Q2FY25: Capri Global Capital Posts 49% PAT Growth As Loan Portfolio Expands
Broad-based loan growth and operational efficiency contribute to solid performance; AUM increases 56 per cent YoY, reaching Rs 19,272 crore
Capri Global Capital (CGCL), a leading non-deposit-taking, systemically important non-banking financial company (NBFC-ND-SI), has recorded robust financial results for the quarter ending 30 September 2024. CGCL’s Q2FY25 performance highlights include a 49 per cent year-on-year (YoY) increase in Profit After Tax (PAT) to Rs 970 million, supported by strong growth across its loan portfolio and expanding co-lending assets.
CGCL's Assets Under Management (AUM) increased 56 per cent YoY, reaching Rs 192,722 million, driven by a diversified portfolio and increased demand in segments like Housing Loans, which rose by 33 per cent YoY, and Gold Loans, which surged 225 per cent YoY. The company's new Green Financing initiative, the Roof Top Solar Finance product under the MSME Loans segment, reflects a strategic shift towards sustainable lending. CGCL aims to build a Rs 10,000 million loan book in this area.
“Our continued growth momentum and new product diversification, including Roof Top Solar loans, position us well to meet evolving market demands,” commented Rajesh Sharma, Founder and Managing Director. “With our investments in technology and productivity enhancements, we aim to drive further cost-efficiency and long-term profitability.”
Earnings And Profitability Growth
CGCL reported a 22 per cent YoY rise in Net Interest Income (NII) in Q2FY25, attributed to a 38 per cent YoY growth in the loan book. Pre-provision operating profit increased by 34 per cent YoY to Rs 1,457 million. Operational efficiency improvements were evident as the cost-to-income ratio dropped to 64.3 per cent, down by 6.2 per cent since Q4FY24.
Non-interest income grew 29 per cent YoY, accounting for 25.2 per cent of total income. This segment, bolstered by co-lending fees, is expected to see further growth, with the insurance distribution business projected to add Rs 400 million in fee income by the end of FY25.
Improving Asset Quality And Capital Position
CGCL's focus on data analytics and risk management has led to a reduction in credit costs to Rs 174 million, down 24 per cent YoY. The Gross Stage 3 ratio improved from 2.0 per cent in Q1FY25 to 1.6 per cent in Q2FY25, with a Net Stage 3 ratio reduction from 1.2 per cent to 1.0 per cent in the same period. The Provision Coverage Ratio (PCR) for Stage 3 loans stands at 40.1 per cent.
With a standalone Capital Adequacy Ratio (CAR) of 23.7 per cent and CGHFL’s CAR at 31.9 per cent, CGCL remains well-capitalised, supported by a consolidated net worth of Rs 32 billion.
CGCL plans to maintain its upward trajectory, with a targeted AUM of Rs 30 billion by FY27 and aims for a Return on Equity (RoE) of over 15 per cent in the medium term, reflecting its commitment to sustainable growth and operational efficiency.
