George Alexander Muthoot, MD & Oommen K. Mammen, CFO addr the call:Highlights by Capital Mkt
The loan book of the company increased at steady pace of 14% to Rs 24833 crore at end September 2015. The company has added Rs 500 crore to the loan book in Q2FY2016, despite challenging environment. The company expects loan growth of 10-15% for FY2016.The number of gold loan accounts has further increased to 68 lakh at end September 2015 from 65 lakh at end June 2015.The company has been in the process of transforming its business, sales and marketing culture over last one year.The company has completed issuance of Rs 500 crore of NCDs in October 2015. The interest rate on fresh issuance of NCDs is consistently declining.
The gold bonds book of the bank company, which carries the higher interest cost of above 11%, is running down every month.As per the company, it would pass on the benefits of declining cost of funds to the customer's subject to maintaining NIMs at 9%.
Interest rate charged by the company hovers in the range of 12-22% with the average lending rate at 18%. The lower interest rate is charged for teaser loans, where the LTV is substantially lower.The company is waiting for home loan finance license from RBI and NHB.The spike in NPAs in Q2FY2016 was mainly on account of slowdown of gold auctions due to festival season in Kerala.
The company intends to switch to 150 days overdues NPA recognition norms by end March 2016 in line with the guidelines, while plans to switch to 90 days overdues NPA recognition norms ahead of regulatory deadline of March 2018.
As per the company, at 90 days overdues basis, GNPAs would be higher by Rs 1000 crore at Rs 1634 crore at end September 2015, against exiting GNPA of Rs 634 crore at 180 days overdues basis.
The company has been changing its collection mechanism to have lesser impact of change in NPA recognition norms to 90 days overdues basis.
The company expects cost-to-income ratio to remain stable, as it do not plans to aggressively expand branch network for next two-three quarters.
Long term RoA is targeted at 3%.The broad of the company has declared the dividend of Rs 4 per share.The board has also approved the 100% acquisition of Muthoot Insurance Brokers for valuation of Rs 20 crore, subject to regulatory approvals. Muthoot Insurance Brokers has license to sell life and health insurance products.
The company expects its Sri Lankan subsidiary to declare small dividend by end 2015.

Rajat Monga, Senior Group President, Financial Markets & CFO addressed the call:Highlights by Capital Mkt
Bank has continued to post strong loan growth of 29% at end September 2015. Bank expects loan growth to be at 25% for FY2016.Bank has exhibited strong CASA growth momentum driven by surge in saving account deposits, while current account deposits growth was steady as bank has shed some unprofitable current accounts.
The healthy new account addition has mainly boosted the saving account deposits growth. Bank has stepped up saving account additions to 1]1.2 lakh customers every quarter compared to 80-90 thousand addition in the corresponding quarter last year. Bank has added 1.25 lakh accounts in Q2FY2016.
Average savings account cost stood at 6.9%. Bank has take further pricing adjustment measures. Bank has reduced the peak interest rate on saving account deposits to 6% from 7% earlier, which is expected to further reduce the cost of saving account deposits.
Bank has improved NIMs to 3.3%, while bank expects further improvement in NIMs with higher rising CASA and retail assets acquisition.
Bank has already been calculating its base rate on marginal cost of funding based methodology, so donft expect any impact of banking system shifting to marginal cost of funds base rate calculation.
Bank has board approval for capital raising of US$ 1 billion and plans to raise capital next year.
Fresh slippages of advances stood at Rs 130 crore in Q2FY2016. Meanwhile, bank has not sold any asset to asset reconstruction companies in Q2FY2016. Bank has also not undertaken any refinancing under the 5:25 scheme.

Sunil Pahilajani MD & CEO & Narayan Narasia CFO addr callHighlights by Capital Mkt
In September 2015 quarter, sales fell 4%to Rs 424.73 crore. Engines Division sales fell 4% to Rs 408.20 crore.While the revenue growth is still a concern on account of weak market conditions, various operational excellence initiatives have started yielding results and has been reflected in the EBITDA margins improvement.OPM jumped 510 basis points from 12.7% to 17.9% taking OP up 35% to Rs 75.97 crore.PBT grew 55% to Rs 75.42 crore. EO loss stood at Rs 1.85 crore against Rs 14.80 crore. PBT after EO soared 117% to Rs 73.57 crore. After providing for tax (up 195% to Rs 19.31 crore), PAT jumped 99% to Rs 54.26 crore.
For the six months ended September 2015, sales fell 7%to Rs 805.39 crore. For the six months, Engines Division sales fell 5% to Rs 778.34 crore.OPM jumped 520 basis points from 11.9% to 17.1% taking OP up 34% to Rs 138.11 crore.PBT grew 51% to Rs 133.71 crore. EO gains stood at Rs 5.54 crore against a loss of Rs 15.43 crore. Thus PBT after EO soared 90% to Rs 139.25 crore. After providing for tax (up 140% to Rs 41.65 crore), PAT jumped 74% to Rs 97.60 crore.
The company has show caused its modern 105 HP three cylinder, BS IV complaint, ' leap Engine' for automotive applications at recent Society of Automotive Engineers - China Congress & Exhibition at Shanghai, China which offers attractive value proposition to its OEMs. This thrust on farm Equipment sector continues with launch of indigenized Mini Power Tiller and Paddy Weeder. The company can provide more such engines of different variants.These farmer friendly products are value for money and suitable for local soil condition.
The launch of Greaves Mini Power Tiller and Greaves Paddy Weeder is a testimony to its continuous efforts in innovation and product development.Its Farm Equipment Business is focused on transforming the lives of small & marginal farmers by enabling them to mechanize various farming practices backed with strong service network & easily availability of Spare Parts in rural markets at affordable prices. These machines are certified by Government of India as per the latest standards andare backed by Greaves cotton's nationwide authorized dealer networks.The company has focused on few things. These include focus on genset business, farm equipment business, cost minimization and working capital improvement.Value engineering and other cost initiatives has helped the company in getting better margins. Benefit of lower commodity prices also has helped in improving the OPM.Going forward, commodity benefit will have to be passed on.Volumes for 3 wheeler was 80000 in September 2015 quarter (against 90000 y-o-y) and 4 wheeler was 10000 (10000) respectively.Pump business volume was 22000 in September 2015 quarter (against 25000 y-o-y) tiller was 1000 (against 2000).
Second half should be better than fist half in auto business.The company's market share in 4 wheeler segment is around 85%. The company is in Small Commercial Vehicle (SCV) segment which is sub 1 ton vehicle. The company can offer solutions for 3.5 tons also.Auto business accounts for 55% of its sales.After Markets sales accounts of 18-19 of sales.In tax the company enjoys benefits for R&D spends so it is 26-27%.The company has Rs 100 crore capex.Utilisation is 75% in Auto Engines.Around 55% of sales come from Auto OEMs, 18-19% comes from After Market and rest comes from agri power generation.3 wheeler and 4 wheelers segments will get better for the OEM's. This is what the company is hearing from the OEMs.Exports is 4% of sales and the company is hoping it to enhance it to 10% of sales in next 3 years.Price negotiations with the OEMs happen around twice a year.Volume wise second half is expected to be better than the first half.

Most of the good product lines like Pediasure is getting launched thru unlisted subsidiaries.