CREDITACCESS GRAMEEN 2023-24 Annual Report Analysis

Fri, 19 Jul

CREDITACCESS GRAMEEN 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.

CREDITACCESS GRAMEEN Income Statement Analysis

• Interest income during the year rose 45.7% on a year-on-year (YoY) basis.
• Interest expenses were up by 42.9% YoY during the same period.
• Operating expenses increased by 22.4% YoY during the year.
• The company's net interest income (NII) increased by 47.2% YoY during the fiscal. Consequently, net interest margins (NIM) witnessed a growth and stood at 12.3% in FY24 as against 11.6% in FY23.
• Other income increased by 5.5% YoY during the year.
• Net profit for the year increased by 75.0% YoY.
• Net profit margins during the year increased to 28.0% in FY24 from 23.3% in FY23.

CREDITACCESS GRAMEEN Income Statement – 2023-24

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Interest Income	Rs m	35,451	51,667	45.7%
Other Income	Rs m	57	60	5.5%
Interest Expense	Rs m	12,161	17,384	42.9%
Net Interest Income	Rs m	23,290	34,283	47.2%
Operating Expense	Rs m	11,794	14,440	22.4%
Pre-provision Operating Profit	Rs m	11,553	19,903	72.3%
Provisions & Contingencies	Rs m	265	32	-87.8%
Profit before tax	Rs m	11,054	19,392	75.4%
Tax	Rs m	2,794	4,933	76.6%
Profit after tax	Rs m	8,261	14,459	75.0%
Minority Interest	Rs m	0	0	0.0%
Net Interest Margin	%	11.6	12.3
Net profit margin	%	23.3	28.0

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CREDITACCESS GRAMEEN 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 251.0 bn as compared to Rs 190.4 bn during FY23, a rise of 31.8%.
• Cost of deposits for CREDITACCESS GRAMEEN rose 0.0% and stood at 0.0%, while yield on advances rose to 0.0%.
• The lender's investments rose to Rs 28.1 bn during the year from Rs 10.3 bn in FY23.
• Borrowing stood at Rs 252 m, a fall of 0.1% as compared to previous year.
• Overall, the total assets and liabilities for FY24 stood at Rs 300.1 bn as against Rs 225.3 bn during FY23, thereby witnessing a rise of 33.2%.

CREDITACCESS GRAMEEN Balance Sheet – as on March 2024

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Networth	Rs m	50,876	65,388	28.5%
Advances	Rs m	190,433	251,050	31.8%
Deposits	Rs m	0	0	0.0%
Yield on advances	%	0.0	0.0
Cost of Deposits	%	0.0	0.0
Investments	Rs m	10,265	28,109	173.8%
Borrowings	Rs m	253	252	-0.1%
Total Assets	Rs m	225,334	300,100	33.2%

Current Valuations for CREDITACCESS GRAMEEN

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 90.7, an improvement from the EPS of Rs 52.0 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 1,300.9, stands at 14.9 times its trailing twelve months earnings.
• The price to adjusted book value (P/ABV) ratio at current price levels stands at 3.2 times, while the price to income ratio stands at 4.2 times.

Per Share Data/Valuations

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*
Income per share (Unadj.)	Rs	223.1	324.2
Earnings per share (Unadj.)	Rs	52.0	90.7
Diluted earnings per share	Rs	51.8	90.7
Avg P/E ratio	Rs	19.1	14.9
Avg P/ABV ratio	Rs	4.1	3.2
Avg Market Cap	Rs	157,989	214,968
Dividends per share (Unadj.)	Rs	0.00	10.00

Ratio Analysis for CREDITACCESS GRAMEEN

• Efficiency Ratios

  Credit/Deposit Ratio: The company's credit/deposit ratio improved and stood at 25,104,990.0x during FY24, from 19,043,340.0x 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 decreased 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): CREDITACCESS GRAMEEN's capital adequacy ratio (CAR) was at 23.1% as on 31 March 2024 as compared to 23.6% 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 22.1% during FY24, from 16.2% 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 4.82% during FY24, from 3.67% 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 14.76% during FY24, from 12.06% 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. CREDITACCESS GRAMEEN'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 CREDITACCESS GRAMEEN was 0.4% in financial year 2024. This compared with 0.4% a year ago.

Key Ratio Analysis

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*
Credit/Deposit Ratio	x	19,043,340.0	25,104,990.0
Debt to Equity Ratio	x	0.0	0.0
Loans / Deposits	x	0.0	0.0
Capital Adequacy Ratio	%	23.6	23.1
Return on Equity	%	16.2	22.1
Return on Assets	%	3.7	4.8
Return on Capital Employed	%	12.1	14.8
% of Gross NPAs	%	0.0	0.0
% of Net NPAs	%	0.4	0.4
Yield on Advances	x	0.0	0.0
Yield on Investments	x	0.0	0.0

To see how CREDITACCESS GRAMEEN has performed over the last 5 years, please visit here.

CREDITACCESS GRAMEEN Share Price Performance

Over the last one year, CREDITACCESS GRAMEEN share price has moved down from Rs 1,305.2 to Rs 1,300.9, registering a loss of Rs 4.3 or around 0.3%.

Overall, the S&P BSE SENSEX is up 23.1% over the year.

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