Q4 2024 CSL Finance Ltd Earnings Call Transcript
Key Points
- CSL Finance Ltd (BOM:530067) achieved a robust growth in AUM, increasing by 9% quarter-on-quarter and 38% year-on-year, reaching INR1,030 crores.
- The company successfully met its AUM target of INR1,000 crores for FY '24, driven significantly by the SME retail vertical.
- Asset quality improved with GNPA and NNPA lower by 17% and 10% respectively, and a provision coverage ratio maintained at 70%.
- Net profitability saw a significant increase, with a 67% year-on-year growth in net profit for FY '24, reaching INR63 crores.
- The Board recommended a dividend of INR2.5 per equity share, continuing the company's dividend-paying policy.
- Net interest income decreased by 4% in Q4 due to higher liquidity and negative interest carry on the fees.
- The rollout of the new suvidha loan product faced delays due to on-ground challenges and complexities in developing the platform.
- Employee costs increased significantly due to the addition of new team members and branches, impacting overall expenses.
- The unsecured loan segment, particularly the suvidha loan product, faced challenges in disbursement and collections, leading to a cautious approach.
- Despite the rating upgrade to A-minus stable, the immediate impact on borrowing costs is expected to be limited to an initial reduction of 50-75 basis points.
Ladies and gentlemen, good day, and welcome to the CDSL Finance Limited Q4 and FY '24 earnings conference call hosted by TIL Advisors Private Limited. (Operator Instructions) Please note that this conference is being recorded.
I now hand the conference over to Mr. Sayam Pokharna, from TIL. advisors, Private Limited. Thank you, and over to you, sir.
Thank you, [Alicia,] and good afternoon, everyone. We appreciate you taking the time to join us today on this call as a reminder, our Q4 and FY '24 results, along with the investor presentation, have been filed with the Stock Exchange and are available on our company website for those not on the mailing list, please feel free to reach out to us, and we will email you future updates regarding that joining us today to discuss our results and provide an overview of the business and the outlook for the future.
We have our members of the management team. I just name them out, Mr. Rohit Gupta, Managing Director, Mr. Amit Ranjan, Chief Operating Officer, Mr.
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