Highlights:

The company has recorded 11% growth in its asset under management to Rs 64494 crore end March 2022. On a standalone basis, the asset under management has increased 10% to Rs 58053 crore end March 2022.

The company has achieved strong growth in loan book, despite loss of first quarter due to covid-19 and higher amount of auctions in the third quarter.

The company has crossed net profit level of Rs 4000 crore in FY2022 while recording a growth of 6% over FY2021.

The company has announced a dividend of 200% leading to pay out of Rs 803 crore for FY2022.

The branch network of the company has increased 2% to 5581 branches end March 2022 from 5451 branches a year ago.

As per the company, the Reserve Bank of India has increased interest rate but it may not dampen demand and expect the demand for gold loan to improve ahead with the recovery in economy.

In the gold loan book, the loan book below Rs 1 lakh ticket account for 42% of AUM and above Rs 1 lakh account for 58% with above Rs 3 lakh at 22%.

The company is targeting gold AUM growth of 12-15 % for FY2023.

Digital initiatives are doing well and giving good results.

In the quarter ended March 2022, the company has disbursed gold loans to 4 lakh new customers amounting to Rs 4664 crore. The company has also disbursed Rs 4759 crore of loans to 4.89 inactive customers.

The collections have improved across all segments and the company aims to further improve collections going forward.

The company is adopting a cautious growth strategy for micro finance and vehicle finance businesses.

The loan yields of the company were impacted due to low rate teaser loans. The company has discontinued the scheme of teaser loans and focus is on improving the yield and retaining customers.

The GNPA ratio has reduced but remains higher as the company is giving more time to the customer for repayment.

As per the company, there would be no loss on NPAs and finally it would recover its dues.

The actions stood at Rs 2100 crore in Q4FY2022, while the accrued interest stood at Rs 2071 crore.

The company is targeting to maintain spreads at around 10% in FY2023. Margin of above 10% is reasonable and in good year margin can be higher at 12-13%.

With regard to Sri Lankan Subsidiary, the company do not expects impact as the loan book mostly in fold loans and gold prices have jumped sharply in Sri Lanka on account of depreciation of local currency. The situation is not as bad as in the news. The Sri Lankan economy is also recovering.

The company expects MFI segment will continue to grow, while new regulation and government policy is supportive for the sector.