Capri Global Capital Limited · NSE:CGCL
Capri Global Capital — Q2 FY2019 Earnings Presentation
42 slides from Capri Global Capital's earnings presentation, Nov 20, 2018
Slide 1: Stock exchange cover letter: Analyst Meet disclosure
(p v November 20, 2018 To, —_ BSE LIMITED NATIONAL STOCK EXCHANGE OF PJ Towers INDIA LIMITED Dalal Street, Fort, Listing Department Mumbai 400 001 Exchange Plaza, 5“ Floor, Bandra-Kurla Complex, Bandra (East), Mumbai - 400 051 Company Code No.: 531595 Company Code: CGCL Dear Sir / Madam, Sub: Disclo
Slide 2: Q2 Earnings Presentation & Liquidity Update
Q2 Earnings Presentation & Liquidity Update November, 2018
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: Capri Global Capital: Banking the Unbanked
Capri Global Capital: Banking the Unbanked H1FY19 At A Glance Total AUM* INR 34.9 billion MSME AUM 14,000+ Live Accounts INR 17.6 billion CF + IRL AUM INR 12.2 billion 1800+ Employees HL AUM INR 5.1 billion 8 States Total Disbursements INR 9.3 billion 76 PAT Branches INR 0.5 billion Net Worth INR 13
Slide 6: Q2FY19: Strong Growth, Stable Business
Q2FY19: Strong Growth, Stable Business Consolidated numbers NII (INR MN) PAT (INR MN) AUM (INR MN) 748 34,886 245 570 204 21,725 Q2FY18 Q2FY19 Q2FY18 Q2FY19 Q2FY18 Q2FY19 Capital Adequacy Ratio* (%) Gross NPA (%) Net NPA (%) 46% MSME + CF + IRL HF MSME + CF + IRL HF 37% 1.84 1.79 1.15 1.05 0.41 0.22
Slide 7: Q2FY19: MSME Lending Aiding Robust Disbursals
Q2FY19: MSME Lending Aiding Robust Disbursals Consolidated numbers AUM - Segmental Breakup Disbursements - Segmental Portfolio Yield (%) (INR Mn) Breakup (INR Mn) 17.4% 17,630 2,463 15.6% 2,367 14.6% 14% 13.5% 13,479 12.4% 12.3% 1,848 1,826 10,495 1,552 1,221 7,386 5,106 523 1,655 722 - - - Q2FY18 Q
Slide 8: Asset-Liability Split: Consistent Mix
Asset-Liability Split: Consistent Mix All amounts in INR Mn 30st September, 2018 31st March, 2018 ❖ Have consistently 13,095 12,760 remained cautious 12,972 11,137 10,512 13,130 11,385 about short-term 8,732 7,070 9,645 9,020 asset & liability mismatches by 6,286 ensuring optimally matched Balance S
Slide 9: Q2FY19: Performance Summary
Q2FY19: Performance Summary All amounts in INR Mn except stated Particulars Q2FY18 Q2FY19 YoY (%) Q1FY19 QoQ (%) Net Interest Income (NII) 570.2 747.9 31.2% 709.2 5.5% Interest Expense 219.0 468.6 114.0% 392.9 19.3% Net Interest Margin (NIM)% 11.1% 9.1% (2.0)% 9.5% (0.4)% PAT 203.9 245.3 20.3% 270.5
Slide 10: H1FY19: Performance Summary
H1FY19: Performance Summary All amounts in INR Mn except stated Particulars H1FY18 H2FY19 YoY (%) Net Interest Income (NII) 1026.0 1457.1 42.0% Interest Expense 405.9 861.6 112.2% Net Interest Margin (NIM)% 5.2% 4.6% (0.6)% PAT 274.0 515.8 88.2% Return on Equity (%) 4.6% 8.1% 3.4% Return on Assets (
Slide 11: 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 Provision Analysis as per INDAS Q2FY18 Q2FY19 Q1FY19 Stage 3 - Gross 338.64 554.26 608.43 Stage 3 – ECL Provisions 29.73 72.34 73.78 Stage 3 – Net 308.91 481.91 534.65 Stage 3 – Coverage Ratio 8.78% 13.05% 12.13%
Slide 12: The CGCL Advantage: Optimal Mix of Borrowings & Lending
The CGCL Advantage: Optimal Mix of Borrowings & Lending Competitive Higher borrowing costs Tightening Liquidity Retail Lending Advantage >> Declining NIMs Liquidity mgmt As global & domestic Retail loans are measures from RBI liquidity tightens, high amortized on a could force NBFCs to Industry Scen
Slide 13: CGCL: Strong Liquidity Position
CGCL: Strong Liquidity Position Current Assets (INR Mn) Capital Adequacy (%) 1302.6 89 79.7 892.7 825 53 707.9 39.3 37 505.1 415.4 346.9 313.6 181.2 114.1 FY15 FY16 FY17 FY18 H1FY19 FY15 FY16 FY17 FY18 H1FY19 Current Investments Cash Equivalents Powerful liquidity Strong capital Average quarterly Op
Slide 14: 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 1,960 7,280 15,520 17,590 22,680 100% ▪ Low exposure to short-term money market 92% signifies low probability of default 83% 85% 87% ▪ CGCL’s prudence in hi
Slide 15: Adequate Financing for Future Growth
Adequate Financing for Future Growth Numbers of Lenders 21 Total amount sanctioned from banks INR 22,850 Mn Total outstanding amount on CGCL’s books INR 16,309 Mn % of total sanctioned amount still undrawn from banks 17.6% Short term Callable facility backed by AAA rated Bonds INR 436 Mn Undrawn lim
Slide 16: Cautiously Maintained Liquidity Surplus
Cautiously Maintained Liquidity Surplus All amounts in INR Mn PARTICULARS Oct ’18 Nov ’18 Dec ‘18 Jan ’19 Feb ’19 Mar ‘19 Current Investments 1,586 2,084 2,489 2,531 2,886 3,289 (Cumulative) EMI/Prepayments 985 1,018 1,056 1,103 1,156 1,211 TOTAL INFLOWS (A) 2,571 3,102 3,544 3,634 4,042 4,500 Term
Slide 17: Judicious Approach to Lending: Mindful & Stable Growth Guidance
Judicious Approach to Lending >> Mindful & Stable Growth Guidance ▪ Turned cautious on low yielding Indirect Lending Segment & large-ticket Construction Finance ▪ Focus on direct sourcing & cross-selling in MSME as well as housing finance segments Under-achieved Indirect Retail Lending FY19 GUIDANCE
Slide 18: 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 like ‘Our mission is to shape this future • Small-ticket, retail-focused MSME, Construction Finance, Affordable and create a solid social impact segments: MSME
Slide 19: Small Loans: Niche Capabilities
Small Loans: Niche Capabilities MSME Construction Finance Housing Finance Indirect Lending 50.5 % of AUM 30.0 % of AUM 14.6 % of AUM 4.7 % of AUM • Focus on Tier II & III • Project outreach: • Affordable housing • NBFC Outreach: 12 cities; Customer 136 customers in Tier II • Financing to other outre
Slide 20: Annexure: About CGCL & Industry Scenario
Annexure: About CGCL & Industry Scenario
Slide 21: 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 22: MSME: Small Loans, Big Opportunity
MSME: Small Loans, Big Opportunity Focus Area MSME Assets by Geography 4% 3% 4% 7% Delhi NCR Maharashtra 41% Gujarat MP Micro Enterprise Small Enterprise 19% Rajasthan • Self Employed Individuals – • Small enterprises with Punjab Provision stores, retail formal income Haryana outlets, handicrafts et
Slide 23: MSME: Enabling Superior Growth
MSME: Enabling Superior Growth Disbursals (INR Mn) Average Ticket Size (INR Mn) 7,910 4.3 7,230 2.6 2.3 3,846 FY17 FY18 H1FY19 FY17 FY18 H1FY19 Direct Sourcing(AUM) 62% 55% 35% FY17 FY18 H1FY19
Slide 24: 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 25: 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 9% 12% • Ventures in 2016 through its subsidiary 11% Mumbai – Capri Global Housing Finance Limited Rest of M'ha Gujar
Slide 26: Housing Finance: Exponential Growth Potential
Housing Finance: Exponential Growth Potential Disbursals (INR Mn) Average Ticket Size (INR Mn) 2,537 1.5 2,404 1.1 1.1 65 FY17 FY18 H1FY19 FY17 FY18 H1FY19 Portfolio Yield (%) 13% 12.30% 12% FY17 FY18 H1FY19 Note: FY18 was the 1st full year of operations
Slide 27: 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 28: Construction Finance: The Retail Way
Construction Finance: The Retail Way • Exposure to Mumbai region at 37% Addressing Concentration • Reduced average interest rates to in FY18 vs 69% in FY16 Risk 14-16% from 18-20% to target larger • 6 new geographies added in 2 years: developer audience Ahmedabad, Chennai, Vijaywada, etc • Aim to sp
Slide 29: Construction Finance: Building a Sustainable Future
Construction Finance: Building a Sustainable Future Focus Area CF Lending Portfolio by Geography • Construction linked loans to small and 3% 2% midsize real estate developers 11% Ahmedabad Bangalore 17% • Comprehensive framework for project Chennai selection and credit appraisal 14% Delhi-NCR Hydera
Slide 30: Construction Finance: High Yield, Low Risk
Construction Finance: High Yield, Low Risk Disbursals (INR Mn) Average Ticket Size (INR mn) 8,240 277 5,990 4,595 99.2 80 FY17 FY18 H1FY19 FY17 FY18 H1FY19 Portfolio Yield (%) 17% 16% 15.60% FY17 FY18 H1FY19
Slide 31: Indirect Retail Lending: Unique Product Offering
Indirect Retail Lending: Unique Product Offering Focus Area AUM Disbursements Lending to small NBFCs engaged in INR 1,655 Mn INR 2,481 Mn 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
Slide 32: Strong Focus on MSME: 7x in 4 years
Strong Focus on MSME: 7x in 4 years NII (INR Mn) PAT (INR Mn) 1,040 2,100 952 852 1,681 1,671 1,495 1,301 581 436 FY14 FY15 FY16 FY17 FY18 FY14 FY15 FY16 FY17 FY18 Loans & Advances (INR Mn) Total Assets (INR Mn) 30,107 MSME Construction Finance 15,592 12,138 19,861 10,541 7,571 13,204 11,641 5,057 6
Slide 33: Moving Towards Higher Growth
Moving Towards Higher Growth Net Interest Margin (%) Pre-Tax RoCE (%) Spread (%) 5.6 14.7 5.07 4.93 19.7 14.8 10.4 3.22 11.6 9.3 8.5 5.7 FY15 FY16 FY17 FY18 FY15 FY16 FY17 FY18 FY15 FY16 FY17 FY18 Return on Equity (%) Cost to Income Ratio (%) Capital Adequacy (%) 44 45 89 9.3 8.6 79.7 27 53 5.1 22 4
Slide 34: Prudent Asset Mix
Prudent Asset Mix Disbursement Mix (INR Mn) AUM Mix (INR Mn) MSME CF IL HL MSME CF IL HL 8,240 15,413 7,915 7,230 12,027 5,990 9,427 4,760 7,484 5,999 3,058 2,922 2,786 5051 4,865 2,420 4,415 2,108 2,080 3,113 2311 2,450 1,100 1,100 65 65 FY14 FY15 FY16 FY17 FY18 FY14 FY15 FY16 FY17 FY18 All numbers
Slide 35: Strong Asset Quality
Strong Asset Quality As per IGAAP Provisions (INR Mn) GNPA% NNPA% Provisions Held Provisions Required 337.1 196.3 210.5 1.68% 1.44% 102.8 0.97% 0.88% 0.98% 0.88% 75.2 65.2 0.75% 0.84% 36.6 39.7 FY 15 FY 16 FY 17 FY 18 FY 15 FY 16 FY 17 FY 18 FY15 FY16 FY17 FY18 As per IND-AS Loss given Default (%) P
Slide 36: NPA Analysis: Prudent Lending Practises
NPA Analysis: Prudent Lending Practises CGCL (Standalone) FY16 FY17 FY18 GNPA Product Segment wise - FY18 (INR MN) 150 DPD 120 DPD 90 DPD Coverage NPA Recognition Norms Product Segment GNPA % NNPA % Ratio GNPA 97 178 439 NNPA 83 152 374 MSME 2.23% 1.93% 53.43% Provisions 14 26 64 Construction Financ
Slide 37: Income Statement
Income Statement INR Mn FY17 FY18 H1FY19(as per IND-AS) Interest earned on loans 2,020.7 3,095.5 2318.7 Interest earned on investments 30.9 32.6 27.5 Total interest earned 2051.6 3128.1 2,346.2 Total interest expended 379.9 1,020.4 861.6 - interest on borrowings 379.6 1,020.4 861.6 Net interest inco
Slide 38: Balance Sheet
Balance Sheet INR Mn FY17 FY18 H1FY19(as per IND-AS) Share Capital 350.3 350.3 350.3 Reserves and Surplus 11,256.3 12,235.7 12,668.9 Networth 11,606.5 12,586.0 13,019.2 Borrowings 7,278.6 15,742.7 23,858.6 Current liabilities and provisions 794.8 1,529.5 239.6 Other Non Current Liabilities and provi
Slide 39: Leadership Team
Leadership Team Surender Sangar Vikas Sharma Vijay Gattani Hemant Dave Head – Construction Finance Business Head (MSME & HL) Senior Vice President - Credit Head of Operations Ex-MD – Tourism Finance Corporation Ex - Kotak Mahindra Bank, Dhanlaxmi Ex-ICICI Bank, Head of Credit & Ex - Kotak Mahindra B
Slide 40: Board of Directors
Board of Directors Quintin E. Primo III Rajesh Sharma T. R. Bajalia Non-Executive Chairman Managing Director Independent Director Co-founder & CEO of Capri Founder & promoter Ex-DMD – SIDBI, Investment Group, Chicago Over 23 years of experience Ex- ED - IDBI Bank Over 3 decades of experience Charter
Slide 41: Key Partnerships
Key Partnerships Lenders Auditors & Advisors
Slide 42: Thank You
Thank You
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