The company has improved the net interest margin (calculated) to 5.81% in Q3FY2020 5.45% in the corresponding quarter last year, while it declined from 6.17% in the previous quarter. The net interest income (NII) of the company moved up 16% to Rs 442.85 crore in Q3FY2020.

Income from operations of the company increased 15% to Rs 976.23 crore in the quarter ended December 2019. Interest expense moved up 14% to Rs 533.38 crore, while other expenses (including staff cost of Rs 88.80 crore and other expenses of Rs 48.46 crore) increased 10% to Rs 137.25 crore. Ensuing Gross profit improved 18% to Rs 311.51 crore.

Depreciation jumped 33% to Rs 18.74 crore, while provision and write offs zoomed 229% to Rs 71.78 crore. PBT as a result declined 3% to Rs 221.00 crore. Effective tax rate declined to 24.6% in Q3FY2020 from 31.1% in Q3FY2019. The final bottomline of the company improved 6% to Rs 59.96 crore in the quarter ended December 2019.

Business performance and asset quality

AUM of the company increased 8% to Rs 30502 crore, driven by commercial vehicles loan book rising 8% to Rs 16044 crore, while cars loan book was flat at Rs 7809 crore at end December 2019. The construction equipment loans increased 18% to Rs 3081 crore, tractors 19% to Rs 1769 crore and other loans 28% to Rs 1800 crore at end December 2019.

The disbursements of the company declined -8% to Rs 4000.00 crore in the quarter ended December 2019.

The branch network of the company stood at 668 branches at end December 2019 against 654 branches at end December 2018. The employee count of the company stood at 4229 employees at end December 2019 from 4050 employees at end December 2018.

The GNPA ratio rose to 2.79% at end December 2019 and Net NPA ratio moved up to 2.09% at end December 2019 from 2.20% and 1.64% a quarter ago.

Book value of the company on a standalone basis stood at Rs 498.4 per share, while the adjusted book value stood at Rs 441.0 per share at end December 2019.

Financial Performance 9MFY2020:

For the nine months ended December 2019 (9MFY2020), the Company reported 19% rise in Income from operations at Rs 2900.17 crore on a standalone basis. Other income was flat at Rs 13.18 crore compared with Rs 13.13 crore in 9MFY2019. The total income moved up 19% to Rs 2913.35 crore. Interest expense increased 21% to Rs 1556.39 crore, while other expenses rose 7% to Rs 413.69 crore. Ensuing Gross profit increased 22% to Rs 943.27 crore. Depreciation declined 33% to Rs 53.06 crore, while provision and write offs galloped 164% to Rs 170.70 crore. PBT moved up 7% to Rs 719.50 crore. The PBT including exception gains of Rs 60.05 crore increased 16% to Rs 779.55 crore. Effective tax rate stood at 23.9% compared to 32.8% in the corresponding period last year. The final bottomline of the company improved 31% to Rs 593.06 crore in 9MFY2020.