Capri Global Capital Limited · NSE:CGCL
Capri Global Capital — Investor Presentation (May 2022)
62 slides from Capri Global Capital's investor presentation, May 25, 2022
Slide 1: Exchange filing cover letter
PRIGLOBAL May 25, 2022 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 C
Slide 2: Responsible. Resilient. Ready. Corporate Presentation May 2022
C.APRI GLOBAL CAPITAL LIMITED Responsible. Resilient. Ready. CORPORATE PRESENTATION MAY 2022 CAPRIGLOBAL 1
Slide 3: Disclaimer
I 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 connecti
Slide 4: Capri Global: Profitable Lending With A Social Impact
Capri Global : Profitable Lending With A Social Impact A Non-Banking Financial Company (NBFC) with presence across high growth segments like MSME, Affordable Housing, Construction Finance segments. To foray into Gold Loans shortly. Promoted by first generation entrepreneur, Mr. Rajesh Sharma, Capri
Slide 5: Capri Global Group: Key Highlights
I Capri Global Group: Key Highlights FY22 Financial Highlights (Consolidated) Exclusive Car Loan Distribution Branches Kolkata, Surat, Bengaluru, INR 2,050 Mn FY22 Lucknow, Chandigarh INR 66,325 Mn INR 1,770 Mn FY21 INR 19,225 Mn Construction Finance Branch 2 PAT Bengaluru Total AUM Net Worth 3 2 31
Slide 6: Executive Summary: Our Journey
I Executive Summary: Our Journey ® I I I I ▪ Expanding Business Verticals Ventured into MSME lending 0 I I I I • • Housing Finance entry Forayed into Housing Finance Branch network jumps to 66; Workforce count of 1,350 ® I I I I • Gold Loan entry Foray into Gold Loans announced I I I I I I • Medium
Slide 7: Niche Player In Chosen Segments
NICHE PLAYER IN CHOSEN SEGMENTS CAPRIGLOBAL 6
Slide 8: CGCL Advantage: What Sets Us Apart
CGCL Advantage: What Sets Us Apart Retail Focused Model Focus on SENP Borrower Own Sourcing Model ❑ Strong focus on self employed non- ❑ 100% sourcing is done by regularly ❑ Small ticket size retail focussed professional borrower; carved out a trained in-house Direct Sales Team lending across MSME,
Slide 9: Business Overview: Diversified Portfolio
I Business Overview: Diversified Portfolio MSME Housing Finance Construction Finance .. Indirect Lending .... /..···• ~ - - ~ ···••··.... Product portfolio: Business Product portfolio: Home Product portfolio: Product portfolio: loan against residential, loans for – Purchase of Construction-linked lo
Slide 10: AUM: Growth Has Rebounded
I AUM: Growth Has Rebounded AUM Segmental Break Up (INR Mn) MSME CF HF IL MSME-DA 24% CAGR in r. . 28,390 . . . . . .: : : : :. . . . . . . . ..J 41,032 [::::::::::::::::::::::::::::::::::.........I 40,347 r············::::::::::::::.............. ..J 48,480 r············:::::::::::::: .............
Slide 11: AUM: Well Diversified Portfolio
I AUM : Well Diversified Portfolio AUM Segmental Break Up (INR Mn) MSME CF HF IL MSME-DA 1.7% 3.9% 3.4% 3.2% 6.4% 4.7% ·············-······················.1 23.8% .,·::·,..-· To stay one of the 18.0% ··: fastest growing 29.3% 26.3% 33.2% segment over medium term ~--.................................
Slide 12: Disbursals: Sustained Recovery in FY22
I Disbursals : Sustained Recovery in FY22 Disbursals (INR Mn) MSME CF HF 19,097.........1 r··············:::::::::::::::::::: 22,000.........1 r················:::::::::::::::::: 11,793.........1 r··················::::::::::::::::: 14,984 r·······:::::::::::::::::..................J 28,403 r·······
Slide 13: MSME: CGCL's Growth Driver
MSME: CGCL’s Growth Driver I.-························································································································: ••··········································································· . Average Ticket Size (INR Mn) Live Accounts =........................
Slide 14: Housing Finance: Exponential Growth Potential
I Housing Finance: Exponential Growth Potential Average Ticket Size (INR Mn) Live Accounts 1.1 17,739 1.1 13,149 10,207 1.0 1.0 8,637 1.0 FY18 I I FY19 FY20 FY21 I FY22 2,620 FY18 I I FY19 FY20 FY21 FY22 Loan to Value (%) Loan Yields (%) 14.0 64 60 13.4 13.3 59 59 53 12.5 12.3 FY18 FY19 FY20 FY21 I
Slide 15: Construction Finance: High Yield, Well Managed Risks
Construction Finance: High Yield, Well Managed Risks 1,-························································································································1 Average Ticket Size (INR Mn) No. of Live Projects ~-----------------------------------------------------------------------
Slide 16: Car Loan Distribution: Robust Fee Potential
I Car Loan Distribution: Robust Fee Potential Near pan-India coverage Strong Distribution Footprint r························································-1 r. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Slide 17: Strong Growth Opportunities
STRONG GROWTH OPPORTUNITIES CAPRIGLOBAL 16
Slide 18: MSME Lending: A Huge Unexplored Opportunity
I MSME Lending: A Huge Unexplored Opportunity MSME – Huge Addressable Credit Gap FY16 FY21 INR MSME Systemic 17.3 Tn 9.6 Tn 19.2 Tn Credit (INR) INR INR 19.4 Tn 52.0 Tn Non-Banks Market Addressable Credit Gap of INR 19.4 Tn 8% 10.4% refers to tappable portion out of INR 52 Tn Share of Informal Chann
Slide 19: MSME Lending: Small Loans, Big Opportunity
I MSME Lending: Small Loans, Big Opportunity Geographical Distribution (Value-Wise) 1% 1% 1% ■ MP 10% ■ Gujarat 28% ■ Rajasthan Focus Area 17% ■ Delhi ❑ Self Employed Individuals – Provision stores, retail ■ Maharasthra outlets, handicrafts etc. ■ UP ❑ Small enterprises with inadequate income ■ Hary
Slide 20: Co-Lending: Co-Lending Offers Further Growth Opportunities
I Co-Lending: Co-Lending Offers Further Growth Opportunities Co-Lending Model : Salient Aspects Key Benefits To CGCL • Tie-ups with State Bank of India and Union Bank of • An additional opportunity at achieving scale. CGCL India for co-originating loans in the MSME segment can continue to focus on g
Slide 21: Affordable Housing: Large Demand & Low Formal Financing
I Affordable Housing: Large Demand & Low Formal Financing Ramp-up Expected in Indian Mortgage Market Housing Shortage – Socio Economic Group Wise (Loan Assets in INR Tn) 36.9 8% 31.0 26.1 12% 21.9 ■ EWS 19.1 ■ LIG 16.6 14.2 ■ MIG & Above 80% I Mar-17 Mar-18 Mar-19 Mar-20 Mar-21E Mar-22E Mar-23E . .
Slide 22: Housing Finance: Capitalising on Affordable Housing Opportunity
IHousing Finance: Capitalising on Affordable Housing Opportunity Focus Area Geographical Distribution (Value-Wise) 1% ❑ Serves middle and lower middle income population in Tier 2 and 3 cities through a network 9% MP of 105 branches. ■ 12% ■ Maharashtra 37% ❑ Ventured in 2016 through its subsidiary –
Slide 23: Gold Loan: Strong Growth Opportunity
I Gold Loan: Strong Growth Opportunity <b, 1111 Large market growing Pvt banks, NBFCs gaining share, leading GL Potential for Capri to explore expected to grow at ~15% players growing in non south markets in N, W Gold loan market • Strong RoAs, low GNPAs (of Gold Loan Market Share large players) mak
Slide 24: Construction Finance: Building a Sustainable Future
Construction Finance: Building a Sustainable Future Focus Area Geographical Distribution (Value-Wise) 2% Mumbai MMR ❑ Construction linked loans to small and midsize real 3% 3% Ahmedabad 3% estate developers. 3% Pune ❑ Comprehensive framework for project selection and 6% 28% Delhi-NCR credit appraisa
Slide 25: Well-Positioned To Grow
WELL-POSITIONED TO GROW CAPRIGLOBAL 24
Slide 26: Network: Deepening Geographical Presence To Support Growth
Network: Deepening Geographical Presence To Support Growth I Branch Expansion Has Picked Up Pace r·········:::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::........J 117 Strong Network Expansion Over Medium Ter
Slide 27: Operating Efficiency: Adopting Low-Cost Hub & Spoke Model
I Operating Efficiency: Adopting Low-Cost Hub & Spoke Model Area Managers • Sales and Credit • Branch Manager Operations Relationship Managers (DSTs) Hub Spoke • • • FCU, Legal, Technical and • Credit Resource Collections • Direct connect with customers • Spoke branch functions Benefits of Hub & Spo
Slide 28: Liability Mix: Diversified Borrowings
I Liability Mix : Diversified Borrowings… ■ SCB Borrowings ■ Refinance ■ NCDs •.............. : ••••••••••••••• ■ ••••••••••••••• ■ •.............. : 15,661 !. . . . . . . . . . . .) L.27,687 . . . . . . . . . ...l !. .28,366 . . . . . . . . . .) 37,689 !. . . . . . . . . . . .) 48,084 1,500 4,331 1
Slide 29: Through Multiple Lending Institutions
I …Through Multiple Lending Institutions Lenders I Bank of India ')0, II!tc,;3Uy;~ ~ Bank ofBaroda h3ffq;~ Bank of Maharashtra 'lffi!~i!;Jil!Jll ~ ttcP[ lCanara Bank ~ m _ _'r ~.-.uotttta•JnC \llll'l~ll <IQ J'NII - UitiHUilik ~ ~Ji\attfl.;,th> ~ ~qcfi ~ ~ Indian Overseas Bank Punjab & Sind Bank . ,
Slide 30: Asset-Liability Position: Well-Balanced for Short Term
I Asset-Liability Position : Well-Balanced for Short Term* ALM Position : CGCL (Standalone) ALM Position : CGHFL Inflows Outflows Inflows Outflows 11.6 11.6 4.3 4.3 7.1 7.0 2.7 2.4 2.5 2.5 2.9 2.6 1.0 0.9 - I 0.9 0.7 8D - 14D 15D - 1M >1M - 3M >3M - 6M 0D - 14D 15D - 1M >1M - 3M >3M - 6M * Apr-Sep’2
Slide 31: Well Capitalized For Medium Term Growth
I Well Capitalized For Medium Term Growth Consolidated Networth (INR Mn) Capital Adequacy (%) CGHFL Surplus Inv. In CGHFL (incl. premium) CGCL CGHFL l...... : .............. : r············· ~ : 12,517 : t....................... = 13,827 i 15,392 ~ : 17,173 : t....................... 19,225 =.......
Slide 32: Tech Assisted Unique Underwriting Process
TECH ASSISTED UNIQUE UNDERWRITING PROCESS CAPRIGLOBAL 31
Slide 33: Urban Retail: Unique Loan Origination And Underwriting Process
Urban Retail: Unique Loan Origination And Underwriting Process Business Credit FCU, Legal, Customer Operations Collection Origination Underwriting Technical Service ▪ Fully in-house ▪ Bureau check ▪ Fraud Check of ▪ Pre-disbursal ▪ Mandatory ▪ Customer visit on origination. ▪ Customised documents an
Slide 34: Construction Finance: Strong Checks At All Stages
Construction Finance : Strong Checks At All Stages Credit Appraisal and Due IC Approval and Selection Criteria Monitoring Diligence Documentation Promoter / Group ▪ Three levels of independent ▪ Detailed IC note proposed by ▪ Strong monitoring team of 15 appraisal – Business Stage, Local local credi
Slide 35: Leveraging Technology
Leveraging Technology Digital Payments Infrastructure and Technology Initiatives 01 Mobility Applications Integrated Payments including Sales and Evolved e-payment solutions for Collections Applications both disbursements & collections 02 CRM Customer Relationship through self service portal & effec
Slide 36: Building New Pipes For Faster Tech Journeys
Building New Pipes For Faster Tech Journeys Key Technology Enablers In-House Tech Artificial Machine Data Team Intelligence Learning Analytics Key Outcomes In Near Future CLM Analytics DSA Platform Customer Entire Tech Built Own OCR Built Own Data To create an Model Footprint and KYC Analytics alter
Slide 37: Strong Monitoring Mechanism
STRONG MONITORING MECHANISM CAPRIGLOBAL 36
Slide 38: Urban Retail: Robust Collection Mechanism
Urban Retail : Robust Collection Mechanism Collection Team (Urban Retail) Centralised Soft Delinquencies Hard Delinquencies Repossession and Tele-calling 1dpd – 59dpd Litigation 60dpd and above Liquidation • System driven • Dedicated in-house • Dedicated and • Hard delinquencies that • Specialised m
Slide 39: Construction Finance: Strong Checks At All Stages
Construction Finance : Strong Checks At All Stages Early Warning Signals through Compliances and Milestone Tracking • Site Inspection Reports • Follow-up for timely submission of Monthly MIS and • Cashflow Analysis Reports MIS analysis • Account Conduct Reports • Ensuring that all the collections ar
Slide 40: NPA Analysis: Weathering Short Term Headwinds Well
NPA Analysis : Weathering Short Term Headwinds Well ECL Analysis As Per IndAS FY22 FY21 FY20 FY19 FY18 Stage 1 & 2 - Gross 63,627 46,874 39,151 40,431 28,135 Stage 1 & 2 - ECL Provisions 1,324 721 308 211 187 Stage 1 & 2 - Net 62,304 46,153 38,843 40,220 27,948 Stage 1 & 2 - ECL Provisions % 2.08% 1
Slide 41: Credit Cost: One-off Bumps
Credit Cost : One-off Bumps Credit Cost (INR Mn): One-off Write-Offs in FY22 Credit Cost / Avg. AUM (%): To Normalise in FY23 95 165 353 607 1,057 One-off 1.84 bump in credit cost, 1.37 to drop and 439 normalize in FY23; 0.87 average 62 credit cost 0.41 0.48 100bps in 54 618 545 trailing 5 67 299 ye
Slide 42: Collection Efficiency: Steady Improvement
Collection Efficiency : Steady Improvement MSME Collection Efficiency MSME: Normalising fast 100.0% o MSME portfolio collection efficiency has 96.2% continued to improve after the second 96.2% 93.1% lockdown in Q1FY22. 87.4% o This is also reflected in the Stage 2 assets, which have been stable. Q4F
Slide 43: Delivering Consistent Financial Performance
DELIVERING CONSISTENT FINANCIAL PERFORMANCE CAPRIGLOBAL 42
Slide 44: Over The Years…
Over The Years… NIM (%) : Rebound In NIMs With Decline In Cost-Income (%) : Well-managed Excess Liquidity 9.7 52.1 9.5 46.6 Met the 9.3 9.3 40.1 40% C/I 38.4 35.2 ratio guidance given for 8.7 FY22 FY18 FY19 FY20 FY21 FY22 FY18 FY19 FY20 FY21 FY22 NII (INR Mn) PAT (INR Mn) 5,087 2,050 1,770 3,872 3,8
Slide 45: Over The Years…
Over The Years… Return on Average Assets (%) : Stronger Return on Average Equity (%) : Stronger Pick-up Ahead Pick-up Ahead 3.7 3.7 11.3 3.5 11.0 10.9 3.3 10.3 2.6 5.4 FY18 FY19 FY20 FY21 FY22 FY18 FY19 FY20 FY21 FY22 Total Assets (INR Mn) Capital Adequacy (%) (Standalone) 71,528 39.3 38.0 37.7 58,1
Slide 46: CGCL Consolidated Income Statement
CGCL Consolidated Income Statement Profit and Loss A/c (INR Mn) FY18 FY19 FY20 FY21 FY22 Interest income 3,219 5,307 6,700 6,735 8,396 Interest expenses 967 2,071 2,828 2,887 3,308 Net interest income 2,252 3,236 3,872 3,848 5,087 Other income 210 586 433 636 1,231 Fees 195 558 399 626 1,103 Other i
Slide 47: CGCL Consolidated Balance Sheet
CGCL Consolidated Balance Sheet Balance Sheet (INR Mn) FY18 FY19 FY20 FY21 FY22 Liabilities Paid-up equity 350 350 350 351 351 Reserves 12,166 13,477 15,042 16,822 18,873 Ample Networth 12,517 13,827 15,392 17,173 19,225 leverage room to continue Borrowings 15,661 27,687 28,366 37,689 48,084 deliver
Slide 48: CGCL Consolidated Earnings: Du Pont Analysis
CGCL Consolidated Earnings : Du Pont Analysis RoA Tree (%) FY18 FY19 FY20 FY21 FY22 Interest income 13.0 14.6 15.4 13.1 13.0 Interest expenses 3.9 5.7 6.5 5.6 5.1 Net interest income 9.1 8.9 8.9 7.5 7.8 Other income 0.8 1.6 1.0 1.2 2.2 Fees 0.8 1.5 0.9 1.2 2.0 Other income 0.1 0.1 0.1 0.0 0.2 Net in
Slide 49: Shareholding
Shareholding 1.5% o Market capitalization : Rs108bn | US$ 1.4bn* Promoter Group o Cons. Networth (FY22) : 17.0% Rs19.2bn Institutional 6.8% Shareholders o Paid-up Equity : Bodies Corporate Rs351.3mn 74.7% Others o FV : Rs2 o Dividend Per Share (FY22) : Rs0.50 * 1 US$ = INR 77.64 CAPRIGLOBAL 48
Slide 50: ESG: Making An Impact
ESG : MAKING AN IMPACT CAPRIGLOBAL 49
Slide 51: ESG Snapshot: Growing Responsibly
ESG Snapshot : Growing Responsibly Environment Social Governance ▪ Introduction of Sales Mobility app ▪ CGCL facilitates income generating ▪ Executive Management overseen by has digitized 50% of loan loans and housing loans for self- an independent Board of Directors origination to disbursal process
Slide 52: Social Impact In Charts: Facilitating Financial Inclusion
Social Impact In Charts : Facilitating Financial Inclusion Cumulative Cases Financed Since Inception Empowering Through Credit 28,185 Access to and timely repayment of loans resulted in the 6,500+ cases improvement of credit scores of borrowers. A pre- 20,916 financed under pandemic Social Impact St
Slide 53: Contributing To Change: Our Social Impact Reports
I Contributing To Change: Our Social Impact Reports PRIGLOBAL CArlTAL LIMITCO SEEDS OF CHANGE Sm,ill .ccd. . JJi;( impacl. - Social Impact Report 2019 Seeds of Change Report For a comprehensive insight on CGCL’s Social Welfare activities and Impact Studies, visit www.capriglobal.in and select the ta
Slide 54: Governance: Independent Board Guides Executive Management
Governance : Independent Board Guides Executive Management Audit Committee Risk Management Committee Oversees Company’s Formulates and financial reporting reviews policy on and financial operational, IT, and information disclosure people risk process Nomination and Remuneration CSR Committee Committ
Slide 55: Charting A Strong Growth Path Ahead
Charting A Strong Growth Path Ahead CAPRIGLOBAL 54
Slide 56: Capri 2.0: Scale And Profitability
Capri 2.0 | Scale And Profitability Diversified Financial Conglomerate Sizeable diversified play Maturity Rapid scale-up of business • Deeper penetration of • New products, markets and existing products channels Starting Point • Leverage cross-sell potential • Inroads into digital lending • Diversif
Slide 57: Leadership Team
Leadership Team CAPRIGLOBAL 56
Slide 58: Board of Directors & Strong Corporate Governance
Board of Directors & Strong Corporate Governance Corporate Governance Rajesh Sharma, Managing Director Founder & Promoter with over 2.5 Philosophy decades of experience, Chartered Accountant o Good Board Practices Ajit Sharan, Independent Director Beni Prasad Rauka, Independent IAS - Batch 1979 with
Slide 59: Stable Leadership Team
Stable Leadership Team Urban Retail Urban Retail Corporate Functions Amar Rajpurohit (Business Head – Bhupinder Singh (Head – Legal Ashok Agarwal (Associate Director MSME & Home Loan) Ex-AU Litigation) More than a decade – Accounts, Legal & Compliance) Financiers, Gruh Finance, DHFL with experience
Slide 60: Accolades
I Accolades WE'IRE NOW PRIGLOBAL GREAT PLACE TO WORK - CERTIFIED 1"" Bulldi"9 and Su<1al"9 Hi9h-Tru,1, High-P•<formance Culture•• CAPRIGLOBAL 59
Slide 61: Join Us In Cheering For Gujarat Titans!
Join Us In Cheering For Gujarat Titans! Capri Global is proud to be associated with one of the newest IPL franchises – Gujarat Titans – as Associate Sponsor for the current IPL Season CAPRIGLOBAL 60
Slide 62: 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 61
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