CreditAccess Grameen (CREDITACC) Q4 12/13 earnings summary

Executive summary

• FY13 turnaround: revenue reached Rs 89.9 crore and PAT Rs 8.5 crore, versus a Rs 2.9 crore loss in FY12; portfolio outstanding rose to Rs 523.9 crore.

• Operations expanded in active borrowers and lending portfolio while reducing branches and staff; client protection and social programs remained central to the operating model.

Financial highlights

• Total revenue rose to Rs 89.9 crore from Rs 62.2 crore; total expenditure increased to Rs 80.9 crore from Rs 63.9 crore.

• PBT was Rs 9.0 crore versus a Rs 1.7 crore loss; PAT was Rs 8.5 crore versus a Rs 2.9 crore loss; EPS was Rs 3.23 versus negative Rs 1.17.

• Revenue from operations was Rs 86.7 crore; interest on portfolio loans was Rs 64.3 crore and securitization/assignment income was Rs 12.6 crore.

Outlook and guidance

• Management targeted reasonable growth of 30–40%, with technology investment and operating-cost reductions to offset the regulatory cap on net interest margin.

• FY14 housing portfolio target exceeded Rs 90 million, following FY13 rollout of Grameen Niwas; plans included broader branch reach and deeper client relationships.

• Plans included diversifying funding sources, maintaining liquidity, strengthening risk management, and continuing regulatory and industry engagement.