ASHIKA CREDIT 2023-24 Annual Report Analysis

Tue, 29 Oct

ASHIKA CREDIT has announced its results for the year ended March 2024. Let us have a look at the detailed performance review of the company during the year 2023-24.

ASHIKA CREDIT Income Statement Analysis

• Interest income during the year rose 73.5% on a year-on-year (YoY) basis.
• Interest expenses were up by 532.8% YoY during the same period.
• Operating expenses increased by 19.3% YoY during the year.
• The company's net interest income (NII) increased by 68.4% YoY during the fiscal. Consequently, net interest margins (NIM) witnessed a decline and stood at 18.7% in FY24 as against 27.8% in FY23.
• Other income declined by 75.7% YoY during the year.
• Net profit for the year increased by 81.9% YoY.
• Net profit margins during the year increased to 58.2% in FY24 from 55.5% in FY23.

ASHIKA CREDIT Income Statement – 2023-24

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Interest Income	Rs m	106	184	73.5%
Other Income	Rs m	19	5	-75.7%
Interest Expense	Rs m	1	7	532.8%
Net Interest Income	Rs m	105	176	68.4%
Operating Expense	Rs m	45	53	19.3%
Pre-provision Operating Profit	Rs m	80	128	60.8%
Provisions & Contingencies	Rs m	192	145	-24.4%
Profit before tax	Rs m	79	128	60.6%
Tax	Rs m	21	21	0.0%
Profit after tax	Rs m	59	107	81.9%
Minority Interest	Rs m	0	0	0.0%
Net Interest Margin	%	27.8	18.7
Net profit margin	%	55.5	58.2

Don't Miss: Key Information for Long-term Investors

ASHIKA CREDIT Balance Sheet Analysis

• The company's deposits during FY24 stood at Rs 0 m as compared to Rs 0 m in FY23, thereby witnessing an increase of 0.0%.
• Advances for the year stood at Rs 0 m as compared to Rs 0 m during FY23, a rise of 0.0%.
• Cost of deposits for ASHIKA CREDIT rose 0.0% and stood at 0.0%, while yield on advances rose to 0.0%.
• The lender's investments rose to Rs 943 m during the year from Rs 377 m in FY23.
• Borrowing stood at Rs 0 m, a growth of 0.0% as compared to previous year.
• Overall, the total assets and liabilities for FY24 stood at Rs 967 m as against Rs 605 m during FY23, thereby witnessing a rise of 59.8%.

ASHIKA CREDIT Balance Sheet – as on March 2024

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Networth	Rs m	574	681	18.7%
Advances	Rs m	0	0	0.0%
Deposits	Rs m	0	0	0.0%
Yield on advances	%	0.0	0.0
Cost of Deposits	%	0.0	0.0
Investments	Rs m	377	943	150.4%
Borrowings	Rs m	0	0	0.0%
Total Assets	Rs m	605	967	59.8%

Current Valuations for ASHIKA CREDIT

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 9.0, an improvement from the EPS of Rs 5.0 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 554.1, stands at 6.8 times its trailing twelve months earnings.
• The price to adjusted book value (P/ABV) ratio at current price levels stands at 17.4 times, while the price to income ratio stands at 3.9 times.

Per Share Data/Valuations

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*
Income per share (Unadj.)	Rs	8.9	15.5
Earnings per share (Unadj.)	Rs	5.0	9.0
Diluted earnings per share	Rs	2.7	5.0
Avg P/E ratio	Rs	7.1	6.8
Avg P/ABV ratio	Rs	1.5	17.4
Avg Market Cap	Rs	416	725
Dividends per share (Unadj.)	Rs	0.00	0.00

Ratio Analysis for ASHIKA CREDIT

• Efficiency Ratios

  Credit/Deposit Ratio: The company's credit/deposit ratio improved and stood at 0.0x during FY24, from 0.0x during FY23. The credit/deposit ratio tells us how much money a company has raised in the form of deposits and has deployed as loans.

  Debt to Equity Ratio: The company's debt to equity ratio increased and stood at 0.00x during FY24, from 0.00x during FY23. The debt to equity ratio of a company tells us how much debt a company uses relative to its equity.

• Liquidity Ratios

  Capital Adequacy Ratio (CAR): ASHIKA CREDIT's capital adequacy ratio (CAR) was at 0.0% as on 31 March 2024 as compared to 0.0% a year ago. This ratio helps measure the financial strength of the company or any finance company to meet their obligations using their assets and capital.

  A company that has a good CAR has enough capital to absorb potential losses. Thus, it has less risk of becoming insolvent and losing depositor's money.

  Provision Coverage Ratio (PCR): Apart from CAR, you also need to take a look at the company's PCR and LCR ratios. Provisioning coverage ratio (PCR) is the percentage of funds that a company sets aside for covering losses due to bad debts.

  So a high PCR ratio means asset quality issues are under control and the company is not vulnerable.

  Liquidity Coverage Ratio (LCR): The LCR is designed to ensure that companies hold a sufficient reserve of high-quality liquid assets to allow them to survive a period of significant liquidity stress lasting 30 calendar days.

• Profitability Ratios

  Return on Equity (ROE): The return on equity (ROE) ratio for the company improved and stood at 15.7% during FY24, from 10.3% during FY23. The ROE measures the ability of a firm to generate profits from its shareholders capital in the company.

  Return on Assets (ROA): The return on asset (ROA) ratio of the company improved and stood at 11.07% during FY24, from 9.72% during FY23. The ROA measures how efficiently the company uses its assets to generate earnings.

  Return on Capital Employed (ROCE): The ROCE for the company improved and stood at 17.92% during FY24, from 13.59% during FY23. The ROCE measures the ability of a company to generate profits from its total capital (shareholder capital plus debt capital) employed in the company.

• NPA Ratios

  Gross NPA Ratio: The gross NPA ratio is the ratio of a company's gross NPAs to gross advances. ASHIKA CREDIT's gross NPA ratio stood at 0.0% as of 31 March 2024 compared to 0.0% in the same period a year ago.

  A high gross NPA ratio is a bad thing as it indicates how much of a company's loans are in danger of not being repaid.

  Net NPA Ratio: In simple language, net NPAs are simply the total non-performing assets minus the provision left aside. It gives you the exact value of NPAs after the company has made provisions.

  The net NPA ratio of ASHIKA CREDIT was 0.0% in financial year 2024. This compared with 0.0% a year ago.

Key Ratio Analysis

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*
Credit/Deposit Ratio	x	0.0	0.0
Debt to Equity Ratio	x	0.0	0.0
Loans / Deposits	x	0.0	0.0
Capital Adequacy Ratio	%	0.0	0.0
Return on Equity	%	10.3	15.7
Return on Assets	%	9.7	11.1
Return on Capital Employed	%	13.6	17.9
% of Gross NPAs	%	0.0	0.0
% of Net NPAs	%	0.0	0.0
Yield on Advances	x	0.0	0.0
Yield on Investments	x	0.0	0.0

To see how ASHIKA CREDIT has performed over the last 5 years, please visit here.

ASHIKA CREDIT Share Price Performance

Over the last one year, ASHIKA CREDIT share price has moved up from Rs 39.0 to Rs 554.1, registering a gain of Rs 515.1 or around 1321.4%.

Overall, the S&P BSE SENSEX is up 24.7% over the year.

(To know more, you can check out historical annual results for ASHIKA CREDIT here and quarterly results for ASHIKA CREDIT here)