Jammu Tawi:The Board of Directors of Capri Global Capital Ltd. (CGCL), a non-deposit taking and systemically important NBFC (NBFC-ND-SI) on Tuesday, October 29th, 2024 announced the unaudited financial results for the quarter ended September 30, 2024.CGCL continued the strong growthmomentum in Q2FY25. The consolidated AUM including co-lending AUM increased56% YoY and 10% QoQ to touch Rs192,722mn. Retail growth was driven by Housing Loans up by 33% YoY and Gold Loans up by 225% YoY. Co-lending AUM stood at Rs35,190mn comprising 18.3% of consolidated AUM compared to 16.4% in Q1FY25 and 11.7% in Q4FY24. Disbursement grew by 55% YoY. CGCL also launched new product Roof Top Solar Finance as Green Financing under the MSME Loans with an aim to build around Rs 10,000mn book in near term.The overall AUM growth was granular with live customer relationships increasing by 108K QoQ to touch 697K.
The PAT for the Q2FY25 stood at Rs970mn a strong growthof 49% YoY and 28% QoQ. Overall, yields and spreads remained steadyin Q2FY25. Net Interest income up by 22% YoY on the back of strong loan book growth of 38% YoY.CGCL’s pre-provisioning operating profit increased to Rs1,457mn, up by34% YoY.Strategically, CGCLundertook rapid expansion of branches and employees in last 3 years to support the growth momentum. In line with that, CGCL made significant investments in technology, the benefits of which are expected to accrue going forward. Our branch expansion stabilized this quarter with focus on improvement in branch and employee productivity.CGCL cost/income ratio stood at 64.3%, an improvement of 6.2% from Q4FY24.
CGCL’s car loan business saw distribution origination of Rs 25,633mn in Q2FY25, up by 8% YoY and 15% QoQ.CGCL has made 18 tie ups for insurance distribution under the composite license. This shall be an important source of fee income in the future and the Company is looking to generate around Rs400mn in net fee income from insurance distribution in FY25E.
Founder & Managing Director Mr. Rajesh Sharma Commented: “We continue to see strong growth momentum and further diversify our product offeringwith the launch of new products Micro Lap and Roof Top Solar loans as Green Financing under our MSME segment. We believe that our significant investments in technology and focus on increasing branch and employee productivity will start yielding results in terms of reduction our cost / income ratio further. With steady increase in fee income and improvement in yields, we see furtherupsideto 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 30bn AuM by FY27 and 15%+ RoE over medium term.”
