42% YoY Rise in provisions led to a 45% fall in Net Profit in Q4 FY22, PAT at 271 Crores in Q4 FY22 | Concall Highlights

Business Overview:

• Gold loan portfolio stood at 20,168 crores grew by 6% YoY and declined by 1.5% Q-o-Q in Q4 FY22.
• Micro finance subsidiary AUM stood at 6,653 crores declined by 3% Q-o-Q.
• Commercial Vehicle business grew by 8.8% Q-o-Q due to economic recovery to 1,643 crores in Q4 FY22.
• Housing Finance subsidiary grew by 3.5% to 843 crores in Q4 FY22.
• MSME and allied business grew by 29% to 919 crores in Q4 FY22.
• Over 2 lakh rupee ticket size constitutes 33% of AUM.
• Building secured loan book by adding gold loans following the MFA regulations.
• Gold loan AUM stood at 300 crores in Q4 FY22.
• Stopped considering the collections after the balance sheet date as a reduction from NPA’s which increased the GNPA.
• GNPA stood at 1.42% as on march 31, 2022 compared to 1.3% in Q3 FY22.
• Cash and Cash equivalents on consolidated basis stood at 2,697 crores in Q4 FY22.
• CP exposure stood at 3.9% of total borrowings in standalone MBT.
• Standalone borrowing cost has come down to 7.15% in Q4 FY22 compared to 7.45% in Q3 FY22.
• Consolidated AUM stood at 30,260 crores in Q4 FY22 grew by 11.2% YoY and declined by 0.5% Q-o-Q.
• Average LTV is at 62% which is 20% below the peer group.

Profitability Numbers:

• Cost to AUM declined to 6.48% in Q4 FY22 from 7.07% in Q3 FY22.
• Consolidated PAT stood at 1,329 crores in FY22 down by 23% YoY due to reduction in gold loan IRR in H2 FY22.
• Consolidated profit stood at 261 crores in Q4 FY22.
• ROE stood at 12.6% on consolidated basis in Q4 FY22.
• ROA stood at 3% in Q4 FY22.
• Leverage stood at 2.9 times.
• In consolidated AUM 57% constitutes gold loan business, 33% constitutes of housing finance, vehicle, micro finance and SMA finance.
• Gold loan AUM decreased by 1.4% Q-o-Q and increased by 5.7% YoY in Q4 FY22.
• Gold holdings stood at 68 tons down by 2.9% Q-o-Q and up by 4% YoY.
• Added 3.75 lakh new customers during Q4 FY22.
• Average ticket size stood at 56,568/- and Average duration stood at 82 days.
• Advertisements has come down to 12.2 crores in Q4 FY22.
• Standalone PAT stood at 1,304 crores in FY22.
• Total number of gold loan customers stood at 23.9 lakh.
• Gold loan book stood at 20,168 crores in FY22.
• Gold loan disbursements stood at 30,930 crores in Q4 FY22 compared to 24,929 crores in Q3 FY22.
• GNPA brought down to 5.9% in Q4 FY22 from 12.3%in Q3 FY22 and complied to new RBI IRAC norms.
• Loan to NBFC’s stood at 31 crores, loan to MSME’s and others stood at 920 crores.
• Provisions and write offs during the Q4 FY22 stood at 24 crores compared to 17 crores in Q3 FY22.
• Board declared an interim dividend of 75 paise during Q4 FY22.
• CAR stood at 31% in Q4 FY22.

Micro Finance Highlights:

• Ashirvad AUM stood at 7,002 crores down by 1.2% Q-o-Q and 17% YoY in Q4 FY22.
• Profit stood at 13 crores in FY22 down by 20%.
• Reported a loss of 7 crores in Q4 FY22 compared to profit of 60 lakhs in Q3 FY22.
• Collection Efficiency stood at 99% in FY22.
• Disbursements stood at 1,124 crores in Q4 FY22.

Vehicle Finance Highlights:

• AUM stood at 1,643 crores I Q4 FY22 grew by 8.8% Q-o-Q and 56.1% YoY.
• Collection Efficiency stood at 104% in Q4 FY22 compared to 103% in Q3 FY22.

Home Loan Highlights:

• Home loan business loan book stood at 845 crores in Q4 FY22 grew by 3.5% Q-o-Q and 26.9% YoY.
• Home loan business operates in total 73 branches.
• Profit stood at 7.2 crores in FY22.
• Collection Efficiency stood at 109% in Q4 FY22 compared to 100% in Q3 FY22.