Capri Global Capital Limited · NSE:CGCL
Capri Global Capital — Q2 FY24 Earnings Presentation
45 slides from Capri Global Capital's earnings presentation, Nov 1, 2023
Slide 1: Exchange filing cover letter
November 1, 2023 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: C
Slide 2: Q2FY24 Earnings Presentation
Responsible. Resilient. Ready. Q2FY24 Earnings Presentation 1st November 2023 C A P R I GFollow L O B A Lus: 1 This presentation was updated on 8th August 2023.
Slide 3: Business Performance
Business Performance CAPRIGLOBAL 2
Slide 4: Key Highlights
Key Highlights ❑ Business momentum picked up after a lean Q1FY24; disbursals touched Rs35,267mn (130% YoY, 31% QoQ) while Cons. AUM increased to Rs123,585mn (59% YoY, 10% QoQ). Launched ‘Digital Lending’ product during Q2FY24. ❑ Gold Loan disbursals constituted 47% of consolidated disbursals during
Slide 5: Business Update: Consolidated AUM Up 59% YoY
Business Update : Consolidated AUM Up 59% YoY^ AUM Break Up (Incl. Co-Lending) (₹ Mn)* Composition of AUM (Incl. Co-Lending) (%)* ❑ MSME, Housing, and Gold Loan AUM values are inclusive of co-lending and directly assigned AUM. See next slide for further details. ^ Including co-lending AUM, * As at t
Slide 6: Retail AUM: Rising Share Of Co-Lending AUM
Retail AUM : Rising Share Of Co-Lending AUM Co-Lending AUM (₹ Mn) MSME AUM (₹ Mn) 15,000 7.8% 10.0% 6.2% 8.0% 13,000 4.7% 5.3% 6.0% 11,000 3.1% 9,685 4.0% 9,000 1,406 2.0% 6,931 7,000 5,469 2,084 0.0% 1,414 5,000 4,047 465 -2.0% 2,413 162 -4.0% 3,000 5,518 6,195 5,004 -6.0% 3,885 1,000 2,413 -8.0% (
Slide 7: Disbursals: Continued Momentum In Gold, Strong Uptick In Housing
Disbursals : Continued Momentum In Gold, Strong Uptick In Housing Segmental Disbursals (₹ Mn) Composition of Segmental Disbursals (%) Note: MSME and Housing Finance disbursals between Q2FY23-Q3FY23 have been re-stated to include co-lending disbursals. CAPRIGLOBAL 6
Slide 8: MSME Business Update
MSME Business Update Average Ticket Size (Incr. Disbursals) (₹ Mn) Live Accounts* Loan to Value (%) (Incremental Disbursals) Geographical Distribution (Value-Wise)^ * As at the end of period indicated ^ As at September 30, 2023 CAPRIGLOBAL 7
Slide 9: Gold Loan Business Update
Gold Loan Business Update Average Ticket Size (On Portfolio) (₹) Live Accounts* Loan to Value (%) (Incremental Disbursals) Geographical Distribution (Value-Wise)^ CAPRIGLOBAL 8
Slide 10: Construction Finance Business Update
Construction Finance Business Update Average Ticket Size (₹ Mn) Live Accounts* Geographical Distribution (Value-Wise)* * As at September 30, 2023 CAPRIGLOBAL 9
Slide 11: Housing Finance Business Update
Housing Finance Business Update Average Ticket Size (₹ Mn) (Incremental Disbursals) Live Accounts* Loan to Value (%) (Incremental Disbursals) Geographical Distribution (Value-Wise)* Salaried 41% Self-employed 59% * As at September 30, 2023 CAPRIGLOBAL 10
Slide 12: Car Loan Distribution: Pan-India Distributor
Car Loan Distribution: Pan-India Distributor Partner Banks Pan-India coverage through presence in 714 locations in 32 States & UTs Total Locations (Branches + Feet-on-Street) Q2FY23 Q3FY23 Q4FY23 Q1FY24 Q2FY24 322 322 450 714 714 Note: Political map of India not to scale CAPRIGLOBAL 11
Slide 13: Car Loan Origination – On Track To Cross Rs100bn In FY24
Car Loan Origination – On Track To Cross Rs100bn In Originations In FY24 Consistently Rising Loan Originations (₹ Mn)^ Loan Originations Full Year Basis (₹ Mn) Loan Originations By Volume (Nos.)^ Average Ticket Size (₹ Mn) * ^Provisional data pertaining to previous quarters has been re-stated. * ATS
Slide 14: Earnings Performance
Earnings Performance CAPRIGLOBAL 13
Slide 15: Performance Matrix: PAT Flat On Proactive Provisioning
Performance Matrix : PAT Flat On Proactive Provisioning NII (₹ Mn) Operating Profit (₹ Mn) Credit Costs (₹ Mn) PAT (₹ Mn) Avg. credit cost Rs173mn in trailing 5 quarters CAPRIGLOBAL 14
Slide 16: Non-Interest Income: Changing Dynamics In Car Fees
Non-Interest Income : Changing Dynamics In Car Fees Net Non-Interest Income (₹ Mn)* Non-Interest Income / Net Income (%) *Net Non-Interest Income = Total Income less Interest Income less Fee and Commission Expense less Net loss on fair value changes (if any) o Non-car fees picked up led by a strong
Slide 17: Loan Yields: Compression In CF; Other Segments Stable
Loan Yields : Compression In CF; Other Segments Stable MSME (%) Housing Finance Gold Loans (%) Construction Finance (%) Closure/forec -losure of higher yield loans and competitive incremental yields led to decline CAPRIGLOBAL 16
Slide 18: Key Ratios: Spreads Compress But Healthy
Key Ratios : Spreads Compress But Healthy Yield on Advances (Wtd. Avg.) (%) Cost of Funds (Wtd. Avg.) (%) Spreads (YoA – CoF) (%) Net Interest Margin (%) NIM decline primarily caused by spread compression in Q2FY24 CAPRIGLOBAL 17
Slide 19: Operating Expenses: Marginal Uptick in C/I
Operating Expenses : Marginal Uptick in C/I Operating Expenses (₹ Mn) Operating Expenses Composition (%) Cost-Income (%): Marginal Increase QoQ Cost / AAUM (%) (annualized) Adjusted for the Gold Loan vertical Cost/AAUM income and calculated opex, the considering C/I ratio was new car ~51% in loan Q2
Slide 20: Key Ratios: Return Ratios Flat Due To Muted Profitability
Key Ratios : Return Ratios Flat Due To Muted Profitability Annualized Return on Equity (%)* Annualized Return on Assets (%) * Q4FY23 RoE computed after applying suitable weightage to fresh equity raised EPS (Diluted) (₹) (Not Annualized)* Book Value Per Share (₹)* *Q4FY23 EPS was based on weighted a
Slide 21: Liabilities & Liquidity Position Update
Liabilities & Liquidity Position Update CAPRIGLOBAL 20
Slide 22: Liability Mix: Increase Led by Bank Borrowings
Liability Mix : Increase Led by Bank Borrowings Diversified Funding Profile (₹ Mn) Consolidated Borrowings Break-up (₹ Mn) o Sharp increase in borrowings driven mostly by quarter end drawdowns in new facilities sanctioned ahead of the start of busy festival season. o Company has a strong liquidity p
Slide 23: Liquidity Position: Comfortable Liquidity Position
Liquidity Position : Comfortable Liquidity Position* ₹ Mn except stated CGCL Particulars CGHFL Consolidated (Standalone) Limits Sanctioned 94,300 35,750 130,050 Limits Availed 88,114 35,238 123,351 Un-Drawn 6,186 513 6,699 Repaid 24,724 10,025 34,749 Outstanding 63,390 25,212 88,602 Total no. of rel
Slide 24: Liquidity Position: Proactive Liability Management
Liquidity Position : Proactive Liability Management ₹ Mn except stated CGCL Particulars CGHFL Consolidated (Standalone) Dues during Q2FY24 3,859 1,359 5,219 Payment made as per Schedule (A) 3,859 1,359 5,219 Prepayments made for the quarter (B) 0 0 0 Total repayments/prepayments (A+B) 3,859 1,359 5,
Slide 25: Asset Quality
Asset Quality CAPRIGLOBAL 24
Slide 26: Asset Quality: PCR Improves
Asset Quality : PCR Improves INR Mn except stated ECL Analysis As Per IndAS (INR Mn) Q2FY24 Q1FY24 Q4FY23 Q3FY23 Q2FY23 Stage 1 & 2 - Gross 111,701 103,339 95,985 80,588 73,508 Stage 1 & 2 - ECL Provisions 1,472 1,379 1,258 1,234 1,248 Stage 1 & 2 - Net 110,229 101,959 94,727 79,354 72,260 Stage 1 &
Slide 27: Segmental NPAs: Asset Quality Stable
Segmental NPAs : Asset Quality Stable MSME^ Construction Finance & IL^ Housing Finance^ ^NNPAs computed with Stage-3 ECL provisions compared to earlier representation computed with aggregate ECL provisions till Q3FY23. CAPRIGLOBAL 26
Slide 28: Capital Adequacy
Capital Adequacy CAPRIGLOBAL 27
Slide 29: Well Capitalized For Medium Term Growth
Well Capitalized For Medium Term Growth Consolidated Networth (₹ Mn) Capital Adequacy (%) o CGCL raised Rs14.4bn equity capital through a Rights Issue in Mar’23. The equity was fully deployed during Q1FY24. The Company is well capitalised for medium term growth. o During Q2FY24, CGCL infused Rs2bn i
Slide 30: Network
Network CAPRIGLOBAL 29
Slide 31: Network: Presence In Major Growth Centres
Network: Presence In Major Growth Centres Branch Addition Has Continued ❑ Network expansion led by addition of Gold Loan branches 327 610 736 849 917 continued taking total branch count to 917 in Q2FY24 compared to 849 branches in Q1FY24 and 327 branches in Q2FY23. ❑ Network of non-Gold Loan busines
Slide 32: Network: Presence In Major Growth Centres
Network: Presence In Major Growth Centres Urban Retail, CF, and Car Loan Gold Loan Branches Distribution 742 Branches in 9 States & UTs 175 Branches in 13 States & UTs 1 1 99 3 24 58 1 4 162 65 82 18 117 24 36 102 2 5 13 93 1 5 1 Note: Political map of India not to scale Note: Political map of India
Slide 33: Financials
Financials CAPRIGLOBAL 32
Slide 34: CGCL Cons. Inc. Statement: Quarterly Comparison
CGCL Cons. Inc. Statement : Quarterly Comparison ₹ Mn except stated Particulars Q2FY24 Q2FY23 Y-o-Y (%) Q1FY24 Q-o-Q (%) Interest earned 4,452 2,787 60% 4,134 8% Interest expended 1,958 1,258 56% 1,765 11% Net interest income 2,493 1,528 63% 2,370 5% Non-interest income 803 610 32% 805 0% Net car lo
Slide 35: CGCL Consolidated Balance Sheet
CGCL Consolidated Balance Sheet* ₹ Mn except stated Particulars (INR Mn) Q2FY24 Q2FY23 YoY (%) Q1FY24 QoQ (%) Paid-up equity 412 351 17.3% 412 0.0% Reserves and surplus 36,420 20,062 81.5% 35,901 1.4% Networth 36,833 20,414 80.4% 36,314 1.4% Bank borrowings and refinance 86,489 57,139 51.4% 72,079 2
Slide 36: CGCL Consolidated Income Statement: Annual Comparison
CGCL Consolidated Income Statement : Annual Comparison ₹ Mn except stated Profit and Loss A/c FY19 FY20 FY21 FY22 FY23 Interest income 5,307 6,700 6,735 8,396 11,673 Interest expenses 2,071 2,828 2,887 3,308 5,311 Net interest income 3,236 3,872 3,848 5,087 6,362 New businesses contributing to Other
Slide 37: CGCL Consolidated Balance Sheet: Annual Comparison
CGCL Consolidated Balance Sheet : Annual Comparison* ₹ Mn except stated Balance Sheet FY19 FY20 FY21 FY22 FY23 Liabilities Paid-up equity 350 350 351 351 412 Reserves 13,477 15,042 16,822 18,873 35,242 Ample Networth 13,827 15,392 17,173 19,225 35,655 leverage room to continue Borrowings 27,687 28,3
Slide 38: CGCL Consolidated Earnings: Du Pont Analysis
CGCL Consolidated Earnings : Du Pont Analysis RoA Tree (%) FY19 FY20 FY21 FY22 FY23 Interest income 14.6 15.4 13.1 13.0 12.3 Interest expenses 5.7 6.5 5.6 5.1 5.6 Net interest income 8.9 8.9 7.5 7.8 6.7 Other income 1.6 1.0 1.2 1.9 2.9 Fees 1.5 0.9 1.2 1.7 2.9 Other income 0.1 0.1 0.0 0.2 0.0 Net in
Slide 39: Shareholding
Shareholding o Market capitalization1 : ₹ 157.7bn | US$ 1.89bn2 o Cons. Networth3 (Q2FY24) : ₹ 36.9bn o Paid-up Equity : ₹ 412.3mn 15.1% Promoter Group o FV : ₹ 2 15.0% Institutional Shareholders o Dividend Per Share (FY23) : ₹ 0.50 Other Public Shareholders 69.9% 1. Average of market capitalization
Slide 40: Leadership
Leadership CAPRIGLOBAL 39
Slide 41: Board of Directors & Corporate Governance
Board of Directors & Corporate Governance Independent Board Guides Executive Management Rajesh Sharma, Managing Director Founder & Promoter with over 2.5 decades of experience; Chartered Accountant Ajit Mohan Sharan, Independent Bhagyam Ramani, Independent Mukesh Kacker, Independent Director Directo
Slide 42: Leadership Team
Leadership Team Retail Risk Management & Underwriting Corporate Functions Amar Rajpurohit (Business Head Sanjeev Srivastava (Chief Risk Partha Chakraborti (Chief – MSME) Ex-AU Financiers, Gruh Officer) Ex-IIFL Finance, GE Financial Officer) Ex-R R Kabel, Finance, DHFL with over 17 years Money, ICICI
Slide 43: Accolades
Accolades SAAT APNO KA WE HAVE BAGGED THE CAPRIGLOBAL “gg” GREAT PLACE TO WORK - CERTIFIED ™ Building and Sustaing High-Trust, High-Performance Culture’ EXCELLENCE AWARDS PROGRAM 2022 CAPRIGLOBAL
Slide 44: 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 45: Thank you
Thank you For further information, please contact: Ravikant Bhat ravikant.bhat@capriglobal.in T: +91 72089 52880 Sheetal Khanduja Rajat Gupta sheetal@GoIndiaAdvisors.com rajat@GoIndiaAdvisors.com M:+91 97693 64166 M: +91 99718 97739 CAPRIGLOBAL 44