CapriGlobalCapitalLimited(CGCL),adiversifiedNon-BankingFinancialCompany has announced its Q1 FY22 results.

CONSOLIDATED FINANCIALS	Q1FY22	Q4FY21	QOQ	Q1FY21	YOY
AUM	49,477	48,479	2.1%	40,478	22.2%
Disbursement	3,083	9,287	-66.8%	439	7.0x
Total Income	1,227	1,114	10.1%	1,003	22.3%
PAT	459	271	69.4%	396	15.9%
Spread	6.2%	6.4%	-20 bps	6.0%	20 bps
Cost-to-Income	35.9%	47.3%	-1140 bps	27.2%	868 bps
ROA	3.4%	2.0%	140 bps	3.5%	-10 bps
Gross Stage	3.4%	3.3%	10bps	2.3%	111 bps

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.

Liability Management

• 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.

Earnings Trend

• 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%.

Asset Quality

• 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.

Return Ratios

• 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.”