CREST VENTURES 2023-24 Annual Report Analysis

Thu, 8 Aug

CREST VENTURES 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.

CREST VENTURES Income Statement Analysis

• Interest income during the year fell 71.8% on a year-on-year (YoY) basis.
• Interest expenses were up by 106.2% YoY during the same period.
• Operating expenses increased by 4.6% YoY during the year.
• The company's net interest income (NII) decreased by 75.0% YoY during the fiscal. Consequently, net interest margins (NIM) witnessed a decline and stood at 29.7% in FY24 as against 111.5% in FY23.
• Other income declined by 65.6% YoY during the year.
• Net profit for the year declined by 84.8% YoY.
• Net profit margins during the year declined to 32.8% in FY24 from 60.8% in FY23.

CREST VENTURES Income Statement – 2023-24

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Interest Income	Rs m	6,505	1,836	-71.8%
Other Income	Rs m	14	5	-65.6%
Interest Expense	Rs m	114	236	106.2%
Net Interest Income	Rs m	6,391	1,601	-75.0%
Operating Expense	Rs m	714	747	4.6%
Pre-provision Operating Profit	Rs m	5,691	858	-84.9%
Provisions & Contingencies	Rs m	2,029	482	-76.2%
Profit before tax	Rs m	5,730	825	-85.6%
Tax	Rs m	1,772	205	-88.5%
Profit after tax	Rs m	3,958	601	-84.8%
Minority Interest	Rs m	0	-19	0.0%
Net Interest Margin	%	111.5	29.7
Net profit margin	%	60.8	32.8

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CREST VENTURES 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 CREST VENTURES rose 25.4% and stood at 5409.6%, while yield on advances rose to 0.0%.
• The lender's investments fell to Rs 5.4 bn during the year from Rs 5.7 bn in FY23.
• Borrowing stood at Rs 342 m, a growth of 47.2% as compared to previous year.
• Overall, the total assets and liabilities for FY24 stood at Rs 13.7 bn as against Rs 11.8 bn during FY23, thereby witnessing a rise of 16.1%.

CREST VENTURES Balance Sheet – as on March 2024

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Networth	Rs m	9,784	11,046	12.9%
Advances	Rs m	0	0	0.0%
Deposits	Rs m	0	0	0.0%
Yield on advances	%	0.0	0.0
Cost of Deposits	%	4314.8	5409.6
Investments	Rs m	5,733	5,394	-5.9%
Borrowings	Rs m	232	342	47.2%
Total Assets	Rs m	11,797	13,696	16.1%

Current Valuations for CREST VENTURES

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 21.3, an improvement from the EPS of Rs 140.4 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 420.8, stands at 15.7 times its trailing twelve months earnings.
• The price to adjusted book value (P/ABV) ratio at current price levels stands at 1.1 times, while the price to income ratio stands at 5.1 times.

Per Share Data/Valuations

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*
Income per share (Unadj.)	Rs	230.7	65.1
Earnings per share (Unadj.)	Rs	140.4	21.3
Diluted earnings per share	Rs	139.1	21.1
Avg P/E ratio	Rs	1.3	15.7
Avg P/ABV ratio	Rs	0.8	1.1
Avg Market Cap	Rs	5,129	9,413
Dividends per share (Unadj.)	Rs	1.00	1.00

Ratio Analysis for CREST VENTURES

• 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 0.03x during FY24, from 0.02x 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): CREST VENTURES's capital adequacy ratio (CAR) was at 86.5% as on 31 March 2024 as compared to 85.5% 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 deteriorated and stood at 5.4% during FY24, from 40.5% 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 4.39% during FY24, from 33.55% 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 deteriorated and stood at 8.63% during FY24, from 64.97% 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. CREST VENTURES'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 CREST VENTURES 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	%	85.5	86.5
Return on Equity	%	40.5	5.4
Return on Assets	%	33.6	4.4
Return on Capital Employed	%	65.0	8.6
% 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 CREST VENTURES has performed over the last 5 years, please visit here.

CREST VENTURES Share Price Performance

Over the last one year, CREST VENTURES share price has moved up from Rs 280.4 to Rs 420.8, registering a gain of Rs 140.4 or around 50.1%.

Overall, the S&P BSE SENSEX is up 20.0% over the year.

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