Capri Global Capital Limited , a leading non-banking financial company (NBFC), has reported a stellar performance for the first quarter, with significant growth in both revenue and profitability.

Financial Highlights

• Consolidated net profit surged by 131% to ₹1.75 billion, up from ₹757 million in the same period last year.
• Revenue grew by 39% year-over-year, reaching ₹10 billion compared to ₹7.2 billion in the previous year.

Strong Growth Trajectory

The company's impressive financial results demonstrate its robust business model and effective strategy execution. The substantial increase in net profit reflects Capri Global Capital's ability to capitalize on market opportunities and maintain operational efficiency.

Revenue Expansion

The 39% growth in revenue to ₹10 billion indicates strong demand for the company's financial products and services. This significant top-line growth has translated into even stronger bottom-line performance, highlighting the company's ability to manage costs effectively while expanding its business.

Management Changes

Capri Global Capital announced that Mr. Partha Chakroborthi will be stepping down as the Chief Financial Officer (CFO) effective August 1. He will be succeeded by Mr. Kishore Lodha, who brings extensive experience in finance and the NBFC sector.

Appointment of Joint Statutory Auditors

The company's Board of Directors has approved the appointment of M/s Singhi & Co., Chartered Accountants, as Joint Statutory Auditors, subject to shareholder approval at the Annual General Meeting. This appointment is in line with regulatory guidelines for NBFCs of Capri Global Capital's size.

Board Meeting and Financial Results

The Board approved the unaudited standalone and consolidated financial results for the quarter ended June 30 during a meeting held on August 1. The statutory auditors issued an unmodified opinion in their Limited Review Report.

Utilization of Funds

The company reported no deviations in the utilization of funds raised through non-convertible debentures totaling ₹220 crore across multiple issuances.

Looking Ahead

With strong Q1 results and strategic management changes, Capri Global Capital appears well-positioned for continued growth. The company's ability to significantly increase both revenue and profit in a competitive financial services landscape bodes well for its future prospects.

Investors and stakeholders will likely be watching closely to see if the company can maintain this momentum in the coming quarters, especially given the recent changes in key management positions.

Capri Global Capital Limited (CGCL) has taken a significant step towards diversifying its financial services portfolio by establishing a new wholly-owned subsidiary, Capri Global Wealth Management Private Limited (CGWMPL). This strategic move marks the company's entry into the wealth management sector, potentially opening up new revenue streams and expanding its service offerings.

Key Details of the New Subsidiary

Scope of Operations

CGWMPL is set to engage in a wide range of financial services activities, including:

1. Stock Broking and Trading: Dealing in shares, stocks, debentures, bonds, government securities, derivatives, commodities, and currencies.
2. Membership and Registration: Obtaining memberships with recognized stock exchanges such as BSE and NSE, and registration with regulatory bodies like SEBI.
3. Financial Advisory Services: Acting as dealers, market makers, underwriters, portfolio managers, merchant bankers, and investment advisors.
4. Distribution Network: Building and managing a network of brokers and sub-brokers for various financial instruments.
5. Dematerialization and Custodial Services: Offering depository participant services and other ancillary services.

Regulatory Compliance

The incorporation of CGWMPL aligns with Regulation 30 of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015. CGCL has duly informed the BSE Limited and the National Stock Exchange of India Limited about this development.

Strategic Implications

This expansion into wealth management signifies Capri Global Capital's intent to:

1. Diversify its revenue streams within the financial services sector.
2. Tap into the growing wealth management market in India.
3. Offer a more comprehensive suite of financial services to its existing and potential clients.
4. Potentially increase its market share and competitive position in the financial services industry.

As CGWMPL is yet to commence its operations, the financial impact of this new venture on Capri Global Capital's overall performance remains to be seen. However, this strategic move positions the company to capitalize on the opportunities in the wealth management space, complementing its existing financial services offerings.

Investors and market watchers will likely keep a close eye on how this new subsidiary develops and contributes to Capri Global Capital's growth trajectory in the coming years.