Concall AI

Capri Global Capital Limited — Q2 FY21 earnings call

Call held 9 Nov 2020

What they filed

Q1 FY27: revenue up 61.0%, net profit up 109.3% against the same quarter last year.

₹ Cr · quarterly

Line item	Q2 FY25	Q3 FY25	Q4 FY25	Q1 FY26	Q2 FY26	Q3 FY26	Q4 FY26	Q1 FY27
Revenue	554	601	732	766	867 +56%	943 +57%	1,071 +46%	1,233 +61%
Expenses	187	188	228	246	257	302	343	329
EBITDA	463	528	621	647	744 +61%	—	—	—
Margin	62%	64%	65%	64%	66%	—	—	—
Other income	4	4	3	4	5	5	8	6
Interest	234	250	272	305	310	328	390	466
Depreciation	21	22	24	21	22	24	26	24
Profit before tax	115	144	211	198	283 +146%	295 +105%	320 +52%	419 +112%
Tax rate	25%	25%	25%	24%	25%	25%	24%	25%
Net profit	86	108	158	150	212 +147%	221 +105%	243 +54%	314 +109%
EPS	1.05	1.31	1.92	1.56	2.20	2.29	2.52	3.26

How to read this

₹ crore, as filed. The percentage beside a figure is the change against the same quarter a year earlier — never the quarter before, which would make every seasonal business look like it collapses and booms each year.

Guidance & targets

operational

Collection efficiency operational · going forward · high confidence improve further

We expect collection to improve further going forward along with gradual pickup in domestic economic activity.

— Rajesh Sharma
MSME collection efficiency operational · November · high confidence pre-COVID levels

we are very optimistic in achieving pre-COVID levels by November.

— Hardik Shah

growth

Disbursement momentum growth · festival season and beyond · high confidence continue

We expect the momentum to continue from here on, also with the disbursement pace obtaining traction now and likely to be sustained in the festival season and beyond.

— Rajesh Sharma
Growth growth · H2 FY21 · high confidence optimistic about growth

we are quite optimistic about our growth in the second half of FY21.

— Rajesh Sharma
Branch expansion growth · near term · medium confidence increase customers reach

So we are planning to expand branches gradually, keeping the ground level scenario in mind.

— Hardik Shah

market

Developer segment sales market · pretty soon · high confidence returning to pre-COVID levels

So we are pretty optimistic, you know, our developer segment is well-placed in terms of returning to pre-COVID levels pretty soon.

— Hardik Shah

Risks & concerns

Continuing challenges with COVID-19 and macroeconomic uncertainty.
medium
Potential for restructuring requests post-moratorium.
low
Liquidity crunch faced by peers in the NBFC sector.
low

Q&A highlights

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1 min read 4 chapters

Detailed narrative

Market Outlook

Domestic economic activity has improved in Q2 and October trends remain supportive. Key leading indicators (manufacturing/services PMI, electricity demand, auto sales, GST collections) indicate revival to almost pre-COVID levels. Rural and semi-urban India show optimism due to uptick in rural income levels and agri economy doing well. Expect momentum to continue and economic activity to pick up further.

Business Segments

MSME

Collection efficiency improved to 81% (POS) in September 2020, up from 62% in June 2020. Post exclusion of GNPA, collection improved to 84%. Most customers are from tier 3 and tier 4 cities where economic activity has picked up.

Outlook: Optimistic in achieving pre-COVID collection levels by November. Expect activity level to pick up further.

Housing Finance

Collection efficiency improved to 95% (post exclusion of GNPA) in September 2020, up from 76% in June 2020.

Outlook: Very comfortable level.

Construction Finance

Collection efficiency for September 2020 was 92%. Developers are seeing a steady stream of demand from end-users due to state government initiatives (reduced stamp duty) and low interest rates.

Outlook: Expect sales numbers to further pick up post-Diwali. Developer segment is well-placed to return to pre-COVID levels soon.

Indirect Retail Lending

Collection efficiency for September 2020 was 100%.

Outlook: Very comfortable level.

Competitive Position

Gaining market share as many peers are facing a liquidity crunch. Granularity and retail nature of loan assets are assuring to banks, enabling access to incremental liquidity.

Strategic Initiatives

Stringent cost control and strong risk management framework.

Ramped up digital payment infrastructure.

Launched several technological initiatives (collection, underwriting, disbursement, risk).

Launched a sales mobility application for sales people (simulation and complete digital customer on-boarding).

Multiple technology initiatives under progress (application scorecard, data warehousing).

This is an AI-generated summary of a publicly available earnings call transcript.

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