Capri Global Capital Limited · NSE:CGCL
Capri Global Capital — Investor Presentation (May 2023)
36 slides from Capri Global Capital's investor presentation, May 2023
Slide 1: Corporate Presentation FY 2023
Corporate Presentation FY 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: Capri Global: Profitable Lending With Social Impact
Capri Global : Profitable Lending With Social Impact A Non-Banking Financial Company (NBFC) with presence across high growth segments like MSME, Affordable 01 Housing, Construction Finance segments, Car Loan distribution; forayed into Gold Loans in Aug’22. Promoted by first generation entrepreneur,
Slide 4: Capri Global: Our Journey
Capri Global: Our Journey 2022 Announced foray into Gold Loans in 2021 Feb’22, business Commenced third launched in Aug’22 party distribution 2017 of new car loans; Forayed into announced co- Housing Finance lending tie-up with 2013 business vertical SBI & Union Bank. Ventured into fully secured MSM
Slide 5: Uniquely Positioned: Scalable Model to Drive Profitable Growth
Uniquely Positioned : Scalable Model to Drive Profitable Growth Leveraging Inherent Strengths… To Capture Future Opportunities… Multi Layered Technology Disrupting Retail Focused Model Credit Approach Traditional Ways of Lending Efficiently Managed Secured Lending Fast Growing Indian Economy Liabili
Slide 6: Capri Global: Granular & Retail Lending
Capri Global : Granular & Retail Lending Scale of Distribution^ Granular Book Asset Quality Liability Profile Profitability@ Operations 100% Secured ₹ 103 Bn / ₹ 66 Bn 736 Loan Book 1.7% 21 6.4% / 6.8% AUM in FY23 / FY22 Number of Branches Gross NPA Lender Relationships Spreads in FY23 / FY22 55.6%
Slide 7: Business Overview: Diversified Product Profile
Business Overview: Diversified Product Profile Gold Loans Construction MSME Housing Fin. Finance Indirect Lending Distribution Product portfolio: Product portfolio: Product portfolio: Product portfolio: Product portfolio: Product portfolio: Home loans for – Loan against gold Construction-linked Fina
Slide 8: Diversified AUM: Strong and Sustained Momentum
Diversified AUM: Strong and Sustained Momentum AUM Segmental Break Up (₹ Mn) AUM Segmental Break Up (%) 2.5x CAPRIGLOBAL 8
Slide 9: Disbursals: New Growth Drivers Adding Momentum
Disbursals: New Growth Drivers Adding Momentum Disbursals Segmental Break Up (₹ Mn) Disbursals Segmental Break Up (%) 2.6x CAPRIGLOBAL 9
Slide 10: MSME Lending: A Large Unexplored Opportunity
MSME Lending: A Large Unexplored Opportunity MSMEs A Key Contributor To Share of NBFCs in MSME Credit Rising Huge Addressable Credit Gap in MSME India’s GVA (%) 31.8 32.3 32.2 32.8 FY17 FY22 30.5 30.5 26.8 INR MSME 17.3 Tn Systemic 10.9 Tn 23.1 Tn INR Credit (INR) 19.4 Tn INR 52.0 Tn Non-Banks Marke
Slide 11: MSME Lending: Small Loans, Big Opportunity
MSME Lending: Small Loans, Big Opportunity Geographical Distribution (Value-Wise) Focus Area ❑ Self Employed Individuals – Provision stores, retail outlets, handicrafts etc. ❑ Small enterprises with inadequate income documentation proof; Sourced directly. ❑ In-house sourcing team – 150 Branches; 100
Slide 12: Affordable Housing: Long Term Structural Drivers Intact
Affordable Housing: Long Term Structural Drivers Intact Mortgage Penetration Consistently Rising HFCs Performing Well In A Competitive Scenario Outstanding (Rs.Bn.) Growth Disbursements (Rs.Bn.) Growth Individual HL Portfolio FY21 FY22 (% YoY) FY21 FY22 (% YoY) HFCs 7,143 8,054 12.8 1,913 2,614 36.7
Slide 13: Housing Finance: Capitalising on Affordable Housing Opportunity
Housing Finance: Capitalising on Affordable Housing Opportunity Focus Area Geographical Distribution (Value-Wise) ❑ Serves middle and lower middle income population in Tier 2 and 3 cities through a network of 127 branches. ❑ Ventured in 2016 through wholly-owned subsidiary – Capri Global Housing Fin
Slide 14: Lending As Service: Co-Lending - Huge Growth Opportunity
Lending As Service: Co-Lending - Huge Growth Opportunity Increasing Mix of Off Book AUM 1.7% 2.8% 3.1% 4.7% 5.3% Co-originating loans in the MSME and Affordable Housing 98.3% 97.2% 96.9% 95.3% 94.7% segment with partner banks based on RBI’s co-lending mechanism Q4FY22 Q1FY23 Q2FY23 Q3FY23 Q4FY23 Spr
Slide 15: Gold Loans: Rising Stock Of Monetizable Gold
Gold Loans: Rising Stock Of Monetizable Gold Consumer Gold Demand in India Robust Across Share of Jewellery in Consumer Gold Demand Gold Prices in India (Rs‘000/10g) – Gold Has Years (Tonnes) High and Stable (%) Been A Store Of Value 45.4 42.2 42.8 959 79 79 77 78 77 78 833 857 75 76 771 760 797 774
Slide 16: Gold Loan: Significant Opportunity For Organised Players
Gold Loan: Significant Opportunity For Organised Players Large market expected to GL Market Dominated By Pvt Banks, NBFCs Gaining Share grow at ~15% Unorganised Players Gold loan market (INR Tn.) Gold Loan Market Share1 5.9 14-16% 5% 4% Urban Co-op Banks 35% 13% 14% Pvt Banks +12% 3.3 44% 42% PSU Ba
Slide 17: Capri Gold Loans: Products Inspired By Service & Trust
Capri Gold Loans : Products Inspired By Service & Trust CAPRI SERVICE PROPOSITION MINIMUM DOCUMENTATION INSTANT DISBURSAL – TURNAROUND TIME 30 MINUTES ATTRACTIVE ROI WITH NO HIDDEN CHARGES LOAN VALUE STARTS FROM AS LOW AS Rs3,000/- DEDICATED RELATIONSHIP MANAGER – BECAUSE COMFORT IS IMPORTANT! TRUST
Slide 18: Construction Finance: Building a Sustainable Future
Construction Finance: Building a Sustainable Future Focus Area Geographical Distribution (Value-Wise) ❑ Construction linked loans to small and midsize real estate developers. ❑ Comprehensive framework for project selection and credit appraisal. ❑ Strong monitoring mechanism for end-use tracking and
Slide 19: Car Loan Distribution: Leading Car Loan Originator In India
Car Loan Distribution: Leading Car Loan Originator In India Partner Banks Pan-India coverage through presence in 450 locations in 28 States & UTs 9 Exclusive Branches At Amritsar, Jalandhar, Chandigarh, Lucknow, Patna, Kolkata, Hyderabad, Bengaluru, and Surat Total Locations (Branches + Feet-on-Stre
Slide 20: 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) * * ATS = Originations by Value / Originations by Volume During Quarter CAPRIGLOBAL 20
Slide 21: Well Capitalized For Medium Term Growth
Well Capitalized For Medium Term Growth Consolidated Networth (₹ Mn) Capital Adequacy (%)* CGHFL Surplus Inv. In CGHFL (incl. premium) CGCL CGHFL 13,827 15,392 17,173 19,225 35,655 50.8 47.0 43.5 39.9 38.0 37.7 34.2 33.1 31.2 29.5 30,466 14,645 13,077 14,523 11,755 3,250 3,250 1,750 1,750 1,750 1,33
Slide 22: Capri 2.0: Scale And Profitability
Capri 2.0 | Scale And Profitability Aim to reach ₹ 300bn AUM by FY27E Diversified Financial Conglomerate Sizeable diversified play Maturity ❑ Rapid scale-up of business ❑ New products (Car Loan ❑ Deeper penetration of existing Distribution, Co-Lending, Gold products Starting Point Loans), markets, a
Slide 23: Technology: Building Support Infra for Capri 2.0
Technology: Building Support Infra for Capri 2.0 Key Technology Enablers In-House Tech Artificial Machine Data Team Intelligence Learning Analytics Key Outcomes In Near Future CLM Analytics DSA Platform Customer Entire Tech Built Own OCR Built Own Data To create an Model Footprint and KYC Analytics
Slide 24: Collections: Leveraging Digital & Analytical Capabilities
Collections: Leveraging Digital & Analytical Capabilities 1 Artificial Intelligence Based Bot Calling to Customers 2 State-of-the-Art Tele-calling Set-up With Automated Calling 3 Incentive Gamification Tool for Collections Employees Extensive leverage of strong Digital and 4 Live Collections Analyti
Slide 25: Collections: Strengthened Engine With Strategic Pillars
Collections: Strengthened Engine With 3 Strategic Pillars ❑ Trainings for courtesy & problem-solving led communications Best-in-class Customer Engagement Quality ❑ Live monitoring of customer discussions with on-roll trainers ❑ Monthly tracking of contacts made, invalid repayment accounts and custom
Slide 26: Healthy Financial Performance Over The Years
Healthy Financial Performance Over The Years… C/I (%) : Impacted By Gold Loan Opex; NII (₹ Mn) Spreads (%)1: Holding Up Well Adj. C/I Ratio 48% in FY23 6,362 63.4 5,087 6.9 6.8 46.6 3,872 3,848 6.4 38.4 40.1 3,236 6.2 35.2 5.8 FY19 FY20 FY21 FY22 FY23 FY19 FY20 FY21 FY22 FY23 FY19 FY20 FY21 FY22 FY2
Slide 27: NPA Analysis: Steady Improvement
NPA Analysis: Steady Improvement ₹ Mn except stated otherwise ECL Analysis As Per IndAS FY23 FY22 FY21 FY20 FY19 Stage 1 & 2 - Gross 96,028 63,627 45,411 39,151 40,431 Stage 1 & 2 - ECL Provisions 1,258 1,325 452 308 211 Stage 1 & 2 - Net 94,771 62,303 44,958 38,843 40,220 Stage 1 & 2 - ECL Provisio
Slide 28: 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 robus
Slide 29: 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 30: 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 31: ESG at Core: Growing Responsibly
ESG at Core: Growing Responsibly Environment Social Governance ❑ Introduction of Sales Mobility app has ❑ Facilitating income generating loans and ❑ Executive Management overseen by an digitized 50% of loan origination to disbursal housing loans for self-employed and non- independent Board of Direct
Slide 32: CSR: Serving the Underprivileged
CSR: Serving the Underprivileged 17,266 2,049 2,000 1,139 Women empowerment Education Initiatives COVID - 19 Education, Health and and livelihood Nutrition 525 1,45,805 1,500 Animal Welfare Health Initiatives Hospital Projects Note: All figures relate to number of beneficiaries / projects / initiati
Slide 33: Board of Directors & Corporate Governance
Board of Directors & Corporate Governance Independent Board Guiding 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
Slide 34: Stable Leadership Team
Stable Leadership Team Retail Retail Digital Lending Amar Rajpurohit (Business Head – Prasanna Kumar Singh (Group Hardit Singh Lamba (Head – Digital MSME & UR) Ex-AU Financiers, Gruh Collections Head) Ex-Bajaj Finance Partnerships) Ex-Indifi Technologies, Finance, DHFL with over 17 years of and PNB
Slide 35: Shareholding
Shareholding o Market capitalization1 : ₹ 139.3bn | US$ 1.68bn2 o Cons. Networth3 (Q4FY23) : ₹ 35.7bn Promoter Group 16.3% o Paid-up Equity : ₹ 412.3mn Institutional 13.8% Shareholders o FV : ₹ 2 69.9% Others o Dividend Per Share (FY23) : ₹ 0.50 1. Average of market capitalization on BSE and NSE on
Slide 36: 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 36
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