Concall AI

Capri Global Capital Limited — Q3 FY22 earnings call

Call held 14 Feb 2022

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

growth

AUM Growth growth · Annual · high confidence 22-27% annually

we are going to aim for a growth between 20% and 27%

— Rajesh Sharma
Overall AUM Target by 2025-26 growth · 2025-26 · medium confidence Rs25,000 crores (Gold: Rs8,000 cr, CF: Rs4-5,000 cr, MSME: Rs9,000 cr, Home: Rs4,000 cr)

by 2025-2026, we are trying to achieve a book of about Rs. 25,000 Crores

— Rajesh Sharma

profitability

ROE Target profitability · Next year · high confidence Mid-teen ROE (14%+)

we hope to achieve +14% ROE in the coming year

— Rajesh Sharma

expansion

Gold Loan Business Target expansion · 5 years · high confidence 1,500 branches and Rs8,000 crores book over 5 years

We are targeting a network of 1,500 branches in the loan book of Rs. 8,000 Crores over the next five years

— Rajesh Sharma

portfolio_mix

Construction Finance AUM Cap portfolio_mix · Ongoing · high confidence Maximum 20% of overall book

overall contribution of Construction Finance in AUM business will not cross 20%

— Rajesh Sharma

revenue

Car Loan Distribution Profit revenue · Next year · high confidence Rs12-15 crores profit contribution next year

next year onwards we will be targeting about Rs. 12 Crores to Rs. 15 Crores of profit contribution from the new car loan distribution business

— Rajesh Sharma

co_lending

Co-lending Volume Target co_lending · This year · medium confidence Rs75-100 crores this year

This year, we are hoping that we should do about Rs. 75 Crores to Rs. 100 Crores

— Rajesh Sharma

Risks & concerns

COVID-19 operational disruptions
medium
Elevated restructured book at 4%
medium
High competition in gold loan space
medium
Interest rate cycle turning upward
low
Technology integration challenges for co-lending
low

Q&A highlights

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Detailed narrative

Market Outlook

Post-COVID recovery momentum building, housing demand showing strong traction

Business Segments

MSME

Robust 9% sequential AUM growth, ~30% of incremental disbursals, collection efficiency improved to 96.2%

Outlook: Key growth driver to continue, watchful on legacy assets but optimistic on new business

Affordable Housing

Robust growth momentum, salaried segment showing better bounce back, net NPAs negative after ECL provisions

Outlook: Expected to continue 25%+ growth with increase in branches

Construction Finance

Highest disbursal in 12 quarters, GNPAs at 17bps, net NPAs negative

Outlook: Healthy growth trajectory expected, capped at 20% of overall AUM

Car Loan Distribution

Expanded to 213 locations across 19 states, Rs550 crores disbursals (60% QoQ growth), broke even in October 2021

Outlook: Targeting Rs12-15 crores profit contribution next year, pure fee income business

Co-lending (New)

Entered arrangements with SBI and Union Bank, Rs850 crores sanctioned, small start made

Outlook: Expected strong momentum in next 6 months, could be game changer if technology integration successful

Competitive Position

Serving customers not adequately served by banks in Tier III/IV towns with secured lending focus

Strategic Initiatives

Gold loan business launch preparation with business head onboarded

Technology suite development with beta rollout planned in next few quarters

Co-lending arrangements with major PSU banks

Branch expansion focused on Gujarat, Rajasthan, and Madhya Pradesh

Hiring CTO and building technology team of 20+ people plus data science team

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

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