Consolidated Key Performance Highlights for Q2 FY25
Mumbai: The Board of Directors of Capri Global Capital Ltd. (CGCL), a non-deposit taking and systemically important NBFC (NBFC-ND-SI) on Tuesday, October 29th, 2024 announced the unaudited financial results for the quarter ended September 30, 2024.
Business and PAT Momentum Continues
CONSOLIDATED FINANCIALS (INR Mn)
|
Q2FY25
|
Q2FY24
|
Y-o-Y
|
Q1FY25
|
Q-o-Q
|
AUM
|
192,722
|
123,585
|
55.9%
|
174,579
|
10.4%
|
MSME (incl. co-lending)
|
48,240
|
46,588
|
3.5%
|
48,880
|
-1.3%
|
Gold Loans (incl. co-lending)
|
65,828
|
20,241
|
225.2%
|
54,001
|
21.9%
|
Construction Finance
|
33,462
|
20,573
|
62.6%
|
28,082
|
19.2%
|
Affordable Housing (incl. co-lending)
|
42,713
|
32,017
|
33.4%
|
40,178
|
6.3%
|
Indirect Lending
|
2,478
|
4,166
|
-40.5%
|
3,439
|
-27.9%
|
Disbursement
|
54,641
|
35,267
|
54.9%
|
56,197
|
-2.8%
|
Net Income
|
4,083
|
3,296
|
23.9%
|
4,102
|
-0.5%
|
PAT
|
970
|
652
|
48.7%
|
757
|
28.1%
|
Spreads
|
6.9%
|
6.6%
|
22 bps
|
7.0%
|
-13 bps
|
Cost-to-income
|
64.3%
|
66.9%
|
-258 bps
|
64.6%
|
-30 bps
|
RoAA
|
2.3%
|
2.1%
|
17 bps
|
1.9%
|
37 bps
|
RoAE
|
9.8%
|
7.1%
|
265 bps
|
7.8%
|
197 bps
|
EPS (Basic) (FV Rs1) (not annualised)
|
1.2
|
0.8
|
49.4%
|
0.9
|
28.3%
|
Book Value Per Share (Rs)
|
47.7
|
44.0
|
8.3%
|
46.6
|
2.3%
|
Gross Stage 3
|
1.6%
|
1.9%
|
-29 bps
|
2.0%
|
-33 bps
|
PCR (including aggregate ECL prov.)
|
117.8%
|
99.4%
|
1842 bps
|
92.9%
|
2489 bps
|
PCR (on Stage-3)
|
40.1%
|
32.2%
|
785 bps
|
42.8%
|
-269 bps
|
Key takeaways are as follows:
Business and Earnings Performance
Continued growth momentum in AUM; Crosses Rs 19,250 crs
CGCL continued the strong growth momentum in Q2FY25. The consolidated AUM including co-lending AUM increased 56% YoY and 10% QoQ to touch Rs 192,722mn. Retail growth was driven by Housing Loans up by 33% YoY and Gold Loans up by 225% YoY. Co-lending AUM stood at Rs 35,190mn comprising 18.3% of consolidated AUM compared to 16.4% in Q1FY25 and 11.7% in Q4FY24. Disbursement grew by 55% YoY. CGCL also launched new product Roof Top Solar Finance as Green Financing under the MSME Loans with an aim to build around Rs 10,000mn book in near term. The overall AUM growth was granular with live customer relationships increasing by 108K QoQ to touch 697K.
Strong Profitability with Improvement in Cost Efficiency
The PAT for the Q2FY25 stood at Rs 970mn a strong growth of 49% YoY and 28% QoQ. Overall, yields and spreads remained steady in Q2FY25. Net Interest income up by 22% YoY on the back of strong loan book growth of 38% YoY. CGCL’s pre-provisioning operating profit increased to Rs 1,457mn, up by 34% YoY. Strategically, CGCL undertook rapid expansion of branches and employees in last 3 years to support the growth momentum. In line with that, CGCL made significant investments in technology, the benefits of which are expected to accrue going forward. Our branch expansion stabilized this quarter with focus on improvement in branch and employee productivity. CGCL cost/income ratio stood at 64.3%, an improvement of 6.2% from Q4FY24.
Non-Interest Income Continues to Grow
Our non-interest income increased by 29% YoY in Q2FY25 supported by growth in co-lending fee income. CGCL continues to focus on non-interest income with its share in total income at 25.2% in Q2FY25.
CGCL’s car loan business saw distribution origination of Rs 25,633mn in Q2FY25, up by 8% YoY and 15% QoQ. CGCL has made 18 tie ups for insurance distribution under the composite license. This shall be an important source of fee income in the future and the Company is looking to generate around Rs 400mn in net fee income from insurance distribution in FY25E.
Improvement in Asset Quality while Maintaining Adequate Provision Coverage Ratio
CGCL is investing in advanced analytics and data science capabilities to enhance customer segmentation, which will further improve underwriting and allow better risk selection and pricing. Credit cost normalised and was at Rs 174mn, a decline of 24% YoY and 62% QoQ on account of one-off technical write-off in Q1FY25. Gross Stage 3 ratio improved to 1.6% in Q2FY25 from 2.0% as of Q1FY25. Net Stage 3 ratio improved to 1.0% from 1.2% in Q1FY25. PCR on Stage-3 loans stood at 40.1% in Q2FY25.
Strong Capital Adequacy
CGCL maintains a robust financial position with a strong standalone Capital Adequacy of 23.7% in Q2FY25, supported by a Networth of Rs 32bn. Similarly, CGHFL boasts a CAR of 31.9% and a Networth of Rs 8.2bn ending Q2FY25.
Founder & Managing Director Mr. Rajesh Sharma Commented:
“We continue to see strong growth momentum and further diversify our product offering with the launch of new products Micro Lap and Roof Top Solar loans as Green Financing under our MSME segment. We believe that our significant investments in technology and focus on increasing branch and employee productivity will start yielding results in terms of reduction our cost / income ratio further. With steady increase in fee income and improvement in yields, we see further upside to our profitability. We will continue to maintain a strong focus on asset quality and strengthen our coverage ratio whilst maintaining healthy capital adequacy. As we move ahead with same vigour, we remain confident to achieve Rs 30bn AuM by FY27 and 15%+ RoE over medium term.