Highlights:

The fourth quarter has been generally good for automobile industry. Commercial Vehicle sales was 2.68 lakh in Q4FY2024. During the election period, commercial vehicle slows down in anticipation of lower activity. The commercial vehicle sales stood at 9.68 lakh in FY24 as against 9.62 lakhs units sold in FY23.

Passenger vehicle has seen a significant growth of 11.5% with 11.36 lakh unit being sold in Q4FY24. Two wheeler sales has surged 24.9% to 45.4 lakh unit in Q4FY24.

Tractor Sales again registered growth of 9.12% with 2.44 lakh units in Q4FY24.

The company have registered disbursement growth of 26.64% yoy and 4.07% qoq to Rs 39326.86 crore in Q4FY2024 against Rs 31054.08 crore in Q4FY23 and Rs 37787.84 crore in Q3FY24.

AUM registered a growth of 21.1% yoy and 4.96% qoq to Rs 224868 crore end March 2024.

Gross stage 3 stood at 5.45% and net stage 3 at 2.70% end March 2024.

The company aims to reduce gross stage 3 loan boot to below 5% and net stage 3 loan book to 2.5% by the end of the financial year.

Credit cost for Q4FY24 stood at 2.06% as against 2.24% for Q4FY23 and 2.15% for Q3FY24

The cost to income ratio was 26.68% in Q4FY24 as against 30.15% in Q4FY23 and 27.08% in Q3FY2024.

The borrowings of the company stands at Rs 185845 crore with term loans at 24%, secularization 15.5%, external commercial borrowing 14%, capital market 20% and fixed deposit at 24%.

The cost of debt rose 5 bps in Q4FY2024 and by19 bps in FY2024.

The company continue to maintain the 3 months liabilities as liquidity.

The leverage ratio stands at 3.83 times against 3.65 times last year.

All ALM buckets continue to be positive and accumulative surplus up to one year is Rs 38292 crore.

The overall ECB borrowings has been around Rs 13950 crore in FY2024 against Rs 6600 crore in the last year.

The incremental cost of fund has also gone up around 6 bps in Q4FY24.

PD rates marginally gone up as the company started factoring 1 DPD NPA recognition one and a half years back.

The company can definitely have the current incremental cost of fund to be maintained and not go up any further because.

The company aims to maintain NIMs at around 9%.

The company has been giving a long-term guidance for credit cost of around 2%. The credit cost stood at 1.97% in FY2024 against 2.06% in FY2023. The company aims to maintain credit cost around 2%.

The company is gradually expanding all the products to all branches post merger. But, all the products may not be available in all the branches due to various reasons.

The company is targeting loan growth of 15%.

The company is targeting to improve RoE to 17% in FY2025 and 18% in FY2026.

Segment wise disbursement in the commercial vehicle segment were at Rs 15420 crore, passenger vehicle Rs 6706 crore, construction equipment Rs 2354 crore, farm equipment Rs 894 crore, MSME Rs 6372 crore, two wheeler Rs 2602 crore, gold Rs 3249 crore, personal loans Rs 1722 crore totaling to Rs 39326 crore.

Housing finance subsidiary

The disbursement surged 76.8% to Rs 2349 crore in Q4FY2024. The asset under management has exhibited a growth of 71.2% yoy and 14.44% qoq to Rs 13761.68 crore end March 2024.

Net interest income registered a growth of 42% to Rs 96.02 crore in Q4FY24 over Q4FY23.

The gross stage 3 loan book was at 1.03% and net stage 3 at 0.80% end March 2024.

The housing subsidiary is growing very fast and the company need to add a capital to support growth.