Ujjivan's Q4FY18 consolidated net profit rises 235.2% yoy to Rs64.90cr : Beats Estimates

India Infoline Research Team | May 15, 2018 10:54 IST

The company’s consolidated total income stood at Rs460.90cr, up 35.56% yoy and 0% qoq.

Ujjivan Q4FY18

Consolidated Results Q4FY18: (Rs. in cr)

Q4FY18 YoY (%)
Revenue 460.90 35.6
Net Profit (adjusted) 64.90 235.2

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Reco. Price

410

Last updated on

10-May-2018

Ujjivan Financial Services Ltd's consolidated Q4FY18 revenue improved by 35.6% yoy to Rs460.9cr. Its NII came at Rs269.3cr, which has improved by 77.4% yoy. Ujjivan’s consolidated Q4FY18 net profit was above estimates, which has increased by 235.2% yoy to Rs64.9cr against Rs19.4cr in the corresponding quarter last year. Its GNPA for Q4FY18 stood at 3.6% against 4.2% qoq, which has declined by 60bps. NNPA for the quarter came at 07% against 1% qoq which has declined by 30 bps.
  • Net profit for the quarter saw healthy growth on back of healthy growth in loan & advances and significant surge in net interest margin.
  •  NIM jumped 300bps YoY to 11.6% due to 332bps decline in cost of funds.  The significant decline cost of fund is attributed by deposits mobilisation.
  •  Provision and contingencies for Q4FY18 was INR 35cr as compared to INR 7cr in Q4FY17 and INR 29cr in Q3FY18.
  • Loan Book as of Q4FY18 stood at Rs7,560cr, growth of 6.5% qoq and 18.5% yoy.
  • Non-MFI loans grew 253% YoY to INR 547cr on back of 134% YoY growth in disbursement to INR 171cr.
  • Loans & advances grew 18.5% YoY and 6.5% QoQ to INR 7,560cr. Management guided that MFI loans will grow 18-20% over next few years and non-MFI loans will grow at faster pace and will contribute one-third in next three years.
    Disbursement for Q4FY18 is at Rs2,262cr, an increase of 6% qoq and 60.8% yoy. Disbursement for FY18 stood at Rs8,052cr, an increase of 12.9% yoy.
  • Deposit base as at Q4FY18 end is at Rs3,772cr as against Rs2,437cr qoq. Deposits constitute 50% of advances in Q4FY18 against 36% qoq. CASA came at 3.7% for Q4FY18, Retail-to-total-Deposit is at 11.3% as of Q4FY18.
  • 7.6 lakh new borrowers added during FY18 and 2.2 lakh new borrowers in Q4FY18.
  • New business from January 2017 is at 99.6% collection efficiency and constitutes 86% of the Ujjivan’s portfolio.
  • Overall PAR reduced by Rs346cr during FY18, PAR >0 stands at 4% and PAR>90 at 3.6% as of Q4FY18 end.
  • NIM for the quarter came at 11.6%, a decrease from 11.8% qoq and an increase from 8.6% yoy. Net Interest Margin came at 10.6% for FY18.
  • Cost of funds has reduced to 9% in FY18 from 10.4% in FY17 and 9.3% in Q3FY18.
  • Cost-to-Income ratio is at 57% in Q4FY18, a decrease from 69% qoq and a decrease from 76.7% in yoy. Cost-to-Income ratio for FY18 is at 67.1%. Provision Coverage Ratio is at 81.5%.
  • Secured portfolio increased to Rs406.4cr in Q4FY18 and now constitutes 5.4% of the portfolio.
  • Total credit costs for FY18 stood at Rs310.8cr (4% of portfolio).
  • Management guided that GNPA & NNPA to decline <2% & <0.75% respectively and credit cost to remain 0.3-0.5% in FY19E.
  • In the coming year, the management's focus is on building strong retail deposit base and extending the reach of brand Ujjivan.
  • The company expects to have 475 banking outlets by March 2019E.
  • The management expect MFI portfolio to grow steadily and the non-MFI portfolio to witness rapid growth going ahead.
  • Out of 464 branch network, 187 are full service banking outlets including 47 banking outlets in Unbanked Rural Centres (URCs), complying with the RBI prescribed norm of 25% URCs.
  • The board has recommended an equity dividend of 5% for FY18.

Technical View:

Ujjivan Financial Services Ltd is currently trading at Rs. 405.50, down by 4.95 points or 1.21% from its previous closing of Rs. 410.45 on the BSE.
The scrip opened at Rs. 412.15 and has touched a high and low of Rs. 415.70 and Rs. 400.25 respectively. So far 15,62,773 (NSE+BSE) shares were traded on the counter. The stock is currently trading below its 100 DMA.

BSE 386.20 9.85 (2.62%)
NSE 386.70 11.30 (3.01%)

***Note: This is a NSE Chart

 

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