Capri Global Capital Limited · NSE:CGCL
Capri Global Capital — Q1 FY24 Earnings Presentation
44 slides from Capri Global Capital's earnings presentation, Aug 7, 2023
Slide 1: Exchange filing cover letter
August 7, 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: CGC
Slide 2: Q1FY24 Earnings Presentation
Responsible. Resilient. Ready. Q1FY24 Earnings Presentation 7th August 2023 C A P R I GFollow L O B A Lus: 1
Slide 3: Business Performance
Business Performance CAPRIGLOBAL 2
Slide 4: Key Highlights: A Sound Beginning to FY24
Key Highlights : A Sound Beginning to FY24 ❑ Core earnings improve on back of improving loan yields – NII up 77% YoY / 26% QoQ, spreads improve 51bps YoY / 35bps QoQ to 7.0%. ❑ Operating leverage improving with rising topline contribution from Gold Loan business and stronger core income; C/I ratio a
Slide 5: Business Update: Consolidated AUM Up 61% YoY
Business Update : Consolidated AUM Up 61% YoY AUM Segmental Break Up (₹ Mn)* Composition of AUM (%)* o MSME-CL and HF-CL relates to off-balance sheet AUM comprising co-lending portfolio in MSME and HF respectively. o CGHFL concluded a maiden, direct assignment transaction of Rs569mn with a leading H
Slide 6: Disbursals: Seasonal Softness In Non-Gold Segments
Disbursals : Seasonal Softness In Non-Gold Segments Segmental Disbursals (₹ Mn) Composition of Segmental Disbursals (%) Note: MSME disbursals between Q1FY23-Q3FY23 and Housing Finance disbursals between Q1FY23-Q3FY23 have been re-stated to include co-lending disbursals. CAPRIGLOBAL 5
Slide 7: MSME Business Update
MSME Business Update ATS (Incremental Disbursals) (₹ Mn) Live Accounts* Loan to Value (%) (Incremental Disbursals) Geographical Distribution (Value-Wise)^ * As at the end of period indicated ^ As at June 30, 2023 CAPRIGLOBAL 6
Slide 8: Gold Loan Business Update
Gold Loan Business Update ATS (On Portfolio) (₹ ‘000) Live Accounts* Loan to Value (%) (Incremental Disbursals) Geographical Distribution (Value-Wise)^ N.A. – not applicable (Gold Loan business was launched in Q2FY23), * As at the end of period indicated, ^As at June 30, 2023 CAPRIGLOBAL 7
Slide 9: Construction Finance Business Update
Construction Finance Business Update Average Ticket Size (₹ Mn) Live Accounts* Geographical Distribution (Value-Wise)* * As at June 30, 2023 CAPRIGLOBAL 8
Slide 10: 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 42% Self-employed 58% * As at June 30, 2023 CAPRIGLOBAL 9
Slide 11: 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) Q1FY23 Q2FY23 Q3FY23 Q4FY23 Q1FY24 279 322 322 450 714 Note: Political map of India not to scale CAPRIGLOBAL 10
Slide 12: 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 13: Earnings Performance
Earnings Performance CAPRIGLOBAL 12
Slide 14: Performance Matrix: Core Earnings Strong
Performance Matrix : Core Earnings Strong NII (₹ Mn) Operating Profit (₹ Mn) Credit Costs (₹ Mn) PAT (₹ Mn) 649 636 246 245 239 563 461 Avg. credit 374 cost 112 Rs176mn in trailing 5 quarters 40 Q1FY23 Q2FY23 Q3FY23 Q4FY23 Q1FY24 Q1FY23 Q2FY23 Q3FY23 Q4FY23 Q1FY24 CAPRIGLOBAL 13
Slide 15: Non-Interest Income: Marginal Dip But Healthy Overall
Non-Interest Income : Marginal Dip But Healthy Overall 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 Share of non-interest income to net
Slide 16: Loan Yields: Yields Up Across Loan Segments
Loan Yields : Yields Up Across Loan Segments MSME (%) Housing Finance Gold Loans (%) Construction Finance (%) CAPRIGLOBAL 15
Slide 17: Key Ratios: Spreads In Upward Trajectory
Key Ratios : Spreads In Upward Trajectory Yield on Advances (Wtd. Avg.) (%) Cost of Funds (Wtd. Avg.) (%) Spreads (YoA – CoF) (%) Net Interest Margin (%) NIM expansion partially aided by the substantial equity funding of Q1FY24 balance sheet CAPRIGLOBAL 16
Slide 18: Operating Expenses: Opex Ratios Softening
Operating Expenses : Opex Ratios Softening Operating Expenses (₹ Mn) Operating Expenses Composition (%) Cost-Income (%): Showing Steady Decline Adjusted for Cost / AAUM (%) (annualized) the Gold Loan vertical Cost/AAUM income and calculated opex, the considering C/I ratio was new car ~50% in loan Q1
Slide 19: Key Ratios: Return Ratios Muted Due To Recent Equity Dilution
Key Ratios : Return Ratios Muted Due To Recent Equity Dilution 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 weight
Slide 20: Liabilities & Liquidity Position Update
Liabilities & Liquidity Position Update CAPRIGLOBAL 19
Slide 21: Liability Mix: Borrowings Dip On Back of Repayments
Liability Mix : Borrowings Dip On Back of Repayments Diversified Funding Profile (₹ Mn) Consolidated Borrowings Break-up (₹ Mn) o Borrowings declined sequentially due to scheduled repayment of NCDs. o Outstanding NCDs have declined from ₹ 4,386mn in Q4FY23 to ₹ 1,702mn in Q1FY24. o Balance sheet was
Slide 22: Liquidity Position: Comfortable Liquidity Position
Liquidity Position : Comfortable Liquidity Position* ₹ Mn except stated CGCL Particulars CGHFL Consolidated (Standalone) Limits Sanctioned 73,900 31,000 104,900 Limits Availed 72,557 30,988 103,545 Un-Drawn 1,343 13 1,355 Repaid 20,865 8,563 29,427 Outstanding 51,693 22,425 74,117 Total no. of relat
Slide 23: Liquidity Position: Proactive Liability Management
Liquidity Position : Proactive Liability Management ₹ Mn except stated CGCL Particulars CGHFL Consolidated (Standalone) Dues during Q1FY24 5,331 830 6,161 Payment made as per Schedule (A) 5,331 830 6,161 Prepayments made for the quarter (B) 0 0 0 Total repayments/prepayments (A+B) 5,331 830 6,161 Ba
Slide 24: Asset Quality
Asset Quality CAPRIGLOBAL 23
Slide 25: Asset Quality: Improvement Continues
Asset Quality : Improvement Continues INR Mn except stated ECL Analysis As Per IndAS (INR Mn) Q1FY24 Q4FY23 Q3FY23 Q2FY23 Q1FY23 Stage 1 & 2 - Gross 103,339 95,985 80,588 73,508 65,953 Stage 1 & 2 - ECL Provisions 1,379 1,258 1,234 1,248 1,260 Stage 1 & 2 - Net 101,959 94,727 79,354 72,260 64,693 St
Slide 26: Segmental NPAs: Asset Quality In Improvement Trajectory
Segmental NPAs : Asset Quality In Improvement Trajectory 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 25
Slide 27: Capital Adequacy
Capital Adequacy CAPRIGLOBAL 26
Slide 28: 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 The Board of Directors of CGCL has
Slide 29: Network
Network CAPRIGLOBAL 28
Slide 30: Network: Presence In Major Growth Centres
Network: Presence In Major Growth Centres ❑ Network expansion led by addition of Gold Loan branches Branch Addition Has Continued continued taking total branch count to 849 in Q1FY24 compared to 736 branches in Q4FY23 and 123 branches in Q1FY23. 123 327 610 736 849 ❑ Network of non-Gold Loan busines
Slide 31: Network: Presence In Major Growth Centres
Network: Presence In Major Growth Centres Urban Retail, CF, and Car Loan Gold Loan Branches Distribution 680 Branches in 8 States & UTs 171 Branches in 13 States & UTs 1 1 99 3 16 57 1 4 155 62 46 18 114 23 35 102 2 5 13 88 1 3 1 Note: Political map of India not to scale Note: Political map of India
Slide 32: Financials
Financials CAPRIGLOBAL 31
Slide 33: CGCL Cons. Inc. Statement: Quarterly Comparison
CGCL Cons. Inc. Statement : Quarterly Comparison ₹ Mn except stated Particulars Q1FY24 Q1FY23 Y-o-Y (%) Q4FY23 Q-o-Q (%) Interest earned 4,134 2,361 75% 3,521 17% Interest expended 1,765 1,021 73% 1,637 8% Net interest income 2,370 1,339 77% 1,884 26% Non-interest income 805 409 97% 929 -13% Net car
Slide 34: CGCL Consolidated Balance Sheet
CGCL Consolidated Balance Sheet* ₹ Mn except stated Particulars (INR Mn) Q1FY24 Q1FY23 YoY (%) Q4FY23 QoQ (%) Paid-up equity 412 351 17.3% 412 0.0% Reserves and surplus 35,901 19,350 85.5% 35,242 1.9% Networth 36,314 19,701 84.3% 35,655 1.8% Bank borrowings and refinance 72,079 49,296 46.2% 70,727 1
Slide 35: 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 36: 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 37: 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 38: Shareholding
Shareholding o Market capitalization1 : ₹ 161.4bn | US$ 1.95bn2 o Cons. Networth3 (Q1FY24) : ₹ 36.3bn o Paid-up Equity : ₹ 412.3mn 15.7% Promoter Group o FV : ₹ 2 14.4% Institutional Shareholders o Dividend Per Share Other Public Shareholders (FY23) : ₹ 0.50 69.9% 1. Average of market capitalization
Slide 39: Leadership
Leadership CAPRIGLOBAL 38
Slide 40: Board of Directors & Corporate Governance
Board of Directors & Corporate Governance Independent Board Guides Executive Management Rajesh Sharma, MD & CFO Ajit Mohan Sharan, Independent Bhagyam Ramani, Independent Founder & Promoter with over 2.5 Director Director decades of experience, Chartered IAS - Batch 1979 with over 3 decades Ex- GM a
Slide 41: Leadership Team
Leadership Team Retail Retail Corporate Functions Amar Rajpurohit (Business Head – Bhupinder Singh (Head – Legal Ashok Agarwal (Director – Legal & MSME & Housing – Sales/Product) Litigation) More than a decade Compliance) Previously practicing Ex-AU Financiers, Gruh Finance, experience with various
Slide 42: 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 43: 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 44: 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 43