Highlights:

The performance of the company was impacted by the weak demand as the recovery in unorganized segment is uneven and the segment is still not out of woods.

The sequential decline in gold and microfinance loan book impacted the consolidated AUM of the company. However, the company has posted good growth in home and vehicle finance books.

AUM grew 11% yoy and declined 0.5% to Rs 30260.82 crore end March 2022 from Rs 27224.22 crore end March 2021.

The net interest margins of the company were impacted due to competition.

Gold loans AUM grew by 6% yoy, but declined 1.4% qoq to Rs 19867.35 crore.

Aggregate gold loan disbursements during the quarter grew by 22% to Rs 29430 crore from Rs 24,042 crore in Q3 FY2022.

In the gold loan segment, about 33% of AUM is above 2 lakh ticket size showing increase from 19-20% in FY21.

The gold loan LTV stands at 62% end March 2022.

The gold holding is up 4% yoy and declined 2.9% qoq to 58 tonnes.

The company added 3.75 lakh new customer in Q4FY2022 taking the customer base to 23.69 lakh.

The microfinance subsidiary, Asirvad Microfinance has reported 17% growth yoy and 1.2% decline qoq in AUM of Rs 7002.18 crore end March 2022.

In the microfinance segment, the company slowed down growth and focused on asset quality and collection efficiency. The company has improved collection efficiency to 99% in Q4FY2022 from 96% in Q3FY2022.

The Vehicle and Equipment Finance division closed the year with an AUM of Rs 1643.16 crore, a substantial growth of 56% over the last fiscal.

The company's home finance subsidiary, Manappuram Home Finance, ended the year with an AUM of Rs 845.27 crore, a growth of 27% against Rs 666.27 crore achieved in the previous fiscal.

Overall, the non-gold businesses contributed a share of 33% to the total loan book of the company.

The net NPA position of the company stood at 2.72%, and gross NPA at 2.95% end March 2022.

Average borrowing costs for the standalone entity declined by 162 basis points to 7.50% during the fiscal. On a consolidated basis, the total borrowings of the company stood 2

The surplus liquidity with the company stood at Rs 2697 crore, in addition the company has access to undrawn bank lines of Rs 452 crore.

The company has strong ALM position and proportion of CPs is only 3.9% of total liabilities.

The bank has witnessed further decline in cost of borrowings to 7.15% in Q4FY2022 from 7.47% in Q3FY2022.

The leverage ratio stands at 2.9x.

The company would stick to 21% yield on disbarment in FY2023.

The AUM has been steady in April 2022 and the company expects AUM to improve by June2022.

The company is targeting 10% gold loan growth for FY2023.

The consolidated AUM growth is expected at 15% for FY2023.

The restructured loan book in the microfinance loan book stands 12.5% of Rs 790 crore.

The company has witnessed increase in NPAs as it has aligned NPA recognition norms with revised guidelines in Q4FY2022.

The company is targeting microfinance disbursements of Rs 6000 crore at 24% pricing in FY2023.

Microfinance monthly disbursements rate is Rs 500 crore and collections at Rs 350 crore per month. Book growth would be Rs 2000 crore in FY20232.

The company is targeting RoA in the microfinance segment at 5% and RoE of above 20% in FY2023.

Interest accrued stands at Rs 423 or 2% of gold loan book.

Disbursement yield would be 21%, overall would be maintained above 20%.

Duration of gold loan book - 65% is 3 months and 5% is one year.

Gold loan rate is 7-24%, while blended yield is likely to be above 20%.

Gold loan RoE is targeted above 20%.