Capital Small Finance Bank Q2 Financial Highlights

Key Takeaways from Capital Small Finance Financial Highlights:

• Gross advances reached Rs 6,718 crores as of September 30, 2024, up 5% quarter-on-quarter and 15% year-on-year.
• Gross non-performing assets (NPAs) stood at 2.6%, improving from 2.7% in the previous quarter and the same quarter last year.
• Total deposits amounted to Rs 7,780 crores, reflecting an 11% increase year-on-year, with a CASA ratio of 37.1%.
• The loan-to-deposit ratio was 82.4%, and the average liquidity coverage ratio (LCR) was 238.1% for the quarter.

The bank's asset quality is strong, with gross non-performing assets (NPAs) at 2.6%, down from 2.7% in both the previous quarter and the same quarter last year. 

Total deposits stood at Rs 7,780 crores, showing an 11% year-on-year growth. The bank maintains a CASA (Current Account Savings Account) ratio of 37.1%, slightly down from 37.8% a year ago. 

The loan-to-deposit ratio for the quarter was 82.4%, compared to 79.6% in the previous quarter and 79.1% a year earlier. 

The average liquidity coverage ratio (LCR) was 238.1%, an increase from 215.5% in the previous quarter but lower than 246.1% in the same quarter last year. 

Capital Small Finance Bank Limited:

Capital Small Finance Bank, based in Jalandhar, Punjab, started operations as India’s first small finance bank (SFB) in April 2016 after transitioning from Capital Local Area Bank, which had been the largest local area bank in India since January 2000. The bank focuses on providing affordable credit to middle-income customers across its operating states and has established itself as a key player among small finance banks in India. Over the years, it has improved its performance in areas like asset quality, funding costs, retail deposits, and CASA deposits. With over two decades of banking experience, the bank offers a wide range of financial products, including loans for agriculture, micro, small, and medium enterprises (MSMEs), as well as mortgages primarily for housing.

Capital Small Finance Banks strong growth and excellent asset quality, compared to other small finance banks, are due to its well-diversified loan portfolio, focus on secured lending, and commitment to customer engagement. The bank employs structured underwriting practices and strict credit assessment and risk management strategies. Additionally, it uses technology to enhance digital payment options and improve communication with customers, all aimed at enriching the overall customer experience through greater technological integration.

Key Takeaways from the Announcement

• The South Bopal outlet expands Thomas Cook India's network to four locations in Ahmedabad and ten across Gujarat.
• The outlet is designed to serve diverse customer segments, including families, couples, millennials, business professionals, and seniors.
• Growth drivers include Gujarati-specific group tours with Gujarati-speaking tour managers and customised vegetarian cuisine options.

Located in a preferred residential area with excellent connectivity to the airport, railways, and business hubs, the South Bopal outlet is strategically positioned to serve the local community. With the festive season approaching, Thomas Cook aims to meet the significant demand for travel bookings among Gujarati customers.

The new outlet offers a comprehensive range of travel services, including international and domestic holidays, group tours, personalised vacations, and value-added services like travel insurance. Additionally, Thomas Cook's AI booking platform enables customers to plan their trips in real-time by checking availability and making reservations quickly.

Mr. Rajeev Kale, President & Country Head – Holidays, MICE, Visa, Thomas Cook (India) Limited, said, “Ahmedabad is an important source market for us, and as we continue to witness growing demand from the city, especially during peak travel seasons like Diwali, we are delighted to announce the opening of our Gold Circle Partner franchise outlet at South Bopal. Strategically chosen for its central location, this new outlet will enhance our ability to serve the diverse needs of customers in the region, offering easy access and seamless services – right at their doorstep! We also have exclusive Gujarati group tours with co-travelers from the State, featuring departures from Gujarat, accompanied by a Gujarati-speaking expert Tour Manager. On behalf of my Team, I extend a warm welcome to our customers from Ahmedabad. My Team and I look forward to cocurating memorable holidays for each of our customers – both within India and international.”

Travel trends indicate that Gujaratis are enthusiastic travellers who maximise public holidays and weekends for mini-vacations. Group tours featuring Gujarati-speaking managers and pure vegetarian cuisine are particularly popular among this demographic. Furthermore, there is a growing interest in experiential travel and luxury cruise vacations to destinations like Lakshadweep, Dubai, and Singapore.

About Thomas Cook (India) Limited

Thomas Cook provides a wide range of services, including Foreign Exchange, Corporate Travel, MICE (Meetings, Incentives, Conferences, and Exhibitions), Leisure Travel, Visa & Passport services, and E-Business. The company established its first office in India in 1881.

The Thomas Cook India Group operates in over 25 countries across five continents and employs more than 8,388 people. It has 19 brands under its umbrella, including SITA, TCI, and Distant Frontiers.

Key Takeaways from the Order Win 

• Orient Cement has accepted a work order from MPPGCL to install a Clinker Grinding Unit at Satpura Thermal Power Station.
• The agreement includes a 25-year Fly Ash supply contract.
• Additional agreements, such as the Land Use Permission Agreement (LUPA), will be signed shortly.

This follows the company’s earlier submission dated February 5, 2024, where MPPGCL approved the proposal for the installation.

The work order also includes a Fly Ash supply contract, which will be in effect for 25 years. The company has confirmed its acceptance and will soon finalize other agreements, including the Land Use Permission Agreement (LUPA).

The project reflects Orient Cement’s growing expansion efforts and reinforces its partnership with MPPGCL for long-term infrastructure developments.

About CK Birla Group 

The CK Birla Group is an Indian multinational conglomerate with over $3 billion in revenue and more than 35,000 employees. It operates 52 manufacturing facilities in India and globally, across various industries such as technology, automotive, home and building, and healthcare. The group’s key companies include Birlasoft Limited, GMMCO Limited, National Engineering Industries (NBC Bearings), Orient Cement, HIL Limited, Orient Electric, CK Birla Healthcare (CK Birla Hospitals and Birla Fertility & IVF), Orient Paper & Industries, AVTEC Limited, and Neosym Industry.

About Orient Cement

Founded in 1979, Orient Cement was previously part of Orient Paper & Industries before becoming an independent entity in 2012. Orient Cement has fast come to become one of India's biggest cement makers. The company began its cement business operations in 1982 at Devapur, Telangana, and further consolidated its power with a split grinding unit at Nashirabad, Maharashtra, in the year 1997. Thereafter, the company established an integrated cement plant in Chittapur, Karnataka, in the year 2015. Total capacity of 8.5 MTPA: Orient Cement serves Maharashtra, Telangana, Andhra Pradesh, Karnataka, parts of Madhya Pradesh, Tamil Nadu, Kerala, Gujarat, and Chhattisgarh.

Orient Cement produces Pozzolana Portland Cement (PPC) and Ordinary Portland Cement (OPC) under the brand names Birla A1 Premium Cement, Birla A1 StrongCrete, Birla A1 OrientGreen, and Birla A1 Dolphin. The company is recognised for its focus on product quality, holding multiple certifications, including QMS ISO 9001:2015 and EMS ISO 14001:2015. It is one of only two Indian cement companies awarded the prestigious Total Plant Maintenance (TPM) excellence award by the Japan Institute of Plant Maintenance and has received numerous accolades for its green and safety practices.

Key Takeaways from the Debut

• The IPO of Diffusion Engineers saw strong demand, being subscribed 54.24 times, with a price band set between Rs 159 and Rs 168 per share.
• Funds raised will be allocated for expanding existing manufacturing units, setting up new facilities, working capital, and general corporate needs.
• The company's focus lies in manufacturing specialised industrial equipment like welding consumables and wear plates, with a focus on innovation to enhance wear resistance and reduce production costs.

The scrip was listed at Rs 193, exhibiting a premium of 14.88% to the issue price on NSE.

The IPO comprised a fresh issue of 9,405,000 equity shares of Rs 10 face value. The initial public offer (IPO) of Diffusion Engineers was subscribed 54.24 times. The issue opened for bidding on 26 September 2024 and was closed on 30 September 2024. The price band of the Diffusion Engineers IPO was fixed between Rs 159 and Rs 168 per share.

Out of the total funds from the fresh issue, around Rs 71.38 crore will go towards expanding the existing manufacturing facility (Unit IV) at Khapri (Uma) in Nagpur; Rs 30.385 crore will be used to build a new manufacturing facility at Hingna in Sonegaon District, Maharashtra, Rs 22 crore will be allocated for working capital needs; and the remaining amount will be used for general corporate purposes.

About Diffusion Engineers

Diffusion Engineers, led by Prashant Garg, specialises in manufacturing industrial components such as welding consumables, wear-resistant plates, and heavy machinery tailored for key industries. The firm offers advanced repair solutions and surface treatment processes designed to extend the lifespan of machinery components, reducing wear and tear, improving durability, and cutting down on operational costs. In addition to manufacturing, Diffusion Engineers provides reconditioning services and trades in specialised welding and cutting equipment.