Highlights:

As per the company, hopefully the worst is behind now.

The gold loan accounts for 70% of the overall asset under management of the company.

The industry has faced various challenges in the past 12 months such as lockdown, disruption to the economic activity and slowdown in consumption.

The company has exhibited healthy performance with 12% growth in the gold loan AUM in FY2021 in line with guidance.

Overall AUM of the company has increased 17% to Rs 27224 crore and March 2021.

However, the gold loan book AUM has declined 6% on qoq basis on account of sharp decline in the gold loan prices in excess of 20% from peak level has impacted the business with higher auctions, while the customer also faced challenges .

The company expects a strong growth ahead.

The average loan to value ratio stands at 71%.

The gold Holdings stood at 65.33 tonnes end March 2021.

The company has conducted auctions for one tonne worth of gold during FY2021.

The company has continued to comfortably raise financing from various sources at competitive rates.

An incremental cost of borrowing stood at 7.95% in the quarter ended March 2021. The overall cost of funds stood at 9.1%. The company do not expect any funding challenge impacting growth prospect.

The collection in most businesses have returned to pre covid level in Q4FY2021, while the collection have been impacted in April-May 2021.

The company is carrying excess liquidity in all businesses. The cash and cash equivalents stands at Rs 2500 crore. The company has additional bank lines of Rs 7364 crore.

The CP exposure has reduced to 6.5% from 11 % a year ago

The company has added 3 lakh new customers and 4 tonnes of gold holding during the quarter ended March 2021.

Gold loans customers stood at 25.94 lakh end March 2021.

The gold auctions stood t Rs 404 crore in Q4FY2021.

The decline in the gold loan book was on account of the 12% decline in the gold prices in Q4 and more than 20% decline from Q2 to disbursement level. The company has conducted disbursements of Rs 93004 crore in Q2FY2021, while these loans matured in Q4FY2021 because of the low tenure of 90 days.

The shorter tenure of gold loans also leads to early recognition of NPAs.

The company also follows the policy of regular auctions in case of delinquencies.

The company has not witnessed any significant credit losses.

Interest accrued was Rs 716 crore, at 3.8% of gold loan AUM.

The gold loan disbursements declined to Rs 44630 crore in Q4FY2021 from Rs 57445 crore in Q3FY2021.

The provisions and write off stood at Rs 12 crore in the quarter ended March 2021.

The company has created the additional provisions of Rs 25 crore for covid-19 in Q4FY2021.

The company is well capitalized.

The company is holding provisions of Rs 104 crore for gold book and Rs 100 crore for non-gold book, of which vehicle finance is holding provisions of Rs 63 crore.

In terms of loan book 62% of the loan book is above Rs 1 lakh and in terms of customer it is 20%.

The benefit of higher LTV of 90% for banks ended in March 2021, which provides the good opportunity for the company.

The company is expecting gold loan book growth of 10 to 15% and little higher growth for affordable housing segment.

The capital adequacy ratio of the MFI is strong at 28% and the company would take a call on IPO depending on the market environment and taking into consideration interest of the stakeholders.

The microfinance loan book has increased 9% to Rs 5985 crore end March 2021. The company focused on asset quality over AUM growth given the challenging environment for the industry. The microfinance collection efficiency was at 101% in March 2021.

The company expects some asset quality stress for the micro finance business due to lockdown. However the company is better placed with lower borrowing cost.

The vehicle finance business showed higher NPA on account of lockdown, which has reduced to 5% end March 2021. The vehicle loan book stood at Rs 1053 crore end March 2021.

The housing finance portfolio of the company is relatively small at Rs 666 crore.