CreditAccess Grameen (CREDITACC) Q4 16/17 earnings summary

Executive summary

• FY17 portfolio reached Rs 3,075.4 crore, up 21% YoY, with 1.65 million customers, 393 branches and presence in 96 districts, despite a post-demonetization growth pause.

• Revenue rose 52% to Rs 709.26 crore; PAT declined 9% to Rs 75.26 crore amid substantially higher provisioning and operating costs.

Financial highlights

• Total revenue Rs 709.26 crore vs Rs 466.72 crore; PBT Rs 116.59 crore vs Rs 130.36 crore; PAT Rs 75.26 crore vs Rs 83.78 crore.

• Revenue from operations was Rs 701.75 crore; finance costs Rs 324.25 crore vs Rs 207.43 crore, and provision and write-offs Rs 108.60 crore vs Rs 14.02 crore.

• Loans disbursed totaled Rs 3,402.63 crore vs Rs 3,348.84 crore; year-end portfolio was Rs 3,075.44 crore vs Rs 2,539.06 crore.

Outlook and guidance

• Growth was expected to resume in FY18 with new branches and staffing in place; demonetization-related conditions were expected to stabilize by mid-FY18.

• Management anticipated continued recovery after a roughly five-month growth impact, with the portfolio remaining near its September 2016 level during that period.