CreditAccess Grameen (CREDITACC) Q4 08/09 earnings summary

Executive summary

• FY09 was a high-growth year amid global credit-market disruption: revenue rose 64%, client base 84% and portfolio outstanding 119% YoY; net profit reached Rs 48.44 lakh.

• Operations expanded from Karnataka into Maharashtra, and individual lending launched through Maarg; year-end network reached 82 branches across two states.

Financial highlights

• Total income was Rs 340.50 crore versus Rs 103.87 crore in FY08; total expenses were Rs 331.49 crore versus Rs 91.39 crore.

• PBT was Rs 90.09 lakh versus Rs 124.84 lakh; PAT was Rs 48.44 lakh versus Rs 44.53 lakh, with EPS of Rs 0.46 versus Rs 5.40.

• Loan disbursements rose 121% to Rs 372.66 crore; outstanding portfolio increased 119% to Rs 181.30 crore, from Rs 82.65 crore.

• Financial charges on borrowings and portfolio sales were Rs 168.09 crore versus Rs 36.32 crore; higher borrowing costs reduced profitability.

Outlook and guidance

• FY10 plans included expansion in Karnataka, Maharashtra, Andhra Pradesh, Tamil Nadu and Madhya Pradesh, supported by additional field staff and professionals in key functions.

• Management expected operating costs to fall below 10% in FY10, from 11.9% in FY09 and 12.7% in FY08.

• Maarg planned three additional branches and 2,069 more clients, targeting five branches by March 2010.

• Fresh capital from national and international investors was planned in FY10 to support growth and regulatory capital adequacy.