Capri Global Capital Limited · NSE:CGCL
Capri Global Capital — Q1 FY2020 Earnings Presentation
42 slides from Capri Global Capital's earnings presentation, Aug 5, 2019
Slide 1: Capri Global Capital Limited - Analyst Meet Disclosure
CAPRI GLOBAL ~o · ~ CAPITAL LIMITED :... Unlocking potentials, Empowering people August 05, 2019 To, BSE LIMITED NATIONAL STOCK EXCHANGE OF P J'l'uwers INDIA LIMITED Dalal Street, Fort, Listing Department Mumbai 400 001 Rxchange Plaza, .5th Floor, R;:mor(l-Kurla Com:2lex, Bandra (East}, Mum bai - 10
Slide 2: Q1FY20 Earnings Presentation
Q1FY20 Earnings Presentation 02 August 2019
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: Resilient Business Model
Resilient Business Model CGCL’s Business Strategy Sectoral Headwinds ➢ Availability of undrawn liquidity worth ~INR 500 Cr ➢ Exploring securitisation with various bankers Liquidity Squeeze ➢ Nil exposure to short term CP’s and money market ➢ Optimal level of ALM across all the buckets ➢ Retail focus
Slide 6: Guidance; Adopting a Safer Approach
Guidance; Adopting a Safer Approach Projected AUM (INR Mn) along with FY20 GUIDANCE Branch Expansion 3,00,000 300 Total AUM target at INR 50,000+ Mn 245 2,50,000 250 223,259 210 Aim to grow loan book at a CAGR of ~40% 2,00,000 200 175 153,898 1,50,000 135 150 Segment Projected Yield 95 105,961 MSME
Slide 7: Well Capitalized Business Model
Well Capitalized Business Model Current Assets (INR Mn) 79.7 Capital Adequacy (%) 1,691 53 39.3 34.5 36.0 825 716 567 483.3 415.4 181.2 114.1 104.2 100 FY16 FY17 FY18 FY19 Q1FY20 FY16 FY17 FY18 FY19 Q1FY20 Investments Cash Equivalents Average quarterly Powerful liquidity Strong capital Optimal cash
Slide 8: NPA Analysis: Prudent Lending Practises
NPA Analysis: Prudent Lending Practises CGCL (Standalone) FY16 FY17 FY18 FY19 GNPA Product Segment wise – Q1FY20 (INR MN) NPA Recognition 150 DPD 120 DPD 90 DPD 90 DPD Norms Product Segment GNPA % NNPA % GNPA 97 178 439 560 NNPA 83 152 374 202 MSME 3.62% 2.19% Provisions 14 26 64 358 Construction Fi
Slide 9: Q1FY20 : Performance and Analysis
Q1FY20 : Performance and Analysis 8
Slide 10: Capri Global Capital: Banking The Unbanked
Capri Global Capital: Banking The Unbanked Q1FY20 At A Glance Total AUM* INR 40.9 billion MSME AUM 20,000+ Live Accounts INR 20.2 billion CF + IRL AUM INR 12.0 billion 1,800+ Employees HL AUM INR 8.7 billion 8 States Total Disbursements INR 2.97 billion 88 PAT Branches INR 377 million Net Worth INR
Slide 11: Q1FY20: At a Glance..
Q1FY20: At a Glance.. Consolidated numbers NII (INR MN) PAT (INR MN) AUM (INR MN) 936 377 40,957 271 30,931 682 Q1FY19 Q1FY20 Q1FY19 Q1FY20 Q1FY19 Q1FY20 Capital Adequacy Ratio* (%) Gross NPA (%) Net NPA (%) 38.6% MSME + CF + IRL HF MSME + CF + IRL HF 2.32 1.91 1.17 1.15 36.0% 0.82 0.44 0.22 0.19 Q1
Slide 12: Q1FY20: Key Highlights
Q1FY20: Key Highlights Consolidated numbers AUM - Segmental Breakup Disbursements - Segmental Portfolio Yield (%) (INR Mn) Breakup (INR Mn) 17.2% 16.0% 15.8% 2,132 20,178 15.13% 14.0% 13.4% 13.0% 12.3% 16,220 1,479 1,350 1,260 11,486 9,810 985 8,717 900 720 3,641 1,260 577 - Q1FY19 Q1FY20 Q1FY19 Q1F
Slide 13: Q1FY20: Performance Summary
Q1FY20: Performance Summary All amounts in INR Mn except stated Particulars Q1FY20 Q1FY19 Y-o-Y (%) Net Interest Income (NII) 936.0 681.5 37.3% Interest Expense 700.1 392.9 78.2% Net Interest Margin (NIM)% 9.13% 9.15% (0.02%) PAT 377.3 270.4 40% Annualized RoE (%) 10.77% 8.47% 2.30% Annualized Retur
Slide 14: 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 ECL Analysis as per INDAS Q1FY20 Q1FY19 Q4FY19 Stage 1 & 2 - Gross 40,144.4 30,663.6 40,432.8 Stage 1 & 2 – ECL Provisions 204.6 150.6 214.8 Stage 1 & 2 – Net 39,939.8 30,513 40,218 Stage 1 & 2 – ECL Provisions %
Slide 15: Asset-Liability Split: Consistent Mix
Asset-Liability Split: Consistent Mix All amounts in INR Mn 30th June, 2019 31st March, 2019 ❖ Have consistently 20,503 19,789 remained cautious 18,359 18,104 19,310 19,044 about short-term 13,180 12,679 15,487 16,098 asset & liability mismatches by 11,063 9,305 ensuring optimally matched Balance Sh
Slide 16: 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 15,661 27,687 26,995 ▪ Nil exposure to short-term money market signifies 100% 97% 100% no probability of default ▪ CGCL’s prudence in higher bor
Slide 17: Small Loans: Niche Capabilities
Small Loans: Niche Capabilities MSME Construction Finance Housing Finance Indirect Lending ~ 50 % of AUM ~ 28 % of AUM ~ 21 % of AUM ~ 1 % of AUM • Focus on Tier II & III • Project outreach: • Affordable housing • NBFC Outreach: 9 cities; Customer 150 customers in Tier II & • Financing to other outr
Slide 18: Annexure: About CGCL & Industry Scenario
Annexure: About CGCL & Industry Scenario 17
Slide 19: 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 20: 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 21: Leverage On Technological Initiatives; Setting Us Apart
Leverage On Technological Initiatives; Setting Us Apart • Application Centralisation • New LOS/LMS Scorecard (Indus Platform) • Regional Processing Units • Mobility Solution Automation Productivity A positive impact on productivity and cost control A new generation cloud-based platform with rule eng
Slide 22: 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 23: MSME: Small Loans, Big Opportunity
MSME: Small Loans, Big Opportunity Focus Area MSME Assets by Geography 3% 7% 2% Delhi NCR 35% Maharashtra 13% Gujarat Micro Enterprise Small Enterprise MP • Self Employed Individuals – • Small enterprises with Rajasthan Provision stores, retail formal income Punjab outlets, handicrafts etc documenta
Slide 24: MSME: CGCL's Growth Driver
MSME: CGCL’s Growth Driver Disbursals (INR Mn) Live Accounts 11,051 11,235 7,910 7,720 6,100 1,350 FY18 FY19 Q1FY20 FY18 FY19 Q1FY20 Direct Sourcing (AUM) 73% 74.30% 55% FY18 FY19 Q1FY20 23
Slide 25: 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 26: 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 11% • Ventured in 2016 through its subsidiary 36% Maharashtra – Capri Global Housing Finance Limited 17% Gujarat Delh
Slide 27: Housing Finance: Exponential Growth Potential
Housing Finance: Exponential Growth Potential Disbursals (INR Mn) Live Accounts 5,090 8,637 8,781 2,404 2,621 900 FY18 FY19 Q1FY20 FY18 FY19 Q1FY20 Portfolio Yield (%) 13.38% 13.40% 12% FY18 FY19 Q1FY20 26 Note: FY18 was the 1st full year of operations
Slide 28: 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 29: Construction Finance: The Retail Way
Construction Finance: The Retail Way • Exposure to Mumbai region at 31 % Addressing Concentration • Reduced average interest rates to in FY19 vs 69% in FY16 Risk 14-17% from 18-20% to target larger • New geographies added in past 2 developer audience years: Ahmedabad, Chennai, • Aim to specialise in
Slide 30: Construction Finance: Building a Sustainable Future
Construction Finance: Building a Sustainable Future Focus Area CF Lending Portfolio by Geography 1% 1% • Construction linked loans to small and 3% midsize real estate developers 5% Mumbai 3% Pune 28% • Comprehensive framework for project 7% Bangalore selection and credit appraisal Ahmedabad Delhi-NC
Slide 31: Construction Finance: High Yield, Low Risk
Construction Finance: High Yield, Low Risk Disbursals (INR Mn) Number of projects 8,860 146 150 8,240 98 720 FY18 FY19 Q1FY20 FY18 FY19 Q1FY20 Portfolio Yield (%) 17.20% 17.15% 16% 30 FY18 FY19 Q1FY20
Slide 32: Indirect Retail Lending: Unique Product Offering
Indirect Retail Lending: Unique Product Offering` Focus Area AUM Disbursements Lending to small NBFCs engaged in INR 577 Mn Nil 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 50-250 Mn
Slide 33: Over the Years…
Over the Years… Net Interest Margin (%) Pre-Tax RoCE (%) Spread (%) 14.8 9.21 9.49 5.73 8.5 5.6 11.6 9.3 9.32 5.7 5.07 4.93 FY16 FY17 FY18 FY19 FY16 FY17 FY18 FY19 FY16 FY17 FY18 FY19 Return on Equity (%) Cost to Income Ratio (%) Return on Assets (%) 3.75 10.3 52 3.51 3.52 48 44 2.64 6.1 5.1 27 4 FY
Slide 34: Over the Years…
Over the Years… NII (INR Mn) PAT (INR Mn) 3,236 1,357 2,252 1,671 1,495 659 581 436 FY16 FY17 FY18 FY19 FY16 FY17 FY18 FY19 Total Assets (INR Mn) Capital Adequacy (%) 42,770 79.7 29,710 53 19,861 39.3 34.2 13,204 FY16 FY17 FY18 FY19 FY16 FY17 FY18 FY19 33 Consolidated Numbers ; FY18 & FY19 nos. base
Slide 35: Retail focussed model aiding to strong Asset quality
Retail focussed model aiding to strong Asset quality MSME Average Ticket Size (In Mn) Construction Finance Average Ticket Size (In Mn) Housing Finance Average Ticket Size (In Mn) 277 1.5 4.3 1.1 1 2.6 1.5 99.2 80 FY17 FY18 FY19 FY17 FY18 FY19 FY17 FY18 FY19 MSME GNPA (%) Construction Finance GNPA (%
Slide 36: Growing At a Superior Pace
Growing At a Superior Pace Disbursement Mix (INR Mn) AUM Mix (INR Mn) MSME CF IL HL MSME CF IL HL 8,860 19,710 8,240 7,915 7,720 7,230 15,413 5,990 5,090 12,027 12,010 4,760 9,427 7,930 3,058 7,484 2,922 5,999 2,108 2,080 4,415 4,865 1,600 3,113 1,100 2,450 1,100 1,390 65 65 FY15 FY16 FY17 FY18 FY19
Slide 37: Income Statement
Income Statement INR Mn Q1FY20 Q1FY19 Y-o-Y(%) Q4FY19 Q-o-Q(%) Total interest earned 1,636.0 1,074.4 52% 1,572.8 4% Total interest expanded 700.0 392.9 78% 623.9 12% Net interest income 936.0 681.5 37% 948.2 (1%) Non-interest income 105.1 126.3 (17%) 203.9 (48%) - Fee and Commission income 71.3 92.8
Slide 38: Balance Sheet
Balance Sheet INR Mn FY18 FY19 Q1 FY20 Share Capital 350.3 350.3 350.3 Reserves and Surplus 12,166.20 13,476.50 13,862.30 Networth 12,516.50 13,826.80 14,212.60 Borrowings 15,661.40 27,687.00 26,995.20 Other Liabilities and Provisions 1,533.00 1,256.30 649.90 Total liabilities & stockholders' equity
Slide 39: Leadership Team
Leadership Team Surender Sangar Vikas Sharma Ashish Gupta Hemant Dave Head – Construction Finance Business (HL) and Collections Head Chief Financial Officer Head of Operations Ex-MD – Tourism Finance Corporation of Ex - Kotak Mahindra Bank, Dhanlaxmi Ex - Jindal Stainless, Isolux, Ex - Kotak Mahindr
Slide 40: Board of Directors
Board of Directors Rajesh Sharma Ajay Kumar Relan T. R. Bajalia Bhagyam Ramani Managing Director Independent Director Independent Director Independent Director Founder & promoter Founder CX Partners & Citi Ex-DMD – SIDBI, Ex- GM and Director of General Over 23 years of experience Bank N.A. in India,
Slide 41: Key Partnerships
Key Partnerships Lenders Auditors & Advisors 40
Slide 42: Thank You
Thank You
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