Conference Call with Suryoday Small Finance Bank Management and Analysts on Q1FY23 Performance and Outlook. Listen to the full earnings transcript.
Conference Call with Suryoday Small Finance Bank Management and Analysts on Q4FY22 Performance and Outlook. Listen to the full earnings transcript.
Suryoday Small Finance Bank declares Q4FY22 result: Net interest income increased by 53.0% year on year to Rs 460.1 crores in FY22, while net total income increased by 39.3% year on year to Rs 678.0 crores. NIM increased to 8.6% in FY22 from 7.1% in FY21. Cost of Funds reduced to 7.0% in FY22 compared to 8.0% in FY21. Cost to income during the same period moderated to 60.9% as compared to 67.5% in FY21, owing primarily to an increase in income combined with a lower cost of borrowing. Operating expenses for the quarter ended 31st March 2022 stood at Rs 413.1 crores, a rise of 25.7% compared to same period last year. Commenting on the performance, Mr. Baskar Babu, MD & CEO, Suryoday Small Finance Bank, said "Suryoday demonstrated tenacity in the face of adversity in FY22 by taking careful steps to limit the pandemic's impact and overcome industry challenges. While H1FY22 was a challenging for the industry, H2FY22 saw a much faster recovery. Disbursements and inquiries appear to be outpacing pre-pandemic levels, indicating a positive business outlook. With the recovery of economic activity and the numerous RBI initiatives undertaken recently to boost the sector, the lending ecosystem is expected to grow at a healthy rate in the financial year 2022-23. Our disbursement of Rs 2,101.1 crores in H2FY22, compared to Rs 1,426.7 crores in H1FY22, indicates an improvement in our on-the-ground performance. Additionally, the bank has seen improved on-ground collection scenarios, with one-EMI adjusted collection efficiency of 86.8% for the quarter ended 31st March 2022, and overall collection efficiency of 116.4% as on March 2022. Furthermore, we believe that the MPC's decision to raise the REPO Rate by 40 basis points to 4.40 percent will have a long-term favorable impact on the economy's normalisation, boosting general investment and consumption patterns. The bank has sufficient liquidity buffers and a sound balance sheet, placing it in a favorable position to achieve medium- to long-term growth. With a capital adequacy ratio of 37.9% at the end of FY22, the bank is well capitalised, with Tier-1 accounting for 34.4% and Tier-2 accounting for 3.4%. We're also working hard to improve the quality of our portfolio and expand our footprint in new and existing markets. We expect stable credit demand and improved ecosystem recovery in the next quarters, allowing us to focus more on new disbursements and meeting the bank's growth ambitions." Result PDF
Conference Call with Suryoday Small Finance Bank Management and Analysts on Q3FY22 Performance and Outlook. Listen to the full earnings transcript.
Suryoday Small Finance Bank declares Q3FY22 result: Net interest income increased by 13.6% QoQ to Rs 167.3 crore in Q3FY22 and Net total income increased by 7.0% QoQ to Rs 193.4 crore in Q3FY22. NIM increased to 9.9% for Q3FY22 compared to 9.1% for Q3FY21. Cost of Funds reduced to 6.8% in Q3FY22 compared to 7.1% in Q3FY21. Cost to income during the same period moderated to 56.6% as compared to 65.7% in Q3FY21 which was primarily due to rise in income coupled with lower cost of borrowing. Operating expenses for the quarter ended 31st December 2021 stood at Rs 105.0 crore, a rise of 13.6% compared to the corresponding quarter of the previous year and a rise of 7.3% compared to the previous quarter. The company made a profit of Rs 4.7 crore in Q3FY22 against a loss of Rs 1.9 crore in Q2FY22. PPOP increased from Rs 48.2 crore in Q3FY21 to Rs 80.5 crore in Q3FY22 at 67%. Excluding MTM the PPOP was Rs 36.5 crore in Q3FY21 increasing to Rs 91.2 crore in Q3FY22 at 150%. The RoA/RoE for the quarter ended 31st December 2021 stood at 0.3% / 1.2%, compared to a RoA/RoE of -0.1%/ -0.5% in the corresponding quarter of the previous year and a RoA/ RoE of - 0.6%/ -0.2% sequentially. Commenting on the performance, Mr. Baskar Babu, MD & CEO, Suryoday Small Finance Bank, said "During the first three quarters of FY22, Suryoday displayed firm footing in the face of adversity by taking careful actions to limit the pandemic's impact and overcome the industry's obstacles. While H1FY22 was majorly a difficult period for the industry we saw a considerably faster recovery in Q3FY22. Our disbursement of Rs 1,121.0 crores in Q3FY22, compared to Rs 1,067.0 crores in Q2FY22 and Rs 785.3 crores in Q2FY22, indicates that our performance on the ground has improved. Additionally, the bank has seen improved on-ground collection scenarios, with one-EMI adjusted collection efficiency of 84% for the month ended 31 st December 2021, compared to 83% for the month ended 30th September 2021 and 70% for the month ended 30th June 2021, and overall collection efficiency in December 2021 stood at 109%, compared to 108% in September 2021. Furthermore, the bank has enough liquidity buffers and a healthy balance sheet, putting us in a strong position to achieve medium to long-term growth. The bank is well capitalised, with a capital adequacy ratio of 41.4% at the end of 9MFY22, with Tier-1 accounting for 37.8% and Tier-2 accounting for 3.6%. We're also working hard to improve our portfolio quality and grow our footprint in new and existing geographies. We assume the worst is over, as the Omicron strain is expected to be milder than earlier variants, and most staff and borrowers have been vaccinated now. In the coming quarters, we forecast stable credit demand and enhanced ecosystem recovery, allowing us to focus more on new disbursements and accomplish bank’s growth targets.” Result PDF
Conference Call with Suryoday Small Finance Bank Management and Analysts on Q2FY22 Performance and Outlook. Listen to the full earnings transcript.
Highlights: Gross advances grew 20.6% YoY to Rs. 4,470 Cr Deposits reduced marginally by 0.3% YoY to Rs. 3,129 Cr Business activity picked up well during Q2 FY22 Disbursements for the quarter grew 194.6% YoY to Rs. 1,067 Cr Collection efficiency improved to 83% in Sept-21 as compared to 70% in Jun-21 Financial highlights: Net interest income for the quarter ended 30 September 2021 stood at Rs. 147.2 Cr, growth of 34% compared to the corresponding quarter of the previous year and 19% compared to previous quarter. The increase in net interest income compared to the corresponding quarter of the previous year is primarily due to increase in gross advances over the period and lower cost of funds during the quarter. Other income for the quarter ended 30 September 2021 stood at Rs. 33.4 Cr, a growth of 194% compared to the corresponding quarter of the previous year and 51% compared to the previous quarter. The PSLC income stood at Rs. 9.5 Cr for the quarter ended 30 September 2021, compared to Rs. 8.1 Cr for the previous quarter and Rs. 7.2 Cr for the corresponding quarter of the previous year. Net total income for the quarter ended 30 September 2021 stood at Rs. 180.6 Cr, a growth of 49% compared to the corresponding quarter of the previous year and 24% compared to the previous quarter. Operating expenses for the quarter ended 30 September 2021 stood at Rs. 97.9 Cr, a rise of 40% compared to the corresponding quarter of the previous year and 6% compared to the previous quarter. Loss for the quarter ended 30 September 2021 stood at Rs. 1.9 Cr, compared to a PAT of Rs. 27.2 Cr in the corresponding quarter of the previous year and loss of Rs. 47.7 Cr compared to the previous quarter. The RoA / RoE for the quarter ended 30 September 2021 stood at (0.1%) / (0.5%), compared to RoA / RoE of 1.8% / 9.3% in the corresponding quarter of the previous year and RoA / RoE of (2.8%) / (12.1%) compared to the previous quarter. Result PDF