Conference Call with Capri Global Capital Ltd. Management and Analysts on Q4FY22 Performance and Outlook. Listen to the full earnings transcript.
Finance (Including Nbfcs) company Capri Global Capital declares Q4FY22 result: AUM INR 66,325 Mn 36.8% YoY / 14.9% QoQ Disbursements INR 10,406 Mn 12.0% YoY / 14.8% QoQ Gross Stage 3 2.4% PCR 115.2% / Restr. Ass. 3.3% Consolidated PAT INR 418 Mn 53.6% YoY / -35.6% QoQ Consolidated Q4 FY22 PAT Up 54% YoY CGCL reported a Consolidated Profit after Tax of Rs 418mn, up by a sharp 54% YoY but lower by 36% over a stronger Q3 FY22 PAT of Rs 649mn. One-off elevated credit cost driven by write-offs as well as proactive provisioning caused the sequential dent in quarterly profit. However, the core earnings performance was robust with an operating profit growth of 84% YoY and 7% QoQ. This cushioned the impact of higher credit costs and is also indicative of the earnings strength of CGCL. Net interest margin for Q4FY22, excluding spreads on co-lending AUM, was 9.7%. Adjusted for one-off spreads in Q3 FY22, the NIMs declined 43bps QoQ. The Company believes NIM is bottoming out and going ahead, a reversal to upward trajectory shall happen The FY22 Consolidated RoE was 11.3% while RoA closed at 3.3%. The company maintains its +15% RoE guidance for medium term. Founder & Managing Director Mr. Rajesh Sharma Commented: “At CGCL, we are happy to have sustained in a very robust manner the post-Covid19 growth momentum, which restarted from Q4 FY21. As we continue on this growth journey, we shall continue to drive penetration of existing products even as we diversify our growth story. We are geared up to shortly launch the Gold Loan product. In FY23, we shall also look to bolster our growth capability aided by our revamped tech suite. We are confident of delivering amongst the best balance sheet growth rates in our peer group. We are also cognizant of the rapidly changing macro environment and the tightening interest rate scenario. At CGCL, we have been through multiple interest rate cycles successfully and profitably. We shall navigate the interest rate scenario through a proactive balance sheet management.” Result PDF
Conference Call with Capri Global Capital Management and Analysts on Q3FY22 Performance and Outlook. Listen to the full earnings transcript.
Finance firm Capri Global Capital declares Q3FY22 result: Earnings: CGCL reported a Consolidated Profit after Tax of Rs 649mn, up 32% YoY. This is the highest ever consolidated PAT surpassing the previous high of Rs 608mn reported in Q2FY21. This was supported by a 45% YoY growth in net income to Rs 1,716mn. Net interest margin for Q3FY22 was 10.3%. Expanding branch and people cost was reflected in the 63% YoY growth in operating expenses. However, the cost-income ratio softened on a sequential basis to 38.4%. Despite higher operating expenses, the operating profit growth was noted at a strong 35% YoY, reflecting the strength in core earnings. The annualized RoE touched 14.1% while RoA crossed 4% level after a year to touch 4.2%. The company maintains its +15% RoE guidance for medium term. Balance Sheet: Disbursals increased 2.7x YoY to touch Rs 9,064mn while the AUM increased 42% YoY touching Rs 57,693mn. The AUM growth was balanced, driven by MSME, Affordable Housing, and Construction Finance segments. The company commenced co-lending arrangement with State Bank of India and Union Bank of India during Dec’21 and expects to generate strong growth through both these channels in the next six months. Liability Management: Outstanding borrowings increased 25% YoY to touch Rs 41,694mn. Borrowings were long term and well-diversified across 17 lending institutions. The cost of funds was 8.2%, lower 80bps YoY and unchanged QoQ. CGCL is well-funded and maintains a well-matched asset liability profile. Asset Quality: Gross Stage 3 ratio was 3%, up 95bps YoY but lower 27bps QoQ. The Gross Stage 3 assets increased marginally over Q2FY22 to Rs1,724mn. Strong Capital Adequacy: Both CGCL and its housing finance subsidiary CGHFL are well capitalized with overall capital adequacy ratio at 35.2% and 30.0% respectively as of Q3FY22. Founder & Managing Director Mr. Rajesh Sharma Announces CGCL’s Foray Into Gold Loans “Secured retail lending has been a focus area for Capri Global and the company is pleased to announce expansion of its retail offering by foraying into the gold loan business. Gold loans offer a vast growth potential for organized players. Capri Global, with its expanding reach in Tier 2 and 3 markets in West and North India is well placed to tap into this potential. The company shall be targeting 1,500 branch locations and a gold loan book size of Rs 8,000 crores over the next five years. CGCL’s Q3FY22 results are once again a testimony to its capability in driving sustainable growth and delivering value to its stakeholders. New products further enhance our growth outlook and put us firmly on path to deliver an overall AUM CAGR of +22% and a RoE of +15% over the medium term.” Result PDF