ABANS HOLDINGS 2023-24 Annual Report Analysis

Mon, 8 Jul

ABANS HOLDINGS 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.

ABANS HOLDINGS Income Statement Analysis

• Interest income during the year rose 18.6% on a year-on-year (YoY) basis.
• Interest expenses were up by 434.2% YoY during the same period.
• Operating expenses increased by 14.0% YoY during the year.
• The company's net interest income (NII) increased by 15.1% YoY during the fiscal. Consequently, net interest margins (NIM) witnessed a decline and stood at 131.1% in FY24 as against 200.9% in FY23.
• Other income increased by 39.2% YoY during the year.
• Net profit for the year increased by 26.2% YoY.
• Net profit margins during the year increased to 5.9% in FY24 from 5.6% in FY23.

ABANS HOLDINGS Income Statement – 2023-24

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Interest Income	Rs m	11,626	13,783	18.6%
Other Income	Rs m	15	20	39.2%
Interest Expense	Rs m	97	517	434.2%
Net Interest Income	Rs m	11,529	13,266	15.1%
Operating Expense	Rs m	10,776	12,280	14.0%
Pre-provision Operating Profit	Rs m	767	1,006	31.1%
Provisions & Contingencies	Rs m	269	824	206.7%
Profit before tax	Rs m	760	1,000	31.7%
Tax	Rs m	57	108	90.2%
Profit after tax	Rs m	648	818	26.2%
Minority Interest	Rs m	-55	-75	-35.7%
Net Interest Margin	%	200.9	131.1
Net profit margin	%	5.6	5.9

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ABANS HOLDINGS 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 ABANS HOLDINGS rose 0.0% and stood at 0.0%, while yield on advances rose to 0.0%.
• The lender's investments rose to Rs 10.1 bn during the year from Rs 5.7 bn in FY23.
• Borrowing stood at Rs 7.3 bn, a growth of 116.8% as compared to previous year.
• Overall, the total assets and liabilities for FY24 stood at Rs 29.0 bn as against Rs 18.6 bn during FY23, thereby witnessing a rise of 55.5%.

ABANS HOLDINGS Balance Sheet – as on March 2024

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Networth	Rs m	8,269	9,147	10.6%
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	5,739	10,123	76.4%
Borrowings	Rs m	3,350	7,261	116.8%
Total Assets	Rs m	18,630	28,974	55.5%

Current Valuations for ABANS HOLDINGS

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 16.3, an improvement from the EPS of Rs 12.9 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 492.7, stands at 17.3 times its trailing twelve months earnings.
• The price to adjusted book value (P/ABV) ratio at current price levels stands at 2.7 times, while the price to income ratio stands at 1.0 times.

Per Share Data/Valuations

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*
Income per share (Unadj.)	Rs	231.8	274.8
Earnings per share (Unadj.)	Rs	12.9	16.3
Diluted earnings per share	Rs	12.9	16.3
Avg P/E ratio	Rs	17.7	17.3
Avg P/ABV ratio	Rs	1.7	2.7
Avg Market Cap	Rs	11,460	14,166
Dividends per share (Unadj.)	Rs	0.00	0.00

Ratio Analysis for ABANS HOLDINGS

• 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 0.79x during FY24, from 0.41x 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): ABANS HOLDINGS'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 8.9% during FY24, from 7.8% 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 deteriorated and stood at 2.82% during FY24, from 3.48% 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 9.70% during FY24, from 8.63% 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. ABANS HOLDINGS'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 ABANS HOLDINGS 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	0.4	0.8
Loans / Deposits	x	0.0	0.0
Capital Adequacy Ratio	%	0.0	0.0
Return on Equity	%	7.8	8.9
Return on Assets	%	3.5	2.8
Return on Capital Employed	%	8.6	9.7
% 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 ABANS HOLDINGS has performed over the last 5 years, please visit here.

ABANS HOLDINGS Share Price Performance

Over the last one year, ABANS HOLDINGS share price has moved up from Rs 280.3 to Rs 492.7, registering a gain of Rs 212.5 or around 75.8%.

Overall, the S&P BSE SENSEX is up 21.9% over the year.

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