Highlights:

The field operations of the company continued normally till the implementation of lockdown, while the company has put field operations on hold after lockdown

The strong customer connect is a foundation of the business and the employees have continued maintaining regular connection with customers. The employee base of the company stands at 10000.

Till now there is no significant impact on the rural economy especially in the regions where the company operates, while the immediate fall out of the lockdown has been more severe in the urban areas.

Based on historical evidence, the rural economy has been resilient and has recovered faster after external disturbance.

The measures announced by the government for the poors who are the customers of the company would help the customers to tide over temporary difficulties.

About 40% of the customers of the company are new to credit, while 35-40% are unique customers. Further, 70% are with the company for more than a year.

The company is confident of traversing the current situation and emerged stronger.

The company has its own board approved policy for moratorium and the company has provided moratorium to customers on repayment till 31 May 2020.

The company has stopped disbursements from 23 March 2020.

The liquidity profile of the company remained comfortable, while the company has a diversified borrowing profile with about 46% of the borrowings being term loans with maturity of 2 to 3 years.

The company has raised funds of Rs 2180 crore in Q4FY2020, of which Rs 760 crore were raised between 17 to 24 March with cost of borrowing at 8.7%.

The company has honoured all its principal and interest payment obligations till 29 March 2020, while it has decided to observe moratorium on principal repayments to its lenders between 30 March and 31 May 2020. However, the company will continue to pay interest to its lenders during the moratorium period.

The company has sufficient cash balance of Rs 530 crore at the end March to sustain business operations.

The company has successfully completed acquisition of 76.06% stake in Madura Micro Finance in March 2020 for Rs 660 crore within stipulated timelines.

The liquidity condition of the Madura Microfinance remains comfortable to sustain its operations for next 4 to 5 months, while the size of Madura is one-fifth of the company's size.

The company has sufficient capital adequacy to support its growth in FY21, while there is no immediate need to raise equity and the company would wait for the market conditions to improve.