CREDITACCESS GRAMEEN 2022-23 Annual Report Analysis

Wed, 2 Aug

CREDITACCESS GRAMEEN has announced its results for the year ended March 2023. Let us have a look at the detailed performance review of the company during the year 2022-23.

CREDITACCESS GRAMEEN Income Statement Analysis

• Interest income during the year rose 29.3% on a year-on-year (YoY) basis.
• Interest expenses were up by 23.2% YoY during the same period.
• Operating expenses declined by 4.5% YoY during the year.
• The company's net interest income (NII) increased by 32.7% YoY during the fiscal. Consequently, net interest margins (NIM) witnessed a growth and stood at 11.6% in FY23 as against 11.5% in FY22.
• Other income declined by 22.4% YoY during the year.
• Net profit for the year increased by 134.0% YoY.
• Net profit margins during the year increased to 23.3% in FY23 from 12.9% in FY22.

CREDITACCESS GRAMEEN Income Statement – 2022-23

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Interest Income	Rs m	27,428	35,451	29.3%
Other Income	Rs m	73	57	-22.4%
Interest Expense	Rs m	9,874	12,161	23.2%
Net Interest Income	Rs m	17,554	23,290	32.7%
Operating Expense	Rs m	12,347	11,794	-4.5%
Pre-provision Operating Profit	Rs m	5,280	11,553	118.8%
Provisions & Contingencies	Rs m	208	265	26.9%
Profit before tax	Rs m	4,808	11,054	129.9%
Tax	Rs m	1,277	2,794	118.7%
Profit after tax	Rs m	3,531	8,261	134.0%
Minority Interest	Rs m	0	0	0.0%
Net Interest Margin	%	11.5	11.6
Net profit margin	%	12.9	23.3

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CREDITACCESS GRAMEEN Balance Sheet Analysis

• The company's deposits during FY23 stood at Rs 0 m as compared to Rs 0 m in FY22, thereby witnessing an increase of 0.0%.
• Advances for the year stood at Rs 190.4 bn as compared to Rs 147.7 bn during FY22, a rise of 29.0%.
• Cost of deposits for CREDITACCESS GRAMEEN rose 0.0% and stood at 0.0%, while yield on advances rose to 0.0%.
• The lender's investments rose to Rs 10.3 bn during the year from Rs 5.1 bn in FY22.
• Borrowing stood at Rs 253 m, a fall of 1.2% as compared to previous year.
• Overall, the total assets and liabilities for FY23 stood at Rs 225.3 bn as against Rs 179.7 bn during FY22, thereby witnessing a rise of 25.4%.

CREDITACCESS GRAMEEN Balance Sheet – as on March 2023

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Networth	Rs m	41,552	50,876	22.4%
Advances	Rs m	147,653	190,433	29.0%
Deposits	Rs m	0	0	0.0%
Yield on advances	%	0.0	0.0
Cost of Deposits	%	0.0	0.0
Investments	Rs m	5,064	10,265	102.7%
Borrowings	Rs m	256	253	-1.2%
Total Assets	Rs m	179,652	225,334	25.4%

Current Valuations for CREDITACCESS GRAMEEN

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 52.0, an improvement from the EPS of Rs 22.7 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 1,455.6, stands at 19.1 times its trailing twelve months earnings.
• The price to adjusted book value (P/ABV) ratio at current price levels stands at 4.6 times, while the price to income ratio stands at 4.5 times.

Per Share Data/Valuations

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*
Income per share (Unadj.)	Rs	176.0	223.1
Earnings per share (Unadj.)	Rs	22.7	52.0
Diluted earnings per share	Rs	22.2	51.9
Avg P/E ratio	Rs	30.3	19.1
Avg P/ABV ratio	Rs	3.9	4.6
Avg Market Cap	Rs	107,045	157,989
Dividends per share (Unadj.)	Rs	0.00	0.00

Ratio Analysis for CREDITACCESS GRAMEEN

• Efficiency Ratios

  Credit/Deposit Ratio: The company's credit/deposit ratio improved and stood at 19,043,340.0x during FY23, from 14,765,330.0x during FY22. The credit/deposit ratio tells us how much money a company has raised in the form of deposits and has deployed as loans.

  Debt to Equity Ratio: The company's debt to equity ratio decreased and stood at 0.00x during FY23, from 0.01x during FY22. The debt to equity ratio of a company tells us how much debt a company uses relative to its equity.

• Liquidity Ratios

  Capital Adequacy Ratio (CAR): CREDITACCESS GRAMEEN's capital adequacy ratio (CAR) was at 0.0% as on 31 March 2023 as compared to 26.5% a year ago. This ratio helps measure the financial strength of the company or any finance company to meet their obligations using their assets and capital.

  A company that has a good CAR has enough capital to absorb potential losses. Thus, it has less risk of becoming insolvent and losing depositor's money.

  Provision Coverage Ratio (PCR): Apart from CAR, you also need to take a look at the company's PCR and LCR ratios. Provisioning coverage ratio (PCR) is the percentage of funds that a company sets aside for covering losses due to bad debts.

  So a high PCR ratio means asset quality issues are under control and the company is not vulnerable.

  Liquidity Coverage Ratio (LCR): The LCR is designed to ensure that companies hold a sufficient reserve of high-quality liquid assets to allow them to survive a period of significant liquidity stress lasting 30 calendar days.

• Profitability Ratios

  Return on Equity (ROE): The return on equity (ROE) ratio for the company improved and stood at 16.2% during FY23, from 8.5% during FY22. The ROE measures the ability of a firm to generate profits from its shareholders capital in the company.

  Return on Assets (ROA): The return on asset (ROA) ratio of the company improved and stood at 3.67% during FY23, from 1.97% during FY22. The ROA measures how efficiently the company uses its assets to generate earnings.

  Return on Capital Employed (ROCE): The ROCE for the company improved and stood at 12.06% during FY23, from 9.26% during FY22. The ROCE measures the ability of a company to generate profits from its total capital (shareholder capital plus debt capital) employed in the company.

• NPA Ratios

  Gross NPA Ratio: The gross NPA ratio is the ratio of a company's gross NPAs to gross advances. CREDITACCESS GRAMEEN's gross NPA ratio stood at 0.0% as of 31 March 2023 compared to 0.0% in the same period a year ago.

  A high gross NPA ratio is a bad thing as it indicates how much of a company's loans are in danger of not being repaid.

  Net NPA Ratio: In simple language, net NPAs are simply the total non-performing assets minus the provision left aside. It gives you the exact value of NPAs after the company has made provisions.

  The net NPA ratio of CREDITACCESS GRAMEEN was 0.0% in financial year 2023. This compared with 0.9% a year ago.

Key Ratio Analysis

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*
Credit/Deposit Ratio	x	14,765,330.0	19,043,340.0
Debt to Equity Ratio	x	0.0	0.0
Loans / Deposits	x	0.0	0.0
Capital Adequacy Ratio	%	26.5	0.0
Return on Equity	%	8.5	16.2
Return on Assets	%	2.0	3.7
Return on Capital Employed	%	9.3	12.1
% of Gross NPAs	%	0.0	0.0
% of Net NPAs	%	0.9	0.0
Yield on Advances	x	0.0	0.0
Yield on Investments	x	0.0	0.0

To see how CREDITACCESS GRAMEEN has performed over the last 5 years, please visit here.

CREDITACCESS GRAMEEN Share Price Performance

Over the last one year, CREDITACCESS GRAMEEN share price has moved up from Rs 1,009.2 to Rs 1,455.6, registering a gain of Rs 446.4 or around 44.2%.

Overall, the S&P BSE SENSEX is up 13.2% over the year.

(To know more, you can check out historical annual results for CREDITACCESS GRAMEEN here and quarterly results for CREDITACCESS GRAMEEN here)