Shares of CreditAccess Grameen Limited jumped nearly 9 percent and currently trades at Rs 1,181.35. The scrip hit its 52-week high mark at a price of Rs 1,212.70. In the last 5 trading sessions itself, the stock has gained around 13 percent ranging from Rs 1,045.35 to the current price levels.
The company, through a regulatory filing with the exchange, announced its results for the last quarter as well as the annual period pertaining to FY22-23. Details of the same are discussed later on in the report.
CreditAccess Grameen Limited is engaged in the business of providing financial as well as non-financial products and services. Moreover, it provides microfinance services to women enrolled as members and organized as ‘Joint Liability Groups’.
The product portfolio of the company includes home improvement loans, emergency loans, Grameen Vikas loans, SAC workshops, etc. Geographically, the company only has domestic operations within India.
Digging into the financials reported by the company, the operating revenues increased from Rs 908 crores in Q3 v/s Rs 1,065 crores in Q4. Moreover, the profit after tax (PAT) numbers moved from Rs 216 crores to Rs 297 crores keeping the timeframe the same.
On a YoY basis too, the company has been successful in maintaining healthy growth in the metrics mentioned above with the operating revenues increasing from Rs 2,743 crores during FY21-22 to Rs 3,545 crores in FY22-23 and net profits moving from Rs 353 crores to Rs 826 crores that represented an increase of around 134 percent.
Coming onto the profitability ratios, the return on equity (ROE) took a shift from 4.1 percent during FY20-21 to 9.34 percent in FY21-22. Likewise, the return on capital employed (ROCE) shifted from 8.28 percent to 9.31 percent.
In the latest financial report released by the company, the net profit margins of the company were observed to go up from 13.02 percent during FY21-22 to 23.3 percent in FY22-23.
According to the latest shareholding data available for the March quarter, promoters of the company hold a 73.68 percent stake, and Foreign Institutional Investors (FIIs) hold a 9.67 percent stake in the company.
Written by Amit Madnani
