GREENCREST FINANCIAL 2022-23 Annual Report Analysis

Wed, 28 Jun

GREENCREST FINANCIAL has announced its results for the year ended March 2023. Let us have a look at the detailed performance review of the company during the year 2022-23.

GREENCREST FINANCIAL Income Statement Analysis

• Interest income during the year rose 175.7% on a year-on-year (YoY) basis.
• Interest expenses were up by 683.3% YoY during the same period.
• Operating expenses increased by 171.6% YoY during the year.
• The company's net interest income (NII) increased by 166.2% YoY during the fiscal. Consequently, net interest margins (NIM) witnessed a growth and stood at 758.5% in FY23 as against 235.0% in FY22.
• Other income increased by 0.0% YoY during the year.
• Net profit for the year increased by 126.3% YoY.
• Net profit margins during the year declined to 5.1% in FY23 from 6.3% in FY22.

GREENCREST FINANCIAL Income Statement – 2022-23

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Interest Income	Rs m	89	245	175.7%
Other Income	Rs m	0	0	0.0%
Interest Expense	Rs m	2	13	683.3%
Net Interest Income	Rs m	87	232	166.2%
Operating Expense	Rs m	79	215	171.6%
Pre-provision Operating Profit	Rs m	8	17	114.0%
Provisions & Contingencies	Rs m	19	42	119.4%
Profit before tax	Rs m	7	17	124.3%
Tax	Rs m	2	4	118.7%
Profit after tax	Rs m	6	13	126.3%
Minority Interest	Rs m	0	0	0.0%
Net Interest Margin	%	235.0	758.5
Net profit margin	%	6.3	5.1

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GREENCREST FINANCIAL Balance Sheet Analysis

• The company's deposits during FY23 stood at Rs 0 m as compared to Rs 0 m in FY22, thereby witnessing an increase of 0.0%.
• Advances for the year stood at Rs 0 m as compared to Rs 0 m during FY22, a rise of 0.0%.
• Cost of deposits for GREENCREST FINANCIAL rose 0.0% and stood at 0.0%, while yield on advances rose to 0.0%.
• The lender's investments fell to Rs 31 m during the year from Rs 37 m in FY22.
• Borrowing stood at Rs 248 m, a growth of 97.9% as compared to previous year.
• Overall, the total assets and liabilities for FY23 stood at Rs 781 m as against Rs 651 m during FY22, thereby witnessing a rise of 19.9%.

GREENCREST FINANCIAL Balance Sheet – as on March 2023

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Networth	Rs m	514	527	2.4%
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	37	31	-17.5%
Borrowings	Rs m	125	248	97.9%
Total Assets	Rs m	651	781	19.9%

Current Valuations for GREENCREST FINANCIAL

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 0.0, an improvement from the EPS of Rs 0.2 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 0.6, stands at 50.5 times its trailing twelve months earnings.
• The price to adjusted book value (P/ABV) ratio at current price levels stands at 0.4 times, while the price to income ratio stands at 2.6 times.

Per Share Data/Valuations

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*
Income per share (Unadj.)	Rs	2.4	0.7
Earnings per share (Unadj.)	Rs	0.2	0.0
Diluted earnings per share	Rs	0.0	0.0
Avg P/E ratio	Rs	3.2	50.5
Avg P/ABV ratio	Rs	0.5	0.4
Avg Market Cap	Rs	18	634
Dividends per share (Unadj.)	Rs	0.00	0.00

Ratio Analysis for GREENCREST FINANCIAL

• Efficiency Ratios

  Credit/Deposit Ratio: The company's credit/deposit ratio improved and stood at 0.0x during FY23, from 0.0x during FY22. 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 0.47x during FY23, from 0.24x during FY22. 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): GREENCREST FINANCIAL's capital adequacy ratio (CAR) was at 0.0% as on 31 March 2023 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 2.4% during FY23, from 1.1% during FY22. 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 1.61% during FY23, from 0.85% during FY22. 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 4.17% during FY23, from 1.58% during FY22. 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. GREENCREST FINANCIAL's gross NPA ratio stood at 0.0% as of 31 March 2023 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 GREENCREST FINANCIAL was 0.0% in financial year 2023. This compared with 0.0% a year ago.

Key Ratio Analysis

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*
Credit/Deposit Ratio	x	0.0	0.0
Debt to Equity Ratio	x	0.2	0.5
Loans / Deposits	x	0.0	0.0
Capital Adequacy Ratio	%	0.0	0.0
Return on Equity	%	1.1	2.4
Return on Assets	%	0.9	1.6
Return on Capital Employed	%	1.6	4.2
% 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 GREENCREST FINANCIAL has performed over the last 5 years, please visit here.

GREENCREST FINANCIAL Share Price Performance

Over the last one year, GREENCREST FINANCIAL share price has moved down from Rs 0.7 to Rs 0.6, registering a loss of Rs 0.0 or around 5.9%.

Overall, the S&P BSE SENSEX is up 19.3% over the year.

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