Capri Global Capital Limited · NSE:CGCL
Capri Global Capital — Investor Presentation (September 2023)
46 slides from Capri Global Capital's investor presentation, Sep 15, 2023
Slide 1: Exchange cover letter for Analyst Meet presentation
September 15, 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:
Slide 2: Analyst Meet
Analyst Meet 15th September 2023 Mumbai C A P R I GFollow L O B A L us: 1
Slide 3: Our Journey So Far…
Our Journey So Far… Rajesh Sharma Founder & Managing Director CAPRIGLOBAL 2
Slide 4: Decadal Growth History: We Have Grown Steadily
Decadal Growth History: We Have Grown Steadily Negotiating The Learning Curve FY21-FY23 Post-pandemic FY19-FY21 ❑ We made two course corrections in past decade: FY16 in Post IL&FS growth pick-up, Construction Finance and FY18 in MSME. consolidation, new products, Covid19 break-out growth ❑ These cou
Slide 5: While Maintaining Granularity Across All Verticals…
While Maintaining Granularity Across All Verticals… MSME: ATS on Portfolio (₹ Mn) Affordable Housing: ATS on Portfolio (₹ Mn) Shifted focus to smaller ticket 1.1 2.6 size loans in MSME from FY19 1.0 0.9 0.9 onwards 0.9 0.9 1.8 1.6 1.6 1.5 1.4 FY18 FY19 FY20 FY21 FY22 FY23 FY18 FY19 FY20 FY21 FY22 FY
Slide 6: Non-Gold Branch Network: Growing Deeper Into Existing / Adjacent Geographies
Non-Gold Branch Network: Growing Deeper Into Existing / Adjacent Geographies Q4FY22 Q1FY24 117 Branches in 11 States & UTs 171 Branches in 13 States & UTs 2 1 1 3 3 2 1 4 31 5 62 18 19 31 1 23 35 2 2 5 5 14 13 1 2 1 Branch Network Expansion Key To AUM Growth CAPRIGLOBAL 5 Note: Political map of Indi
Slide 7: Financial Leverage Has Risen Gradually
Financial Leverage Has Risen Gradually Charting A Stronger Growth Path Ahead FY23 ❑ During past decade, we consistently maintained a strong capital First major equity fund raising in adequacy ratio as our incremental profitability in RoA terms remained over a decade of robust. ₹14.4bn through Rights
Slide 8: …Reflected In Strong and Sustained Momentum In AUM
…Reflected In Strong and Sustained Momentum In AUM AUM Segmental Break Up (₹ Mn) AUM Segmental Break Up (%) 2.7x CAPRIGLOBAL 7
Slide 9: Co-Lending: Shall Emerge As A Strong Growth Driver
Co-Lending: Shall Emerge As A Strong Growth Driver Increasing Mix of Off Book AUM 2% 3% 3% 5% 5% 6% 98% Co-originating loans in the MSME and Affordable Housing 97% 97% 95% 95% 94% segment with partner banks based on RBI’s co-lending mechanism Q4FY22 Q1FY23 Q2FY23 Q3FY23 Q4FY23 Q1FY24 Spread and loan
Slide 10: Fee Income: Scaled-up Car Loan Distribution; To Commence Insurance Distribution
Fee Income: Scaled-up Car Loan Distribution; To Commence Insurance Distribution Car Loan Distribution: Partner Banks Car Loan Distribution Pan-India coverage through presence in 714 locations in 32 States & UTs Car Loan Distribution: Total Locations (Branches + FoS) Q1FY23 Q2FY23 Q3FY23 Q4FY23 Q1FY2
Slide 11: Car Loan Origination – Strong Growth Performance
Car Loan Origination – Strong Growth Performance Consistently Rising Loan Originations (₹ Mn)^ Loan Originations Full Year Basis (₹ Mn) Loan Originations By Volume (Nos.)^ Average Ticket Size (₹ Mn) * ^Provisional data pertaining to FY23 quarters has been re-stated. * ATS = Originations by Value / O
Slide 12: Retail Underwriting, Risk Management, Operations
Retail Underwriting, Risk Management, Operations Sanjeev Srivastava Chief Risk Officer Magesh Iyer Chief Operations Officer CAPRIGLOBAL 11
Slide 13: Sustaining Growth: Ensuring Underwriting Quality In Retail
Sustaining Growth: Ensuring Underwriting Quality In Retail Business Credit FCU, Legal, Customer Operations Origination Underwriting Technical Service ▪ Fully in-house ▪ Bureau check ▪ Fraud Check of ▪ Pre-disbursal ▪ Mandatory origination. Direct ▪ Customised documents and checks welcome call to Sal
Slide 14: Strong Underwriting Has Helped Credit Cost Improvement
Strong Underwriting Has Helped Credit Cost Improvement Credit Cost 10Y Avg. Credit Cost Avg. Credit Cost Excl. FY16 Driven by Credit Cost Manageable 6.9 wholesale book ❑ Average credit cost between FY13-FY23 at 144bps. (CF) ❑ CGCL had one major credit event in FY16 which has bumped up the average cr
Slide 15: Gold Loans
Gold Loans Ravish Gupta Head – Gold Loans CAPRIGLOBAL 14
Slide 16: Gold Loans : Scaling Up Fast
Gold Loans : Scaling Up Fast AUM To Cross ₹ 30bn in FY24 Geographical Distribution (Value-Wise) ❑ CGCL launched its gold loan business in August 2022 through a network of 108 branches ❑ Network expanded to 562 branches in Mar’23 and further to 680 branches in Q1FY24, to touch 750 branches in Q2FY24.
Slide 17: Gold Loans : Maintaining Granularity
Gold Loans : Maintaining Granularity ATS (On Portfolio) (₹ ‘000) Live Customers* Loan to Value (%) (Incremental Disbursals) N.A. – not applicable (Gold Loan business was launched in Q2FY23), * As at the end of period indicated, ^As at June 30, 2023 CAPRIGLOBAL 16
Slide 18: Gold Loans : Racing Towards Break-Even
Gold Loans : Racing Towards Break-Even Branch Vintage & AUM (₹ Mn AUM/Br.) New Customer Acquisition (Nos. / %) *New customers acquired during the quarter / Live branches at the end of quarter CAPRIGLOBAL 17
Slide 19: IT & Data Analytics – Enablers For Robust Growth
IT & Data Analytics – Enablers For Robust Growth Varun Malhotra Chief Technology Officer Rahul Mahimkar Head - Data Science & Analytics CAPRIGLOBAL 18
Slide 20: Technology: Building Support Infra for Capri 2.0
Technology: Building Support Infra for Capri 2.0 Key Technology Enablers IT Capex In-House Tech Artificial Machine Data ₹500mn IT capex budgeted in FY24 Team Intelligence Learning Analytics Origination Underwriting Post-Disbursal Data Management In-House LOS Sales Mobility Application Customer Servi
Slide 21: Data Science & Analytics: Building Support Infra for Capri 2.0
Data Science & Analytics: Building Support Infra for Capri 2.0 Our Goal Data and AI Reliability On Last Mile Augmented Data Delivery Decisioning Sales & Partnership Process Efficiency Risk and Collections X/Up-sell and Retention Realtime Application and TAT Tracking Delinquency Prediction Model >250
Slide 22: Collections Excellence
Collections Excellence Prasanna Kumar Singh (Group Collections Head) CAPRIGLOBAL 21
Slide 23: Collections: Strengthened Engine With Strategic Pillars
Collections: Strengthened Engine With 3 Strategic Pillars ❑ Trainings for courtesy & problem-solving led communications Best-in-class Customer Engagement Quality ❑ Live monitoring of customer discussions with on-roll trainers ❑ Monthly tracking of contacts made, invalid repayment accounts and custom
Slide 24: Pre-Due & Post-Due Analytics Based Strategies
Pre-Due & Post-Due Analytics Based Strategies Pre-Bounce Post-Bounce Post-Bounce Early Warning Signal Sloppy Player Model Model (EWS) Standard Customers Channel Segmentation Projects probable bounce for the Projects Early Roll Back / Late Roll month. Back and Roll Forward for the Self Cure/Autopay m
Slide 25: Right Customer | Right Channel | Right Time (1+ Accounts)
Right Customer | Right Channel | Right Time (1+ Accounts) S T P Late Delinquency Transition Models Transition Model provides values for: A. Early Rollback: Incentive to field team and monitor SEGMENTATION TARGETING POSITIONING B. Roll Forward: Legal aggressive and assigned specialized team members.
Slide 26: Field Allocation Strategy
Field Allocation Strategy Buckets 1, 2, and 3 NPA Transition Model NPA Recovery Prediction Model ✓ Chances of higher Roll ✓ Incentivisation to field Back team ✓ Chances of Roll Forward ✓ Legal Preparation Projected NPA Recovery for the Month. ( In the pipeline ). SARFAESI Tracking Tool Legal Activit
Slide 27: Collections: State-of-the-Art Analytics Dashboard
Collections: State-of-the-Art Analytics Dashboard Analytics Dashboard Incentive Leader-Board Incentive performance Score Card CAPRIGLOBAL 26
Slide 28: Collections: Incentive Performance Score Card
Collections: Incentive Performance Score Card Analytics Dashboard Incentive Performance Score Card Incentive Leader-Board CAPRIGLOBAL 27
Slide 29: Collections: Incentive Leader-Board
Collections: Incentive Leader-Board Analytics Dashboard Incentive Performance Score Card Incentive Leader-Board CAPRIGLOBAL 28
Slide 30: Construction Finance
Construction Finance Vijay Gattani Associate Director – Credit (CF) CAPRIGLOBAL 29
Slide 31: 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 32: 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 33: Construction Finance: Granular & Rapid Churning Portfolio
Construction Finance: Granular & Rapid Churning Portfolio Figures in Rs. Crore Particulars Mar-19 Mar-20 Mar-21 Mar-22 Mar-23 Opening Book 943 1,201 962 874 1,266 Add: Disbursements (New loan accounts) 554 152 285 715 1,010 Add: Disbursements (Opening loan accounts) 324 270 133 209 430 Less: Repayme
Slide 34: Construction Finance: Roles & Resp. of Monitoring Dept.
Construction Finance: Roles & Resp. of Monitoring Dept. Independent and dedicated 19 member monitoring team closely tracks projects and compliance with sanction terms. Its role & responsibilities include: ❑ Carrying out inspection/site visits and cash flow analysis of all the account. ❑ Providing co
Slide 35: Borrowings
Borrowings Vinay Surana Head - Treasury CAPRIGLOBAL 34
Slide 36: Borrowing Relationships With Top Commercial & Refinance Inst.
Borrowing Relationships With Top Commercial & Refinance Inst. Cumulative Borrower Relationships (Nos.) 23 24 Credit Cost Manageable 21 ❑ CGCL’s has borrowing relationships with leading 18 commercial banks as well as refinance institutions like 16 15 NHB, SIDBI, and NABARD. ❑ Strong lender comfort ow
Slide 37: Financial Performance & Way Ahead
Financial Performance & Way Ahead Rajesh Sharma Founder & Managing Director CAPRIGLOBAL 36
Slide 38: Healthy Financial Performance Over The Years…
Healthy Financial Performance Over The Years… C/I (%) : Impacted By Gold Loan Opex; NII (₹ Mn) Spreads (%)1: Cycle Turning Adj. C/I Ratio 50% in Q1FY24 6,362 63.4 66.0 6.9 7.0 6.8 5,087 46.6 6.4 3,872 3,848 38.4 40.1 6.2 35.2 3,236 2,370 5.8 FY19 FY20 FY21 FY22 FY23 Q1FY24 FY19 FY20 FY21 FY22 FY23 Q
Slide 39: 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 robus
Slide 40: 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 41: 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 42: Capri 2.0 | Scale And Profitability
Capri 2.0 | Scale And Profitability Medium Term Goals Aim to reach ₹ 300bn AUM Mid-teen RoE Scaled-up Diversified NBFC Sizeable diversified play Maturity ❑ Rapid scale-up of business ❑ New products (Car Loan ❑ Deeper penetration of existing Distribution, Co-Lending, Gold products Starting Point Loan
Slide 43: Branding & Marketing Strategy
Branding & Marketing Strategy CAPRIGLOBAL 42
Slide 44: Q&A
Q&A CAPRIGLOBAL 43
Slide 45: 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 46: 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 45
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