Capital First has reported excellent Q2FY15 results. This was in accordance with the prediction of Mr. V. Vaidyanathan in July 2014 in an interview to CNBC-TV18 (see embedded video).
In an interview given after the Q2FY15 results, Mr. Vaidyanathan has said that the Micro, Small and Medium Enterprises (MSME) business which is where the company is specialising in is really largely under-penetrated in India. So for the Company to grow about 25-30 percent continuously over next two or three years is really not a problem.
He also pointed out that the Net Interest Income (NII) plus fee put together is growing upward of 50 percent and that the Company expect on a net basis to post a profit of at least double over what it posted last year for this financial year. This is coming directly through operating leverage. He pointed out that the Company posted a profit of Rs 50 crore last year, this year to post a little over Rs 100 crore is definitely in the zone. In the first half itself the Company posted about Rs 47 crore profit. So it is not out of the ordinary to post about Rs 100 crore profit for the year.
The Corporate Presentation explains the business model of the Company, the growth that it has had in the past and its future plans. The credit process undertaken to ensure that the risk is minimized is also explained in detail.