 H1FY20 Portfolio Yield (%) 18.70% 17.20% 16% 33 FY18 FY19 H1FY20
Slide 35: Indirect Retail Lending: Unique Product Offering
Indirect Retail Lending: Unique Product Offering` Focus Area AUM Disbursements Lending to small NBFCs engaged in INR 480 Mn Nil o MSME Lending and Microfinance o Two Wheelers and Commercial Vehicles finance Hypothecation of receivables - 1 to Ticket Size Range Customers 1.2X cover INR 50-250 Mn
Slide 36: Over the Years…
Over the Years… Net Interest Margin (%) Pre-Tax RoCE (%) Spread (%) 12.06 6.35 5.6 5.73 14.8 5.07 4.93 9.21 9.49 11.6 8.5 9.3 9.32 9.67 5.7 FY16 FY17 FY18 FY19 H1FY20 FY16 FY17 FY18 FY19 H1FY20 FY16 FY17 FY18 FY19 H1FY20 Return on Equity (%) Cost to Income Ratio (%) Return on Assets (%) 10.8 52 3.51
Slide 37: Over the Years…
Over the Years… NII (INR Mn) PAT (INR Mn) 3,236 1,357 2,252 1,948 766 1,495 1,671 659 581 436 FY16 FY17 FY18 FY19 H1FY20 FY16 FY17 FY18 FY19 H1FY20 Total Assets (INR Mn) Capital Adequacy (%) 42,770 42,090 79.7 29,710 53 19,861 39.3 36.2 34.2 13,204 FY16 FY17 FY18 FY19 H1FY20 FY16 FY17 FY18 FY19 H1FY
Slide 38: Retail focussed model aiding to strong Asset quality
Retail focussed model aiding to strong Asset quality MSME Average Ticket Size (In Mn) Construction Finance Average Ticket Size (In Mn) Housing Finance Average Ticket Size (In Mn) 4.3 277 1.5 2.6 1.1 1 1.5 99.2 80 FY17 FY18 FY19 FY17 FY18 FY19 FY17 FY18 FY19 MSME GNPA (%) Construction Finance GNPA (%
Slide 39: Growing At a Superior Pace
Growing At a Superior Pace Disbursement Mix (INR Mn) AUM Mix (INR Mn) MSME CF IL HL MSME CF IL HL 8,860 8,240 19,710 7,915 7,720 7,230 15,413 5,990 5,090 12,027 12,010 4,760 9,427 7,484 7,930 3,058 2,922 5,999 2,108 2,080 … 4,415 1,600 1,100 3,113 2,450 1,100 1,390 65 65 FY15 FY16 FY17 FY18 FY19 FY1
Slide 40: Income Statement- Quarterly Comparison
Income Statement- Quarterly Comparison INR Mn Q2FY20 Q2FY19 Y-o-Y(%) Q1FY20 Q-o-Q(%) Interest earned 1,724 1,226 40.6% 1,636 5.4% Interest expanded 712 469 51.8% 700 1.7% Net interest income 1,012 757 33.7% 936 8.1% Non-interest income 80 117 -31.6% 105 -23.8% - Fee and Commission income 63 107 -41.
Slide 41: Income Statement
Income Statement INR Mn FY18 FY19 Y-o-Y(%) H1FY19 H1FY20 Y-o-Y(%) Total interest earned 3,219 5,307 64.9% 2,301 3,360 46.1% Total interest expanded 967 2,071 114.1% 862 1,412 63.9% Net interest income 2,252 3,236 43.7% 1,439 1,948 35.4% Non-interest income 293 606 107.2% 243 185 -24.0% - Fee and Com
Slide 42: Balance Sheet
Balance Sheet INR Mn FY18 FY19 Y-o-Y (%) H1FY19 H1FY20 Y-o-Y (%) Share Capital 350 350 0.0% 350 350 0.0% Reserves and Surplus 12,166 13,476 10.8% 12,668 14,181 11.9% Networth 12,516 13,826 10.5% 13,018 14,531 11.6% Borrowings 15,661 27,687 76.8% 23,858 26,995 13.1% Other Liabilities and Provisions 1
Slide 43: Leadership Team
Leadership Team Surender Sangar Vikas Sharma Ashish Gupta Hemant Dave Head – Construction Finance Business (HL) and Collections Head Chief Financial Officer Head of Operations Ex-MD – Tourism Finance Corporation of Ex - Kotak Mahindra Bank, Dhanlaxmi Ex - Jindal Stainless, Isolux, Ex - Kotak Mahindr
Slide 44: Board of Directors
Board of Directors Rajesh Sharma Ajay Kumar Relan T. R. Bajalia Bhagyam Ramani Managing Director Independent Director Independent Director Independent Director Founder & promoter Founder CX Partners & Citi Ex-DMD – SIDBI, Ex- GM and Director of General Over 23 years of experience Bank N.A. in India,
Slide 45: Key Partnerships
Key Partnerships Lenders Auditors & Advisors 44
Slide 46: Thank You
Thank You For further information, please get in touch with: Sheetal Khanduja sheetal@GoIndiaAdvisors.com M:+91 97693 64166 Rajat Gupta rajat@GoIndiaAdvisors.com M:+91 9971897739
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