Capri Global Capital Limited — Q2 FY24 earnings call

Call held 2 Nov 2023

What they filed

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

₹ Cr · quarterly
Line itemQ2 FY25Q3 FY25Q4 FY25Q1 FY26Q2 FY26Q3 FY26Q4 FY26Q1 FY27
Revenue554 601 732 766 867 +56%943 +57%1,071 +46%1,233 +61%
EBITDA463 528 621 647 744 +61%— — —
Net profit86 108 158 150 212 +147%221 +105%243 +54%314 +109%
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

growth

  • Gold Loan AUM growth · End FY24 · high confidence Rs3,000 crores by end of FY24
    We expect our Gold Loan AUM to touch or cross ₹30 billion by the end of this year

    — Rajesh Sharma

portfolio_mix

  • Gold Loan share in AUM portfolio_mix · End FY24 · medium confidence 20% of AUM
    which could be 20% of AUM assuming we sustain a 50% momentum in the overall AUM growth

    — Rajesh Sharma

operational

  • Car Loan Originations operational · FY24 · high confidence Rs10,000 crores total originations in FY24
    car loan originations are up on the path to cross ₹100 billion total originations during FY24

    — Rajesh Sharma

profitability

  • Spreads sustainability profitability · H2 FY24 · high confidence 6.6% spreads sustainable, expect slight improvement
    6.6% is definitely sustainable. We still expect this to slightly better

    — Rajesh Sharma

Risks & concerns

  • Competitive pressure on spreads, especially in construction finance

    medium

  • Rising cost of funds environment

    medium

  • Construction finance exposures with accelerated provisioning

    low

  • Car loan business fee income pressure

    low

Q&A highlights

0 direct

Asked by Bunty Chawla

1 min read 4 chapters

Detailed narrative

Market Outlook

Expect improved profitability in H2 FY24 as gold loan business reaches break-even

Business Segments

Gold Loans

16% of AUM, 742 branches operational, target of Rs3,000 crores AUM by year-end

Outlook: Pausing branch expansion in H2 to focus on profitability; expect break-even to boost overall returns

MSME

Disbursals Rs370 crores (12% QoQ growth), part of co-lending program

Outlook: Solid momentum expected to continue

Housing Finance

Strong contributor to 66% of incremental disbursals along with gold loans

Outlook: Continued growth expected with co-lending expansion

Construction Finance

Rs410 crores disbursals (unchanged YoY), facing pre-payment pressures

Outlook: Competitive environment with lower rates, managing portfolio mix

Car Loan Distribution

On track for Rs10,000 crores total originations in FY24, but fee income under pressure

Outlook: Continue gaining market share despite competitive intensity

Competitive Position

Strong growth momentum in core segments with expanding co-lending partnerships

Strategic Initiatives

  • Achieved 750 gold loan branch target for H1 FY24
  • Expanded co-lending to include gold loans alongside MSME and housing
  • Pausing gold loan branch expansion in H2 to focus on profitability
  • Proactive provisioning on construction finance exposures
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