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Key Meeting Takeaways

Gold loan portfolio:

* Unlike Q1FY22 that saw portfolio run-down following auctions and COVID-2 impact, management hinted at pick-up in disbursements in Q2. MGFL hinted at a combination of a) increase in ticket-size (by ~5-10%) b) longer-tenure product (6- months/1-year) in certain cases, c) focus on higher ticket-sized loans as initiatives aimed at growth acceleration.

* Competition in gold-financing has intensified with fintechs getting aggressive. Management, however hinted at its medium/longer gold AUM growth targets at 15%. After a dismal Q1, management is confident of growth acceleration and hinted at 10% growth in AUM for FY22E (vs. earlier guidance of flat AUM growth).

* CE have been rising; auctioning likely to be under control from now. Indicated that historically 1/3 rd of the customers whose gold was auctioned have come back and availed of credit again.

MFI portfolio:

* Disbursements have been on rise. Clear greater focus on repeat customers (over adding new clients).

* CE remains strong (but yet to reach pre-COVID levels). Bihar, UP, Karnataka, Kerala have seen strong CE. Provisioning remains healthy.

Other businesses:

* Vehicle finance - CV has seen strong pick-up while 2W segment has seen portfolio run-down. CE trends remain encouraging. Management is confident of strong AUM growth / improved profitability.

* Housing finance business is also back on track and customers have started servicing EMIs well but with some delays. Focus is more on collections than growth.

* Liquidity situation remains comfortable. FY22E AUM growth guidance 10% led by 10% growth in gold AUM and 12-15% growth in overall AUM.

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