Capri Global Capital Registered 19% YoY Growth on PAT
Capri Global Capital Ltd (CGCL), a diversified NBFC in the MSME and Affordable Housing sector, has reported an AUM of Rs. 40.35 bn in FY20.
Key Financial Drivers
Total Assets Under Management of Rs. 40.35 bn
Strong focus on MSME and Housing Finance Business continues
MSME AUM at Rs. 20.47 bn with an average ticket size at Rs. 1.6 mn and avg. loan tenure of 4-6 years
Housing Finance AUM of Rs. 8.98 bn with an average ticket size at Rs. 1 mn and avg. loan tenure of 7-8 years
Total Disbursements stood at Rs. 12.76 bn
Addition of new bank lines of Rs. 20,000 mn in FY20
Received approval from the largest lender of the Country for Securitization of Loans to the tune of Rs. 5 bn
Strong network of 87 offices across 8 states
Serving over 22,920 + customers across businesses
Operational Highlights: Building Business Strength
PAT stood at Rs. 350 mn in Q4 FY20, post providing for COVID 19 pandemic impact
Given the uncertainty over the potential macro-economic impact, the Company has made extra provision for expected credit loss on financial assets for Q4 FY20 and FY20. Accordingly, the Company has increased the outlay by increasing Probability of Default (PD) and Loss Given Default (LGD) by 15% to 30%. Based on the current indicators of future economic conditions, the Company considers this provision to be adequate
Net Interest Income and NIM stood at Rs. 940 mn and 9.4%
- PAT up by 18.8% YOY at Rs. 1,612 mn
- Net Interest Income up by 19.6% YOY at Rs. 3,872 mn in FY20
- NIMs increased during FY20 to 9.5% YOY against 9.3% for FY19
- Capital Adequacy Ratio remains strong at 38.7% levels
- Cost to Income ratio improved to 38.4% for FY20 as compared to 46.6% for FY19
- The Asset Quality remained healthy with GNPA (90+DPD portfolio) at 2.36% and NNPA at 0.79%
- Maintained credit ratings of A+ (CARE Ratings) and AA- (BWR Ratings)
MSME continue to be the focussed sector contributing to around 51% of total AUM. CGCL has active relationships over 12,500 businesses ending FY20 across several states in India ranging from retail outlets to small manufacturing units, traders to private schools. The Company continues focussing on Tier 3 & 4 cities. The well-established and in-depth knowledge of micro markets has helped CGCL to maintain a good asset quality and keep the loan book granular. With the current market scenario, henceforth, there will be a slower pace of disbursals in MSME due to slowdown in business environment and resultant tighter credit policy.
The Housing Finance contributes to around 22% of the total AUM. Under the Affordable Housing Finance business targeting Tier 2 & 3 cities, the company has already empowered ~10,200 families to realise the dream of owning their own home. CGCL has entered an MOU with NHB as a Primary Lending Institution (PLI) to facilitate subsidy to its qualifying borrowers under the CLSS.
Commenting on the outcome, Mr. Rajesh Sharma, Managing Director, Capri Global Capital Ltd. explained, “Regardless of the economic headwinds CGCL has witnessed a healthy growth supported by yields improvement and reduction in cost to income ratio. Our well-established and in-depth knowledge of micro markets and our retail focussed strategy has successfully reflected in lifetime high Return on Equity reported during FY20. The Company is adequately capitalised maintaining capital adequacy ratio at 38%. We continue focussing on expanding our retail book. Successful adoption of low-cost technology-driven hub & spoke model has assisted us in tapping underserved markets in cost-efficient manner and optimizes turn-around times.”
“We continue focussing on expanding our retail book. Successful adoption of low-cost technology-driven hub & spoke model has assisted us in tapping underserved markets in cost-efficient manner and optimizes turn-around times,” says Rajesh Sharma, Managing Director, Capri Global Capital Ltd.
“With the lockdown, we have re-arranged our processes to ensure business continuity for the existing customers. The sales and credit teams are actively communicating with customers having high-risk business profiles to jointly evaluate the best possible solution and mitigate the crises together. Capri Global Capital Limited supports its customers, clients, employees, and communities in this extraordinary time using the resources, expertise, capital, and data to help.” Mr. Sharma added.