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Strong growth across all business parameters and stable asset quality helps Creditaccess Grameen to post 111% Growth in Net Profit in Q4 FY22, PAT at 152 Crores in Q4 FY22 | CreditAccess Grameen Q4 FY22 Result Analysis & Conference Call Highlights

Strong growth across all business parameters and stable asset quality helps Creditaccess Grameen to post 111% Growth in Net Profit in Q4 FY22, PAT at 152 Crores in Q4 FY22 | CreditAccess Grameen Q4 FY22 Result Analysis & Conference Call Highlights

Published on 16 May 2022 .Views 0 .Comments 0
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Business Overview:

Rural Economy is showing a strong sign of rebound coupled with an expected good monsoon providing a boost to fortunes.

Consolidated gross loan portfolio grew by 22.2% YoY to 16,599 crores with 38.2 lakh borrowers.

Borrower base shows 2.2% decline due to 3.8 lakh borrowers are written off during FY22.

Strong borrower decision traction grew by 2.3% Q-o-Q in Q4 FY22.

Added 3 lakh new borrowers in Q4 FY22.

Added 5.8 lakh new borrowers in FY22 for CA Grameen in which 49% are out of the top 3 borrowing states.

MMFL added 1 lakh new borrowers in FY22 in which 49% are out of tamil nadu state.

MMFL showing strong growth trajectory with 65% of the MMFL book is converted into CA Grameen model at the end of March 2022.

Asset Quality improved with PAR30 reduced to 3% in March, 2022 from 5.6% in Dec, 2021.

PAR0 stands at 3.6% in March, 2022.

For MMFL PAR30 reduced to 7.5% in March, 2022 from 11.1% in Dec, 2021.

211 new branches are opened in FY22 in which 42 branches are opened in Q4 FY22.

Q4 FY22 has been a pivotal point in Indian micro finance industry with awaited new micro finance guidelines announced by RBI for level playing field.

 
Profitability Numbers (Standalone):

On standalone basis NII grew by 10.4% YoY to 446 crores in Q4 FY22.

NIM stood at 11.5% for Q4 FY22.

Adjusted NIM would be at 12.5% for Q4 FY22.

Cost to Income ratio stood at 30.4% in Q4 FY22.

OPEX to GLP reduced to 4.5% I Q4 FY22.

PPOP grew by 10.9% YoY to 332 crores in Q4 FY22.

Credit Cost is at 128 crores in Q4 FY22.

Credit Cost was partially offset by 22.84 crores banded recovery in Q4 FY22.

PAT is at 152 crores in Q4 FY22.

ROA is at 4.1% in Q4 FY22.

ROE is at 15.6% in Q4 FY22.

GNPA is reduced to 3.12% in Q4 FY22 from 5.5% in Q3 FY22.

NNPA reduced to 0.9% in Q4 FY22.

PAR90+ stood at 2.26% in Q4 FY22.


Profitability Numbers (Consolidated):

NII grew by 11.4% YoY to 1,653 crores in FY22.

PPOP grew by 13.2% YoY to 1,077 crores in FY22.

Credit Cost is down by 22.6% YoY to 596 crores in FY22 compared to 771 crores in FY21.

Bad debt recovery stood strong at 74.1 crores in FY22 compared to 15.74 crores in FY21.

PAT grew by 171.8% to 357.1 crores in FY22 compared to 131.4 crores in FY21.

ROA stood at 2.2% in FY22 compared to 0.9% in FY21.

GNPA is at 3.61% and NNPA is at 1.31% in FY22.

Liquidity stood strong with 1,761.4 crores amounting to 10% of total assets.

Capital Liquidity remains strong at 22.8% in FY22.

 
Collection Efficiency:

Collection Efficiency of CA Grameen stood at 96% excluding areas and at 95% including areas.

Non-Paying NPA customers collection efficiency is at 99.5% by March, 2022.

 Collection Efficiency of MMFL stood at 92% excluding areas and 94% including areas in March, 2022 compared to 91% in December, 2021.

In April Collection Efficiency for CA Grameen improved to 97% for both excluding and including areas.

In April Collection Efficiency for MMFL is at 92% for excluding areas and 93% for including areas.


FY23 Prediction:

Compared to FY22, FY23 will witness lower interest reversal and lower negative carry impact on account of accessibility which will boost NIM.

Cost of Borrowings for FY23 would be around 9.3-9.4% on consolidated basis.

Looking forward to achieve loan portfolio growth of 24-25% in FY23.

Credit Cost would be around 1.8-2% in FY23.

Aiming to achieve ROA of 4-4.2% and ROE of 15-18% in FY23.

 

LEGAL DISCLAIMER:

Use of this information is at the users own risk. The Company and its directors, associates and employees will not be liable for any loss or liability incurred to the user due to investments made or decisions taken based on the information provided herein. The investment discussed or views expressed herein may not be suitable for all investors. The users should rely on their own research and analysis and should consult their investment advisors to determine the merit, risks and suitability of recommendation. Past performance is not a guarantee for future performance or future results. Information herein is believed to be reliable, although its accuracy and completeness cannot be guaranteed. The images used may be copyright of the company or third party. As a condition to using the services, the user agrees to the terms of use of the website and the services.

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Yadnya Academy Pvt. Ltd. (InvestYadnya) is registered with SEBI under SEBI (Research Analyst) Regulations, 2014 with registration no. INH000008349.

Disclosure with regard to ownership and material conflicts of interest:

1. Neither Research Analyst nor the entity nor his associates or relatives have any financial interest in the subject Company;

2. Neither Research Analyst nor the entity nor its associates or relatives have actual /beneficial ownership of one percent or more securities of the subject Company, at the end of the month immediately preceding the date of publication of the research report or date of public appearance;

3. Neither Research Analyst nor the entity nor its associates or his relatives have any other material conflict of interest at the time of publication of the research report or at the time of public appearance.

Disclosure with regard to receipt of Compensation:

1. The Research Entity and its associates have not received compensation from the subject company in the past twelve months.

2. The subject company is not or was not a client during the twelve months preceding the date of recommendation.



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