Equitas announces Q3 FY19 results

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Equitas posts healthy advances growth of 41% YoY, PAT of Rs62.5 Cr in Q3

Equitas Holdings Limited [EHL] announced the Un-Audited Consolidated results for quarter and nine months ended December 31, 2018:

1. Key Highlights for Q3FY19

Sustained Earnings Delivery with improving efficiency:

· NII grew 37% YoY to Rs320cr, NIM*improves to 8.98%

· Profit before Provision grew194% to Rs122cr, cost to income stable at 68.24% as compared to 68.51% previous quarter

· PAT of Rs 62.5cr as compared to a loss of Rs30cr in Q3FY18

Robust advances growth across all products:

· Advances grew 41% YoY to Rs10,861 cr with stable growth across segments

· Non-Micro Finance lending products constituted 73% of total portfolio

· Deposits* grew by 79% YoY to Rs6,618cr. CASA ratio at 30%

· Customer Deposits as a % of Total Borrowings stands at a healthy 55.6% vs. 50.3% sequentially

· Capital Adequacy remains healthy at 23.04% with Tier I ratio at 21.57%

*Deposits excluding CD’s | NIM = Net interest income as a % of avg. income earning assets | Customer Deposits = CASA + Term Deposits

2. Profit & Loss: Sustained Earnings Delivery with improving efficiency

· Net Interest Income grew by 37% YoY to Rs320cr, NIMs*improving to 8.98%

· Non-Interest Income as a % of assets stood at 1.74% and Non-Interest Income as a % of Net Income stood at 17%

· Liability fee as a % of total Non-Interest Income stood at 21%

· Other Income grew by101% YoY to Rs 65.4cr

· Cost to Income ratio stable at 68.24% as compared to 68.51% previous quarter

· Cost to Assets stood at 7.18% including PSLC expense. Cost to Assets excluding PSLC expense stood at 6.53%

· Provisions and loan loss charges at Rs24.3 cr. PCR stood at 44%.

· PAT atRs62.5cr as compared to a loss of Rs30cr in Q3FY18

· Return ratios for Q3FY19: ROAat 1.71%. ROEat10.43%

3. Balance Sheet: Robust advances growth across all products

Advances:

· Advances grew 41% YoY to Rs10,861cr with growth across segments

  • Micro Finance grew 20% YoY to Rs 2,955cr
  • Small Business Loans (Incl. HF) grew 64% YoY to Rs 4,244cr
  • Vehicle Finance grew 26% YoY to Rs 2,720cr
  • MSE Finance (Incl. BL) grew 52% YoY to Rs 521cr
  • Corporate Loans grew 244% YoY to Rs 385cr

· Disbursements grew 43% YoY to Rs 2,265cr

4. Liabilities & Branch Banking:

· Deposits* grew by 79% YoY to Rs 6,618 cr. CASA ratio at 30%

· Customer Deposits as a % of Total Borrowings stands at a healthy 55.6%

· Retail momentum picks up

  • No of Retail Term deposits accounts stood at 75,663 vs. 45,706last quarter
  • Retail Term deposits stood at Rs1,810cr vs. Rs1,400 crin Q2FY19
  • No of Retail CASA customers stood at 446,815as compared to 387,307 in Q2FY19
  • CASA stood at Rs2,016cr representing 16.9% of total borrowing

· Credit to Total deposits stood at 139%

· 3,75,000 Debit card transactions as compared to 213,000 in Q2FY19

· Bank mobilises over Rs115crin Insurance premium for the Nine months. Mutual Fund Assets under management crosses Rs90 cr.

*Deposits excluding CD’s | NIM = Net interest income as a % of avg. income earning assets | Customer Deposits = CASA + Term Deposits