The Board of Directors of Capri Global Capital Ltd. (CGCL), a non-deposit taking and systemically important NBFC (NBFC-ND-SI) on Saturday, announced the reviewed financial results for the quarter ended June 30, 2023, the company announced through an exchange filing.
The Q1FY24 Consolidated Profit after Tax was Rs 636 million, up 38.0 percent YoY but lower 2.0 percent QoQ owing to sequentially higher credit cost. The Q1FY24 Consolidated RoE was 7.1percent while RoA was 2.2 percent.
The average yield on advances improved 118bps YoY to 15.7 percent while the average cost of funds increased 49bps YoY to 8.72 percent leading to a net change of 51bps YoY in spreads. Rising share of higher yielding Gold loan portfolio as well as tangible improvements in yields of MSME, Housing, and Construction Finance portfolio contributed to the improvements in loan yields.
The NII increased 77 percent YoY and 26 percent QoQ in Q1FY24. Non-interest income increased 97 percent YoY in Q1FY24 to Rs 807 million. Share of non-interest income in net income was at a healthy 25 percent in Q1FY24.
The C/I ratio softened marginally. The C/I ratio softened for a second consecutive quarter to 66.0 percent in Q1FY24 from a peak of 69.5 percent in Q2FY23. Adjusted for direct expenditure incurred on Gold Loan branch additions, the cost-income ratio in Q1FY24 would have been approximately 50 percent.
“We have begun FY 2024 on a sound note. Despite the seasonal softness in select lending verticals, the business momentum overall has been extremely strong in Q1FY24. We are seeing an improving trend in the core earnings parameters like our loan spreads and cost-income ratio. Going ahead in FY 2024, we expect this performance to improve as we pause our aggressive branch expansion in Gold Loans in Q2FY24 and move rapidly towards break-even by Q4FY24, said Rajesh Sharma Founder & Managing Director.
Disbursals
Disbursals in Q1FY24 increased 128 percent YoY but dipped 5 percent QoQ to R26,869 million. Gold Loans had a approximately 51 percent share in disbursals while MSME and Housing contributed approximately 12 percent and approximately 11 percent respectively. CF and IL together had a share of approximately 25 percent.
AUM Growth
Consolidated AUM including co-lending AUM increased approximately 61percent YoY and approximately 9 percent QoQ to touch Rs 112,262 million. The average ticket size in Gold Loans has declined from Rs 113K in Q2FY23 to Rs 94K in Q1FY24.
Asset Quality
Gross Stage 3 ratio was 1.89 percent, lower 82bps YoY and 15bps QoQ. The PCR on Stage-3 assets was 27.8 percent. Including aggregate ECL provisions, the PCR stood at 92.6 percent.
Strong Capital Adequacy
CGCL CAR was strong 37.2 percent level in Q1FY24. t may be noted that the Company concluded a Rs 14.4 Billon Rights Issue in March 2023, which boosted its capital adequacy. The Company Board also approved infusion of up to Rs 4 Billion by way of fresh equity in its wholly-owned subsidiary CGHFL (capital adequacy 38.2 percent and Networth Rs 5.4 billion in Q1FY24).
