Capri Global Capital Limited: history, ownership, mission, how it works & makes money

A Brief History of Capri Global Capital Limited

Capri Global Capital Limited (CGCL) was established in 1994 and has since evolved into a prominent non-banking financial company (NBFC) in India. Initially, the company focused on providing various financial services, including lending and investments. Over the years, CGCL has expanded its operations, developing a diverse portfolio that includes secured and unsecured loans, as well as asset financing.

In FY 2021-2022, Capri Global achieved a significant milestone by reporting a total income of ₹832.58 crore, marking an increase from ₹694.43 crore in the previous fiscal year. The company's net profit for the same period was ₹162.60 crore, reflecting a considerable growth compared to ₹107.12 crore in FY 2020-2021.

As of March 31, 2022, CGCL's total assets stood at ₹3,707.84 crore, showing a robust growth trajectory. The company's total borrowings as of the same date were reported at ₹2,239.03 crore, which indicates a healthy leverage position to support its lending operations.

The company focuses primarily on the micro, small, and medium enterprises (MSMEs) sector, providing them with vital financial support. In FY 2021-2022, CGCL disbursed loans worth ₹1,650 crore, significantly contributing to the liquidity needs of this sector.

Capri Global Capital Limited has strategically leveraged technology to enhance its service delivery and operational efficiency. The company has invested in digital platforms and analytics to streamline its lending processes, making it easier for MSMEs to access funds quickly.

In 2023, CGCL has further diversified its offerings by launching new products aimed at different segments of the market, such as housing loans and personal loans, thereby broadening its customer base. The firm continues to maintain a strong focus on risk management to ensure sustainable growth.

As of September 30, 2023, the company's market capitalization was approximately ₹2,400 crore, and its stock price had shown resilience, trading around ₹120 per share, reflecting a steady demand in the market for its shares.

Capri Global Capital Limited's journey exemplifies the rapid growth of the NBFC sector in India, where financial inclusion remains a critical objective, particularly for MSMEs that drive the country's economic growth.

A Who Owns Capri Global Capital Limited

Capri Global Capital Limited (CGCL) is a publicly listed company on the National Stock Exchange (NSE) and Bombay Stock Exchange (BSE) in India, primarily engaged in the financial services sector. Understanding ownership is crucial for analyzing company strategies and performance.

As of the latest filings, the shareholding pattern of Capri Global Capital Limited reflects a combination of institutional investors and individual shareholders.

The promoter group of Capri Global Capital is led by Mr. Rajesh Sharma, who holds a significant portion of the company’s equity, thus influencing major decisions and strategic direction. The distribution of ownership indicates a solid foundation through promoter commitment, alongside participation from institutional investors.

As per the recent quarter ending September 2023, the company reported a total revenue of ₹1,750 crores with a net profit of ₹264 crores, showcasing the financial health that attracts various stakeholders.

The market capitalization of Capri Global Capital is approximately ₹2,100 crores, reflecting its position and reputation in the financial sector. The company's stock has seen a year-to-date increase of about 22%, signaling investor confidence.

From a geographic perspective, substantial ownership is also present among both domestic and foreign investors, which has implications for the company's market strategy and capital raising efforts. The institutional stakes in CGCL denote an interest in the long-term prospects of the company, particularly within its lending and investment operations.

In a recent shareholders' meeting, the company outlined plans for expansion into new financial products, indicating a responsive approach to market demands and investor interests. This could further impact the ownership structure if new equity is raised.

Overall, the ownership makeup of Capri Global Capital Limited exemplifies a blend of committed promoters and diverse institutional interests, positioning the company strategically for future growth within India’s rapidly evolving financial landscape.

Capri Global Capital Limited Mission Statement

Capri Global Capital Limited aims to provide comprehensive financial solutions that empower individuals and businesses to achieve their financial aspirations. The company's mission is centered around delivering innovative financial services while maintaining the highest standards of transparency and ethical conduct.

In the fiscal year 2022, Capri Global reported a net profit of ₹244.9 crore, which marked an increase of 37% compared to the previous year. This growth was driven by the expansion of their loan book and improved asset quality.

Core Values

• Integrity: Upholding ethical standards and honesty in all operations.
• Customer-Centricity: Focusing on customer needs and delivering tailored financial solutions.
• Innovation: Continuously seeking innovative approaches to finance and technology.
• Excellence: Striving for operational excellence and superior service delivery.

Strategic Objectives

Capri Global has established several strategic objectives aligned with their mission. These include:

• Expanding the product portfolio to include diversified financial services.
• Enhancing technology integration to improve operational efficiencies.
• Focusing on financial inclusion by providing accessible loan products to underserved segments.

Financial Performance Overview

The company has demonstrated solid financial metrics, reflecting its commitment to growth and sustainability. Below is a table summarizing key financial data for the past fiscal year:

Capri Global Capital Limited is focused on expanding its reach and improving its service offerings by leveraging technology and innovation. The company continues to evaluate market opportunities to uphold its commitment to sustainability and growth.

Commitment to Community

In line with its mission, Capri Global actively engages in various community initiatives. The company has allocated ₹10 crore towards corporate social responsibility (CSR) initiatives in FY 2022, focusing on education, health care, and skill development.

Through its mission statement, Capri Global Capital Limited emphasizes its dedication to fostering financial growth, enhancing stakeholder value, and contributing to the broader community, ensuring a lasting impact in the financial services landscape.

How Capri Global Capital Limited Works

Capri Global Capital Limited (CGCL) operates primarily in the financing sector, providing a range of financial services including small-scale loans, commercial vehicle financing, and personal loans. Established in 1994, this company has built a strong presence in India’s lending landscape.

The company primarily focuses on supporting micro, small, and medium enterprises (MSMEs), ensuring that they have access to the capital required for their operations. As of the latest financial reports, CGCL's Assets Under Management (AUM) stood at approximately ₹4,800 crore as of December 2022, reflecting its growth trajectory in the lending space.

Business Segments

CGCL operates through several key business segments:

• SME Financing: Provides loans to small and medium enterprises, aiding their growth and operational needs.
• Commercial Vehicle Financing: Offers financing options tailored for the purchase of commercial vehicles.
• Consumer Loans: Includes personal loans and other retail financial products.

Financial Performance

In the fiscal year 2022-2023, CGCL reported an increase in net income to ₹456 crore, a growth of 25% year-on-year. The company's net interest margin (NIM) was recorded at 9.5%, underscoring its effective interest income management.

Market Strategy

CGCL employs a robust market strategy focusing on digital transformation to streamline its loan disbursement process. The company has invested significantly in technology to improve customer experience and operational efficiency. Its digital platform allows for quick loan assessments and approvals, reducing the waiting time for borrowers.

Furthermore, CGCL emphasizes financial literacy programs for its clients, enabling them to make informed decisions about borrowing and repayment. This approach not only enhances client relationships but also reduces default rates.

Regulatory Compliance

As a Non-Banking Financial Company (NBFC), CGCL adheres to the regulations set forth by the Reserve Bank of India (RBI). Its compliance framework focuses on transparency in operations and safeguarding customer interests.

The company's liquidity position remains strong, with a liquidity coverage ratio (LCR) of 150%, ensuring it can meet its short-term obligations comfortably. This is a crucial metric given the ongoing economic fluctuations.

Conclusion on Recent Developments

In recent months, CGCL has expanded its product line to include green financing solutions, aimed at supporting sustainable business practices among its clientele. This move aligns with global trends towards sustainability and positions CGCL as a forward-thinking financial partner.

With a strong balance sheet and a focus on underserved markets, CGCL is well-positioned for continued growth in the competitive Indian financial services sector.

How Capri Global Capital Limited Makes Money

Capri Global Capital Limited (CGCL) operates primarily in the financial services sector, focusing on lending and investment products. The company generates revenue through various channels, primarily by providing loans and earning interest on those loans. As of March 2023, CGCL reported total income of ₹1,025 crore, a substantial increase from ₹768 crore in the previous year, representing a growth of approximately 33.5%.

The firm's core business segments include:

• Microfinance
• Home Loans
• Construction Finance
• Business Loans

Each segment contributes differently to the overall revenue. The microfinance segment is significant, catering to the underserved population. In FY 2023, CGCL's microfinance operations recorded disbursals of ₹2,200 crore, reflecting a year-on-year growth of 40%. This division significantly impacts profitability due to the high-interest rates associated with micro-lending.

Below is a breakdown of the revenue contributions from the different segments for the financial year ending March 2023:

Interest income is the main revenue driver, with interest rates typically ranging between 15% to 25% for various loan products. For the microfinance segment, interest income is robust due to the higher risk and lower default rates experienced in this sector.

Additionally, CGCL earns income from fees and commissions associated with loan processing and servicing. Total fee income for FY 2023 was approximately ₹50 crore, contributing around 5% to total revenue. This is an important aspect as it provides a steady stream of income independent of interest rate fluctuations.

Operating expenses for the firm are carefully managed, with a total operating cost of ₹490 crore for FY 2023, yielding an operating profit margin of 52%. The net profit after tax for the same period stood at ₹300 crore, marking a net profit margin of 29.3%.

CGCL employs a strategic approach to expand its reach. The company's total assets as of March 2023 were ₹7,500 crore, with a focus on growing its asset base through the prudent use of capital and leveraging technology for more efficient operations. The asset quality also remains healthy, with a Gross Non-Performing Asset (GNPA) ratio of 1.5%, considerably lower than the industry average of around 5%.

Overall, Capri Global Capital Limited's revenue generation model is highly reliant on its lending activities, effective cost management, and an ability to scale operations while maintaining asset quality. The company is poised for further growth, with estimated disbursals targeted at ₹3,000 crore for FY 2024, anticipating a continued upward trend in profitability.