Concall Notes – Nov 2023
Financial Results:
- Q2 FY24 net profit of INR 561 crores, up 37% YoY
Gold Loan Business:
- Gold loan AUM increased by 8.4% YoY and 1% sequentially
- Maintaining price discipline in gold loans at around 22%+
- Expecting growth of 8% YoY in gold loans
- Auction surplus has come down to around INR 30 crores
- No significant delinquencies in gold loan business
- No stress observed in gold loan portfolio
- Gold loan yields expected to stabilize around current levels (22-22.5%)
Other Loan Businesses:
- Standalone AUM grew by 20.2% YoY, consolidated AUM increased by 27% YoY
- Microfinance subsidiary, Asirvad, recorded a profit of INR 118 crores, up 109% YoY
- Vehicle finance business saw a 66.7% YoY increase in AUM
- Home loan business reported a 41% YoY growth in AUM
- Non-gold verticals now account for 47% of total AUM
- Asirvad Microfinance filed DRHP for fundraising, growth to be supported by current profits
Dividends and Payouts:
- Dividends increased and payouts raised to INR 0.85 during the quarter
Funding and Liquidity:
- Resolved issues related to funding and liquidity
- Expecting cost of funds to remain reasonable
Future Outlook:
- Expecting similar growth in Q3 due to festive and marriage season
Other Financial Highlights:
- Net gain on fair value changes and net gain on de-recognition of financial instruments reported in consolidated financial results
- Fee income from selling household products to MFI customers
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