* Consolidated Key Performance Highlights for 3QFY25 & 9MFY25
The Board of Directors of Capri Global Capital Ltd. (CGCL), a non-deposit taking and systemically important NBFC (NBFC-ND-SI) announced the unaudited financial results for the quarter ended December 31, 2024.
Key takeaways are as follows:
Business and Earnings Performance
Continued Growth Momentum in AUM; Crosses Rs 20,500 crs
CGCL continued the strong growth momentum in 3QFY25. The consolidated AUM including co-lending AUM increased 54.6% YoY to touch Rs 20,663 Crores. Retail growth was driven by Housing Loans up by 31% YoY and Gold Loans up by 196% YoY. In addition, our Micro Lap segment which we started in last quarter is seeing strong growth as well. Co-lending AUM stood at Rs 3,681 Crores comprising 17.8% of consolidated AUM compared to 8.9% in 3QFY24. Disbursement grew by 52% YoY. The overall AUM growth was granular with live customer relationships touched 720K.
Strong Improvement in Profitability.
The PAT for 3QFY25 stood at Rs 128 crores a strong growth of 88% YoY and 32% QoQ. PAT for 9MFY25 stood at 301 crs up by 53% YoY. Our RoAE and RoAA for 9MFY25 stood at 10.1% and 2.4% respectively. Net Interest income for 3QFY25 stood at 347 crores up by 41% YoY and for 9MFY25 stood at 953 crores up by 30% YoY. Our yields and spreads expanded further in the quarter to 16.7% and 7.3%, respectively. Net total income for 3QFY25 was up by 30% YoY and 9MFY25 up by 28% YoY.
Non-Interest Income Continues to Grow
Our non-interest income for 9MFY25 increased by 20% YoY supported by growth in co-lending fee income and insurance distribution fee income. CGCL continues to focus on non-interest income with its share in total income at 25.1% in 9MFY25.
CGCL’s car loan business saw distribution origination of Rs 2,972 crores in 3QFY25, up by 5% YoY and 16% QoQ. On the Insurance distribution front, we generated net fee income of Rs. 39 crores in 9MFY25. We expect this to be an important source of fee income going forward.
Operating Leverage driving Improvement in Cost Efficiency
Our branch network expanded to 1,066 branches as we added 69 branches in 3QFY25 and employee base increased to 11,022, up by 13% YoY. Our investment in expanding branch network and employee base over past 3 years has started to yield results with improvement in productivity and cost efficiency. CGCL cost/income ratio stood at 58.3% in 3QFY25, further improving by 12.2% from the peak of 70.5% in 4QFY24 and 6.0% from 2QFY25. We continue to make investments in strengthening our technological systems and with key applications live, we expect our cost/income ratio to improve further going forward. As a result, our pre-provision operating profit for 3QFY25 increased to Rs 189 crores, up by 46% YoY.
Asset Quality under Control with Adequate Provision Coverage Ratio
CGCL is investing in advanced analytics and data science capabilities to enhance customer risk profiling, which will further improve underwriting and allow better risk based pricing. Our credit cost for 9MFY25 stood at Rs 82 crores, a decline of 6.5% YoY. Gross Stage 3 ratio improved to 1.7% in 3QFY25, down by 40 bps YoY. Net Stage 3 ratio improved to 1.0%, down by 40 bps YoY. PCR on Stage-3 loans stood at 39.4% in 3QFY25.
Strong Capital Adequacy
CGCL maintains a robust financial position with a strong standalone CAR of 22.9% in 3QFY25, supported by a Networth of Rs 37bn. Similarly, CGHFL boasts a CAR of 29.3% and a Networth of Rs 8bn ending 3QFY25.
Founder & Managing Director Mr. Rajesh Sharma Commented:
“We continue to see strong growth momentum across all our business segments including the new products we launched recently. Our substantial investments in technology, along with enhanced branch and employee productivity driven by operating leverage, have begun yielding benefits, and we anticipate a gradual improvement in our cost-to-income ratio. With steady growth in fee income and improvement in spreads, we see further upside to our profitability. We will continue to maintain a strong focus on asset quality and strengthen our coverage ratio whilst maintaining healthy capital adequacy. As we move ahead with same vigour, we remain confident to achieve Rs 300bn AuM by FY27 and 15%+ RoE over medium term.”
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