Are we expecting asset quality deterioration because of higher food & energy prices?
Q4 FY 26 results
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Continued strong performance surprising analysts positively, especially after the Company had decided to gradually increase its ticket size to minimum Rs 7 lakh
- General expectation was that this will moderate growth and possibly impact yields. None of them played out any materially.
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Management continues to guide for continued strong performance in the foreseeable future. Guidance of 22-24% AUM growth for FY 27 with similar yields and margins (minor variations obviously are possible). Asset quality continues to remain under control.
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Karnataka is seeing some pressure but Company is putting in required efforts to manage that.
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Newly entered markets of Maharashtra and Orissa are stabilized and hence further ramp up of growth is expected in these two relatively newer markets for the Company.
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Competition in TN is intense but Company is confident of generating reasonable growth from there as well.
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Overall this Company continues to always surprise analysts positively.
Analysts always seem to have concerns around moderation of yields and deterioration in asset quality. Minor variations are always possible in this kind of business.
However, directionally the Company continues to grow from strength to strength.
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