Capri Global Capital Announces A Robust Q4 FY24 Results

* Consolidated Key Performance Highlights for Q4 FY24

The Board of Directors of Capri Global Capital Ltd. (CGCL), a non-deposit taking and systemically important NBFC (NBFC-ND-SI) announced the audited financial results for the quarter ended March 31, 2024. Board has recommended a final dividend of Rs0.15 per equity share with FV of Rs1 each for the financial year ended March 31, 2024. Key takeaways are as follows:

Business and Earnings Performance

AUM Crosses Rs15,000mn Milestone

CGCL continued the strong growth momentum in Q4FY24. The consolidated AUM including co-lending AUM increased 52% YoY and 17% QoQ to touch Rs156,530mn. Retail growth momentum during the quarter was driven by Gold (46% QoQ) and Housing (17% QoQ). Co-lending AUM stood at Rs18,306mn comprising 12% of consolidated AUM compared to 9% in Q3FY24 and 5% in Q4FY23. CGCL has continued to build upon its co-lending partnerships in all three products with strong prospects building up in Gold Loan co-lending. The overall AUM growth was granular with live customer relationships increasing by 215K YoY to touch 378K.

Strong Profitability

The PAT for the Q4FY24 stood at Rs826mn a strong growth 27% YoY and 22% QoQ. Strategically, CGCL paused the aggressive branch expansion post-Q2FY24 and right-sized headcount in some verticals, CGCL expects to benefit from a further softening of its cost-ratios and spread stabilization going ahead.

Share of Non-Interest Income Continues to Grow

Non-interest income rebounded with its share hitting 31% in net income compared to 30% in Q3FY24. The growth was driven by car loan fees and fees from lending businesses.

Car loan distribution origination neared Rs100,000mn business in FY24. CGCL’s car loan origination subsidiary became operational during Q3FY24 and has started accruing income. CGCL had received a composite license from insurance regulator IRDAI allowing it to distribute life, non-life, and health insurance policies. This shall be an important source of fee income in the future and the Company is looking to generate at least Rs200mn in net fee income from insurance distribution in FY25E.

Asset Quality: Focused Improvement in Provision Coverage Ratio

As guided by the Company management earlier, CGCL is improving the provision cover on its Stage-3 loans. The PCR on Stage-3 loans enhanced to 43.2% in Q4FY24 from 34.7% in Q3FY24 and 32.2% in Q2FY24. Gross Stage 3 ratio stood at 1.9% from 2.1% in December 2023.

Strong Capital Adequacy

CGCL CAR was strong at 26.6% level in Q4FY24. The Company is well-capitalized from growth perspective. During FY24, the Company also infused Rs2bn by way of fresh equity in its wholly-owned subsidiary CGHFL. The capital adequacy ratio of CGHFL stood at 30.5% and its Networth stood at Rs7.9bn as on March 2024.

Chairman of Board of Director

Mr. L. V. Prabhakar, who was recently appointed to CGCL’s Board as an Independent Director, has been appointed as Chairman of the Board of Directors. CGCL’s Board shall benefit from his leadership and vast experience in BFSI. 

Founder & Managing Director Mr. Rajesh Sharma Commented:

“The rapid upward momentum in Q4FY24 net profit is an outcome of focused execution of our business strategy. As we have continuously guided through FY24, the turnaround in our profitability is now evident with gold loan business nearly at break-even level. This has been achieved while maintaining a strong focus on asset quality, especially the coverage ratio. As we move ahead with same vigour, we expect faster improvements to continue in our profitability. We thus remain committed to deliver 15%+ RoE over medium term.”