Capri Global reports 27% YOY Growth in AUM; consolidated PAT a robust rs 525 mn

Consolidated Key Performance Highlights for Q2FY22

Assets Under Management

• Q2FY22 was first full operational quarter after operations resumed in Jun’21 post second Covid-19 wave lockdown.
• AUM registered a 27% YoY growth with a healthy momentum in all verticals.
• Disbursements were up by a sharp 3.1x YoY to Rs5,850mn.

Liability Management

• CGCL continued to maintain a well-funded and diversified liability profile with relationships across 17 lending institutions.
• The liability mix is well diversified across market borrowings, commercial bank borrowings, and refinance institutions.
• Weighted average cost of borrowing declined 101bps YoY to 8.18%.

Earnings Trend

• Total Income (NII + other income) increased 18% YoY to Rs1,398mn.
• Core spreads were stable 7.1% dropping a marginal 13bps QoQ.
• Operating profit increased 8% YoY to Rs787mn.
• Profit after tax declined 14% YoY to Rs525mn. The decline was mainly on account standstill asset quality classification in Q2FY21 leading to almost negligible NPA provisions.
• Cost-income ratio was noted at 42%, higher than recent average mainly due to front loaded roll-out of new branches and recruitment.

Asset Quality

• Gross Stage 3 increased 111bps YoY to 3.4%. It may be noted asset quality classification was at a standstill in Q2FY21 owing to regulatory forbearance early during the Covid-19 pandemic.
• Provision Coverage Ratio further improved to 81.9% from 76.4% in Q1FY22.
• Restructured assets increased to Rs2,189mn from Rs2,038mn in Q1FY22. Restructuring option is over as per the RBI framework guidelines.
• Collection Efficiency was stable; MSME collection efficiency was 86% (stable Q-o-Q) while Housing Finance collection efficiency was 95% (unchanged Q-o-Q).

Strong Capital Adequacy

• CGCL remains well capitalized with a Tier I capital adequacy at 35.8%.
• CGHFL also remains at very robust capital levels with Tier I capital adequacy at 34.3%.
• The capitalization levels are robust to support strong growth over medium term.

Return Ratios

• Annualized RoE / RoA of 11.7% / 3.7% respectively.
• Annualized (diluted) EPS was Rs11.88 and book value per share stood at Rs103.2 in Q2FY22.

Commenting on the performance, Founder & Managing Director Mr. Rajesh Sharma said:

“Q2FY22 was the first full quarter of operations after we resumed lending activity in Jun’21post second wave lockdown. Our Q2FY22 results are a reflection of the optimism we have expressed in our business and growth opportunities. The robust pick-up in disbursements across all asset categories of CGCL has only added to the momentum which we see gathering further pace as the economy fully unlocks in H2FY22 with gathering pace of vaccination and subdued Covid-19 infections.

At CGCL, we remain committed to our medium-term CAGR of 22-27% between FY22E-FY27E. This is an achievable target based on the organic growth opportunities we see in our product segments with new products expected to add traction in next two years.”