Capri Global Capital Limited · NSE:CGCL
Capri Global Capital — Investor Presentation (November 2021)
52 slides from Capri Global Capital's investor presentation, Nov 25, 2021
Slide 1: Filing cover letter to stock exchanges
PRIGLOBAL November 25, 2021 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 Scr
Slide 2: Corporate Presentation November 2021
C.APRI GLOBAL CAPITAL LIMITED Responsible. Resilient. Ready. CORPORATE PRESENTATION NOVEMBER 2021 CAPRIGLOBAL 1
Slide 3: Disclaimer
I 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 connecti
Slide 4: Capri Global Capital: Banking The Unbanked
I Capri Global Capital: Banking The Unbanked A Non-Banking Financial Company (NBFC) with presence across high growth segments like MSME, Affordable Housing, Construction Finance, and Indirect Lending segments Promoted by first generation entrepreneur, Mr. Rajesh Sharma, Capri Global Capital Limited
Slide 5: Executive Summary: Our Journey
I Executive Summary: Our Journey 0 I I I I Expanding Business Verticals • Ventured into MSME ® I I I I Housing Finance entry • Forayed into Housing Finance • Branch network jumps to 66; ® I I I I ~ I I lending I I I I I I I I Workforce count of 1,350 I I • • • 2011 2013 2016 2017 2021 Journey Begins
Slide 6: Capri Global Capital: Brief Overview
I Capri Global Capital: Brief Overview Financial Highlights r··················· State-wise Number of i INR 525 Mn Q2FY22 I Physical Branch Locations as of Q2FY22 : 99 branches .! INR 984 Mn H1FY22 1......................................................................... INR 52.7 Bn INR 1,769 Mn FY
Slide 7: Business Overview: Diversified Portfolio
I Business Overview: Diversified Portfolio MSME Housing Finance Construction Finance Indirect Lending Product portfolio: Business loan Product portfolio: Home loans Product portfolio: Construction- Product portfolio: against residential, commercial for – Purchase of residential linked loans to small
Slide 8: CGCL Advantage: What Sets Us Apart
CGCL Advantage: What Sets Us Apart Retail Focused Model Focus on SENP Borrower Own Sourcing Model o Strong focus on self employed non- o 100% sourcing is done by regularly o Small ticket size retail focussed professional borrower; carved out a trained in-house Direct Sales Team lending across MSME,
Slide 9: Operating Efficiency: Adopting Low-Cost Hub & Spoke Model
I Operating Efficiency: Adopting Low-Cost Hub & Spoke Model Area Managers • Sales and Credit • Branch Manager • Operations • Relationship Hub • FCU, Legal, Technical and Spoke • Mangers (DSTs) Collections • Credit Resource • Spoke branch functions • Direct connect with customers Benefits of Hub & Sp
Slide 10: Digitised Workflow & Analytics Driven Underwriting
I Digitised Workflow & Analytics Driven Underwriting Mobility Applications Verification & Screening Tools Digitisation & Score carding Bureau Scrubs • Sales Application Disbursement with minimal or no Digital, cloud based application which unifies Regular bureau scrubs enables assessment ✓ Paperless
Slide 11: Digital Payments Infrastructure & Technology
I Digital Payments Infrastructure & Technology .\ Initiatives /.··························································· Evolved e-payment solutions for Customer Relationship through self service Capri Learning Application both disbursements & collections portal & effective communication modes •
Slide 12: AUM: Growth Rebounding
I AUM : Growth Rebounding AUM Segmental Break Up (INR Mn) MSME HF CF IL 28,390 r·················.·. . . .·..................J r. . . . . . .41,032 . . . . . . . . . . . . . . . . . . . . . .·. . . . J [. . . . .40,347 . . . . . . . . . . . . . . . . . . . . . . . .J 48,480 r··················......
Slide 13: Disbursals: Strong Pick-up Post Second Lockdown
I Disbursals : Strong Pick-up Post Second Lockdown Disbursals (INR Mn) MSME HF CF 19,097 22,000 11,793 14,984 5,850 8,933 8,860 8,240 4,169 5,090 2,986 4,220 3,724 3,188 2,533 2,030 2,289 7,871 8,050 7,091 1,420 5,040 2,400 3,456 FY18 FY19 FY20 FY21 Q2FY22 H1FY22 CAPRIGLOBAL 12
Slide 14: Business Segments
BUSINESS SEGMENTS PRIGLOBADL CAP ITA L LIM ITE CAPRIGLOBAL 13
Slide 15: MSME Lending: A Huge Unexplored Opportunity
I MSME Lending: A Huge Unexplored Opportunity MSME – Huge Addressable Credit Gap FY16 FY21 INR MSME Systemic 9.6 Tn 19.2 Tn 17.3 Tn Credit (INR) INR INR 19.4 Tn 52.0 Tn Non-Banks Market Addressable Credit Gap of INR 19.4 Tn 8% 10.4% Share refers to tappable portion out of INR 52 Tn of Informal Chann
Slide 16: MSME: Small Loans, Big Opportunity
I MSME: Small Loans, Big Opportunity r-··················································································································································i Geographical Distribution (Value-Wise) ;·········································································
Slide 17: MSME: CGCL's Growth Driver
I MSME: CGCL’s Growth Driver Average Ticket Size (INR Mn) Live Accounts r··············································.·.·.·.·.·.·.·.·.·.·.·.·.·.·.·.·.·.·.·.·.·.·.·.·.·.·.·.·.·.·.·.·.·.·.·.·.·.·.·.·.·.·.·.·.·.·.·.·.·.·.·.·.·.·.·.·.·.·.·.·.·.·.·.·.·.·.·.·.·.·.·.·.·.·.·.·.·.·.·.·.·.·.·.·.·.·.·.·.·.·
Slide 18: Affordable Housing: Large Demand & Low Formal Financing
I Affordable Housing: Large Demand & Low Formal Financing Ramp-up Expected in Indian Mortgage Market Housing Shortage – Socio Economic Group Wise 36.9 (Loan Assets in INR Tn) 8% 31.0 26.1 12% 21.9 ■ EWS 19.1 ■ LIG 16.6 14.2 ■ MIG & Above 80% Mar-17 Mar-18 Mar-19 Mar-20 Mar-21E Mar-22E Mar-23E ......
Slide 19: Housing Finance: Capitalising on Affordable Housing Opportunity
I Housing Finance: Capitalising on Affordable Housing Opportunity Focus Area 0.8% ■ Maha rashtra ■ MP • Serves middle and lower middle income population ■ Gujarat in Tier 2 and 3 cities ■ Rajast han ■ De l hi-NCR UP • Ventured in 2016 through its subsidiary – Capri Global Housing Finance Limited Sal
Slide 20: Housing Finance: Exponential Growth Potential
I Housing Finance: Exponential Growth Potential Average Ticket Size (INR Mn) Live Accounts r··············································.·.·.·.·.·.·.·.·.·.·.·.·.·.·.·.·.·.·.·.·.·.·.·.·.·.·.·.·.·.·.·.·.·.·.·.·.·.·.·.·.·.·.·.·.·.·.·.·.·.·.·.·.·.·.·.·.·.·.·.·.·.·.·.·.·.·.·.·.·.·.·.·.·.·.·.·.·.·.·.·.·
Slide 21: Construction Finance: Building a Sustainable Future
I Construction Finance: Building a Sustainable Future Focus Area ■ Mumbai MMR ■ Ahmedabad • Construction linked loans to small and midsize real ■ De lhi-NCR estate developers ■ Pune ■ Be ngalu ru Hyde rabad • Comprehensive framework for project selection and ■ Vijaywada credit appraisal Surat Jaipur
Slide 22: Construction Finance: High Yield, Well Managed Risks
I Construction Finance: High Yield, Well Managed Risks Average Ticket Size (INR Mn) No. of Projects r··············································.·.·.·.·.·.·.·.·.·.·.·.·.·.·.·.·.·.·.·.·.·.·.·.·.·.·.·.·.·.·.·.·.·.·.·.·.·.·.·.·.·.·.·.·.·.·.·.·.·.·.·.·.·.·.·.·.·.·.·.·.·.·.·.·.·.·.·.·.·.·.·.·.·.·.·.·.
Slide 23: Car Loan Distribution: Robust Fee Potential
I Car Loan Distribution: Robust Fee Potential r=................................................................................................................................... Team Expansion To Continue I Scaled up to o Tie-ups with commercial banks to distribute their new car loan products for
Slide 24: Capital and Liquidity
CAPITAL AND LIQUIDITY PRIGLOBADL CAP ITA L LIM ITE CAPRIGLOBAL 23
Slide 25: Well Capitalized For Medium Term Growth
I Well Capitalized For Medium Term Growth Consolidated Networth (INR Mn) Capital Adequacy (%) ■ CGHFL Surplus ■ Inv. In CGHFL (incl. premium) CGCL Networth (excl. inv. in subs.) CGCL CGHFL ............. ........... i 12,517 ~ : f 13,827 ! ~ r······· I 18,098 =..................... =.................
Slide 26: Liquidity Position: Continue to Maintain Adequate Buffer
I Liquidity Position : Continue to Maintain Adequate Buffer Particulars (INR Mn) CGCL (Standalone) CGHFL Consolidated Limits Sanctioned 34,650 18,650 53,300 Limits Availed 34,156 15,600 49,756 Un-Drawn 494 3,050 3,544 Repaid 7,313 3,690 11,003 Outstanding 26,843 11,910 38,753 Total no. of relationsh
Slide 27: Liquidity Position: Repayment of High-Cost Loans
I Liquidity Position : Repayment of High-Cost Loans Particulars (INR Mn) CGCL (Standalone) CGHFL Consolidated Dues during FY2021-22 (exc. Prepayments made in FY22) 6,483 2,369 8,852 Payment made as per schedule (A) 877 221 1,098 Prepayments made for the year (B) 2,768 1,362 4,130 Total repayments/pr
Slide 28: Asset-Liability Split: Maturity Buckets Are Well Balanced
I Asset-Liability Split : Maturity Buckets Are Well Balanced* Asset-Liability Mix (INR Mn); Ensuring Optically Matched Balance Sheet 50,421 22,228 21,470 16,328 15,918 9,800 - - - - 6,654 6,296 5,403 4,347 4,515 754 1,489 1,924 upto 1 month >1-3 months >3-6 months >6-12 months 1-3 years 3-5 years >5
Slide 29: Asset-Liability Position: Well-Balanced for Short Term
I Asset-Liability Position : Well-Balanced for Short Term* ALM Position : CGCL (Standalone) ALM Position : CGHFL Inflows Outflows Inflows Outflows 11.6 11.4 3.9 3.8 2.5 2.4 6.4 6.3 1.0 1.0 2.4 2.4 - - 1.0 0.7 0.2 0.4 0.4 0.1 ■ 0D - 14D 15D - 1M >1M - 3M >3M - 6M 0 -7 D 8D - 14D 15D - 1M >1M - 3M >3M
Slide 30: Liability Mix: Steady Diversification In Borrowings
I Liability Mix : Steady Diversification In Borrowings ... ... ... ... ... ... ~ (. . . . . . . . l ... ... ... ... ... ... ~ (................ ! ,•················ ~ I 29,573 I : 33,340 : I 37,689 I 36,003 I 37,934 I 1...........•····················· :............•·················· L..........•··
Slide 31: Asset Quality
ASSET QUALITY PRIGLOBADL CAP ITA L LIM ITE CAPRIGLOBAL 30
Slide 32: Asset Quality: Consolidated Stage Analysis As per IND-AS
I Asset Quality : Consolidated Stage Analysis As per IND-AS ECL Analysis As Per IndAS Q2FY22 Q1FY22 Q4FY21 Q3FY21 INR Mn except stated Q2FY21 Stage 1 & 2 - Gross 51,006 47,693 46,870 39,515 40,711 Stage 1 & 2 - ECL Provisions 918 823 730 603 320 Stage 1 & 2 - Net 50,089 46,870 46,140 38,912 40,391 S
Slide 33: NPA Analysis: Short Term Headwinds
I NPA Analysis : Short Term Headwinds CGCL (Consolidated) GNPA Product Segment wise – Q2FY22 FY18 FY19 FY20 FY21 (INR MN) GNPA 434 561 952 1,609 Product Segment GNPA % NNPA % NNPA 185 445 312 434 MSME 5.2% 1.2% Provisions 250 116 640 1,175 Construction Finance 0.2% - Gross NPA% 1.5% 1.5% 2.4% 3.3% H
Slide 34: Asset Quality: Net NPAs Improving
Asset Quality : Net NPAs* Improving I r·----- -:: : : : : : : : : : : : : : : : : : : : : : : ::::::::::::::::::::::::::::::::::::::............ MSME (%) 1.8 1.9 _j Housing Finance (%) 0.43 0.40 1.7 I - 1.2 1.1 0.15 ■ I - (0.08) FY18 FY19 FY20 FY21 Q2FY22 FY18 FY19 FY20 FY21 Q2FY22 Construction Fina
Slide 35: Collection Efficiency: Performance in EMI Servicing Continues
Collection Efficiency : Performance in EMI Servicing Continues I MSME Collection Efficiency (by POS) r··································:::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::: l ............. MSME: Slow Reversion to Normalcy o
Slide 36: Over The Years…
I Over The Years… .. .................................................................. NIM (%) : Rebound In NIMs With Decline In Excess . r···································· Cost-Income (%) : Short Term Bump J 1 Liquidity ·..........................................................................
Slide 37: Over The Years…
I Over The Years… r············································· Return on Average Assets (%) : Stable In A i Return on Average Equity (%) : Stable In A Challenging Year =.............................................................................................. .. Challenging Year r:............
Slide 38: CGCL Consolidated Income Statement: Quarterly Comparison
CGCL Consolidated Income Statement : Quarterly Comparison Particulars (INR Mn) Q2FY22 Q2FY21 Y-o-Y (%) Q1FY22 Q-o-Q (%) Interest earned 1,980 1,743 13.6% 1,875 5.6% Interest expended 799 688 16.1% 771 3.6% Net interest income 1,180 1,054 12.0% 1,104 7.0% Non-interest income 217 126 72.4% 124 76.0% C
Slide 39: CGCL Consolidated Balance Sheet: Quarterly Comparison
CGCL Consolidated Balance Sheet : Quarterly Comparison* Particulars (INR Mn) Q2FY22 Q2FY21 Y-o-Y (%) Q1FY22 Q-o-Q (%) Paid-up equity 351 350 0.1% 351 0.0% Reserves and surplus 17,747 16,033 10.7% 17,286 2.7% Networth 18,098 16,383 10.5% 17,637 2.6% Bank borrowings and refinance 31,356 22,833 37.3% 2
Slide 40: CGHFL Income Statement: Quarterly Comparison
CGHFL Income Statement : Quarterly Comparison Particulars (INR Mn) Q2FY22 Q2FY21 Y-o-Y (%) Q1FY22 Q-o-Q (%) Interest earned 437 345 26.5% 395 10.5% Interest expended 228 201 13.6% 212 7.7% Net interest income 209 145 44.4% 184 13.8% Non-interest income 64 61 4.2% 41 55.8% Core operating income 21 11
Slide 41: CGHFL Balance Sheet: Quarterly Comparison
CGHFL Balance Sheet : Quarterly Comparison* Particulars (INR Mn) Q2FY22 Q2FY21 Y-o-Y (%) Q1FY22 Q-o-Q (%) Paid-up equity 607 607 0.0% 607 0.0% Reserves and surplus 2,231 1,753 27.3% 2,123 5.1% Networth 2,838 2,360 20.3% 2,730 4.0% Borrowings 12,202 8,955 36.3% 10,650 14.6% Other liabilities and prov
Slide 42: CGCL Consolidated Income Statement: Annual Comparison
CGCL Consolidated Income Statement : Annual Comparison Profit and Loss A/c (INR Mn) FY17 FY18 FY19 FY20 FY21 Interest income 2,021 3,219 5,307 6,700 6,735 Interest expenses 380 967 2,071 2,828 2,887 Net interest income 1,641 2,252 3,236 3,872 3,848 Other income 330 210 586 433 636 Fees 137 195 558 3
Slide 43: CGCL Consolidated Balance Sheet: Annual Comparison
I CGCL Consolidated Balance Sheet : Annual Comparison Balance Sheet (INR Mn) FY17 FY18 FY19 FY20 FY21 Liabilities Paid-up equity 350 350 350 350 351 Reserves 11,256 12,166 13,477 15,042 16,822 Networth 11,607 12,517 13,827 15,392 17,173 . . .. . . . . . . . .....! <::. Low leverage offers robust Bor
Slide 44: CGCL Consolidated Earnings: Du Pont Analysis
CGCL Consolidated Earnings : Du Pont Analysis RoA Tree (%) FY17 FY18 FY19 FY20 FY21 Interest income 12.2 13.0 14.6 15.4 13.1 Interest expenses 2.3 3.9 5.7 6.5 5.6 Net interest income 9.9 9.1 8.9 8.9 7.5 Other income 2.0 0.8 1.6 1.0 1.2 Fees 0.8 0.8 1.5 0.9 1.2 Other income 1.2 0.1 0.1 0.1 0.0 Net in
Slide 45: Way Forward…
Way Forward… PRIGLOBADL CAP ITA L LIM ITE CAPRIGLOBAL 44
Slide 46: Way Forward: FY22E and Beyond
I Way Forward : FY22E and Beyond AUM growth has picked up momentum and we expect it to sustain in H2FY22, expect full year growth at +20% YoY. CGCL well poised to deliver a 22-27% CAGR FY22E-FY27E in AUM growth. Although asset quality warrants caution due to restructured portfolio, we expect risks t
Slide 47: Medium Term Vision – Scale And Profitability
I Medium Term Vision – Scale And Profitability m Diversified Financial Conglomerate Maturity Rapid scale-up of business Starting Point • Deeper penetration of existing products Strategic plan being devised to • Leverage cross-sell • Drive growth through new products, markets, and channels, potential
Slide 48: Leadership
Leadership PRIGLOBADL CAP ITA L LIM ITE CAPRIGLOBAL 47
Slide 49: Board of Directors & Strong Corporate Governance
I Board of Directors & Strong Corporate Governance :■■■■■■■■■■■■■■■■■■■■■■■■■■■■■■■■■■■■■■■■■■■■■■■■■■■■■■■■■■■■■■■■■■■■■■■■■■■■■■■■ ........ ··········-:. . --■■■■■■■■■■■■■■ ......... . ■■■■■■■■ ■■■■■■■■■■■■■■■■■■■■••: ■ Corporate Governance ................................ Rajesh Sharma, Managing
Slide 50: Stable Leadership Team
I ,Stable . . . . . . . . . Leadership . . . . . . . . . . . . . . . . .Team MSME/Housing Finance . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. Construction Finance Corporate Functions Amar Rajpurohit (Busines
Slide 51: Key Partnerships
I Key Partnerships Lenders ~ tr,, 3ll!li ~ ~ Bank h3ffq;~ of Maharashtra ~ «<f5~ Canara Bank -#l ~ ~r~_..u....,_,.,, ~ Bank ofBaroda 11mtJl11'i1f11ta:l'Rl'l '!Tf<!~~il'!Jl! - UitillfrimUilik ~ ~Ji\attfl.;,th> 11l. ~qcli ~ ~ Indian Overseas Bank Punjab & Sind Bank -.W Indian Bank ~ W ~ W IP1ftl to gr
Slide 52: Thank you
Thank you For further information, please get in touch with: Ravikant Bhat Rajat Gupta ravikant.bhat@capriglobal.in rajat@GoIndiaAdvisors.com T: +91 72089 52880 M:+91 9971897739 Sheetal Khanduja sheetal@GoIndiaAdvisors.com M:+91 97693 64166 CAPRIGLOBAL 51
Capri Global Capital — Investor Presentation (November 2021) on 6ix