Q3 Earnings Presentation & Liquidity Update February, 2019
Dis isclaim imer This presentation is for information purposes only and does not constitute an offer, solicitation or advertisement with respect to the purchase or sale of any security of Capri Global Capital Limited (the “Company”) and no part of it shall form the basis of or be relied upon in connection with any contract or commitment whatsoever. This presentation is not a complete description of the Company. Certain statements in the presentation contain words or phrases that are forward looking statements. All forward-looking statements are subject to risks, uncertainties and assumptions that could cause actual results to differ materially from those contemplated by the relevant forward looking statement. Any opinion, estimate or projection herein constitutes a judgment as of the date of this presentation, and there can be no assurance that future results or events will be consistent with any such opinion, estimate or projection. All information contained in this presentation has been prepared solely by the Company. No information contained herein has been independently verified by anyone else. No representation or warranty (express or implied) of any nature is made nor is any responsibility or liability of any kind accepted with respect to the truthfulness, completeness or accuracy of any information, projection, representation or warranty (expressed or implied) or omissions in this presentation. Neither the Company nor anyone else accepts any liability whatsoever for any loss, howsoever, arising from any use or reliance on this presentation or its contents or otherwise arising in connection therewith. The distribution of this document in certain jurisdictions may be restricted by law and persons into whose possession this presentation comes should inform themselves about, and observe, any such restrictions.
Capri i Glo lobal Capit ital: An In Introduction A diversified Non-Banking Financial Company (NBFC) with presence across high growth segments like MSME, Con Constr truction Fin Finance, Affordable Ho Housin ing and Ind Indirect Retail Len Lending segments Promoted by first generation entrepreneur, Mr. Rajesh Sharma, Capri Global Capital Limited (CGCL) is lis listed on on BSE BSE an and NSE SE Str trong focus on on MSMEs – the key growth drivers of of the economy; have fin inanced about 9,000 000 businesses across several states in India ranging from restaurants to small manufacturing units to traders to private schools Affordable le Housing Finance business, aligned with the Government’s Flagship scheme under the ‘Housing For All by 2022 ’ - mission ‘Pradhan Mantri Awas Yojna (PMAY)’, has already empowered about 6,000 000 familie lies to realise the dream of owning their own home Committed workforce of over 1,850+ employees with a branch presence at 82 82 lo locati tions in in 8 states majorly across North and West India St Strong governance an and ri risk-control fr framework with scrutiny at multiple levels ❑ Statutory Auditor : Del Deloitte Ha Haskin ins & Se Sells lls LLP LLP ❑ Internal Auditor : EY EY
Capri i Glo lobal Capit ital: Banki king the Unbanked 9MFY19 At A Gla 9M Glance Total AUM* INR 36.82 billion 14,500+ MSME AUM Liv Live Ac Accounts INR 18.22 billion CF + IRL AUM 1,8 ,850+ INR 12.45 billion Em Employees HL AUM 8 INR 6.15 billion States St Total Disbursements INR 17.4 billion 82 82 PAT Branches INR 0.86 billion Net Worth INR 13.44 billion As on 31 st Dec’18 *Total AUM includes Housing Finance AUM; Employees & Branches as on date
Q3FY19: At a gla lance.. .. Consolidated numbers NII (INR MN) PAT (INR MN) AUM (INR MN) 36,824 902 352 277 649 24,451 Q3FY18 Q3FY19 Q3FY18 Q3FY19 Q3FY18 Q3FY19 Net NPA (%) Capital Adequacy Ratio* (%) Gross NPA (%) 43% MSME + CF + IRL HF MSME + CF + IRL HF 2.30 2.05 1.45 1.29 37% 0.55 0.23 Q3FY18 Q3FY19 Q3FY18 Q3FY19 Q3FY18 Q3FY19 * Only capital adequacy on standalone basis
Q3FY19: MSME Lending Aid idin ing Robust Dis isbursals Consolidated numbers AUM - Segmental Breakup Disbursements - Segmental Portfolio Yield (%) (INR Mn) Breakup (INR Mn) 16.62% 16.28% 15.32% 18,223 14.49% 13.95% 2074 13.09% 1,960 12.43% 14,583 1739 1595 11,525 8,526 6,154 755 689 1,343 922 30 - - - Q3FY18 Q3FY19 Q3FY18 Q3FY19 Q3FY18 Q3FY19 MSME CF IRL HF MSME CF IRL HF MSME CF IRL HF
Asset-Liabilit ity Split lit: Consistent Mix ix All amounts in INR Mn 31 st December, 2018 31 st March, 2018 15,616 ❖ Have consistently 12,760 remained cautious 14,412 11,983 11,137 13,130 10,512 about short-term 11,385 asset & liability 10,515 10,267 7,604 9,020 mismatches by ensuring optimally matched Balance Sheets <1 Year 1-5 Years >5 Years <1 Year 1-5 Years >5 Years Assets Liabilities Assets Liabilities ❖ Negligible probability 31 st March, 2017 31 st March, 2016 of any defaults on future repayments 10,917 10,260 11,622 ❖ Well-protected against any liquidity crunch in 5,413 6,237 4,529 4,221 case of possible 4,577 5,969 regulatory tightening 3,483 2,047 1,199 <1 Year 1-5 Years >5 Years <1 Year 1-5 Years >5 Years Consolidated Numbers Assets Liabilities Assets Liabilities
Q3FY19: Performance Summary ry All amounts in INR Mn except stated Part articulars Q3FY Q3FY18 Q3F Q3FY19 Y-o-Y (%) (%) Q2FY Q2FY19 Q-o-Q (% (%) Net Interest Income (NII) 648.6 901.7 39.0% 747.9 20.5% Interest Expense 281.5 602.6 114.0% 468.6 28.5% Net Interest Margin (NIM)% 11.2% 10.1% (1.1)% 9.1% 1% PAT 277.2 352.0 26.9% 245.3 43.4% Annualized RoE (%) 9.0% 10.6% 1.6% 7.7% 2.9% Return on Average Assets (%) 4.9% 3.7% (0.8)% 2.9% 0.8% Consolidated Numbers
9MFY19: Performance Summary All amounts in INR Mn except stated Par articulars 9M 9MFY18 9M 9MFY19 Y-o-Y (%) (%) Interest Income 2,336.6 3,706.5 58.6% Interest Expense 655.7 1,447.1 120% Net Interest Margin (NII) 1,680.9 2,259.3 34.4% PAT 551.2 867.8 57.4% Annualized RoE (%) 8.6% 8.9% 0.3% Return on Average Assets (%) 4.7% 3.3% (1.4)% Consolidated Numbers
Stable Asset Quality: Stage Analysis is As per IN IND-AS All amounts in INR Mn except stated Provision Ana nalysis is as as per per IN INDAS Q3F Q3FY18 Q3F Q3FY19 Q2F Q2FY19 474.17 Stage 3 - Gross 739.69 554.26 57.63 Stage 3 – ECL Provisions 107.99 72.34 416.54 Stage 3 – Net 631.70 481.91 12.15% Stage 3 – Coverage Ratio 14.60% 13.05% 29,240.37 Stage 1 & 2 - Gross 43,857.12 41,844.06 122.42 Stage 1 & 2 – ECL Provisions 179.25 159.65 29,117.95 Stage 1 & 2 – Net 43,677.87 41,684.41 0.42% Stage 1 & 2 – ECL Provisions % 0.41% 0.38% 1.94% Stage 3 % - Gross 2.01% 1.31% 1.21% Stage 3 % - Net 1.24% 1.14% Consolidated Numbers Stage 3 Exposure includes ECL on non-funded exposure
Th The CGCL L Advantage: Optimal Mix ix of Borrowings & Lending Hig Higher bor borrowing cos osts ts Com Competitiv ive Retail Le Lendin ing Tig ightening Liq Liquidit ity >> >> Dec Declin ining NIM IMs Adv dvantage Liquidity mgmt Retail loans are measures from RBI As global & domestic amortized on a could force NBFCs to liquidity tightens, high monthly basis; thus, increase long-term Industry Ind ry Sce Scenario reliance on short-term cash flows in ALM can borrowings, thus borrowings could prove be projected correctly increasing COF & detrimental reducing NIMs Borr Borrowing mix sk skewed 100% sm 100 small all-ticket retail in favour of of ba banks & <10% exp <10 xposure to to sho short- The CGC GCL loa oans in MSME, Ho Housing thus, , NIM IMs s to to be be te term mon oney mark arket Advantag Adv age Finance seg Fin segments sus sustain ined & gr gradually borr borrowings improved
CGCL: Strong Liq iquid idity Position Capital Adequacy (%) Current Assets ( INR Mn) 89 79.7 1002.07 892.7 825 53 39.3 37 505.1 443.08 415.4 346.9 313.6 181.2 114.1 FY15 FY16 FY17 FY18 9MFY19 FY15 FY16 FY17 FY18 9MFY19 Current Investments Cash Equivalents Series 1 Average quarterly Powerful liquidity Strong capital Optimal cash customer position to protect adequacy to repayments of against liquidity position on support future balance sheet approx. INR 3,000 crunch & support growth Mn 40%+ AUM growth Consolidated Numbers
Lia iabili lity Mix ix: The Low Cost Benefit it Hig Higher Sh Share of of Ban Bank Borr Borrowin ing Total Bo Borr rrowin ings s (IN (INR Mn Mn) & Bo Borr rrowing Mix ix >> >> Lo Lower Ov Overall l Cos Cost t of of Borr Borrowing 7,28 7, 280 15 15,520 17 17,590 22,680 22 24,527 24 1,96 1, 960 ▪ Low exposure to short-term money market signifies low probability of default 100% 97% ▪ CGCL’s prudence in higher borrowing share from 92% 87% 85% 83% banks has reduced cost of borrowing to ~9% Cr Credit rati tings 2018: Brickworks 10% 10% 10% 8% 7% 5% 3% 3% AA- FY16 FY17 FY18 Q1FY19 Q2FY19 Q3FY19 2016: Bank Borrowings NCD's CP's CARE A+ Market borrowings like CPs & NCDs contribute to <10% of CGCL’s total borrowing mix, and hence, risk 2014: of bond defaults/liquidity crunch are negligible CARE A- Consolidated Numbers
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