Capri Global Capital Limited · NSE:CGCL
Capri Global Capital — Q3 FY2023 Earnings Presentation
41 slides from Capri Global Capital's earnings presentation, Jan 28, 2023
Slide 1: Q3FY23 Earnings Presentation
Responsible. Resilient. Ready. Q3FY23 Earnings Presentation 28th January 2023 C A P R I GFollow L O B A Lus: 1
Slide 2: 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 3: Disclaimer (continued)
Disclaimer (continued) This Presentation is not a complete description of the Company. Certain statements in the Presentation may contain statements regarding the Company’s market opportunity and business prospects that are individually and collectively forward-looking statements. All forward-lookin
Slide 4: Business Performance
Business Performance CAPRIGLOBAL 4
Slide 5: Executive Summary : Key Highlights
Executive Summary : Key Highlights ❑ Cons. disbursals touched Rs18,105mn (43% YoY, 22% QoQ) led by a strong momentum in retail segments. Cons. AUM touched Rs86,525mn (50% YoY, 11% QoQ). ❑ Gold Loan disbursals constituted 43% of consolidated disbursals during Q3FY23. Live Gold Loan branches increased
Slide 6: Business Update : Strong Growth Continues
Business Update : Strong Growth Continues AUM Segmental Break Up (INR Mn)* Composition of AUM (%)* 57,736 66,329 69,765 77,692 86,525 o MSME-DA and HF-DA relates to off-balance sheet AUM comprising Direct Assignment (co-lending portfolio) in MSME and HF respectively. * As at the end of period indica
Slide 7: Disbursals : Share of Retail Disbursals Overtakes Wholesale
Disbursals : Share of Retail Disbursals Overtakes Wholesale Segmental Disbursals (INR Mn) Composition of Segmental Disbursals (%) 12,652 15,039 10,933 14,860 18,105 Note: Indirect Lending disbursals that we previously excluded from this graph, have now been included. Previous quarter data is suitabl
Slide 8: MSME Business Update
MSME Business Update Average Ticket Size (INR Mn) Live Accounts* Loan to Value (%) (Incremental Disbursals) Geographical Distribution (Value-Wise)^ * As at the end of period indicated ^ As at December 31, 2022 CAPRIGLOBAL 8
Slide 9: Gold Loan Business Update
Gold Loan Business Update Rapid Rollout In 7 States & UTs Geographical Distribution (Value-Wise)* ❑ Gold Loan business continued to scale-up rapidly after the launch in Aug’22 through 108 branches across 5 states and UTs. ❑ The network expanded to 449 exclusive branches in Q3FY23 from 182 exclusive
Slide 10: Construction Finance Business Update
Construction Finance Business Update Average Ticket Size (INR Mn) Live Accounts* Geographical Distribution (Value-Wise)* * As at December 31, 2022 CAPRIGLOBAL 10
Slide 11: Housing Finance Business Update
Housing Finance Business Update Average Ticket Size (INR Mn) (Incremental Disbursals) Live Accounts* Loan to Value (%) (Incremental Disbursals) Geographical Distribution (Value-Wise)* Salaried 43% Self-employed 57% * As at September 30, 2022 CAPRIGLOBAL 11
Slide 12: Car Loan Distribution: Momentum Continues
Car Loan Distribution: Momentum Continues Pan-India coverage Pan-India Distribution Footprint through presence in 322 locations in o Distributing new car loan products of Union Bank of India, 1 7 29 States & UTs Bank of Baroda, HDFC Bank, IOB, Yes Bank, and Bank of 1 India. 11 11 4 o Asset light mod
Slide 13: Earnings Performance
Earnings Performance CAPRIGLOBAL 13
Slide 14: Performance Matrix : Impact of Expansion On Profitability
Performance Matrix : Impact of Expansion On Profitability NII (INR Mn) Operating Profit (INR Mn) Credit Costs (INR Mn) PAT (INR Mn) CAPRIGLOBAL 14
Slide 15: Key Ratios : Adjusted NIMs Improved QoQ
Key Ratios : Adjusted NIMs Improved QoQ Yield on Advances (%) Cost of Funds (%) One-off items contributed 76bps in Q2 Note: • We have changed YoA and CoF calculation methodology to Net Interest Margin (%) bring it in-line with the formula used in our rights issue disclosures. Adjusting • Instead of
Slide 16: Operating Expenses : Opex Up On Branch Rollout
Operating Expenses : Opex Up On Branch Rollout Operating Expenses (INR Mn) Operating Expenses Composition (%) Cost-Income (%) Cost / AAUM (%) (annualized) Adjusted for the Gold Cost/AAUM Loan calculated vertical considering opex, the new car C/I ratio was loan ~49% in origination 9MFY23 volume for t
Slide 17: Key Ratios : Return Ratios Impacted
Key Ratios : Return Ratios Impacted Annualized Return on Equity (%) Annualized Return on Assets (%) EPS (Diluted) (INR) (Not Annualized) Book Value Per Share (INR)* * Deferred tax assets deducted from Networth before computing BVPS. CAPRIGLOBAL 17
Slide 18: Liabilities & Liquidity Position Update
Liabilities & Liquidity Position Update CAPRIGLOBAL 18
Slide 19: Liability Mix : Well Funded Balance Sheet
Liability Mix : Well Funded Balance Sheet* 41,694 48,084 53,628 61,304 65,940 41,694 48,084 53,628 61,304 65,940 * In INR Millions as at the end of period indicated. CAPRIGLOBAL 19
Slide 20: Liquidity Position : Comfortable Liquidity Position
Liquidity Position : Comfortable Liquidity Position* INR Mn except stated CGCL Particulars CGHFL Consolidated (Standalone) Limits Sanctioned 61,550 29,400 90,950 Limits Availed 58,297 25,400 83,697 Un-Drawn 3,253 4,000 7,253 Repaid 13,271 6,682 19,953 Outstanding 45,026 18,718 63,744 Total no. of re
Slide 21: Liquidity Position : Proactive Liability Management
Liquidity Position : Proactive Liability Management INR Mn except stated CGCL Particulars CGHFL Consolidated (Standalone) Dues during Q3FY23 1,955 969 2,924 Payment made as per Schedule (A) 1,955 969 2,924 Prepayments made for the quarter (B) 0 0 0 Total repayments/prepayments (A+B) 1,955 969 2,924
Slide 22: Asset Quality and Collection Efficiency
Asset Quality and Collection Efficiency CAPRIGLOBAL 22
Slide 23: Asset Quality : Stage 3 + Restr. Asset Pool Declining
Asset Quality : Stage 3 + Restr. Asset Pool Declining INR Mn except stated ECL Analysis As Per IndAS (INR Mn) Q3FY23 Q2FY23 Q1FY23 Q4FY22 Q3FY22 Stage 1 & 2 - Gross 80,587 73,508 65,953 63,627 55,988 Stage 1 & 2 - ECL Provisions 1,234 1,248 1,260 1,325 944 Stage 1 & 2 - Net 79,353 72,260 64,693 62,3
Slide 24: Segmental NPAs : Asset Quality In Improvement Trajectory
Segmental NPAs : Asset Quality In Improvement Trajectory MSME^ Construction Finance & IL^* Housing Finance^* ^Aggregate ECL provisions considered for computing NNPAs. * Net NPAs in CF&IL and HF negligible in Q3FY23, negative in previous quarters. CAPRIGLOBAL 24
Slide 25: Collection Efficiency : High and Stable
Collection Efficiency : High and Stable Consolidated Collection Efficiency Stable Collection Efficiency o High and stable collection efficiency reflects consistently healthy resolution rates overall. o The collection efficiency within retail segment is marginally lower than the overall collection ef
Slide 26: Capital Adequacy
Capital Adequacy CAPRIGLOBAL 26
Slide 27: Well Capitalized Balance Sheet: Aid to Expansion
Well Capitalized Balance Sheet: Aid to Expansion Consolidated Networth (INR Mn) Capital Adequacy (%) : Leveraging Capital Fast 18,763 19,225 19,701 20,414 20,644 Strong capital + + = Adequate cash Comfortable liquidity adequacy to Undrawn credit position on balance position to support future support
Slide 28: Network and Financials
Network and Financials CAPRIGLOBAL 28
Slide 29: Network: Presence In Major Growth Centres
Network: Presence In Major Growth Centres Branch Addition Has Continued ❑ With the launch of Gold Loan business in Aug’22, branch 107 117 123 327 610 network expanded 1.9x over Q2FY23 to touch 610 branches. ❑ Network of non-Gold Loan businesses expanded by 15 branches to touch 161 branches. The busi
Slide 30: Network: Presence In Major Growth Centres
Network: Presence In Major Growth Centres Urban Retail, CF, and Car Loan Gold Loan Branches Distribution 449 Branches in 7 States & UTs 161 Branches in 15 States & UTs 1 2 70 3 36 1 4 109 47 19 19 1 23 35 1 70 90 2 5 13 55 2 2 CAPRIGLOBAL 30
Slide 31: CGCL Cons. Inc. Statement : Quarterly Comparison
CGCL Cons. Inc. Statement : Quarterly Comparison INR Mn except stated Particulars Q3FY23 Q3FY22 Y-o-Y (%) Q2FY23 Q-o-Q (%) 32 31 Interest earned 3,004 2,192 37.0% 2,787 7.8% Interest expended 1,394 822 69.6% 1,258 10.8% Net interest income 1,610 1,370 17.5% 1,398 15.1% Non-interest income 772 346 12
Slide 32: CGCL Consolidated Balance Sheet
CGCL Consolidated Balance Sheet INR Mn except stated Particulars (INR Mn) Q3FY23 Q4FY22 YTD (%) Paid-up equity 352 351 0.1% Reserves and surplus 20,293 18,873 7.5% Networth 20,644 19,225 7.4% Bank borrowings and refinance 60,775 43,753 38.9% NCDs 5,166 4,331 19.3% Other liabilities and provisions 4,
Slide 33: CGCL Consolidated Income Statement : Annual Comparison
CGCL Consolidated Income Statement : Annual Comparison INR Mn except stated Profit and Loss A/c FY18 FY19 FY20 FY21 FY22 9 15 10 14 19 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 43
Slide 34: CGCL Consolidated Balance Sheet : Annual Comparison
CGCL Consolidated Balance Sheet : Annual Comparison* INR Mn except stated Balance Sheet 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
Slide 35: 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 1.9 Fees 0.8 1.5 0.9 1.2 1.7 Other income 0.1 0.1 0.1 0.0 0.2 Net in
Slide 36: Shareholding
Shareholding o Market capitalization^ : Rs133bn | US$ 1.63bn o Cons. Networth* (Q3FY23) : Rs20.6bn o Paid-up Equity : Rs351.7mn o FV : Rs2 o Dividend Per Share (FY22) : Rs0.50 ^Average of market capitalization on BSE and NSE as of 28th Jan’23 * Not adjusted for DTAs 1 US$ = ₹ 81.54 CAPRIGLOBAL 36
Slide 37: Leadership
Leadership CAPRIGLOBAL 37
Slide 38: Board of Directors & Strong Corporate Governance
Board of Directors & Strong Corporate Governance Corporate Governance Rajesh Sharma, MD & CFO Founder & Promoter with over 2.5 Philosophy decades of experience, Chartered Accountant o Good Board Practices Ajit Mohan Sharan, Independent Beni Prasad Rauka, Independent Director Director o Control Envir
Slide 39: Stable Leadership Team
Stable Leadership Team Retail Retail Corporate Functions Amar Rajpurohit (Business Head – Magesh Iyer (Chief Operating Ashok Agarwal (Director – Legal & MSME & Housing – Sales/Product) Officer) Ex - InCred Finance, Compliance) Previously practicing Ex-AU Financiers, Gruh Finance, Reliance Capital, I
Slide 40: 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 41: 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 41
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