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Capri GlobalQ4 FY24

Capri Global Q4 FY24 Earnings Call Analysis

Revenue, margin, capex, fundraise and order book outlook from management commentary.

Price: ₹249P/E: 21.6Market Cap: ₹24.4K CrSector: Finance

Management growth scorecard

Revenue

Category 2

Margin

Category 2

Fundraise

N/A

Order

Yes

Capex

Yes

2 of 4 growth signals are positive.

Full analysis

Revenue guidance

Category 2
  • FY25 is expected to be a defining year with high growth and improved cost-to-income ratio driven by better loan processing and technology.
  • Gold loan AUM is targeted to grow 30-35% next year, with branch AUM per branch increasing from INR50mn to INR85mn.
  • MSME segment is expected to grow at about 15% per year.
  • Home loan segment projected to grow over 30%.
  • Car loan business is anticipated to grow about 20% in FY25, with new used car finance vertical launching in the second half.
  • Co-lending business will continue to expand, contributing good fee income without capital deployment.
  • Overall AUM growth remains robust with a target to reach INR300 billion by FY27.
  • Non-interest income, including insurance fee income, expected to see strong growth in FY25.
  • Branch expansion planned with 20-30 new housing finance branches each year.

See what Capri Global management said on margin guidance — free account, 30 seconds.

Fundraise plans

  • The transcript does not explicitly mention any current or planned new fundraising through debt or equity for Capri Global Capital Limited.
  • There is mention of an expectation of potential rating upgrades in about six months due to strong performance, which could lead to a reduction in the cost of funds.
  • No direct commentary on fresh capital raising via equity or debt issuance is provided.
  • The focus appears to be on organic growth, co-lending, and leveraging existing borrowing capacity rather than raising new funds.
  • Branch expansion and business growth plans are discussed but without reference to new fundraising initiatives.

See what Capri Global management said on order book — free account, 30 seconds.

Capex plans

Yes
  • Capri Global Capital has made significant technology investments, with around INR 112 crore spent on technology and data science in FY24.
  • Technology initiatives include implementation of in-house developed Loan Origination System (LOS), Oracle FLEXCUBE Loan Management System (LMS), collection modules, process reengineering, and analytical decision-making tools.
  • These efforts aim to improve turnaround time, sales productivity, reduce per-file processing cost, and enhance net interest margin.
  • Technology spending has contributed to an elevated cost-to-income ratio but is expected to reduce significantly after the first half of FY25 as major initiatives complete.
  • Capri Loans Car Platform Private Limited, a subsidiary, is focusing on car loan distribution and used car finance with ongoing technology development to capture market share and improve profitability.
  • The company plans to continue branch additions (20-30 branches yearly), particularly in housing finance, contributing to business growth.
  • Capri is also working on establishing systematic ESG practices and obtaining ESG ratings, aligning with strategic sustainability goals.

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