Capri Global Capital Limited · NSE:CGCL
Capri Global Capital — Investor Presentation (September 2022)
67 slides from Capri Global Capital's investor presentation, Sep 30, 2022
Slide 1: Exchange filing cover letter
September 30, 2022 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 Code:
Slide 2: Corporate Presentation September 2022
Responsible. Resilient. Ready. CORPORATE PRESENTATION SEPTEMBER 2022 CAPRIGLOBAL 1
Slide 3: 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 4: Disclaimer (continued)
Disclaimer (continued) This Presentation is not a complete description of the Company. Certain statements in the Presentation may contain statements regarding the Company’s market opportunity and business prospects that are individually and collectively forward-looking statements. All forward-lookin
Slide 5: Capri Global: Profitable Lending With A Social Impact
Capri Global : Profitable Lending With A Social Impact A Non-Banking Financial Company (NBFC) with presence across high growth segments like MSME, Affordable Housing, Construction Finance segments. To foray into Gold Loans shortly. Promoted by first generation entrepreneur, Mr. Rajesh Sharma, Capri
Slide 6: Capri Global Pedigree
Capri Global Pedigree Financial Highlights (Consolidated) (Q1 FY23) Exclusive Car Loan Distribution Branches INR 461 Mn Q1FY23 Chandigarh, Lucknow, Kolkata, INR 69,765 Mn INR 2,050 Mn FY22 INR 19,701 Mn 1 1 Surat Total AUM PAT Net Worth 4 1 34 5 Geographic Expanse (Q1 FY23) 22 32 1 123 12 4,134 2 5
Slide 7: Executive Summary: Our Journey
Executive Summary: Our Journey Expanding Business Housing Finance entry Gold Loan entry Verticals • Forayed into Housing Finance • Foray into Gold Loans ▪ Ventured into MSME lending • Branch network jumps to 66; announced Workforce count of 1,350 • Medium term target of Rs80bn loan book and 1,500 ex
Slide 8: Niche Player In Chosen Segments
NICHE PLAYER IN CHOSEN SEGMENTS CAPRIGLOBAL 7
Slide 9: CGCL Advantage: What Sets Us Apart
CGCL Advantage: What Sets Us Apart Retail Focused Model Focus on SENP Borrower Own Sourcing Model ❑ Small ticket size retail focused ❑ Strong focus on self employed non- ❑ 100% sourcing is done by regularly lending across MSME, Affordable professional borrower; carved out a trained in-house Direct S
Slide 10: Business Overview: Diversified Portfolio
Business Overview: Diversified Portfolio MSME Housing Finance Construction Finance Indirect Lending Product portfolio: Business Product portfolio: Home Product portfolio: Product portfolio: loan against residential, loans for – Purchase of Construction-linked loans to Financing to other NBFCs commer
Slide 11: AUM: Growth Has Rebounded
AUM: Growth Has Rebounded AUM Segmental Break Up (INR Mn) MSME CF HF IL MSME-DA 24% CAGR in 41,032 40,347 48,480 66,325 69,765 AUM FY18-FY22 31,911 31,939 25,114 20,466 19,709 18,845 17,474 14,152 12,009 12,662 11,553 9,619 8,982 8,734 7,926 3,079 3,128 2,846 1,388 1,280 1,983 1,150 FY19 FY20 FY21 F
Slide 12: AUM: Well Diversified Portfolio
AUM : Well Diversified Portfolio AUM Segmental Break Up MSME MSME-DA HF CF IL 3.8% 3.4% 3.2% 6.4% 4.7% 18.0% Construction 23.8% 19.1% 20.3% 29.3% Finance share to remain under 20% 23.8% To stay one of the 22.3% 26.3% 27.0% fastest growing 19.3% segment over medium term 1.7% 2.8% MSME alongwith MSME-
Slide 13: Disbursals: Sustained Recovery in FY22
Disbursals : Sustained Recovery in FY22 Disbursals (INR Mn) MSME CF HF 22,000 11,793 14,990 28,403 7,074 7,845 Disbursals in FY22 comfortably overtook pre-Covid peak of 5,090 FY19 despite a crushing lockdown in 9,250 Q1FY22 during Covid19 second wave 8,860 3,725 2,533 4,169 4,220 11,308 2,013 8,050
Slide 14: MSME: CGCL's Growth Driver
MSME: CGCL’s Growth Driver Average Ticket Size (INR Mn) Live Accounts (Nos.) 1.8 20,543 21,018 16,141 1.6 12,578 11,051 1.6 1.6 1.6 FY19 FY20 FY21 FY22 Q1 FY23 FY19 FY20 FY21 FY22 Q1FY23 Loan to Value (%) 54 52 52 48 48 FY19 FY20 FY21 FY22 Q1 FY23 CAPRIGLOBAL 13
Slide 15: Housing Finance: Exponential Growth Potential
Housing Finance: Exponential Growth Potential Average Ticket Size (INR Mn) Live Accounts (Nos.) 1.0 17,739 18,282 1.0 13,149 0.9 10,207 8,637 0.9 0.9 FY19 FY20 FY21 FY22 Q1 FY23 FY19 FY20 FY21 FY22 Q1 FY23 Loan to Value (%) 60 59 59 53 53 FY19 FY20 FY21 FY22 Q1 FY23 CAPRIGLOBAL 14
Slide 16: Construction Finance: Focus On Niche, Small Ticket Loans
Construction Finance: Focus On Niche, Small Ticket Loans Average Ticket Size (INR Mn) Live Projects (Nos.) 82.2 83.7 85.3 166 146 151 70.2 69.4 134 126 FY19 FY20 FY21 FY22 Q1 FY23 FY19 FY20 FY21 FY22 Q1 FY23 CAPRIGLOBAL 15
Slide 17: Car Loan Distribution: Beginning To Deliver
Car Loan Distribution: Beginning To Deliver Pan-India coverage Distribution Footprint Now Pan-India through presence in 279 locations in o Distributing new car loan products of Union Bank of India, 25 States & UTs Bank of Baroda, HDFC Bank, IOB, Yes Bank, and Bank of India. o Asset light model; bran
Slide 18: Strong Growth Opportunities
STRONG GROWTH OPPORTUNITIES CAPRIGLOBAL 17
Slide 19: MSME Lending: A Huge Unexplored Opportunity
MSME Lending: A Huge Unexplored Opportunity MSME – Huge Addressable Credit Gap FY16 FY21 INR MSME Systemic 17.3 Tn 9.6 Tn 19.2 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% refers to tappable portion out of INR 52 Tn Share of Informal Channel
Slide 20: MSME Lending: Small Loans, Big Opportunity
MSME Lending: Small Loans, Big Opportunity Geographical Distribution (Value-Wise) 1% 1% 1% 9% MP 29% Gujarat Rajasthan Focus Area 16% Delhi ❑ Self Employed Individuals – Provision stores, retail Maharasthra outlets, handicrafts etc. UP ❑ Small enterprises with inadequate income Haryana documentation
Slide 21: Co-Lending Offers Further Growth Opportunities
Co-Lending: Co-Lending Offers Further Growth Opportunities Co-Lending Model : Salient Aspects Key Benefits To CGCL • Tie-ups with State Bank of India and Union Bank of • An additional opportunity at achieving scale. CGCL India for co-originating loans in the MSME segment can continue to focus on gen
Slide 22: 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 (Loan Assets in INR Tn) 36.9 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
Slide 23: 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 1% population in Tier 2 and 3 cities through a network MP 9% of 109 branches. Maharashtra 12% 38% ❑ Ventured in 2016 through its subsidiary – Capr
Slide 24: Gold Loan: Strong Growth Opportunity
Gold Loan: Strong Growth Opportunity Large market growing Pvt banks, NBFCs gaining share, leading GL Potential for Capri to explore expected to grow at ~15% players growing in non south markets in N, W Gold loan market • Strong RoAs, low GNPAs (of Gold Loan Market Share large players) makes it an (I
Slide 25: Capri Gold Loans: Products Inspired By Service & Trust
Capri Gold Loans : Products Inspired By Service & Trust CAPRI SERVICE PROPOSITION MINIMUM DOCUMENTATION - KYC 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!
Slide 26: Capri Gold Loans: 127 Branches In Sep'22
Capri Gold Loans : 127 Branches In Sep’22 45 33 36 MADHYA DELHI NCR RAJASTHAN PRADESH (Incl. Haryana & UP) 5 8 MAHARASHTRA GUJARAT Note: State maps not comparable on scale CAPRIGLOBAL 25
Slide 27: 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. Ahmedabad 2%2%2% Mumbai MMR 3% 3% 25% Pune ❑ Comprehensive framework for project selection and 6% Bengaluru credit appraisal.
Slide 28: Well-Positioned To Grow
WELL-POSITIONED TO GROW CAPRIGLOBAL 27
Slide 29: Network: Deepening Geographical Presence To Support Growth
Network: Deepening Geographical Presence To Support Growth Branch Expansion Has Picked Up Pace Strong Network Expansion Over Medium Term 123 117 o Swift branch roll-out continued during FY22. 87 85 84 Added 32 branches during the year, exceeding the previous peak addition of 28 branches in FY19. o B
Slide 30: 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 Managers (DSTs) Hub Spoke • • • FCU, Legal, Technical and • Credit Resource Collections • Direct connect with customers • Spoke branch functions Benefits of Hub & Spoke
Slide 31: Liability Mix: Diversified Borrowings
Liability Mix : Diversified Borrowings… INR Mn except stated SCB Borrowings Refinance NCDs 27,687 28,366 37,689 48,084 53,628 499 1,500 4,331 4,332 1,545 6,741 5,625 7,300 4,635 27,188 25,321 38,128 41,996 26,312 FY19 FY20 FY21 FY22 Q1 FY23 o Nil exposure to short-term money market instruments. o Ad
Slide 32: Through Multiple Lending Institutions
…Through Multiple Lending Institutions Borrowing Relationships with 21 Financial Institutions CAPRIGLOBAL 31
Slide 33: 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 16.1 16.0 4.5 4.3 3.3 3.1 9.4 9.4 2.3 2.0 1.3 1.3 3.2 2.8 3.5 3.4 0 - 14D 15D - 1M >1M - 3M >3M - 6M 0D - 14D 15D - 1M >1M - 3M >3M - 6M * next 6-months, a
Slide 34: 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 CGHFL 13,827 15,392 17,173 19,225 19,701 50.8 47.0 43.5 38.0 37.7 34.2 34.3 31.2 29.92 15,018 29.5 14,645 14,523 13,077 11,755 3,250 3,250 1,750 1,750 1,750 56
Slide 35: Tech Assisted Unique Underwriting Process
TECH ASSISTED UNIQUE UNDERWRITING PROCESS CAPRIGLOBAL 34
Slide 36: Urban Retail: Unique Loan Origination And Underwriting Process
Urban Retail: Unique Loan Origination And Underwriting Process Business Credit FCU, Legal, Customer Operations Collection Origination Underwriting Technical Service ▪ Fully in-house ▪ Bureau check ▪ Fraud Check of ▪ Pre-disbursal ▪ Mandatory ▪ Customer visit on origination. ▪ Customised documents an
Slide 37: Construction Finance: Strong Checks At All Stages
Construction Finance : Strong Checks At All Stages Credit Appraisal and Due IC Approval and Selection Criteria Monitoring Diligence Documentation Promoter / Group ▪ Three levels of independent ▪ Detailed IC note proposed by ▪ Strong monitoring team of 15 appraisal – Business Stage, Local local credi
Slide 38: Leveraging Technology
Leveraging Technology Digital Payments Infrastructure and Technology Initiatives 01 Mobility Applications Integrated Payments including Sales and Evolved e-payment solutions for Collections Applications both disbursements & collections 02 CRM Customer Relationship through self service portal & effec
Slide 39: Building New Pipes For Faster Tech Journeys
Building New Pipes For Faster Tech Journeys 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 alter
Slide 40: Strong Monitoring Mechanism
STRONG MONITORING MECHANISM CAPRIGLOBAL 39
Slide 41: Urban Retail: Robust Collection Mechanism
Urban Retail : Robust Collection Mechanism Collection Team (Urban Retail) Centralised Soft Delinquencies Hard Delinquencies Repossession and Tele-calling 1dpd – 59dpd Litigation 60dpd and above Liquidation • System driven • Dedicated in-house • Dedicated and • Hard delinquencies that • Specialised m
Slide 42: Construction Finance: Strong Checks At All Stages
Construction Finance : Strong Checks At All Stages Early Warning Signals through Compliances and Milestone Tracking • Site Inspection Reports • Follow-up for timely submission of Monthly MIS and • Cashflow Analysis Reports MIS analysis • Account Conduct Reports • Ensuring that all the collections ar
Slide 43: Asset Quality: To Remain A Key Focus Area
Asset Quality : To Remain A Key Focus Area INR Mn except stated ECL Analysis As Per IndAS (INR Mn) Q1FY23 Q4FY22 Q3FY22 Q2FY22 Q1FY22 Stage 1 & 2 - Gross 65,953 63,627 55,988 51,006 47,693 Stage 1 & 2 - ECL Provisions 1,260 1,325 944 918 828 Stage 1 & 2 - Net 64,693 62,303 55,044 50,089 46,865 Stage
Slide 44: NPA Analysis: Weathering Short Term Headwinds Well
NPA Analysis : Weathering Short Term Headwinds Well INR Mn except stated otherwise ECL Analysis As Per IndAS FY22 FY21 FY20 FY19 FY18 Stage 1 & 2 - Gross 63,627 45,411 39,151 40,431 28,135 Stage 1 & 2 - ECL Provisions 1,325 452 308 211 187 Stage 1 & 2 - Net 62,303 44,958 38,843 40,220 27,948 Stage 1
Slide 45: Asset Quality: Net NPAs Improving
Asset Quality : Net NPAs* Improving MSME (%) Housing Finance (%) 1.5 4.0 1.3 3.5 2.8 1.0 2.4 0.8 1.7 0.3 FY19 FY20 FY21 FY22 Q1 FY23 FY19 FY20 FY21 FY22 Q1 FY23 Construction Finance & Indirect Lending (%) 0.1 0.1 0.1 0.1 *Net NPAs arrived at after considering only Stage 3 ECL - provisions. FY19 FY20
Slide 46: Credit Cost: One-off Bumps
Credit Cost : One-off Bumps Credit Cost (INR Mn) Credit Cost / Avg. AUM (%)* 1.84 1,057 Credit cost beginning 1.37 1.44 to slowly soften after 607 a sharp 0.87 increase in 353 FY22 246 0.48 165 FY19 FY20 FY21 FY22 Q1 FY23 FY19 FY20 FY21 FY22 1Q FY23 Loss Given Default (FY22) (%) Provision coverage m
Slide 47: Collection Efficiency: High and Stable
Collection Efficiency : High and Stable Consolidated Collection Efficiency Stable Collection Efficiency o Our overall collection efficiency has remained high and stable. 101.8% o The collection efficiency within retail segment is 98.9% 99.1% 99.4% marginally lower than the overall collection 91.4% e
Slide 48: Delivering Consistent Financial Performance
DELIVERING CONSISTENT FINANCIAL PERFORMANCE CAPRIGLOBAL 47
Slide 49: Over The Years…
Over The Years… NIM (%) : Rebound In NIMs With Decline In Cost-Income (%) : Well-managed Excess Liquidity* 9.8 C/I ratio 51.1 47% in 9.5 9.5 46.6 Q1 FY23 9.1 38.4 40.1 adjusted for 35.2 opex in gold loan 8.4 vertical FY19 FY20 FY21 FY22 Q1FY23 FY19 FY20 FY21 FY22 Q1 FY23 NII (INR Mn) PAT (INR Mn) 5,
Slide 50: Over The Years…
Over The Years… Return on Average Assets (%) : Stronger Return on Average Equity (%) : Stronger Pick-up Ahead Pick-up Ahead 3.7 3.7 3.5 11.3 3.3 11.0 10.9 2.5 10.3 9.5 FY19 FY20 FY21 FY22 Q1 FY23 FY19 FY20 FY21 FY22 Q1 FY23 Total Assets (INR Mn) Capital Adequacy (%) (Standalone) 75,629 38.0 37.7 71,
Slide 51: CGCL Consolidated Income Statement
CGCL Consolidated Income Statement Profit and Loss A/c (INR Mn) FY18 FY19 FY20 FY21 FY22 Interest income 3,219 5,307 6,700 6,735 8,396 Interest expenses 967 2,071 2,828 2,887 3,308 Net interest income 2,252 3,236 3,872 3,848 5,087 Other income 210 586 433 636 1,231 Fees 195 558 399 626 1,103 Other i
Slide 52: CGCL Consolidated Balance Sheet
CGCL Consolidated Balance Sheet Balance Sheet (INR Mn) FY18 FY19 FY20 FY21 FY22 Liabilities Paid-up equity 350 350 350 351 351 Reserves 12,166 13,477 15,042 16,822 18,873 Ample Networth 12,517 13,827 15,392 17,173 19,225 leverage room to continue Borrowings 15,661 27,687 28,366 37,689 48,084 deliver
Slide 53: CGCL Consolidated Earnings: Du Pont Analysis
CGCL Consolidated Earnings : Du Pont Analysis RoA Tree (%) FY18 FY19 FY20 FY21 FY22 Interest income 13.0 14.6 15.4 13.1 13.0 Interest expenses 3.9 5.7 6.5 5.6 5.1 Net interest income 9.1 8.9 8.9 7.5 7.8 Other income 0.8 1.6 1.0 1.2 1.9 Fees 0.8 1.5 0.9 1.2 1.7 Other income 0.1 0.1 0.1 0.0 0.2 Net in
Slide 54: CGCL Cons. Income Statement: Quarterly Comparison
CGCL Cons. Inc. Statement : Quarterly Comparison Particulars (INR Mn) Q1FY23 Q1FY22 Y-o-Y (%) Q4FY22 Q-o-Q (%) Interest earned 2,361 1,875 25.9% 2,348 0.5% Interest expended 1,021 771 32.4% 916 11.6% Net interest income 1,339 1,104 21.4% 1,433 -6.5% Non-interest income 409 124 231.1% 544 -24.8% Core
Slide 55: CGCL Consolidated Balance Sheet: Quarterly Comparison
CGCL Consolidated Balance Sheet : Quarterly Comparison* Particulars (INR Mn) Q1FY23 Q1FY22 Y-o-Y (%) Q4FY22 Q-o-Q (%) Paid-up equity 351 351 0.3% 351 0.1% Reserves and surplus 19,350 17,286 11.9% 18,873 2.5% Networth 19,701 17,637 11.7% 19,225 2.5% Bank borrowings and refinance 49,296 29,253 68.5% 4
Slide 56: Shareholding
Shareholding 1.4% o Market capitalization : Rs129bn | US$ 1.57bn Promoter Group o Cons. Networth 16.2% (Q1FY23) : Rs19.7bn Institutional 7.7% Shareholders o Paid-up Equity : Bodies Corporate Rs351.5mn 74.7% Others o FV : Rs2 o Dividend Per Share (FY22) : Rs0.50 ^ as of Wed, 28th Sep’22, @ 1 US$ = IN
Slide 57: ESG: Making An Impact
ESG : MAKING AN IMPACT CAPRIGLOBAL 56
Slide 58: ESG Snapshot: Growing Responsibly
ESG Snapshot : Growing Responsibly Environment Social Governance ▪ Introduction of Sales Mobility app ▪ CGCL facilitates income generating ▪ Executive Management overseen by has digitized 50% of loan loans and housing loans for self- an independent Board of Directors origination to disbursal process
Slide 59: Social Impact In Charts: Facilitating Financial Inclusion
Social Impact In Charts : Facilitating Financial Inclusion Cumulative Cases Financed Since Inception Empowering Through Credit Access to and timely repayment of loans resulted in the 29,384 improvement of credit scores of borrowers. A pre- 7,500+ cases pandemic Social Impact Study* by Capri Global h
Slide 60: Contributing To Change: Our Social Impact Reports
Contributing To Change: Our Social Impact Reports Social Impact Report 2019 Seeds of Change Report For a comprehensive insight on CGCL’s Social Welfare activities and Impact Studies, visit www.capriglobal.in and select the tab Social Welfare. CAPRIGLOBAL 59
Slide 61: Governance: Independent Board Guides Executive Management
Governance : Independent Board Guides Executive Management Audit Committee Risk Management Committee Oversees Company’s Formulates and financial reporting reviews policy on and financial operational, IT, and information disclosure people risk process Nomination and Remuneration CSR Committee Committ
Slide 62: Charting A Strong Growth Path Ahead
Charting A Strong Growth Path Ahead CAPRIGLOBAL 61
Slide 63: Leadership Team
Leadership Team CAPRIGLOBAL 62
Slide 64: 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 o Good Board Practices Ajit Sharan, Independent Director Beni Prasad Rauka, Independent IAS - Batch 1979 with
Slide 65: Stable Leadership Team
Stable Leadership Team Urban Retail Urban Retail Corporate Functions Amar Rajpurohit (Business Head – Bhupinder Singh (Head – Legal Ashok Agarwal (Associate Director MSME & Home Loan) Ex-AU Litigation) More than a decade – Accounts, Legal & Compliance) Financiers, Gruh Finance, DHFL with experience
Slide 66: Accolades
Accolades SAAT APNO KA WE HAVE BAGGED THE CAPRIGLOBAL. “gy” f GREAT PLACE TO WORK - CERTIFIED ™ Building and Sustaing High-Trust, High-Performance Culture’ EXCELLENCE AWARDS PROGRAM 2022 CAPRIGLOBAL
Slide 67: 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 66
Capri Global Capital — Investor Presentation (September 2022) on 6ix