The company has improved the net interest margin to 5.70% in Q4FY2020 from 5.61% in the corresponding quarter last year. The net interest income (NII) of the company moved up 5% to Rs 426.29 crore in Q4FY2020.

The Asset under Management (AUM) increased 3% to Rs 29936 crore at end March 2020. The company has improved asset quality, while reducing NNPA ratio in Q4FY2020.

Income from operations of the company increased 7% to Rs 941.92 crore in the quarter ended March 2020. Interest expense moved up 8% to Rs 515.64 crore, while other expenses (including staff cost of Rs 92.75 crore and other expenses of Rs 43.97 crore) rose 2% to Rs 136.72 crore.

Ensuing Gross profit improved 7% to Rs 301.18 crore. Depreciation moved up 41% to Rs 19.92 crore, while provision and write offs increased 172% to Rs 115.69 crore. PBT as a result dipped 26% to Rs 165.56 crore. Effective tax rate increased to 20.9% in Q4FY2020 from 17.3% in Q4FY2019.

The final bottomline of the company dipped 81% to Rs 130.89 crore in the quarter ended March 2020.

Business performance and Asset quality

AUM of the company increased 3% to Rs 29936 crore, driven by commercial vehicles loan book rising 3% to Rs 15716 crore, while the construction equipment loans increased 11% to Rs 3113 crore and tractors 21% to Rs 1856 crore. The cars loan book declined 1% to Rs 7454 crore and other loans 6% to Rs 1796 crore at end March 2020.

The disbursements of the company declined 34% to Rs 2929.00 crore in the quarter ended March 2020.

The branch network of the company stood at 610 branches at end March 2020 against 658 branches at end March 2019. The employee count of the company stood at 4213 employees at end March 2020 from 4055 employees at end March 2019.

The gross stage 3 assets ratio declined to 2.47% at end March 2020 and Net NPA ratio to 1.65% at end March 2020 from 2.79% and 2.09% a quarter ago.

Book value of the company on a standalone basis stood at Rs 499.3 per share at end March 2020, while the adjusted book value stood at Rs 454.8 per share at end March 2020.

Financial Performance FY2020:

For the year ended March 2020 (FY2020), the Company reported 16% rise in Income from operations at Rs 3842.09 crore on a standalone basis. Other income moved up 21% to Rs 24.80 crore compared with Rs 20.56 crore in FY2019. The total income moved up 16% to Rs 3866.89 crore. Interest expense increased 17% to Rs 2072.03 crore, while other expenses rose 6% to Rs 550.41 crore. Ensuing Gross profit increased 18% to Rs 1244.44 crore. Depreciation moved up 35% to Rs 72.98 crore, while provision and write offs galloped 167% to Rs 286.40 crore. PBT declined 1% to Rs 885.07 crore. Effective tax rate stood at 23.4% compared to 24.3% in the corresponding period last year. The final bottomline of the company declined 36% to Rs 723.95 crore in FY2020.