Capri Global Capital Limited · NSE:CGCL
Capri Global Capital — Q2 FY2023 Earnings Presentation
41 slides from Capri Global Capital's earnings presentation, Nov 5, 2022
Slide 1: Responsible. Resilient. Ready. Q2FY23 Earnings Presentation
Responsible. Resilient. Ready. Q2FY23 Earnings Presentation 5th November 2022 CAPRIGLOBAL 1
Slide 2: 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 3: 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 4: Business Performance
Business Performance CAPRIGLOBAL 4
Slide 5: Executive Summary: Key Highlights
Executive Summary : Key Highlights ❑ Cons. PAT of Rs563mn (7.3% YoY, 22.1% QoQ) in Q2FY23, consolidated Q2FY23 RoE 11.2%, RoA 2.8%. ❑ Disbursals picked up strongly touching ~Rs14,860mn, up 57.2% YoY and 35.9% QoQ. Consolidated AUM at Rs77,692mn, up 47.4% YoY and 11.4% QoQ. ❑ Launched Gold Loan busin
Slide 6: Business Update: Broad Based Momentum
Business Update : Broad Based Momentum AUM Segmental Break Up (INR Mn)* Composition of AUM (%)* 52,712 57,736 66,329 69,765 77,692 o MSME-DA relates to off-balance sheet AUM comprising Direct Assignment (co-lending portfolio) in MSME. * As at the end of period indicated. CAPRIGLOBAL 6
Slide 7: Disbursals: Strong Pick-up After A Soft Q1
Disbursals : Strong Pick-up After A Soft Q1 Segmental Disbursals (INR Mn) Composition of Segmental Disbursals (%) 9,450 12,652 15,039 10,933 14,860 Note: Indirect Lending disbursals that we previously excluded from this graph, have now been included. Previous quarter data is suitably adjusted. CAPRI
Slide 8: MSME Business Update
MSME Business Update Average Ticket Size (INR Mn) Live Accounts* Loan to Value (%) (Incremental Disbursals) Geographical Distribution (Value-Wise)^ * As at the end of period indicated ^ As at September 30, 2022 CAPRIGLOBAL 8
Slide 9: Gold Loan Business Update
Gold Loan Business Update Rapid Rollout In 7 States & UTs Geographical Distribution (Value-Wise)* ❑ Launched Gold Loan business in Aug’22 simultaneously through 108 exclusive branches across 5 states and UTs. The network expanded to 182 exclusive branches across 7 states and UTs by end Q2FY23. ❑ Sta
Slide 10: Construction Finance Business Update
Construction Finance Business Update Average Ticket Size (INR Mn) Live Accounts* Geographical Distribution (Value-Wise)* * As at September 30, 2022 CAPRIGLOBAL 10
Slide 11: Housing Finance Business Update
Housing Finance Business Update Average Ticket Size (INR Mn) (Incremental Disbursals) Live Accounts* Loan to Value (%) (Incremental Disbursals) Geographical Distribution (Value-Wise)* Salaried 43% Self-employed 57% * As at September 30, 2022 CAPRIGLOBAL 11
Slide 12: Car Loan Distribution: Momentum Continues
Car Loan Distribution: Momentum Continues Pan-India coverage Distribution Footprint Now Pan-India through presence in 322 locations in o Distributing new car loan products of Union Bank of India, 1 7 29 States & UTs Bank of Baroda, HDFC Bank, IOB, Yes Bank, and Bank of 1 India. 11 11 4 o Asset light
Slide 13: Earnings Performance
Earnings Performance CAPRIGLOBAL 13
Slide 14: Performance Matrix: Sharp Decline In Credit Costs
Performance Matrix : Sharp Decline In Credit Costs NII (INR Mn) Operating Profit (INR Mn) Credit Costs (INR Mn) PAT (INR Mn) CAPRIGLOBAL 14
Slide 15: Key Ratios: NIMs Holding Up Well
Key Ratios : NIMs Holding Up Well Yield on Advances (%) Cost of Funds (%) Net Interest Margin (%) Note: • We have changed YoA and CoF calculation methodology to bring it in-line with the formula used in our rights issue disclosures. • Instead of weighted yields and weighted borrowing costs, we have
Slide 16: Operating Expenses: Opex Up On Branch Rollout
Operating Expenses : Opex Up On Branch Rollout Operating Expenses (INR Mn) Operating Expenses Composition (%) Cost-Income (%) Cost / AAUM (%) (annualized) Avg. C/I 47% , adjusted for the Gold Loan vertical opex, the C/I ratio was ~49% CAPRIGLOBAL 16
Slide 17: Key Ratios: RoE Marginally Better
Key Ratios : RoE Marginally Better Annualized Return on Equity (%) Annualized Return on Assets (%) EPS (Diluted) (INR) (Not Annualized) Book Value Per Share (INR)* * Deferred tax assets deducted from Networth before computing BVPS. CAPRIGLOBAL 17
Slide 18: Liabilities & Liquidity Position Update
Liabilities & Liquidity Position Update CAPRIGLOBAL 18
Slide 19: Liability Mix: Well Funded Balance Sheet
Liability Mix : Well Funded Balance Sheet* 39,934 41,694 48,084 53,628 61,304 39,934 41,694 48,084 53,628 61,304 * In INR Millions as at the end of period indicated. CAPRIGLOBAL 19
Slide 20: Liquidity Position: Comfortable Liquidity Position
Liquidity Position : Comfortable Liquidity Position* CGCL Particulars (INR Mn) CGHFL Consolidated (Standalone) Limits Sanctioned 54,300 26,400 80,700 Limits Availed 53,963 24,400 78,363 Un-Drawn 337 2,000 2,337 Repaid 11,317 5,658 16,976 Outstanding 42,646 18,742 61,388 Total no. of relationship mai
Slide 21: Liquidity Position: Proactive Liability Management
Liquidity Position : Proactive Liability Management CGCL Particulars (INR Mn) CGHFL Consolidated (Standalone) Dues during Q2FY23 1,885 731 2,616 Payment made as per Schedule (A) 1,832 731 2,564 Prepayments made for the quarter (B) 53 0 53 Total repayments/prepayments (A+B) 1,885 731 2,616 Balance Pa
Slide 22: Asset Quality and Collection Efficiency
Asset Quality and Collection Efficiency CAPRIGLOBAL 22
Slide 23: Asset Quality: Stage 3 + Restr. Asset Pool Declining
Asset Quality : Stage 3 + Restr. Asset Pool Declining INR Mn except stated ECL Analysis As Per IndAS (INR Mn) Q2FY23 Q1FY23 Q4FY22 Q3FY22 Q2FY22 Stage 1 & 2 - Gross 73,508 65,953 63,627 55,988 51,006 Stage 1 & 2 - ECL Provisions 1,248 1,260 1,325 944 918 Stage 1 & 2 - Net 72,260 64,693 62,303 55,044
Slide 24: Segmental NPAs: Asset Quality In Improvement Trajectory
Segmental NPAs : Asset Quality In Improvement Trajectory MSME^ Construction Finance & IL (Net NPAs Negative)^* Housing Finance (Net NPAs Negative)^ ^Aggregate ECL provisions considered for computing NNPAs. * GNPAs in Construction Finance are nil. CAPRIGLOBAL 24
Slide 25: 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. o The collection efficiency within retail segment is marginally lower than the overall collection efficiency. o The collection eff
Slide 26: Capital Adequacy
Capital Adequacy CAPRIGLOBAL 26
Slide 27: Well Capitalized Balance Sheet: Aid to Expansion
Well Capitalized Balance Sheet: Aid to Expansion Consolidated Networth (INR Mn) Capital Adequacy (%) : Leveraging Capital Fast 18,098 18,763 19,225 19,701 20,414 Strong capital + + = Adequate cash Comfortable liquidity adequacy to Undrawn credit position on balance position to support future support
Slide 28: Network and Financials
Network and Financials CAPRIGLOBAL 28
Slide 29: Network: Presence In Major Growth Centres
Network: Presence In Major Growth Centres Branch Addition Has Continued ❑ With the launch of Gold Loan business in Aug’22, branch 327 network expanded 2.7x over Q1FY23 to touch 327. ❑ Network of non-Gold Loan businesses expanded by 22 branches to touch 145 branches. The businesses now have a presenc
Slide 30: Network: Presence In Major Growth Centres
Network: Presence In Major Growth Centres Urban Retail, CF, and Car Loan Gold Loan Branches Distribution 182 Branches in 7 States & UTs 145 Branches in 14 States & UTs 1 1 25 3 12 3 1 39 59 7 13 23 35 1 14 51 2 5 14 14 2 2 CAPRIGLOBAL 30
Slide 31: CGCL Cons. Inc. Statement: Quarterly Comparison
CGCL Cons. Inc. Statement : Quarterly Comparison Particulars (INR Mn) Q2FY23 Q2FY22 Y-o-Y (%) Q1FY23 Q-o-Q (%) Interest earned 2,787 1,980 40.8% 2,361 18.0% Interest expended 1,258 799 57.4% 1,021 23.2% Net interest income 1,528 1,180 29.5% 1,339 14.1% Non-interest income 610 217 180.4% 409 49.0% Co
Slide 32: CGCL Consolidated Balance Sheet: Quarterly Comparison
CGCL Consolidated Balance Sheet : Quarterly Comparison Particulars (INR Mn) Q2FY23 Q2FY22 Y-o-Y (%) Q4FY22 YTD (%) Paid-up equity 351 351 0.2% 351 0.1% Reserves and surplus 20,062 17,747 13.0% 18,873 6.3% Networth 20,414 18,098 12.8% 19,225 6.2% Bank borrowings and refinance 57,139 31,356 82.2% 43,7
Slide 33: CGCL Consolidated Income Statement: Annual Comparison
CGCL Consolidated Income Statement : Annual Comparison 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 3
Slide 34: CGCL Consolidated Balance Sheet: Annual Comparison
CGCL Consolidated Balance Sheet : Annual Comparison* 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
Slide 35: 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 36: Shareholding
Shareholding o Market capitalization^ : 1.5% Rs131bn | US$ 1.6bn o Cons. Networth* (Q2FY23) : Rs20.4bn Promoter & 15.5% Promoter Group o Paid-up Equity : Institutional Rs351.5mn 8.3% Shareholders Bodies Corporate o FV : Rs2 Others o Dividend Per Share 74.7% (FY22) : Rs0.50 ^Average of market capital
Slide 37: Leadership
Leadership CAPRIGLOBAL 37
Slide 38: 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 39: 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 40: 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 41: 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 41
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