Capri Global Capital Limited (CGCL), a diversified Non-Banking Financial Company has announced its Q4 FY23 results
by Priya Jaadhav
Consolidated
Key Performance Highlights for Q4 FY23
Mumbai, May 22nd, 2023: The Board of Directors of Capri Global Capital Ltd. (CGCL), a non-deposit taking and systemically important NBFC (NBFC-ND-SI) on Monday, May 22nd, 2023 announced the audited financial results for the quarter and year ended March 31, 2023. Key takeaways as follows:
The year FY23
was momentous in many ways for Capri Global. The car loan business scaled new
heights, originating Rs60,133mn in new car loans, an increase of 3.5x YoY. The
Company launched its Gold Loan business in Aug’22 and by Mar’23, scaled it to a
very meaningful network of 562 branches and Rs11,259mn AUM. Share of retail
loans in consolidated disbursals increased to 65% from 50% in FY22. And in
Mar’23, the Company raised Rs14,400mn equity capital through a well-received
Rights Issue. The standout highlight was CGCL’s consolidated net profit for
FY23 Rs2,047mn, which despite a strong organic growth push and associated rise
in opex, nearly matched the FY22 consolidated net profit Rs2,050mn. The strong
business performance and resilient earnings places CGCL firmly in the saddle to
deliver mid-teen RoE over medium term.
Earnings – Profitability Bounces Back
Rising share of higher
yielding loan portfolio expanded spreads 36bps QoQ to 6.64% in Q4FY23. NII
increased 31% YoY / 25% YoY in Q4FY23 / FY23 respectively. Share of
non-interest income in net income increased to 36% / 33% in Q4FY23 / FY23
respectively compared to 23% in FY22. Non-interest income was boosted by car
loan fees and co-lending income. Non-interest income was up 21% QoQ / 65% YoY
in Q4FY23. For FY23, non-interest income increased 2.1x YoY to Rs2,977mn.
Opex in absolute terms increased sequentially. Branch additions as well as headcount increase contributed to the opex increase. However, the C/I ratio saw a soft sequential moderation to 68%. Adjusted for direct expenditure incurred on Gold Loan branch additions, the cost-income ratio in Q4FY23 / FY23 would have been ~48%.
The Q4FY23 Consolidated Profit after Tax Rs649mn was up 55.4% YoY and 73.4% QoQ. The Q4 FY23 Consolidated RoE was 11.7% while RoA was 2.6%.
Balance Sheet – Consolidated AUM Crosses Rs100bn
Disbursals in Q4FY23
increased 87% YoY and 55% QoQ to Rs28,110mn. Disbursals in FY23 are up 70% YoY
at Rs72,902mn. On a full year basis, Gold Loans had a 26% share in disbursals
while MSME and Housing contributed 26% and 17% respectively. CF and IL together
had a share of 36%.
Consolidated AUM including co-lending AUM increased ~56% YoY and ~19% QoQ to touch Rs103,204mn. CGCL aims to maintain the lending momentum and grow its loan book between 35-40% YoY in FY24.
Asset Quality – Steady Improvement
Gross Stage 3 ratio
softened to 1.59%, lower 81bps YoY and 73bps QoQ. The PCR on Stage-3 assets was
32%. Including aggregate ECL provisions, the PCR stood at 115%.
Strong Capital Adequacy
CGCL concluded the
Rs14,400mn Rights Issue in Mar’23. The CAR improved from 24.2% in Q3FY23 to
39.9% in Q4FY23. The Company is well capitalized from a 5-year perspective.
Founder & Managing Director Mr. Rajesh Sharma Commented: “Capri Global navigated well the business scenario during FY23. It was a period of turmoil in global financial space with high inflation, bank runs and bank collapse, and a tight policy environment in advanced economies. Despite the progressively tightening rate environment domestically, CGCL made the most of the growth opportunities in existing businesses while launching and scaling new businesses. Our faith and confidence in our execution capabilities is derived from this experience as well as our business model that is differentiated to serve a customer class not served by leading financial institutions. The equity infusion in Mar’23 has boosted CGCL’s capital adequacy significantly. In FY24, our endeavour shall be growth and profitability. The Company is well-positioned to deliver a 35-40% AUM growth in FY24.”
Comments
Post a Comment