CreditAccess Grameen (CREDITACC) Q1 24/25 earnings summary

Executive summary

• Gross Loan Portfolio (GLP) reached ₹26,304 crore, up 20.6% year-over-year, with 49.84 lakh active borrowers, a 12.7% increase year-over-year.

• Net interest income rose 24.8% year-over-year to ₹953 crore, with portfolio yield at 21% and cost of borrowing stable at 9.8%.

• PAT for Q1 FY25 was ₹398 crore, with ROA at 5.4% and ROE at 23.5%, marking the sixth consecutive quarter above 5% ROA and 20% ROE.

• Business momentum was muted due to a severe heat wave and operational limitations during general elections, but retail finance showed healthy growth.

• Unaudited consolidated and standalone financial results for the quarter ended June 30, 2024, were reviewed and approved by the Board on July 19, 2024.

Financial highlights

• Disbursements for Q1 FY25 were ₹4,476 crore, down 6.2% year-over-year and 44.4% sequentially.

• NIM for the quarter stood at 13%, and cost-to-income ratio was 29.2%.

• PPOP increased 30.4% year-over-year to ₹709 crore.

• Consolidated total income for Q1 FY25 was ₹1,512.58 crore, up from ₹1,170.72 crore in Q1 FY24.

• Net profit after tax for the quarter was ₹397.66 crore, compared to ₹348.46 crore in Q1 FY24.

Outlook and guidance

• Annual portfolio/GLP growth guidance for FY2025 is reiterated at 23%-24%, with Group Loan business expected to grow 20%.

• Credit cost guidance for FY2025 remains at 2.2%-2.4%.

• NIM guidance of 12.8–12.9% was met; cost/income ratio and return ratios in line with annual targets.

• Financial results prepared using consistent accounting policies as previous year; no changes in business segment or geography.