Dear Shareholders,
STEADY STRIDES EXPANDING HORIZONS
Amid global economic turmoil, the Indian economy remains a beacon of hope and a strong
growth driver, with solid fundamentals, financial and price stability, and positive growth
momentum. India ended FY2024 with 8.15% GDP growth for the third time in a row, surpassing
all expectations. The country also benefits from favourable demography, strong private
consumption, high gross fixed capital formation, a supportive policy environment, and
responsible monetary management by the
Reserve Bank of India (RBI). The sustained focus on strengthening the twin-balance
sheets has started paying rich dividends, propelling economic expansion. The stock markets
remained strong, gold prices were high, and the Indian rupee was the most stable among
emerging market currencies. The Indian economy is expected to continue its march forward
in FY2025, registering a GDP growth of at least 7-7.25%.
Building Stronger Futures Through Innovation and Inclusion
As we reflect on the past fiscal year, I am proud to share that Capri Global has
continued its trajectory of robust growth and innovation an illustrative reflection of
"Steady Strides,
Expanding Horizons". Our commitment to customer-centric solutions and
technological advancements has set us apart in an increasingly competitive landscape.
I am pleased to present to you, our Annual Report for FY2024.
KEY HIGHLIGHTS: FINANCIAL PERFORMANCE
During FY2024, we achieved significant milestones, with our
AUM crossing the 150 Billion target to reach 157 Billion, marking a consecutive year of
40%+ growth.
As of March 31, 2024, our Gold Loan AUM stood at 35 Billion, just 20 months after
launching this business. In addition, our housing financesegmentexperiencedsignificant
growth, with the AUM expanding by 53% Y-o-Y to 41 Billion. We anticipate sustained growth
in this segment, maintaining a growth rate of over 30%. Our Construction Finance business
remains robust, buoyed by positive prospects in crucial areas such as Mumbai, Ahmedabad
and Pune.
However, we maintain a cautious risk management strategy, keeping the mix at or below
20% of the consolidated AUM and focussing on affordable housing projects. Additionally,
our car loan distribution, in partnership with ten commercial banks surged by 67% Y-o-Y,
generating a gross fee income of 2.3 Billion.
STRATEGIC PATHWAYS TO GROWTH
Strategic investments in technology, talent, distribution networks, and branch
expansions remain at the core of our growth strategy. We continue to expand our physical
branch network across MSME, gold loan, and car loan distribution segments, enabling deeper
market penetration. Additionally, we have created an exclusive sub-segment within MSME to
cater to EWS and LIG with Micro-LAP products, providing small loans to meet immediate
needs. Our initiatives also include funding for rooftop solar panels,focussing on
residential and small entrepreneurs to promote environmental sustainability.
HARNESSING TECHNOLOGY AND INNOVATION
Technology continues to be a cornerstone of our strategy. Several initiatives launched
at the beginning of FY2024, such as our in-house-developed Loan Origination System (LOS),
Customer App and Collection module, along with Oracle's FLEXCUBE Loan Management System
(LMS) have enhanced our operational efficiency and customer service.
These advancements have streamlined our digital onboarding process, particularly for
MSME lending and Affordable
Housing Loans, leading to improved turnaround times and reduced per-file processing
costs. Our proprietary AI-driven risk-based pricing model has also contributed to better
net interest margins. The Collection module, with its state-of-the-art features, analyses
historical payment trends using
AI and machine learning to maximise recovery. AI-powered bot calling, route
optimisation, and real-time tracking of collection employees have optimised our Collection
team's performance.
Furthermore, our Customer App provides comprehensive services, enabling easy access to
all relevant documents, self-service repayment, and top-up loans based on eligibility
within 60 seconds.
ADVANCING FINANCIAL INCLUSION
By providing accessible loans to underserved segments like
MSMEs, women entrepreneurs, and first-generation business owners, we promote economic
growth, social empowerment, and financial inclusion.
Our efforts facilitate business expansion, job creation, and reduce regional
imbalances, fostering equitable wealth distribution. We cater extensively to tier 3 and
tier 4 cities, offering loans with minimal paperwork and no prior financial history
requirements, thus empowering underserved regions.
DEDICATED TO ESG EXCELLENCE
Capri Global is dedicated to sustainability through robust ESG initiatives. Our
environmental policies, including the Environment Management Policy and ESG Lending
Policy, guide our efforts to reduce our carbon footprint. Upgrades to energy-efficient
lighting, HVAC systems, and a comprehensive e-waste management programme have
significantly minimised our environmental impact. All gold loan branches are now equipped
with inverter air conditioners using R32 refrigerant, supporting India's National Action
Plan on Climate Change.
Our social initiatives focus on fostering a safe, inclusive, and engaging workplace.
Policies like the Equal Opportunity and No Discrimination Policy and Human Rights Policy
ensure fair treatment and ethical practices across our organisation.
We have also made substantial contributions to community development, impacting over
71,893 women, providing education to 17,165 individuals, and supporting health initiatives
that served over 114,256 people.
Governance initiatives at Capri Global are guided by strong oversight through key board
committees, ensuring effective management and accountability. We have implemented
comprehensive policies, including the Code of Conduct,
Whistle Blower Policy, Anti-Sexual Harassment Policy, Insider Trading Code, among
others. Furthermore, we conduct mandatory training for Anti-Money Laundering and regular
training on Risk Management and Governance to promote ethical behaviour and compliance
with legal standards.
EMPOWERING WOMEN AND SUPPORTING COMMUNITIES
At Capri Global, empowering women and supporting community development are core
elements of our mission.
We provide accessible loans to women entrepreneurs, enabling them to start and expand
their businesses, promoting economic independence, and contributing to gender equality.
Our financial products are designed to inclusive, catering to women who may not have prior
financial history or formal income documentation. Additionally, we invest in educational
programmes and scholarships, particularly in underserved areas, to improve access to
quality education and foster future generations of leaders.
Our healthcare programmes provide essential medical services and promote health
awareness, improving overall community well-being.
NURTURING TALENT FOR GROWTH
Our approach to talent management and development ensures a skilled workforce that
supports our business objectives. Strategic hirings, extensive recognition and reward
programmes, and digital onboarding processes are just a few of our initiatives. We also
emphasise continuous learning and knowledge-sharing through induction training, apprentice
training programmes, and leadership development programmes. These efforts ensure that our
employees are well-equipped to contribute to our success.
BUILDING STRONG
STAKEHOLDER RELATIONSHIPS
Our stakeholder relationships are paramount to our success. We prioritise strong
relationships with customers, employees, investors, vendors, and communities, recognising
that each group plays a vital role in our operations. To ensure customer satisfaction, we
continually seek feedback and tailor our solutions accordingly. We support employee growth
through continuous learning and development programmes, build investor trust with
transparent communication, maintain fair partnerships with vendors, and actively support
the communities in which we operate.
FUTURE-FORWARD
Our long-term vision includes targeting an AUM of 500 Billion by FY2029, representing a
CAGR of 25%+ over the next five years. We aim to achieve high-teen returns on equity (RoE)
by leveraging our technological and data science capabilities to lower cost-to-income
ratios. Fee income from car loan distribution, insurance distribution, and co-lending
partnerships will further enhance our RoE.
In closing, I extend my gratitude to our shareholders, employees, and stakeholders for
their unwavering support and trust. Together, we will continue to scale new heights,
driven by innovation, customer focus, and a commitment to sustainable growth.
Sincerely,
L.V. Prabhakar
Chairman
Capri Global Capital Limited