Capri Global Capital Limited · NSE:CGCL
Capri Global Capital — Investor Presentation (January 2024)
40 slides from Capri Global Capital's investor presentation, January 2024
Slide 1: Corporate Presentation
Corporate Presentation January 2024 C A P R I GFollow L O B A Lus: 1
Slide 2: Capri Global: Profitable Lending With Social Impact
Capri Global : Profitable Lending With Social Impact A NBFC with presence across high growth segments like MSME, Affordable Housing, Gold Loans, and 01 Construction Finance, Car Loan distribution (fee bus.); commenced insurance distribution in Dec’23. Promoted by first generation entrepreneur, Mr. R
Slide 3: Capri Global: Our Journey
Capri Global: Our Journey 2022 Announced foray into Gold Loans in 2021 Feb’22, business Commenced third launched in Aug’22 party distribution 2017 of new car loans; Forayed into announced co- Housing Finance lending tie-up with 2013 business vertical SBI & Union Bank. Ventured into fully secured MSM
Slide 4: Uniquely Positioned: Scalable Model to Drive Profitable Growth
Uniquely Positioned : Scalable Model to Drive Profitable Growth Leveraging Inherent Strengths… To Capture Future Opportunities… Multi Layered Technology Disrupting Retail Focused Model Credit Approach Traditional Ways of Lending Efficiently Managed Secured Lending Fast Growing Indian Economy Liabili
Slide 5: Capri Global: Granular & Retail Lending
Capri Global : Granular & Retail Lending Scale of Distribution^ Granular Book Asset Quality Liability Profile Profitability@ Operations Focus On Secured ₹ 134 Bn / ₹ 103 Bn 919 Lending 2.1% 21 6.7% / 6.4% AUM in Q3FY24 / FY23 Number of Branches Gross NPA Lender Relationships Spreads in 9MFY24 / 54%
Slide 6: Business Overview: Diversified Product Profile
Business Overview: Diversified Product Profile Gold Loans Construction MSME Housing Fin. Finance Indirect Lending Distribution Product portfolio: Product portfolio: Product portfolio: Product portfolio: Product portfolio: Product portfolio: Home loans for – Loan against gold Construction-linked Fina
Slide 7: Diversified AUM: Strong and Sustained Momentum
Diversified AUM: Strong and Sustained Momentum AUM Segmental Break Up (₹ Mn) AUM Segmental Break Up (%) CAPRIGLOBAL 7
Slide 8: Disbursals: New Growth Drivers Adding Momentum
Disbursals: New Growth Drivers Adding Momentum Disbursals Segmental Break Up (₹ Mn) Disbursals Segmental Break Up (%) CAPRIGLOBAL 8
Slide 9: MSME Lending: A Large Unexplored Opportunity
MSME Lending: A Large Unexplored Opportunity MSMEs A Key Contributor To Share of NBFCs in MSME Credit Rising Huge Addressable Credit Gap in MSME India’s GVA (%) 31.8 32.3 32.2 32.8 FY17 FY22 30.5 30.5 26.8 INR MSME 17.3 Tn Systemic 10.9 Tn 23.1 Tn INR Credit (INR) 19.4 Tn INR 52.0 Tn Non-Banks Marke
Slide 10: MSME Lending: Small Loans, Big Opportunity
MSME Lending: 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 – 168 Branches; 100
Slide 11: Affordable Housing: Long Term Structural Drivers Intact
Affordable Housing: Long Term Structural Drivers Intact Mortgage Penetration Consistently Rising HFCs Performing Well In A Competitive Scenario Outstanding (Rs.Bn.) Growth Disbursements (Rs.Bn.) Growth Individual HL Portfolio FY21 FY22 (% YoY) FY21 FY22 (% YoY) HFCs 7,143 8,054 12.8 1,913 2,614 36.7
Slide 12: 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 population in Tier 2 and 3 cities through a network of 157 branches. ❑ Ventured in 2016 through wholly-owned subsidiary – Capri Global Housing Fin
Slide 13: Lending As Service: Co-Lending - Huge Growth Opportunity
Lending As Service: Co-Lending - Huge Growth Opportunity Co-originating loans in the MSME and Affordable Housing segment with partner banks based on RBI’s co-lending mechanism Spread and loan service Credit costs to be shared fee from CLPs on the co- ❑ CGCL retains a minimum 20-30% of co- proportion
Slide 14: Gold Loans: Rising Stock Of Monetizable Gold
Gold Loans: Rising Stock Of Monetizable Gold Consumer Gold Demand in India Robust Across Share of Jewellery in Consumer Gold Demand Gold Prices in India (Rs‘000/10g) – Gold Has Years (Tonnes) High and Stable (%) Been A Store Of Value 45.4 42.2 42.8 959 79 79 77 78 77 78 833 857 75 76 771 760 797 774
Slide 15: Gold Loan: Significant Opportunity For Organised Players
Gold Loan: Significant Opportunity For Organised Players Large market expected to GL Market Dominated By Pvt Banks, NBFCs Gaining Share grow at ~15% Unorganised Players Gold loan market (INR Tn.) Gold Loan Market Share1 5.9 14-16% 5% 4% Urban Co-op Banks 35% 13% 14% Pvt Banks +12% 3.3 44% 42% PSU Ba
Slide 16: Capri Gold Loans: Products Inspired By Service & Trust
Capri Gold Loans : Products Inspired By Service & Trust CAPRI SERVICE PROPOSITION MINIMUM DOCUMENTATION 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! TRUST
Slide 17: Gold Loans: Scaling Up Fast
Gold Loans : Scaling Up Fast AUM To Cross ₹ 30bn in FY24 Geographical Distribution (Value-Wise) ❑ CGCL launched its gold loan business in August 2022 through a network of 108 branches ❑ Network expanded to 562 branches in Mar’23 and further to 746 branches in Q3FY24. ❑ Fast scale up in AUM in a shor
Slide 18: 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. ❑ Comprehensive framework for project selection and credit appraisal. ❑ Strong monitoring mechanism for end-use tracking and
Slide 19: 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 20: Car Loan Origination: On Track To Cross Rs100bn In Originations 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. * ATS
Slide 21: Well Capitalized For Medium Term Growth
Well Capitalized For Medium Term Growth Consolidated Networth (₹ Mn) Capital Adequacy (%)* CGCL CGHFL 15,392 17,173 19,225 35,655 36,314 47.0 44.2 43.5 39.9 38.0 37.7 33.1 31.2 29,828 29.5 27.97 30,466 14,645 13,077 14,523 5,250 3,250 3,250 1,750 1,750 1,939 2,465 FY20 FY21 FY22 FY23 Q3FY24 CGHFL Su
Slide 22: Capri 2.0 | Scale And Profitability
Capri 2.0 | Scale And Profitability Aim to reach ₹ 300bn AUM by FY27E Scaled-up Diversified NBFC Sizeable diversified play Maturity ❑ Rapid scale-up of business ❑ New products (Car Loan ❑ Deeper penetration of existing Distribution, Co-Lending, Gold products Starting Point Loans), markets, and chann
Slide 23: Technology: Building Support Infra for Capri 2.0
Technology: Building Support Infra for Capri 2.0 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
Slide 24: Collections: Leveraging Digital & Analytical Capabilities
Collections: Leveraging Digital & Analytical Capabilities 1 Artificial Intelligence Based Bot Calling to Customers 2 State-of-the-Art Tele-calling Set-up With Automated Calling 3 Incentive Gamification Tool for Collections Employees Extensive leverage of strong Digital and 4 Live Collections Analyti
Slide 25: Collections: Strengthened Engine With 3 Strategic Pillars
Collections: Strengthened Engine With 3 Strategic Pillars ❑ Trainings for courtesy & problem-solving led communications Best-in-class Customer Engagement Quality ❑ Live monitoring of customer discussions with on-roll trainers ❑ Monthly tracking of contacts made, invalid repayment accounts and custom
Slide 26: Healthy Financial Performance Over The Years
Healthy Financial Performance Over The Years… C/I (%) : Impacted By Gold Loan Opex; NII (₹ Mn) Spreads (%)1: Cycle Turning Adj. C/I Ratio 50% in Q3FY24 7,310 6.9 63.4 63.0 65.2 6.8 6,362 6.7 5,087 6.6 6.4 38.4 40.1 3,872 3,848 35.2 6.2 2,447 FY20 FY21 FY22 FY23 Q3FY24 9MFY24 FY20 FY21 FY22 FY23 Q3FY
Slide 27: NPA Analysis: Steady Improvement
NPA Analysis: Steady Improvement ₹ Mn except stated otherwise ECL Analysis As Per IndAS FY23 FY22 FY21 FY20 FY19 Stage 1 & 2 - Gross 95,985 63,627 45,411 39,151 40,431 Stage 1 & 2 - ECL Provisions 1,258 1,325 452 308 211 Stage 1 & 2 - Net 94,727 62,303 44,958 38,843 40,220 Stage 1 & 2 - ECL Provisio
Slide 28: 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 29: 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 30: 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 31: 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 robus
Slide 32: 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 33: 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 34: ESG at Core: Growing Responsibly
ESG at Core: Growing Responsibly Environment Social Governance ❑ Introduction of Sales Mobility app has ❑ Facilitating income generating loans and ❑ Executive Management overseen by an digitized 50% of loan origination to disbursal housing loans for self-employed and non- independent Board of Direct
Slide 35: CSR: Serving the Underprivileged
CSR: Serving the Underprivileged 81,840 33,647 Health Initiatives Sustainable Livelihood 5,787 4,000 2,237 1,500 Education Initiatives Sustainable Environment Animal Welfare Integrated Rural Development Note: All figures relate to the number of beneficiaries / projects / initiatives under CGCL’s CSR
Slide 36: 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 37: Leadership Team
Leadership Team Statutory Functions Business Heads Collections & Legal Partha Chakraborti (Chief Amar Rajpurohit (Business Head – Prasanna Kumar Singh (Group Financial Officer) Ex-R R Kabel, MSME) Ex-AU Financiers, Gruh Collections Head) Ex-Bajaj Finance Hafele India, IFB Industries; over Finance, D
Slide 38: 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 39: 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 40: 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 40
Capri Global Capital — Investor Presentation (January 2024) on 6ix