Tata Capital (TATACAP) Q4 23/24 earnings summary

Executive summary

• Achieved record annual disbursals of ₹1,05,244 crore, up 40% YoY, and loan book growth of 35% YoY to ₹1,57,761 crore as of March 2024.

• Consolidated profit after tax reached ₹3,150 crore, a 37% YoY increase (excluding one-time items), with strong asset quality and credit cost at 0.5%.

• Secured international investment grade ratings (BBB-) from S&P and Fitch, and maintained domestic AAA ratings.

• Major merger completed: Tata Capital Financial Services and Tata Cleantech Capital amalgamated into Tata Capital Limited, effective January 1, 2024.

Financial highlights

• Consolidated total income grew 33% YoY to ₹18,198 crore; net interest margin and other income rose 22.6% YoY to ₹8,630 crore.

• Gross NPA reduced to 1.47% (from 1.71%); Net NPA at 0.38% (from 0.40%).

• Return on Equity (RoE) at 17.6%, Return on Assets (RoA) at 2.4%.

• Retail and SME segments contributed 87% of the portfolio, with retail at ₹1,00,051 crore and SME at ₹37,293 crore.

• Assets under management in wealth business at ₹5,020 crore; Tata Cards in force at 2.8 lakh.

Outlook and guidance

• Management expects robust credit demand to continue, supported by a favorable macro environment and anticipated moderation in interest rates.

• Focus remains on expanding in deeper markets, maintaining asset quality, and leveraging technology for growth.