CreditAccess Grameen (CREDITACC) Q4 15/16 earnings summary

Executive summary

• FY2015-16 delivered strong expansion: portfolio outstanding reached Rs 2,543.4 crore, active customers 1.39 million, and the network 298 branches across 74 districts and five states.

• Reported profit after tax rose to Rs 83.78 crore from Rs 49.46 crore; total revenue was Rs 466.72 crore versus Rs 281.43 crore.

• Growth was supported by Rs 120 crore of strategic investor capital, new lender relationships, lower operating expense ratio and continued high repayment performance.

Financial highlights

• Revenue from operations was Rs 456.95 crore versus Rs 268.16 crore; total revenue was Rs 466.72 crore versus Rs 281.43 crore.

• Profit before tax was Rs 130.36 crore versus Rs 76.08 crore; profit after tax was Rs 83.78 crore versus Rs 49.46 crore.

• Finance costs rose to Rs 207.43 crore from Rs 127.89 crore; provision and write-offs increased to Rs 14.02 crore from Rs 6.84 crore.

• Loan disbursements reached Rs 3,348.84 crore versus Rs 1,893.91 crore; portfolio outstanding increased to Rs 2,539.06 crore from Rs 1,447.08 crore in the Directors’ Report.

Outlook and guidance

• Strategy remains focused on the NBFC-MFI model, extending existing products into new geographies and consolidating Madhya Pradesh and Chhattisgarh operations.

• Interest rates were reduced three times in FY2015-16, from a 22%-26% range to 20%-23%, with further efficiency gains intended to benefit customers.