CreditAccess Grameen Ltd, through a regulatory filing with the exchange, provided business updates for Q4 FY23. All the indicators are positive with the main highlight being the AUM and disbursements which increased by 27 percent and 24 percent respectively.
AUM moved from Rs 16,599 crores in Q4 FY22 to Rs 21,032 crores in Q4 FY23. Disbursements took a shift from Rs 5,792 crores in Q4 FY22 to Rs 7,171 crores in Q4 FY23.
On the above release of information, the stock jumped more than 5 percent in the first few minutes and touched an intra-day high at Rs 1,042. Thereafter, the stock was on a downfall and currently trades at Rs 960. In a span of one week, the stock has provided 6 percent returns to its stakeholders.
CreditAccess Grameen Ltd is engaged in the provision of financial and non-financial products and services. The company provides micro-finance services to women who are enrolled as members and organized as Joint Liability Groups.
The sole operating segment is with respect to lending to members. Its financial products include income generation loans, home improvement loans, emergency loans, family welfare loans, Grameen Udyog loan, Grameen savaari loan, Grameen Vikas loan, etc.
Having a walkthrough of the financials, the company, on a QoQ basis, has reported an increase in numbers as far as revenues and net profits are concerned. Revenues moved from Rs 812 crores in Q2 to Rs 908 crores in Q3. Moreover, the net profits shifted from Rs 176 crores in Q2 to 217 crores in Q3.
Profitability ratios such as the ROE and ROCE figures too increased in the recent financial years with ROE moving from 4.1 percent in FY20-21 to 9.34 percent in FY21-22 and ROCE taking a movement from 8.28 percent in FY20-21 to 9.31 percent in FY21-22. The net profit margins have moved up from 5.34 percent in FY20-21 to 13.02 percent in FY21-22.
Something of a concern is the increasing debt to equity ratio of the company with the most recent shift being from 2.97 in FY20-21 to 3.26 in FY21-22.
Written by Amit Madnani
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