Capri Global Capital Limited · NSE:CGCL

Capri Global Capital — Investor Presentation (November 2021)

51 slides from Capri Global Capital's investor presentation, November 2021

  1. Slide 1: Responsible. Resilient. Ready.

    Responsible. Resilient. Ready. CORPORATE PRESENTATION NOVEMBER 2021 CAPRIGLOBAL 1

  2. Slide 2: 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

  3. Slide 3: Capri Global Capital: Banking The Unbanked

    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 (C

  4. Slide 4: Executive Summary: Our Journey

    Executive Summary: Our Journey Expanding Business Verticals Housing Finance entry • Ventured into MSME • Forayed into Housing Finance lending • Branch network jumps to 66; Workforce count of 1,350 2011 2013 2016 2017 2021 Journey Begins Widening Outreach Expanded Scale • Raised Capital of INR 4.45 B

  5. Slide 5: Capri Global Capital: Brief Overview

    Capri Global Capital: Brief Overview Financial Highlights State-wise Number of INR 525 Mn Q2FY22 Physical Branch Locations as INR 984 Mn H1FY22 of Q2FY22 : 99 branches INR 52.7 Bn INR 1,769 Mn FY21 INR 18.1 Bn 1 Total AUM PAT Net Worth 3 2 (consolidated) 23 5 Geographic Expanse (Q2FY22) 18 26 99 10

  6. Slide 6: 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 residential linked loans to small a

  7. Slide 7: 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,

  8. Slide 8: 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

  9. Slide 9: 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

  10. Slide 10: 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

  11. Slide 11: AUM: Growth Rebounding

    AUM : Growth Rebounding AUM Segmental Break Up (INR Mn) MSME HF CF IL 28,390 41,032 40,347 48,480 52,712 26,797 25,114 20,466 19,709 15,413 13,219 12,009 11,553 9,427 8,982 9,619 8,734 9,563 7,926 3,079 3,134 2,450 1,100 1,388 1,280 FY18 FY19 FY20 FY21 Q2FY22 CAPRIGLOBAL 11

  12. Slide 12: Disbursals: Strong Pick-up Post Second Lockdown

    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

  13. Slide 13: Business Segments

    BUSINESS SEGMENTS CAPRIGLOBAL 13

  14. Slide 14: MSME Lending: A Huge Unexplored Opportunity

    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 Channel

  15. Slide 15: MSME: Small Loans, Big Opportunity

    MSME: 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 – 99 Branches; 100% Direct

  16. Slide 16: MSME: CGCL's Growth Driver

    MSME: CGCL’s Growth Driver Average Ticket Size (INR Mn) Live Accounts 17,135 1.7 1.7 16,141 12,578 1.6 11,051 1.5 FY19 FY20 FY21 Q2FY22 FY19 FY20 FY21 Q2FY22 Loan to Value (%) Loan Yields (%) 52 16.7 50 16.1 48 48 15.8 15.8 FY19 FY20 FY21 Q2FY22 FY19 FY20 FY21 Q2FY22 CAPRIGLOBAL 16

  17. Slide 17: 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 80% Mar-17 Mar-18 Mar-19 Mar-20 Mar-21E Mar-22E Mar-23E • Under penetr

  18. Slide 18: Housing Finance: Capitalising on Affordable Housing Opportunity

    Housing Finance: Capitalising on Affordable Housing Opportunity Focus Area • Serves middle and lower middle income population in Tier 2 and 3 cities • Ventured in 2016 through its subsidiary – Capri Global Housing Finance Limited Salaried 45% • Targeting existing customers via cross-selling within t

  19. Slide 19: Housing Finance: Exponential Growth Potential

    Housing Finance: Exponential Growth Potential Average Ticket Size (INR Mn) Live Accounts 1.3 14,154 13,149 1.1 1.0 1.0 10,207 8,637 FY19 FY20 FY21 Q2FY22 FY19 FY20 FY21 Q2FY22 Loan to Value (%) Loan Yields (%) 14.0 60.0 59.0 58.7 13.4 53.5 13.3 12.9 FY19 FY20 FY21 Q2FY22 FY19 FY20 FY21 Q2FY22 CAPRIG

  20. Slide 20: Construction Finance: Building a Sustainable Future

    Construction Finance: Building a Sustainable Future Focus Area • Construction linked loans to small and midsize real estate developers • Comprehensive framework for project selection and credit appraisal • Competitive rates for high quality, multi-family real estate projects AUM Disbursements Avg. T

  21. Slide 21: Construction Finance: High Yield, Well Managed Risks

    Construction Finance: High Yield, Well Managed Risks Average Ticket Size (INR Mn) No. of Projects 82.2 146 134 133 72.0 70.2 70.1 126 FY19 FY20 FY21 Q2FY22 FY19 FY20 FY21 Q2FY22 LTV (%) Loan Yields (%) 18.4 50.0 50.0 50.0 50.0 17.7 17.2 17.1 FY19 FY20 FY21 Q2FY22 FY19 FY20 FY21 Q2FY22 CAPRIGLOBAL 21

  22. Slide 22: Car Loan Distribution: Robust Fee Potential

    Car Loan Distribution: Robust Fee Potential Scaled up to Team Expansion To Continue 186 locations since Feb’21 Pan-India coverage planned o Tie-ups with commercial banks to distribute their new car loan products for a fee consideration. Current tie-ups with IOB, YES, 9 and UNIONBANK. More tie-ups in

  23. Slide 23: Capital and Liquidity

    CAPITAL AND LIQUIDITY CAPRIGLOBAL 23

  24. Slide 24: Well Capitalized For Medium Term Growth

    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 12,517 13,827 15,392 17,173 18,098 69.5 50.8 43.5 39.3 38.0 37.7 15,259 34.2 35.8 34.3 14,523 31.2 13,077 11,755 11,5

  25. Slide 25: Liquidity Position: Continue to Maintain Adequate Buffer

    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 relationship

  26. Slide 26: Liquidity Position: Repayment of High-Cost Loans

    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/prep

  27. Slide 27: Asset-Liability Split: Maturity Buckets Are Well Balanced

    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 years Tot

  28. Slide 28: Asset-Liability Position: Well-Balanced for Short Term

    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 0 -7 D 8D - 14D 15D - 1M >1M - 3M >3M - 6M 0D - 14D 15D - 1M >1M - 3M >3M - 6M *f

  29. Slide 29: Liability Mix: Steady Diversification In Borrowings

    Liability Mix : Steady Diversification In Borrowings 29,573 33,340 37,689 36,003 37,934 27,166 26,312 24,859 24,781 21,050 6,740 6,750 6,741 6,750 6,578 4,635 4,472 4,190 1,783 1,731 Q2FY21 Q3FY21 Q4FY21 Q1FY22 Q2FY22 SCB Borrowings Refinance NCDs o Nil exposure to short-term money market instrument

  30. Slide 30: Asset Quality

    ASSET QUALITY CAPRIGLOBAL 30

  31. Slide 31: Asset Quality: Consolidated Stage Analysis As per IND-AS

    Asset Quality : Consolidated Stage Analysis As per IND-AS INR Mn except stated ECL Analysis As Per IndAS Q2FY22 Q1FY22 Q4FY21 Q3FY21 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 Sta

  32. Slide 32: NPA Analysis: Short Term Headwinds

    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% Hou

  33. Slide 33: Asset Quality: Net NPAs Improving

    Asset Quality : Net NPAs* Improving MSME (%) Housing Finance (%) 1.8 1.9 0.43 0.40 1.7 1.2 1.1 0.15 - (0.08) FY18 FY19 FY20 FY21 Q2FY22 FY18 FY19 FY20 FY21 Q2FY22 Construction Finance (%) 0.03 (0.46) (0.41) *Net NPAs arrived at after (0.60) considering aggregate ECL (0.83) provisions. FY18 FY19 FY20

  34. Slide 34: Collection Efficiency: Performance in EMI Servicing Continues

    Collection Efficiency : Performance in EMI Servicing Continues MSME Collection Efficiency (by POS) MSME: Slow Reversion to Normalcy o MSME portfolio consistently showed a slight dip over 86.5% 85.9% Q1FY22 collection efficiency. 84.0% 83.4% o There are short term challenges in getting back to normal

  35. Slide 35: Over The Years…

    Over The Years… NIM (%) : Rebound In NIMs With Decline In Excess Cost-Income (%) : Short Term Bump Liquidity 9.6 52.1 9.5 46.6 9.3 9.3 42.0 38.4 35.2 8.7 FY18 FY19 FY20 FY21 Q2FY22 FY18 FY19 FY20 FY21 Q2FY22 NII (INR Mn) PAT (INR Mn) 3,872 3,848 1,770 1,612 3,236 1,357 2,252 649 1,180 525 FY18 FY19

  36. Slide 36: Over The Years…

    Over The Years… Return on Average Assets (%) : Stable In A Return on Average Equity (%) : Stable In A Challenging Year Challenging Year 3.7 3.7 3.7 3.5 11.8 11.0 10.9 2.6 10.3 5.4 FY18 FY19 FY20 FY21 Q2FY22 FY18 FY19 FY20 FY21 Q2FY22 Total Assets (INR Mn) Capital Adequacy (%) (Standalone) 39.3 58,13

  37. Slide 37: 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

  38. Slide 38: 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

  39. Slide 39: 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

  40. Slide 40: 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

  41. Slide 41: 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

  42. Slide 42: CGCL Consolidated Balance Sheet: Annual Comparison

    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 Borrowings 5,795 15,661 27,687 28,366

  43. Slide 43: 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

  44. Slide 44: Way Forward...

    N Way Forward... © CAPRI GLOBAL CAPITAL LIMITED

  45. Slide 45: Way Forward: FY22E and Beyond

    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 to

  46. Slide 46: Medium Term Vision – Scale And Profitability

    Medium Term Vision – Scale And Profitability 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 • C

  47. Slide 47: Leadership

    N Leadership © CAPRI GLOBAL CAPITAL LIMITED

  48. Slide 48: Board of Directors & Strong Corporate Governance

    Board of Directors & Strong Corporate Governance Corporate Governance Rajesh Sharma, Managing Director Founder & Promoter with over 2.5 Philosophy decades of experience, Chartered Accountant Ajit Sharan, Independent Director Beni Prasad Rauka, Independent Director o Good Board Practices IAS - Batch

  49. Slide 49: Stable Leadership Team

    Stable Leadership Team MSME/Housing Finance Construction Finance Corporate Functions Amar Rajpurohit (Business Head – Surender Kumar Sangar (Head – MSME & Home Loan) Ex-AU Ashok Agarwal (Associate Director CF) Ex-MD – Tourism Finance Financiers, Gruh Finance, DHFL – Accounts, Legal & Compliance) Cor

  50. Slide 50: Key Partnerships

    Key Partnerships Lenders CAPRIGLOBAL 50

  51. Slide 51: 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

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