Capri Global Capital Limited announces its Q2 FY’22 results
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’21 post 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 achiev able target based on the organic growth opportunities we see in our product segments with new products expe cted to add traction in next two years.”
Disclaimer:
This press release is for information purposes only and does not constitute an offer, solicitation or advertise me nt with respect to the purchase or sale of any security of Capri Global Capital Limited (the “Company”) and no pa rt of it shall form the basis of or be relied upon in connection with any contract or commitment whatsoever. Th is press release is not a complete description of the Company. Certain statements in this release contain words or phrases that are forward looking statements. All forward-looking statements are subject to risks, uncertaint ies and assumptions that could cause actual results to differ materially from those contemplated by the relevant fo rward-looking statement.
Any opinion, estimate or projection herein constitutes a judgment as of the date of this press release, and there can be no assurance that future results or events will be consistent with any such opinion, estimate or projecti on. All information contained in this press release has been prepared solely by the Company. No information con tained herein has been independently verified by anyone else. No representation or warranty (express or impli ed) of any nature is made nor is any responsibility or liability of any kind accepted with respect to the truthfu lness, completeness or accuracy of any information, projection, representation or warranty (expressed or impli ed) or omissions in this press release. 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 per sons into whose possession this press release comes should inform themselves about, and observe, any such restr ictions.
