Capri Global Capital Limited · NSE:CGCL
Capri Global Capital — Q1 FY2021 Earnings Presentation
50 slides from Capri Global Capital's earnings presentation, Jul 31, 2020
Slide 1: Cover letter to BSE and NSE
PRIGLOBAL July 31, 2020 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 Scrip C
Slide 2: Q1FY21 Earnings Presentation
Responsible. Resilient. Ready. Q1FY21 Earnings Presentation 31st July 2020 CAPRIGLOBAL 1
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 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
Slide 5: Executive Summary: Building a Stronger Institution
Executive Summary: Building a Stronger Institution Expanding Business Verticals Gaining Momentum • Ventured into MSME • Forayed into Housing Finance lending • Branch network jumps to 66; Workforce count of 1,350 2011 2013 2016 2017 2020 Journey Begins Widening Outreach Credibility • Raised Capital o
Slide 6: COVID Update: Stronger Than Ever
COVID Update: Stronger Than Ever Strong Liquidity Position 01 On back of strong liquidity, the company didn’t sought moratorium from any of its lenders. In fact the company made a prepayment of INR 3,111 Mn to reduce the overall cost of funds. Granular & Well Diversified Portfolio 02 With an average
Slide 7: Customer Awareness: Adverse Impact of Moratorium on Loan Tenor
Customer Awareness: Adverse Impact of Moratorium on Loan Tenor MSME HL No. of EMIs opted for Moratorium (in months) 3 4 5 3 4 5 Rate of Interest (%) 16.5% 14.0% Tenor 144 240 Month on Books 24 24 Balance Tenor (A) 120 216 Revised Tenor post opting for Moratorium (B) 134 139 145 260 281 308 Increase
Slide 8: Educating Customers: Sizeable Improvement in EMI Servicing - MSME
Educating Customers: Sizeable Improvement in EMI Servicing - MSME April-20 May-20 June-20 MSME Count (Nos.) POS (INR Bn) Count (Nos.) POS (INR Bn) Count (Nos.) POS (INR Bn) Total Customers (A) 12,110 20.6 12,096 20.6 12,040 20.6 - Under Moratorium (B) 5,997 11.6 6,678 12.8 6,892 13.2 % Under Morator
Slide 9: Educating Customers: Sizeable Improvement in EMI Servicing - HL
Educating Customers: Sizeable Improvement in EMI Servicing - HL April-20 May-20 June-20 Housing Loans Count (Nos.) POS (INR Bn) Count (Nos.) POS (INR Bn) Count (Nos.) POS (INR Bn) Total Customers (A) 9,672 9.0 9,659 9.0 9,614 9.1 - Under Moratorium (B) 3,524 3.6 4,127 4.2 4,352 4.4 % Under Moratoriu
Slide 10: Moratorium Update: On a Downtrend
Moratorium Update: On a Downtrend Construction Finance + IRL Moratorium Update % Count % POS 59.9 55.7 49.6 50.4 46.0 35.0 Apr-20 May-20 Jun-20 June’20 has shown better trends in terms of decline in the CF + IRL moratorium cases as compared to trend seen in earlier month of Apr’20 and May’20 In Cons
Slide 11: Collection Efficiency: Continues to be Strong Inspite Moratorium Impact
Collection Efficiency: Continues to be Strong Inspite Moratorium Impact Business No Amount Partial EMI At least one At least two At least three Four or more Segments paid paid EMI paid EMI paid EMI paid EMI paid MSME 11.2% 1.8% 86.5% 64.8% 48.9% 35.1% HL - Salaried 1.3% 0.2% 98.5% 87.1% 76.5% 61.0%
Slide 12: Q1FY21 Review: Well Positioned for Post Covid World
Q1FY21 Review: Well Positioned for Post Covid World Hub Hub Managing liquidity for Focusing on operating Adoption of tackling through COVID 19 efficiencies Technological Initiatives • Addition of new lines of INR 10.5 Bn • Optimised Operational structure by • Digitalising our internal processes in Q
Slide 13: Liquidity Position: Unutilized Limits at All Time High
Liquidity Position: Unutilized Limits at All Time High Particulars (INR Mn) CGCL (Standalone) CGHFL Consolidated Limits Sanctioned 45,200 14,100 59,050 Limits Availed 36,960 11,350 48,310 Un-Drawn 7,990 2,750 10,740 Repaid 17,280 2,330 19,610 Outstanding 19,680 9,020 28,700 Total no. of relationship
Slide 14: Liquidity Position: Repayment of High Cost Loans
Liquidity Position: Repayment of High Cost Loans Particulars (INR Mn) CGCL (Standalone) CGHFL Consolidated Dues during FY2020-21 5,852 1,446 7,298 Payment made as per Schedule (A) 1,062 248 1,310 Prepayments made for the year (B) 1,763 337 2,099 Total repayments/prepayments (A+B) 2,825 585 3,409 Bal
Slide 15: Well Capitalized Business Model: Aid to Expansion
Well Capitalized Business Model: Aid to Expansion Current Assets (INR Mn) Capital Adequacy (%) Investments Cash Equivalents 53 3,607 40.9 39.3 38.0 2,557 34.2 2,339 1,691 742 567 483 415 114 104 FY17 FY18 FY19 FY20 Q1FY21 FY17 FY18 FY19 FY20 Q1FY21 Undrawn credit lines Comfortable liquidity + + = St
Slide 16: Operating Efficiency: Adopting Low Cost Hub & Spoke Model
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 & Spok
Slide 17: Digitised Workflow & Analytics Driven Underwriting
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 o
Slide 18: Digital Payments Infrastructure & Technology Initiatives
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 • Mandate registration prior to disbursement With management principl
Slide 19: Q1FY21 Performance and Analysis
Q1FY21 Performance and Analysis CAPRIGLOBAL 18
Slide 20: Capri Global Capital: Serving the Underserved
Capri Global Capital: Serving the Underserved Q1FY20 Overview INR 40.48 Bn INR 396 Mn INR 15.79 Bn Total AUM PAT Net Worth (consolidated) Our Geographic Expanse 81 8 1,449 Branches States/Union Team Size Territories Our Achievements 12,040 9,610+ 21,790+ Businesses Families Live Accounts Financed Em
Slide 21: Q1FY21: At a Glance
Q1FY21: At a Glance… Revenue from Operations (INR Mn) Pre-Provision Operating Profit (INR Mn) 731 1,716 1,718 574 Q1FY20 Q1FY21 Q1FY20 Q1FY21 Credit Costs (INR Mn) PAT (INR Mn) 396 203 377 37 Q1FY20 Q1FY21 Q1FY20 Q1FY21 CAPRIGLOBAL 20
Slide 22: Q1FY21: At a Glance
Q1FY21: At a Glance… Capital Adequacy (%) Cost-Income (%) 40.9 42.0 24.9 36.0 Q1FY20 Q1FY21 Q1FY20 Q1FY21 Gross NPA (%) Net NPA (%) MSME + CF + IRL HL MSME + CF + IRL HL 2.7 2.3 1.2 1.2 0.8 0.4 0.3 0.0* Q1FY20 Q1FY21 Q1FY20 Q1FY21 * Excess provision provided in HL, Capital Adequacy is on standalone
Slide 23: Q1FY21: Key Highlights
Q1FY21: Key Highlights AUM Segmental Break Up (INR Mn) Disbursals ( INR Mn) MSME CF HF IRL MSME CF HF IRL 1,350 20,178 20,618 900 903 11,486 720 9,683 8,717 9,148 199 151 1029 89 577 - Q1FY20 Q1FY21 Q1FY20 Q1FY21 CAPRIGLOBAL 22
Slide 24: Asset-Liability Split: Consistent Mix
Asset-Liability Split: Consistent Mix Asset-Liability Mix (INR Mn); Ensuring Optically Matched Balance Sheet 22,896 20,626 18,304 13,038 10,920 6,945 7,489 2,938 3,399 2,807 2,506 1,149 1,335 67 upto 1 month >1-3 months >3-6 months >6-12 months 1-3 years 3-5 years >5 years Total Assets Total Liabili
Slide 25: Liability Mix: The Low-Cost Benefit
Liability Mix: The Low-Cost Benefit Total Borrowings (INR Mn) and Borrowing Mix 7,280 15,661 27,687 28,370 28,506 97% 95% 83% 85% 86% 14% 7% 10% 10% 5% 3% 5% FY17 FY18 FY19 FY20 Q1FY21 Bank Borrowings NCDs CPs o Nil exposure to short-term money market signifies no probability of default o CGCL’s pru
Slide 26: Stable Asset Quality: Stage Analysis As per IND-AS
Stable Asset Quality: Stage Analysis As per IND-AS All amount in INR Mn except stated ECL Analysis as per INDAS Q1FY21 Q4FY20 Q1FY20 Stage 1 & 2 - Gross 39,533 39,398 40,144 Stage 1 & 2 – ECL Provisions 346 345 205 Stage 1 & 2 - Net 39,187 39,053 39,940 Stage 1 & 2 – ECL Provisions % 0.87% 0.88% 0.5
Slide 27: NPA Analysis: Prudent Lending Practices
NPA Analysis: Prudent Lending Practices CGCL (Standalone) FY17 FY18 FY19 FY20 (INR MN) GNPA Product Segment wise – Q1FY21 NPA Recognition 120 DPD 90 DPD 90 DPD 90 DPD Norms Product Segment GNPA % NNPA % GNPA 178 439 560 843 NNPA 152 374 202 278 MSME 3.96% 0.98% Provisions 26 64 358 566 Total Assets
Slide 28: Annexure: About CGCL & Industry Scenario
Annexure: About CGCL & Industry Scenario CAPRIGLOBAL 27
Slide 29: Business Overview: Diversified Portfolio
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 ready/under- linked loans to small
Slide 30: CGCL Advantage: What Sets Us Apart
CGCL Advantage: What Sets Us Apart Own sourcing Model; no Focus on SENP Borrower Dependence on DSAs Adequate Liquidity o Strong focus on self employed non- o 100% sourcing is done by regularly o 86% long term borrowing for a professional borrower; carved out a trained in-house Direct Sales Team 01 n
Slide 31: MSME Lending: A Huge Unexplored Opportunity
MSME Lending: A Huge Unexplored Opportunity MSME – Huge Addressable Credit Gap FY13 FY19 INR MSME Systemic 8.7 Tn 17.3 Tn 17.3 Tn Credit (INR) INR INR 19.4 Tn 52.0 Tn Non-Banks Market 11% 21% Share Informal Channel Banks & NBFCs • MSMEs account for ~35% of total credit exposure in India, with majori
Slide 32: MSME: Small Loans, Big Opportunity
MSME: Small Loans, Big Opportunity Lending Portfolio by Geography (Value wise) 2% 2% 9% Delhi-NCR 31% Maharasthra 16% Gujarat Focus Area MP • Self Employed Individuals – Provision stores, retail outlets, Rajasthan handicrafts etc Punjab Haryana • Small enterprises with formal income documentation; 2
Slide 33: MSME: CGCL's Growth Driver
MSME: CGCL’s Growth Driver Average Ticket Size (INR Mn) Live Accounts 2.6 12,578 12,040 11,051 1.6 1.7 1.5 6,100 FY18 FY19 FY20 Q1FY21 FY18 FY19 FY20 Q1FY21 Portfolio Yield (%) GNPA (%) 16.7 16.7 4.0 15.8 4.0 13.8 2.8 2.2 FY18 FY19 FY20 Q1FY21 FY18 FY19 FY20 Q1FY21 CAPRIGLOBAL 32
Slide 34: Affordable Housing: Large Demand & Low Formal Financing
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 12.3 10.4 8.8 80% Mar-14 Mar-15 Mar-16 Mar-17 Mar-18 Mar-19 Mar-20E Ma
Slide 35: Housing Finance: Capitalising on Affordable Housing Opportunity
Housing Finance: Capitalising on Affordable Housing Opportunity Lending Portfolio by Geography (Value wise) Focus Area 10% • Serves middle and lower middle income population in Tier 2 and 3 cities 35% Maharashtra 21% Gujarat • Ventured in 2016 through its subsidiary – Capri Delhi-NCR Global Housing
Slide 36: Housing Finance: Exponential Growth Potential
Housing Finance: Exponential Growth Potential Average Ticket Size (INR Mn) Live Accounts 1.5 10,207 9,614 8,637 1.0 1.0 1.0 2,621 FY18 FY19 FY20 Q1FY21 FY18 FY19 FY20 Q1FY21 Portfolio Yield (%) GNPA (%) 14.0 14.0 1.21 1.21 13.4 12.2 0.53 0.13 FY18 FY19 FY20 Q1FY21 FY18 FY19 FY20 Q1FY21 CAPRIGLOBAL 3
Slide 37: Urban Construction Finance: Significant Scope of Growth
Urban Construction Finance: Significant Scope of Growth Under Penetrated Indian Mortgage Market (Mortgage to GDP ratio %) 82% 69% 63% 50% 45% 36% 34% 31% 20% 18% 18% 13% 10% Sweden UK USA Singapore Hong Kong Germany Malaysia Korea Thailand China South Africa India India (Mar'23E) • 66% of India’s po
Slide 38: Construction Finance: The Retail Way
Construction Finance: The Retail Way •Exposure to Mumbai region at Addressing •Reduced average interest rates to 26% ending Q1FY20 vs 69% in target larger developer audience FY16 Concentration Risk •Continuous monitoring at the time •New geographies added in past of every subsequent 3 years: Ahmedab
Slide 39: Construction Finance: Building a Sustainable Future
Construction Finance: Building a Sustainable Future Lending Portfolio by Geography (Value wise) Focus Area 3% 3% Mumbai • Construction linked loans to small and midsize real 3% 6% Pune estate developers 26% Bangalore 9% Ahmedabad Delhi-NCR • Comprehensive framework for project selection and Surat cr
Slide 40: Construction Finance: High Yield, Low Risk
Construction Finance: High Yield, Low Risk Average Ticket Size (INR Mn) No. of Projects 146 99.2 134 131 80 70.2 73.8 98 FY18 FY19 FY20 Q1FY21 FY18 FY19 FY20 Q1FY21 Portfolio Yield (%) GNPA (%) 18.4 18.5 0.86 17.2 16.8 0.14 0.17 0.17 FY18 FY19 FY20 Q1FY21 FY18 FY19 FY20 Q1FY21 CAPRIGLOBAL 39
Slide 41: Indirect Retail Lending: Unique Product Offering
Indirect Retail Lending: Unique Product Offering Focus Area Quick Facts INR 1,029 Mn 9 Borrower Profile: Lending to retail-focused NBFCs with net worth over INR 500 Mn AUM Customer Outreach Ticket Size: INR 50-500mn, with average ticket size of INR 115 Mn Nil 1.2x Average Tenor: 1-3 Years Gross NPAs
Slide 42: Over The Years
Over The Years… NIMS (%) Cost-Income (%) 11.6 52.1 44.0 46.6 9.3 9.3 9.5 9.2 38.4 24.9 FY17 FY18 FY19 FY20 Q1FY21 FY17 FY18 FY19 FY20 Q1FY21 Return on Average Assets (%) Return on Average Equity (%) 3.7 3.7 3.5 11.0 3.5 10.3 10.2 2.6 6.1 5.1 FY17 FY18 FY19 FY20 Q1FY21 FY17 FY18 FY19 FY20 Q1FY21 CAPR
Slide 43: Over The Years
Over The Years… NII (INR Mn) PAT (INR Mn) 3,872 1,612 3,236 1,357 2,252 1,671 659 581 FY17 FY18 FY19 FY20 FY17 FY18 FY19 FY20 Total Assets (INR Mn) Capital Adequacy (%) 42,770 44,455 53 39.3 38.0 29,710 34.2 19,861 FY17 FY18 FY19 FY20 FY17 FY18 FY19 FY20 CAPRIGLOBAL 42
Slide 44: Over The Years
Over The Years… AUM Segmental Break Up (INR Mn) Disbursals ( INR Mn) MSME CF HF IRL MSME CF HF IRL 20,466 8,860 19,709 8,240 8,050 7,871 7,230 15,413 5,990 12,027 12,009 5,090 5,040 9,619 4,220 9,427 8,982 7,926 2,986 5,999 2,533 1,600 2,450 1,100 970 1,388 1,280 1,100 65 65 FY17 FY18 FY19 FY20 FY17
Slide 45: Income Statement: Quarterly Comparison
Income Statement: Quarterly Comparison Particulars (INR Mn) Q1FY21 Q1FY20 Y-o-Y(%) Q4FY20 Q-o-Q(%) Interest earned 1,644 1,636 1% 1,654 -1% Interest expanded 715 700 2% 713 0% Net interest income 929 936 -1% 940 -1% Non-interest income 74 105 -30% 167 -56% - Fee and Commission income - 71 - 15 -105%
Slide 46: Balance Sheet
Balance Sheet Particulars (INR Mn) Q1FY21 Q1FY20 Y-o-Y (%) Q4FY20 Q-o-Q (%) Share Capital 350 350 0% 350 0% Reserves and Surplus 15,443 13,862 11% 15,042 3% Net Worth 15,793 14,212 11% 15,392 3% Borrowings 28,506 26,995 6% 28,366 0% Other Liabilities and Provisions 776 649 20% 697 11% Total liabilit
Slide 47: Leadership Team
Leadership Team Surender Sangar Amar Rajpurohit Hemant Dave Ashok Agrawal Head – Construction Finance Business Head (MSME & HL) Head of Operations Head –Tax & Compliance Ex-MD – Tourism Finance Corporation of Ex-AU Financiers India Ltd, Gruh Finance, Ex - Kotak Mahindra Bank, A. F. Ferguson Previous
Slide 48: Board of Directors
Board of Directors Rajesh Sharma, Managing Director Ajit Sharan, Independent Director Ajay Kumar Relan, Independent Director Founder & Promoter with over 2.5 IAS - Batch 1979 with over 3 decades of experience in Founder CX Partners & Citi Bank N.A. in India with decades of experience, Chartered Acco
Slide 49: Key Partnerships
Key Partnerships Lenders Auditors & Advisors CAPRIGLOBAL 48
Slide 50: Thank you
Thank you For further information, please get in touch with: Hardik Shah Hardik.shah@capriglobal.in T: +91 22 4088 8126 Sheetal Khanduja sheetal@GoIndiaAdvisors.com M:+91 97693 64166 Rajat Gupta rajat@GoIndiaAdvisors.com M:+91 9971897739 CAPRIGLOBAL 49
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