Capri Global Capital Limited · NSE:CGCL
Capri Global Capital — FY2019 Earnings Presentation
41 slides from Capri Global Capital's earnings presentation, Jun 4, 2019
Slide 1: Capri Global Capital: Simpler, Better, Faster
CAPRI GLOBAL •0 • CAPITAL LIMITED ~ Simpler, Better, Faster June 03,2019 To, BSELIMITED NATIONAL STOCK EXCHANGE OF PJTowers INDIA LIMITED Dalal Street, Fort, Listing Department Mumbai 400 001 Exchange Plaza, 5th Floor, Bandra-Kurla Complex, Bandra (East), Mumbai- 400 051 Company Code No.: 531595 Com
Slide 2: FY19 Earnings Presentation & Liquidity Update
FY19 Earnings Presentation & Liquidity Update 03 June, 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: Banking the Unbanked
Capri Global Capital: Banking the Unbanked FY19 At A Glance Total AUM* INR 41.03 billion MSME AUM 19,500 + Live Accounts INR 19.71 billion CF + IRL AUM INR 13.39 billion 1891 Employees HL AUM INR 7.93 billion 8 States Total Disbursements INR 23.26 billion 84 PAT Branches INR 1.35 billion Net Worth I
Slide 5: 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 6: Capri Global Capital Vision and Business Model
Capri Global Capital Vision and Business Model OUR MISSION OUR BUSINESS MODEL ‘Our mission is to shape the future and create a • Small‐ticket, retail‐focused segments: solid social impact through our flexible and MSME financing, construction financing & intuitive loan products. We aim at delivering
Slide 7: Small Loans: Niche Capabilities
Small Loans: Niche Capabilities MSME Construction Finance Housing Finance Indirect Lending ~ 48 % of AUM ~ 29 % of AUM ~ 20 % of AUM ~ 3 % of AUM • Focus on Tier II & • Project outreach: • Affordable housing • NBFC Outreach: III cities; Customer 146 customers in Tier II • Financing to other outreach
Slide 8: 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 9: MSME: Small Loans, Big Opportunity
MSME: Small Loans, Big Opportunity Focus Area MSME Assets by Geography 3% 2% 7% Delhi NCR 35% Maharashtra 12% Gujarat Micro Enterprise Small Enterprise MP • Self Employed Individuals – • Small enterprises with Rajasthan Provision stores, retail formal income Punjab outlets, handicrafts etc 21% docum
Slide 10: MSME: Enabling Superior Growth
MSME: Enabling Superior Growth Disbursals (INR Mn) Live Accounts 7,910 11,051 7,720 6,100 7,230 2,712 FY17 FY18 FY19 FY17 FY18 FY19 Direct Sourcing (AUM) 73% 55% 35% FY17 FY18 FY19 9
Slide 11: 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 12: 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 14‐16% from 18‐20% to target larger • New geographies added in past 2 developer audience years: Ahmedabad, Chennai, • Aim to specialise in
Slide 13: 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% 5% midsize real estate developers 3% Mumbai Pune 29% 5% • Comprehensive framework for project Bangalore Ahmedabad selection and credit appraisal Delhi‐NC
Slide 14: Construction Finance: High Yield, Low Risk
Construction Finance: High Yield, Low Risk Disbursals (INR Mn) Number of projects 8,860 146 8,240 5,990 98 39 FY17 FY18 FY19 FY17 FY18 FY19 Portfolio Yield (%) 17.20% 17% 16% 13 FY17 FY18 FY19
Slide 15: 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 16: 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% • Ventures in 2016 through its subsidiary 36% Maharashtra – Capri Global Housing Finance Limited 16% Gujarat Delh
Slide 17: Housing Finance: Exponential Growth Potential
Housing Finance: Exponential Growth Potential Disbursals (INR Mn) Live Accounts 5,090 8,637 2,404 2,621 65 48 FY17 FY18 FY19 FY17 FY18 FY19 Portfolio Yield (%) 13.38% 13% 12% FY17 FY18 FY19 16 Note: FY18 was the 1st full year of operations
Slide 18: Indirect Retail Lending: Unique Product Offering
Indirect Retail Lending: Unique Product Offering` Focus Area AUM Disbursements Lending to small NBFCs engaged in INR 1,390 Mn INR 1,600 Mn 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
Slide 19: 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 20: 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 19 Consolidated Numbers ; FY18 & FY19 nos. base
Slide 21: FY19 Key Highlights: Superior growth
FY19 Key Highlights: Superior growth 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
Slide 22: FY19: Performance Summary
FY19: Performance Summary All amounts in INR Mn except stated Particulars FY18 FY19 Y‐o‐Y (%) Interest Income 3,219.0 5,307.4 65% Interest Expense 967.2 2,071.0 114% Net Interest Margin (NII) 2,251.8 3,236.4 44% PAT 649 1357 109% Return on Equity (%) 6.1 10.3 4.2% Return on Average Assets (%) 2.6 3.
Slide 23: FY19 NPA Analysis: Prudent Lending Practises
FY 19 NPA Analysis: Prudent Lending Practises CGCL (Standalone) FY16 FY17 FY18 FY19 GNPA Product Segment wise ‐ FY19 (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 2.76 1.51 Provisions 14 26 64 358 Construction
Slide 24: Delivering on stated strategy; Amid turbulent environment
Delivering on stated strategy; Amid turbulent environment FY19 Guidance Actual AUM (INR Mn) 42,000 41,037 ~ ✓ Spreads > 5% 5.73% ✓ GNPA < 2% 1.47% ✓ PAT Growth 30% 108% ✓ AUM (INR Mn) Spreads (%) PAT (INR Mn) 41,037 5.73 1,357.0 28,390 4.93 649 23 FY18 FY19 FY18 FY19 FY18 FY19
Slide 25: Moving to higher growth trajectory
Moving to higher growth trajectory Projected AUM (INR Mn) along with FY20 GUIDANCE Branch Expansion 3,00,000 235 250 Total AUM target at INR 60,500 Mn 205 2,50,000 200 165 200,340 Aim to grow loan book at a pace of 40‐50% 2,00,000 every year 150 120 1,50,000 137,550 Segment Projected Yield 84 100 MS
Slide 26: Well capitalized to fuel future growth
Well capitalized to fuel future growth Current Assets (INR Mn) 79.7 Capital Adequacy (%) 1,691 53 39.3 34.2 825 567 483.3 415.4 181.2 114.1 104.2 FY16 FY17 FY18 FY19 FY16 FY17 FY18 FY19 Investments Cash Equivalents Average quarterly Powerful liquidity Strong capital Optimal cash customer position to
Slide 27: 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 Low exposure to short‐term money market 100% 97% signifies low probability of default 83% 85% CGCL’s prudence in higher borrow
Slide 28: Leverage on technological initiatives; Setting us apart
Leverage on technological initiatives; Setting us apart • Application Centralisation • New LOS/LMS ( Scorecard Indus Platform) • Regional • Mobility Solution Processing Units Automation Productivity A positive impact on productivity and cost control A new generation cloud‐based platform with rule en
Slide 29: Asset-Liability Split: Consistent Mix
Asset‐Liability Split: Consistent Mix All amounts in INR Mn 31st March, 2019 31st March, 2018 Have consistently 19,789 18,104 12,760 remained cautious 19,044 11,137 13,130 10,512 about short‐term 13,180 16,098 11,385 asset & liability 9,020 mismatches by 11,063 ensuring optimally matched Balance S
Slide 30: 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 31: Annexure: CGCL Performance
Annexure: CGCL Performance 30
Slide 32: Q4FY19: At a glance..
Q4FY19: At a glance.. Consolidated numbers NII (INR MN) PAT (INR MN) AUM (INR MN) 948 41,037 489 28,390 548 97 Q4FY18 Q4FY19 Q4FY18 Q4FY19 Q4FY18 Q4FY19 Capital Adequacy Ratio* (%) Gross NPA (%) Net NPA (%) 39% MSME + CF + IRL HF MSME + CF + IRL HF 1.68 1.69 1.44 34% 0.62 0.53 0.13 0.11 0.16 Q4FY18
Slide 33: Q4FY19: MSME Lending Aiding Robust Disbursals
Q4FY19: MSME Lending Aiding Robust Disbursals Consolidated numbers AUM ‐ Segmental Breakup Disbursements ‐ Segmental Portfolio Yield (%) (INR Mn) Breakup (INR Mn) 2,750 17.17% 16.77% 2,530 15.83% 19,710 2,370 15.13% 2,328 13.80% 13.38% 2,130 12.29% 15,413 12,010 1,450 9.25% 9,427 1,100 7,930 600 2,4
Slide 34: Q4FY19: Performance Summary
Q4FY19: Performance Summary All amounts in INR Mn except stated Particulars Q4FY18 Q4FY19 Y‐o‐Y (%) Q3FY19 Q‐o‐Q (%) Net Interest Income (NII) 549 948 73% 851 11% Interest Expense 312 624 100% 586 6% Net Interest Margin (NIM)% 8.31% 9.74% 1.43% 9.49% 0.25% PAT 97.7 489 400% 352 39% Annualized RoE (%
Slide 35: 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 Q4FY19 Q3FY19 Q4FY18 FY19 FY18 Stage 1 & 2 ‐ Gross 32,605 29,978 25,688 32,605 25,688 Stage 1 & 2 – ECL Provisions * 19.7 16.5 14.3 19.7 14.3 Stage 1 & 2 – Net 32,408 29,813 25,545 32,408
Slide 36: Income Statement
Income Statement INR Mn FY18 FY19 Total interest earned 3,219.0 5,307.4 Total interest expended 967.2 2,071.0 Net interest income 2,251.8 3,236.4 Non‐interest income 292.5 605.6 ‐ Fee and Commission income 20.0 76.0 ‐ Other Income 272.5 529.6 Total Income 2,544.3 3,842 Operating expense 1,392.7 1,87
Slide 37: Balance Sheet
Balance Sheet INR Mn FY18 FY19 Share Capital 350.3 350.3 Reserves and Surplus 12,166.2 13,476.5 Networth 12,516.5 13,826.8 Borrowings 15,661.4 27,687.0 Other Liabilities and Provisions 1,533.0 1,256.3 Total liabilities & stockholders' equity 29,710.9 42,770.1 Net Block 143.3 127.2 Investments 567.0
Slide 38: Leadership Team
Leadership Team Surender Sangar Vikas Sharma Ashish Gupta Hemant Dave Head – Construction Finance Business Head (MSME & HL) Chief Financial Officer Head of Operations Ex‐MD – Tourism Finance Corporation Ex ‐ Kotak Mahindra Bank, Dhanlaxmi Ex ‐ Jindal Stainless Steel, Ex ‐ Kotak Mahindra Bank, A. F.
Slide 39: Board of Directors
Board of Directors Quintin E. Primo III Rajesh Sharma T. R. Bajalia Bhagyam Ramani Non‐Executive Chairman Managing Director Independent Director Independent Director Co‐founder & CEO of Capri Founder & promoter Ex‐DMD – SIDBI, Ex‐ GM and Director of General Investment Group, Chicago Over 23 years of
Slide 40: Key Partnerships
Key Partnerships Lenders Auditors & Advisors 39
Slide 41: Thank You
Thank You