Highlights:

The consolidated asset under management of the company has increased 17% to Rs 60900 crore end September 2021 over September 2020.

The company has exhibited healthy performance in the second quarter compared with the first quarter with 5% sequential growth in AUM in Q2FY2022 compared with flat AUM in Q1FY2022.

The company continues with its annual growth guidance of 15% for FY2022. The demand for gold loans has improved, while the company expects the market for gold loans to expand and also the company expects the customer hesitant to take gold loans would come forward to take gold loans.

The company expects 5% growth qoq for next two quarters.

The average ticket size for gold loans is stable at Rs 62 thousands compared with Rs 60 thousands a year ago.

The loan book of the home finance company has declined on sequential basis, as the company is not aggressive in lending while the repayment of loans continues to pressurize AUM.

Sri Lankan subsidiary has increased the share of gold loans to 60% and the company expects for the pick-up in the share of gold loans to 85-90% in next 5-6 quarters.

The vehicle finance business continued to be impacted, while the business is limping back to normalcy slowly.

GNPA in the vehicle finance business stands at 12.9%.

The lending has started in the home finance and vehicle finance business and the companies expect to see growth in the next quarter.

The company expects yields to be in the range of 21-22%. The margins are expected to be in the range of 12-13%.

The gold auctions stood at Rs 217 crore in Q2FY2022. The company does not lose any money on NPAs.

The operating expenses do not fall sharply as some cost are fixed and also as the company aims to grow loan book.