Call was add by Miss Sunita Sharma MD & CEO.Key Highlights by Capital Mkt
The disbursements for Q2 FY’16 stood at Rs 8390 crore, up by 17% YoY. As on Sep’15, the total outstanding loan book portfolio stood at Rs 114068 crore. 91.5% is from individual loan account, developer loan stands at 2.6% and LAP now accounts of about 5.6% of total loan book.
LAP disbursements in H1 FY’16 stood at Rs 1800 crore up by 140% YoY. Management expects LAP to form around 8-10% of total loan book in next couple of years.About 75.2% of total borrowings are from NCD, 15% were from banks and rest from others. Total weighted average costs of borrowings stood at 9.29% as on Sep’15. Incremental costs of borrowings for the banks stand at around 8.35%.Management expects NIM to improve slightly more in H2, due to reduction in interest rates. The company will meet in next couple of days to pass on some benefits to its customers. Further, LAP and developer loan book have higher yields which will result in higher overall NIM for the company.
Gross NPA for Q2 FY’16 stood at Rs 683 crore and provisions stood at Rs 314 crore, which includes about Rs 30 cr of additional corporate NPA, which was required due to the regulatory requirements. As per the management, the corporate account will become standard assets by the end of the Oct’15.Around 65% of total loan book are at fixed loan rates. About Rs 15000 of total loan book i.e. around 10% of the loan book will be reprised from fixed loans to floating rates in next 18 months, on which management expects higher yield of around 30-50 bps.
As on Sep’15, about 88% of company’s customers are salaried employees and rest are self employed and others.Overall, management continues to expect strong disbursement growth of around 17% for FY’16.

I think VLS had sold just about 5 lac shares of Relaxo. They continue to hold the rest and have pledged the same with Globe for their funding requirement.

Did the Nepal plant go steam as expected in Sep 2015 ?. I couldn’t find any updates on this.

To me most important thing is cash flows here. Funding opening of new stores with internal accruals is crucial otherwise same old story of debt for growth. Management is visionary and tries to anticipate problems. Though very nicely priced at these levels still more information is needed.
Disclosure: sold a while ago after remaining invested for 1.5 years. Feels MOS at these levels is ample as such entering in staggered manner.