Company Update : Buy CreditAccess Grameen Ltd By Motilal Oswal Financial Services
AUM declines ~4% and collection efficiency dips ~170bp sequentially
Stage 3 (60+ dpd) rises ~100bp QoQ
* CREDAG’s 2QFY25 disbursements declined ~19% YoY and ~11% QoQ to INR40b (PQ: ~INR45b). AUM decreased ~4% sequentially to INR251b (PQ: INR263b). ? Collection efficiency (including arrears) declined ~170bp QoQ to ~96.2% in 2QFY25 (PQ: 97.9%).
* PAR 60+ and 90+ rose ~100bp QoQ and ~60bp QoQ to ~2.4% and ~1.7%, respectively.
* CRAR stood at ~26.4% (PQ: 25.2%) during the period.
* CREDAG’s business update was largely in line with MOFSLe but weaker than consensus. We continue to believe that 2QFY25 will be a weak quarter for CREDAG and other NBFC-MFI companies under our coverage.
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SEBI Registration number is INH000000412
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