Stockrabit · Analysts
Questions across 37 calls

Raghav Garg

Ambit Capital

Cholamandalam Investment and Finance Company Limited

Cholamandalam Investment and Finance Company Limited CC-Jun24.pdf · 2024-07-29
Just to have a bit more on the credit cost for the Vehicle Finance business. So, if you compare it to last year, there is still an increase and the opex ratio for the Vehicle Finance business have also increased. What's leading to this increase? Especially when I noticed that your disbursements have been higher for the larger ticket s ize vehicles because I would assume if that's the case then the asset base is larger, and at the margin, the opex ratio should not increase as much. Some colour on that. That's my first question.
And sir, my second question is on the Home Loan business and so on. I see that the number of branches that are there, the incremental addition has been coming down over the last 3, 4 quarters. And essentially, that was one of the things that was driving the disbursements growth also for us in the Home Loan business. So no w as the branch addition has slowed down quite materially, does this mean that you have penetrated in terms of distribution fairly well, and it will be a more stable and established state growth run rate on the disbursements front from here on?
Cholamandalam Investment and Finance Company Limited CC-Mar24.pdf · 2024-05-02
I just had a few questions . The first one is just to harp a little bit more on the OPEX line item, your employee cost growth is about 100%, whereas your employee base has increased only by 20%, which implies steep escalation in salaries. Now I understand that you would have given incentives as well, but I have been looking at this trend for the last three quarters at least, where the cost for employees has been increasing at some 9,200, sorry 50% to 70%. So, how should one read that? That’s my first question.
My second question is on the write-offs. So, as per my estimates, I think that comes to about 370 or 380 crores for the quarter, which if I look at as percentage of the opening GNPA, that’s about 9%. It’s trending higher in the last two quarters versus, you know, what we have seen in several quarters previously, a run rate of around 5%, 6%. So, why is that? Which segment are these write-offs coming from? Would this primarily be the new business segments?

CREDITACCESS GRAMEEN LIMITED

CREDITACCESS GRAMEEN LIMITED CC-Jun24.pdf · 2024-07-19
Just one question from my side. When you look at the food inflation data, that food inflation has been quite persistent and it matters even more as food expenditure as part of the overall expenditure is pretty large for bottom-of-the-pyramid customers given their income levels and rural wage growth in real terms has been negative for last quite a few quarters. On the o ther hand, you have a typical MFI customer seeing about 10% to 11% increase in exposure levels on a Y-o-Y basis. So, in light of this, how do you expect the repayment capacity to evolve over the next 12 months for your customers or if you can comment on the broader industry, that will be very helpful. Thanks.

Muthoot Finance Limited

Muthoot Finance Limited CC-Mar24.pdf · 2024-05-30
I just have one question. So I think this year, the total growth in the customer base has been about 7%. You've added about 3.5 lakh customers. Now going into FY'25 with one of the larger players being out of the market, do you anticipate that your customer base growth could be same in the range of 9%, 10% or higher than 7% what is delivered in '24. That was my only question.
But if I were to see if you were to see or look at your own numbers say it from March onwards up until May, then do you anticipate that your customer base growth could be higher than last year. Sorry, I'm just asking the same question, but I just wanted to get some confidence on that.
Muthoot Finance Limited CC-Sep23.pdf · 2023-11-09
Just wanted to harp on the same question again with respect to the decline in yields. So one of our larger peers this quarter had seen able to increasing yields on a quarter-on-quarter basis. We are given to understand that this is a product where one can exercise pricing power since it 's an emergency loan. So in that context, I wanted to understand whatever you are doing to retain customers, probably offering him a lower rate, is this more an outcome of the competitive intensity that we are seeing? Is that what it is? And then my follow-up question would be, where do you see yields going from here on at least for the next couple of quarters?
Would you say there is some geographic color to the competitive intensity probably out is one where you're witnessing a much higher level of competition say, from regional banks or some of the other players which are smaller than you? Is that the case?

Shriram Finance Limited

Home First Finance Company India Limited

Home First Finance Company India Limited CC-Mar24.pdf · 2024-05-09
My first question on this thing where RBI pointed out charging of interest before the date of disbursal. But if I understand correctly, you gave in -principal approval but the actual disbursement happens later, right after further due diligence. Just wanted to clarify if you are charging any interest before the date of disbursal but after giving the in-principal approvals, just one clarification on that and then I will ask my other question.
My second question is on incremental spreads. So, I think you are guiding for 5%, 5.25% in that range but if I look at your incremental spreads, it's around 4.7%, right? So how is it that you will be able to bridge that gap from 4.7% to say 5%-5.25%?
Home First Finance Company India Limited CC-Dec23.pdf · 2024-01-19
One of my questions is that you give this breakup by ticket size, right? Rs. 1mn to Rs. 1.5mn and then all the way up to Rs 2.5mn and above. Is there any yield differential between these cuts in terms of the ticket sizes? And if yes, can you please give us the data in terms of which ticket size would be commanding how much yield.
The reason why I ask this question is that if you look at your trends for the last several quarters, the AUM cut where the ticket size is more than Rs 2 million, that's been growing at some 50%- 60% for the last many quarters. Now, is that something that's weighing on your yields, which have come off by about 12 basis points versus last quarter?

Mahindra & Mahindra Financial Services Limited

Mahindra & Mahindra Financial Services Limited CC-Mar24.pdf · 2024-05-06
I have a few questions, so one is on the new branch expansion, I think you mentioned about 150 next year, I just wanted to understand is that going to be the regular annual run rate for FY25- 27 or are you going to upfront your branch expansion and then probably slow it down in the subsequent years after FY25 ? That is my first question. And then 150 branches , what does it mean in terms of OPEX because I think that you just highlighted it might, there is a lever for you to the extent of I think 10-20 basis points in terms of OPEX to assets, but my thought process here is that if you open 150 branches, your OPEX might remain elevated given that you are not targeting about 17%-18% AUM growth. That is my second question. And my last question is even for the 17 %-18% growth ne xt year, your leverage would go beyond seven times , would you be looking to come to market to raise the capital given that historically your leverage has been somewhere between 5 and 6 times? Those are three questions?
Sir, just one follow up question. You were alluding to this new branch structure that you are trying to implement, will that lead to higher employees per branch? I believe right now the figure is somewhere around 19 employees per branch. If I just do a s imple employees per branch, so, just some thoughts on that please?

Five-Star Business Finance Limited

Five-Star Business Finance Limited CC-Mar24.pdf · 2024-05-02
I just have one question. So, I think at some point in time in the past, you mentioned that one business officer can handle about 120 accounts and when I look at that ratio today, that is about 81 implying that a typical business officer is handling about 80 accounts, so what stops us from increasing the workload on a business officer rather than actually going for newer employees as that would help improve efficiency for you, that is my only question?
So, if say, we were to look at this number on a 2-year lag basis, say number of accounts today on a base of employee base, say 1 year ago or 2 years ago, this number would be higher. Is that the correct way to look at it, what would that be?

Can Fin Homes Limited

Can Fin Homes Limited CC-Mar24.pdf · 2024-04-30
Sir, sometime back, I think a couple of quarters ago, you had highlighted because of the developer channel that you were exploring and that you ha d gotten into your branch efficiency would improve by 10%, 15%. Where are we on that? And how long will it take you to achieve that 10%, 15% efficiency improvement on a per branch basis because I believe that is one lever or one low-hanging fruit for you to possibly deliver a better AUM growth over the next couple of years?
And if you were to highlight what are the challenges that you are facing? O r what is it that -- what are the reasons why you're not able to do it? .
Can Fin Homes Limited CC-Dec23.pdf · 2024-01-23
Thanks for the opportunity Sir. I jus t had a couple of questions. If I look at the branch activity for FY2023 and I think we have discussed this with you, we were disbursing somewhere around 205 in a year, I think with the new developer tie -up that we are targeting eventually, we are targetin g some 10%, 15% efficiency improvement, is that correct? So our disbursement run rate per branch would go to some 220 to 230, is that understanding correct?
Sir, did I also hear you correctly when you said that you w ould try to bring down the DSA proportion to 60% and 40% contribution would be direct sourcing?

Aptus Value Housing Finance India Limited

Aptus Value Housing Finance India Limited CC-Sep23.pdf · 2023-11-03
I have two questions. One is, what was your AUM growth in Tamil Nadu for this quarter? P. Balaji The AUM growth for the half year was 13%. It is there in the presentation as well.
But sir, if I look at last two quarters as well, Q 1 ‘24 and Q 4 '23, the growth was somewhere between 15%, 16%, still lower th an what you're delivering at the overall AUM level. Why is that the case despite you just having about INR3,000 crores of AUM in that state?

LIC Housing Finance Limited

LIC Housing Finance Limited CC-Sep23.pdf · 2023-11-02
Sir, just a couple of questions. One is, what was the disbursement amount for the month of September?
Yes. So my other question is with respect to the last quarter, you had spoken about some NCLT recoveries, I think you just touched upon it in the previous question. If you can provide some timeline as to when can one expect that thes e recoveries or resolutions would materialize and we would see some benefit? And then my third question is, what is your margin outlook for the second half? Given that we're already trending above 3% for the first half, something that we haven't seen in th e last many years, what would be your expectation as far as margin is concerned and whether we can sustain at this level or not? Those are my 3 questions.

Aavas Financiers Limited

Aavas Financiers Limited CC-Sep23.pdf · 2023-10-27
One very specific question. You had a spread of 5.29% this quarter. Do you expect that this could decline further in the second half? Or will this remain at this level?
Sir, I'm coming more from a place where I'm tr ying to understand what is the competitive intensity as far as pricing is concerned. When we look at some of the larger players, they haven't really concerned on pricing. It remains as low as, say, until about 9 months to 10 months ago. So should we expect that even in the second half, your pricing will remain impacted because of competition? And hence, that is something that will weigh on your spreads, and therefore, it will be lower than 5.29%?