Stellar quarterly performance and bullish outlook: Shares of CreditAccess Grameen soar 12% to reach a fresh 52-week high

Today shares of CreditAccess Grameen Ltd skyrocketed by up to 12% and hit a 52-week high today amid strong financial results for the second quarter of FY24 and business outlook. On a consolidated basis, In Q2FY24 company recorded a staggering financial performance with a 98.14% year-on-year increase in net profit reaching Rs 347.04 crore compared to Rs 175.15 crore in the corresponding quarter of the previous year. During the second quarter of FY24, the company’s total net revenue showed an increase of 53.24%, from Rs 1,247.59 crore to Rs 814.13 crore compared to the same quarter in the preceding year.

Sequentially, the net profit for the quarter ending on September 30, 2023, remained almost flat with a decrease of 0.41% from Rs 348.46 crore. However, in Q2FY24, the company’s total net revenue registered a 6.57% increase compared to the previous quarter, settling at Rs 1170.72 crore.

Talking about key highlights of the quarter company’s Gross Loan Portfolio (GLP), surged by an impressive 36% year-over-year, reaching Rs 22,488 crore from Rs 16,539 crore. This growth is indicative of a thriving borrower base, which expanded by 21.2% year-over-year, totalling 46.03 lakh individuals, across a network of 1,877 branches, marking an 11.5% increase in branch count.

Pre-provision Operating Profit also witnessed robust growth, surging by 68.3% year-over-year to Rs 563 crore. The asset quality metrics indicate a positive trend, with Gross Non-Performing Assets (NPA) dropping to 0.77% from 2.17%, a significant improvement of 139 basis points (bps). Similarly, Net NPA experienced a decrease, falling to 0.24% from 0.77%, representing a reduction of 53 bps. In addition to these financial achievements, the company reported an impressive Collection Efficiency rate of 98.7%, excluding arrears.

In the last trading session, the scrip was closed at Rs 1389.55. Today it opened at Rs 1439.65 and currently, it is trading at Rs 1,506.50, up by 8.42%. Today shares of the company hit a fresh 52-week high at Rs 1,560 and it has a 52-week low at Rs 834.10. The company currently commands a market capitalisation of approximately Rs 24,000 crore, with shares having generated a one-year staggering return of 56.08%.

CreditAccess Grameen Limited is a NBFC – Microfinance Institution. It is engaged in providing microfinance services to women who are enrolled as members and organized as Joint Liability Groups. It also uses its distribution channel to provide certain other financial products and services to its members.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.