Capri Global Q2 profit jumps 57 pc at Rs 61 cr

Non-banking finance company Capri Global Capital Ltd (CGCL) on Saturday reported 57 per cent jump in net profit at Rs 61 crore for September quarter 2020-21. "Profit after tax (PAT) for Q2FY21 stood at Rs 610 million, up by 57 per cent from Q2FY20, supported by improvement in Net Interest Margins (NIM) and reduction in cost to income ratio on year-on-year basis," CGCL said in a release.

Total income in the quarter increased 4 per cent to Rs 186.90 crore from Rs 180.40 crore in the year-ago period, it said. NIM improved to 10.3 per cent from 10.1 per cent while the ratio of operating expenses to net total income improved to 28.5 per cent from 42.5 per cent.

The asset quality remained healthy with gross NPA at 2.18 per cent and net NPA at 0.12 per cent, it said. Total asset under management (AUM) stood at Rs 4,161.30 crore, up 5 per cent from the year-ago period, it said.

The company, which operates in MSME and affordable housing sectors, said it is adequately capitalised, maintaining capital adequacy ratio at 41.62 per cent and has made pre-payments to lenders to reduce cost of funds. "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," said Rajesh Sharma, Managing Director, Capri Global Capital.