NE BUSINESS BUREAU
MUMBAI, NOV 8
Capri Global Capital Ltd (CGCL), a diversified NBFC in the MSME and Affordable Housing sector, has reported a 57 percent rise in profit after tax (PAT) at Rs 610 million for Q2 FY21 against the same period of Q2 FY20. The total income for the reporting period increased by 4% to Rs. 1,869 mn from Rs. 1,804 mn in Q2 FY20, a senior official of the company said.
The company reported an AUM of Rs. 41,613 mn in Q2FY21 v/s Rs 39,569 mn in Q2 FY20 – an increase of 5%. The consolidated net worth of the company stood at Rs. 16,383 mn
The total AUM includes MSME AUM of Rs. 21,284 mn that has recorded a growth of 7% YoY as compared to Rs. 19,833 mn in Q2 FY20. CGCL has active relationships with over 23,500 businesses ending Q2 FY21 across several states in India ranging from retail outlets to small manufacturing units, traders to private schools. The Company continues focussing on Tier 3 & 4 cities. The well-established and in-depth knowledge of micro markets has helped CGCL to maintain good asset quality and keep the loan book granular.
Whereas Housing Finance businesses which contribute to 22% of the total AUM showed a stellar growth of 10% YoY with an AUM of Rs. 9,285 mn. Under the Affordable Housing Finance business that majorly targets Tier 2 & 3 cities, the company has empowered ~10,350 families to realise the dream of owning their own home.
Commenting on the outcome, Rajesh Sharma, Managing Director, Capri Global Capital Ltd. explained, “As evident from the results, CGCL has seen an uptick in business activity during the quarter after a slower Q1 FY21. We have witnessed a healthy growth in PAT supported by yields improvement and reduction in cost to income ratio. Defying industry trends, our asset quality has shown a significant improvement over the quarter and we have continued to expand our retail book and onboard quality, customers.
The Company is adequately capitalised maintaining capital adequacy ratio at 41.62%. CGCL maintains a strong liquidity position and we have even made prepayments to lenders to reduce cost of funds. CGCL’s ample liquidity will enable us to drive growth in the coming quarters. Over the quarter we have continued our successful adoption of technological initiatives to better serve our customers and improve operating performance.
