CreditAccess Grameen (CREDITACC) Q4 09/10 earnings summary

Executive summary

• FY10 total income reached Rs 53.78cr and PAT Rs 0.94cr; branches grew to 146, members to 427,144 and outstanding portfolio to Rs 330.17cr.

• Growth and profitability were affected by borrower defaults in Karnataka, which slowed disbursements and drove higher provisioning and loan write-offs.

Financial highlights

• Total income was Rs 53.78cr vs Rs 34.05cr in FY09; total expenses were Rs 51.90cr vs Rs 33.15cr.

• PBT was Rs 1.88cr vs Rs 0.90cr; PAT was Rs 0.94cr vs Rs 0.49cr. No equity dividend was proposed.

• Operating income was Rs 52.74cr, including Rs 33.07cr interest on microfinance loans and Rs 12.53cr income from portfolio sales.

Outlook and guidance

• Plans called for extending microfinance and development services to 3 additional states, taking the operating footprint to 6 states, and recruiting specialists across key functions.

• The stated vision was to serve 2 million poor and low-income households across 7 states by 2012.