| Metric | Movement | Analysis |
|---|---|---|
| Gold Loan AUM | ₹31,505 Cr (↑9.4% QoQ, ↑29.3% YoY) | Up-tick in the growth driven by higher ticket sizes (gold price) and increase in gold loan customers (Focus back on gold loan). |
| Gold Tonnage | 57.16 (↑0.4% QoQ, ↑-4.3% YoY) | Sequential tonnage growth after a while - indicates focus back on gold loans and potentially more competitive market in the days to come (especially in conjunction with lower yields) |
| Standalone PAT | ₹376 Cr (↓4% QoQ, ↓21% YoY) | Marginal dip due to elevated provisions and lower RoA on account of a drop in the yield. |
| Net Yield | 19.7% (↓0.8% QoQ) | Slight compression in-line with the competitive landscape in the industry. Many new entrants building capacity. |
| Cost of Borrowing | 9.1% (↓10 bps QoQ) | Improved funding mix and stable credit profile aided lower CoF. Large gold loan NBFCs benefitting from interest rate cycle. Smaller NBFCs facing liquidity crunch |
| ROA | 3.4% (↓ from 3.8% QoQ) | Inches down to the lowest in a while. May remain stable increase due to increase in AUM on account of gold price increase. |
| ROE | 12.2% (↓ from 13.1% QoQ) | Inches down in-line with RoA and stable leverage. |
| LTV | 56% | LTV going down due to increase in the gold value |
| Per Branch AUM (Gold) | ₹7.9 Cr → ₹8.6 Cr (↑9% QoQ) | Gold price impact. No new branches opened. |
| Average Ticket Size | ₹83,100 (↑9% QoQ) | Continues to inch up driven by higher gold prices and customer eligibility. |
| CRAR | 28.3% (Stable) | Well-capitalized balance sheet provides strong cushion for future growth. |
| Leverage | ~3.6x (Flat QoQ) | Maintained conservative gearing policy. |
Overall - Focus back on gold loans in the backdrop of underperformance of MFI segment. Interesting to see lower net yields and lower profitability in gold loans (standalone). Potential increased competition and lower profitability in the gold loan industry for all the players amidst increase in AUM due to gold price increase