Capri Global Capital Limited · NSE:CGCL
Capri Global Capital — Q3 FY24 Earnings Presentation
43 slides from Capri Global Capital's earnings presentation, Jan 29, 2024
Slide 1: Q3FY24 Earnings Presentation
Responsible. Resilient. Ready. Q3FY24 Earnings Presentation 29th January 2024 C A P R I GFollow L O B A Lus: 1
Slide 2: Business Performance
Business Performance CAPRIGLOBAL 2
Slide 3: Key Highlights
Key Highlights ❑ Housing and Gold Loan drive business momentum; disbursals touched Rs37,688mn (91% YoY, 7% QoQ) while Cons. AUM increased to Rs133,621mn (54% YoY, 8% QoQ). Gold Loan disbursals constituted 50% of consolidated disbursals during Q3FY24. ❑ Car loan originations touched Rs28,884mn (84% Y
Slide 4: Business Update: Consolidated AUM Up 54% YoY
Business Update : Consolidated AUM Up 54% YoY^ AUM Break Up (Incl. Co-Lending) (₹ Mn)* Composition of AUM (Incl. Co-Lending) (%)* ❑ MSME, Housing, and Gold Loan AUM values are inclusive of co-lending and directly assigned AUM. See next slide for further details. ^ Including co-lending AUM, * As at t
Slide 5: Retail AUM: Rising Share Of Co-Lending AUM
Retail AUM : Rising Share Of Co-Lending AUM Co-Lending AUM (₹ Mn) MSME AUM (₹ Mn) Housing AUM (₹ Mn) Gold AUM (₹ Mn) CAPRIGLOBAL 5 * As at the end of indicated period.
Slide 6: Disbursals: Continued Momentum In Gold, Strong Uptick In Housing
Disbursals : Continued Momentum In Gold, Strong Uptick In Housing Segmental Disbursals (₹ Mn) Composition of Segmental Disbursals (%) Note: MSME and Housing Finance disbursals in Q3FY23 have been re-stated to include co-lending disbursals. CAPRIGLOBAL 6
Slide 7: MSME Business Update
MSME Business Update Average Ticket Size (Incr. Disbursals) (₹ Mn) Live Accounts* Loan to Value (%) (Incremental Disbursals) Geographical Distribution (Value-Wise)^ * As at the end of period indicated ^ As at December 31, 2023 CAPRIGLOBAL 7
Slide 8: Gold Loan Business Update
Gold Loan Business Update Average Ticket Size (On Portfolio) (₹)* Live Accounts^ Loan to Value (%) (Incremental Disbursals) Geographical Distribution (Value-Wise)^ * Data till Q2FY24 PPT was on incremental disbursements , ^ as at the end of period indicated CAPRIGLOBAL 8
Slide 9: Construction Finance Business Update
Construction Finance Business Update Average Ticket Size (₹ Mn) Live Accounts* Geographical Distribution (Value-Wise)* * As at December 31, 2023 CAPRIGLOBAL 9
Slide 10: Housing Finance Business Update
Housing Finance Business Update Average Ticket Size (₹ Mn) (Incremental Disbursals) Live Accounts* Loan to Value (%) (Incremental Disbursals) Geographical Distribution (Value-Wise)* Salaried 40% Self-employed 60% * As at December 31, 2023 CAPRIGLOBAL 10
Slide 11: Car Loan Distribution: Added New Partnership In Q3
Car Loan Distribution: Added New Partnership In Q3 Partner Banks Pan-India coverage through presence in 714 locations in 32 States & UTs Commenced car loan origination for State Bank of India during Q3FY24 Total Locations (Branches + Feet-on-Street) Q3FY23 Q4FY23 Q1FY24 Q2FY24 Q3FY24 322 450 714 714
Slide 12: Car Loan Origination: On Track To Cross Rs100bn In FY24
Car Loan Origination: On Track To Cross Rs100bn In Originations In FY24 Consistently Rising Loan Originations (₹ Mn)^ Loan Originations Full Year Basis (₹ Mn)^ Loan Originations By Volume (Nos.)^ Average Ticket Size (₹ Mn) *^ ^Provisional data pertaining to previous quarters has been re-stated. * AT
Slide 13: Earnings Performance
Earnings Performance CAPRIGLOBAL 13
Slide 14: Performance Matrix: Operating Profit Up Despite NII Decline
Performance Matrix : Operating Profit Up Despite NII Decline NII (₹ Mn) Operating Profit (₹ Mn) Strong operating Spread profit compression performance caused aided by marginal strong fee sequential income and dip in NII improved C/I ratio Credit Costs (₹ Mn) PAT (₹ Mn) Net profit excluding net loss
Slide 15: Non-Interest Income: Rebound Led By Car & Lending Fees
Non-Interest Income : Rebound Led By Car & Lending Fees Net Non-Interest Income (₹ Mn)* Non-Interest Income / Net Income (%) *Net Non-Interest Income = Total Income less Interest Income less Fee and Commission Expense less Net loss on fair value changes (if any) ❑ Car loan fees witnessed a rebound w
Slide 16: Loan Yields: Uptick Visible Across Major Segments
Loan Yields* : Uptick Visible Across Major Segments MSME (%) Housing Finance Gold Loans (%) Construction Finance (%) * Weighted average yield on outstanding loans as at the end of period indicated . CAPRIGLOBAL 16
Slide 17: Key Ratios: Spreads Compress But Higher YoY
Key Ratios : Spreads Compress But Higher YoY Yield on Advances (Wtd. Avg.) (%) Cost of Funds (Wtd. Avg.) (%) 8bps QoQ 17bps increase in QoQ YoA increase in CoF Spreads (YoA – CoF) (%) Net Interest Margin (%) NIM decline A higher rise reflects in CoF led to higher 9bps spread average compression borr
Slide 18: Operating Expenses: C/I Ratio Improves Sharply
Operating Expenses : C/I Ratio Improves Sharply Operating Expenses (₹ Mn) Operating Expenses Composition (%) Opex in absolute terms is unchanged QoQ Cost-Income (%): Changes Course Cost / AAUM (%) (annualized) Adjusted for Cost/AAUM the Gold calculated Loan considering vertical new car income and lo
Slide 19: Key Ratios: Return Ratios Could Stay Flat For Another Quarter
Key Ratios : Return Ratios Could Stay Flat For Another Quarter Annualized Return on Equity (%)* Annualized Return on Assets (%) * Q4FY23 RoE computed after applying suitable weightage to fresh equity raised. EPS (Diluted) (₹) (Not Annualized)^ Book Value Per Share (₹)@ ^ Q4FY23 EPS was based on weig
Slide 20: Liabilities & Liquidity Position Update
Liabilities & Liquidity Position Update CAPRIGLOBAL 20
Slide 21: Liability Mix: Increase Led by Bank Borrowings/NHB Refinance
Liability Mix : Increase Led by Bank Borrowings/NHB Refinance Diversified Funding Profile (₹ Mn) Consolidated Borrowings Break-up (₹ Mn) ❑ CGCL’s Board has approved issuance of NCDs up to Rs5,000mn for a tenure between 1-5 years. ❑ Company continues to have access to strong credit lines to support i
Slide 22: Liquidity Position: Comfortable Liquidity Position
Liquidity Position : Comfortable Liquidity Position* ₹ Mn except stated CGCL Particulars CGHFL Consolidated (Standalone) Limits Sanctioned 101,700 39,750 141,450 Limits Availed 96,650 37,238 133,888 Un-Drawn 5,050 2,513 7,562 Repaid 29,134 11,134 40,268 Outstanding 67,517 26,104 93,620 Total no. of
Slide 23: Asset Quality
Asset Quality CAPRIGLOBAL 23
Slide 24: Asset Quality: PCR Improvement Continues
Asset Quality : PCR Improvement Continues ₹ Mn except stated ECL Analysis As Per IndAS (INR Mn) Q3FY24 Q2FY24 Q1FY24 Q4FY23 Q3FY23 Stage 1 & 2 - Gross 119,112 111,708 103,339 95,985 80,588 Stage 1 & 2 - ECL Provisions 1,688 1,472 1,379 1,258 1,234 Stage 1 & 2 - Net 117,424 110,236 101,959 94,727 79,
Slide 25: Segmental NPAs: Asset Quality Stable
Segmental NPAs : Asset Quality Stable MSME^ Construction Finance & IL^ Housing Finance^ ^NNPAs computed with Stage-3 ECL provisions compared to earlier representation computed with aggregate ECL provisions till Q3FY23. CAPRIGLOBAL 25
Slide 26: Capital Adequacy
Capital Adequacy CAPRIGLOBAL 26
Slide 27: Well Capitalized For Medium Term Growth
Well Capitalized For Medium Term Growth Consolidated Networth (₹ Mn) Capital Adequacy (%) o CGCL raised Rs14.4bn equity capital through a Rights Issue in Mar’23. The equity was fully deployed during Q1FY24. The Company is well capitalised for medium term growth. o During Q2FY24, CGCL infused Rs2bn i
Slide 28: Network
Network CAPRIGLOBAL 28
Slide 29: Network: Rationalizing & Stabilizing
Network: Rationalizing & Stabilizing ❑ Network expansion neared a pause with a net addition of Branch Addition Normalizing 2 branches during Q3FY24. Total branch network stood at 610 736 849 917 919 919 branches vs. 917 branches in Q2FY24. ❑ Network of non-Gold Loan businesses was rationalized and r
Slide 30: Network: Presence In Major Growth Centres
Network: Presence In Major Growth Centres Urban Retail, CF, and Car Loan Gold Loan Branches Distribution 747 Branches in 9 States & UTs 172 Branches in 12 States & UTs 1 99 3 22 59 1 4 163 69 88 15 117 25 37 102 3 5 7 92 1 5 1 Note: Political map of India not to scale Note: Political map of India no
Slide 31: Financials
Financials CAPRIGLOBAL 31
Slide 32: CGCL Cons. Inc. Statement: Quarterly Comparison
CGCL Cons. Inc. Statement : Quarterly Comparison ₹ Mn except stated Particulars Q3FY24 Q3FY23 Y-o-Y (%) Q2FY24 Q-o-Q (%) Interest earned 4,656 3,004 55% 4,452 5% Interest expended 2,209 1,394 58% 1,958 13% Net interest income 2,447 1,610 52% 2,493 -2% Non-interest income 1,052 772 36% 803 31% Net ca
Slide 33: CGCL Consolidated Balance Sheet
CGCL Consolidated Balance Sheet* ₹ Mn except stated Particulars (INR Mn) Q3FY24 Q3FY23 YoY (%) Q2FY24 QoQ (%) Paid-up equity 412 352 17.3% 412 0.0% Reserves and surplus 37,131 20,293 83.0% 36,420 2.0% Networth 37,543 20,644 81.9% 36,833 1.9% Bank borrowings and refinance 91,661 60,775 50.8% 86,489 6
Slide 34: 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 Other
Slide 35: 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 36: 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 37: Shareholding
❑ Market capitalization1 : Shareholding ₹ 200bn | US$ 2.41bn2 ❑ Cons. Networth3 (Q3FY24) : ₹ 37.5bn ❑ Paid-up Equity : ₹ 412.5mn ❑ FV4 : ₹ 2 ❑ Dividend Per Share (FY23) : ₹ 0.50 Note: 1. Average of market capitalization on BSE and NSE on 31st December ‘23. 2. 1 US$ = ₹ 83.17 3. Not adjusted for DTAs
Slide 38: Leadership
Leadership CAPRIGLOBAL 38
Slide 39: Board of Directors
Board of Directors Independent Board Guides Executive Management Rajesh Sharma, Managing Director Founder & Promoter with over 2.5 decades of experience; Chartered Accountant Ajit Mohan Sharan, Independent Bhagyam Ramani, Independent Mukesh Kacker, Independent Director Director Director IAS - Batch
Slide 40: Leadership Team
Leadership Team Retail Risk Management & Underwriting Corporate Functions Amar Rajpurohit (Business Head Sanjeev Srivastava (Chief Risk Partha Chakraborti (Chief – MSME) Ex-AU Financiers, Gruh Officer) Ex-IIFL Finance, GE Financial Officer) Ex-R R Kabel, Finance, DHFL with over 17 years Money, ICICI
Slide 41: Accolades
Accolades SAAT APNO KA WE HAVE BAGGED THE CAPRIGLOBAL “gg” GREAT PLACE TO WORK - CERTIFIED ™ Building and Sustaing High-Trust, High-Performance Culture’ EXCELLENCE AWARDS PROGRAM 2022 CAPRIGLOBAL
Slide 42: 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 43: Thank you
Thank you For further information, please contact: Ravikant Bhat [email protected] T: +91 72089 52880 Sheetal Khanduja Rajat Gupta [email protected] [email protected] M:+91 97693 64166 M: +91 99718 97739 CAPRIGLOBAL 43