Consolidated Key Performance Highlights for Q1FY22
Assets Under Management
- AUM registered a 22% YoY and 2% QoQ growth.
- Disbursals resumed in Jun’21 after being suspended in Apr-May’21 due to severe Covid-19 second wave.
- The subdued disbursal trend muted incremental growth across portfolios on a QoQ basis.
- Borrowings increased 26% YoY / -4% QoQ to Rs36bn.
- Bank borrowings constituted 76% of total borrowings, balance contributed by NCDs.
- CGCL has Rs 6,910mn of un-drawn limits and another Rs 2,000mn of sanctioned limits.
- ALM is well balanced with inflows exceeding outflows across all buckets.
- Net interest income increased 19% YoY / 20% QoQ to Rs 1,104mn.
- Operating profit increased 8% YoY / 34% QoQ to Rs 787mn.
- Profit after tax increased 16% YoY / 69% QoQ to Rs 459mn.
- Average yield on advances 14.6%, Average cost of funds 8.4%, and spreads 6.2%.
- Cost-income ratio was noted at 35.9%.
- Gross Stage 3 increased 111bps YoY / 10bps QoQ to 3.4%.
- Provision Coverage Ratio further improved to 76.4% from 73.1% in Q4 FY21.
- Restructured assets increased to Rs 2,040mn from Rs 1,840mn in Q4 FY21. Further pipeline for restructuring requests is thin.
- Collection Efficiency (on POS) exhibited improving trend; MSME collection efficiency improved to 87% (84% in Q4 FY21) while Housing Finance collection efficiency improved to 95% (93% in Q4 FY21).
Strong Capital Adequacy
- CGCL remains well capitalized with a Tier I capital adequacy at 37.5%.
- The capitalization levels are robust to support strong growth over medium term.
- Annualized RoE / RoA of 11.1% / 3.4% respectively.
- BVPS and annualized EPS was Rs100.6 / Rs10.4 respectively.
Commenting on the performance, Founder & Managing Director, Mr. Rajesh Sharma said:
“Q1 FY22 was a particularly challenging quarter due to the severe second Covid wave which affected a number of CGCL employees and customers. We ensured all timely help to our employees to keep their morale strong. We were quick on our heels with the waning of Covid wave and resumed operations at all levels in June’21. Going forward, we remain optimistic about the growth opportunities over medium-term while being aware and cautious of the still delicate normalization post-second Covid wave.
At CGCL, we have set ourselves an ambitious target of delivering a +20% YoY growth in AUM in FY22 and a medium-term CAGR of 22-27% between FY22E-FY27E. We believe this is an achievable target based on the organic growth opportunities we see in our product segments.”
About Capri Global Capital Ltd
Capri Global Capital Limited (CGCL) is a Non-Banking Financial Company (NBFC) listed on the Bombay Stock Exchange (BSE) and National Stock Exchange (NSE). The Company operates in two major verticals – MSME Loans and Affordable Housing Finance – through its strong network of 85 branches spread across 8 states and backed by a strong and committed workforce of 1,945 employees in the country. CGCL addresses the capital needs of MSMEs through its SME & Retail Lending vertical by offering multiple products: MSME Business Loans, Working Capital Term Loans, Term Loans Against Property Rentals, and Term Loans for Purchase of Property. Our tech-enabled processes and smart analytics ensure that we offer products tailored to meet the requirements of our customers. Capri Global Housing Finance Limited, a subsidiary of CGCL, operates in the affordable housing finance space is providing home loans to Lower and Middle-Income families and is a key contributor to the PM’s vision of “Housing for All” by 2022.