Without limiting the generality of the foregoing, nothing in the Report is to be construed as CRISIL Ratings providing or intending to provide any services in jurisdictions where CRISIL Ratings does not have the necessary licenses and/or registration to carry out its business activities referred to above.
For details on CRISIL Ratiings' use of 'PP-MLD' please refer to the notes to Rating scale for Debt Instruments and Structured Finance Instruments at the following link: CRISILs Criteria for rating short term debt, Criteria for Notching up Stand Alone Ratings of Companies based on Parent Support, www.crisil.com/ratings/credit-rating-scale.html. We include reports from the: Audit & Risk, Finance, Safety & Sustainability, People & Governance, and Remuneration Committees. The rating is withdrawn in line with CRISIL's policy. During the nationwide lockdown imposed between March and June 2020, collection efficiencies after dropping to 41%1in April 2020, have subsequently improved to 95%1 for March 2021. If you have any questions or feedback, please do get in touch. The recipients of the Report should rely on their own judgment and take their own professional advice before acting on the Report in any way.
The Hinduja group will remain the largest shareholder and maintain a controlling stake in the company. It is made abundantly clear that the Report is not intended to and does not constitute an investment advice.
However, performance remains subdued, with the AUM shrinking to Rs 26,262 crore as on December 31, 2020, reflecting a 1% annualised de-growth over the first nine-months of fiscal 2021. CRISIL Ratings may receive compensation for its ratings and certain credit-related analyses, normally from issuers or underwriters of the instruments, facilities, securities or from obligors. However, growth has been subdued amidst the current economic environment, and AUM has shrunk by 1% (in annualised terms) over the first nine-months of fiscal 2021, to reach Rs 26,262 crore as on December 31, 2020. Majority ownership by, and strategic importance to, Ashok Leyland and the Hinduja group, Significant presence in the Indian vehicle finance market, Moderate asset quality metrics and earnings profile, Asset quality metrics, albeit stable, remained elevated, with delinquencies at 4.5%. Consequently, return on managed assets (RoMA) remained stable at 1.1% (annualised) in nine months ended December 31, 2020 aided by reduction in operating expenses and increase in other income.
The ratings continue to reflect the majority ownership of HLF held by its parent, Ashok Leyland Ltd (Ashok Leyland), and the Hinduja group; and the companys strategic importance to the parent and the group. 2Collection Efficiency = Total Collections divided by current billing assuming no moratorium during moratorium period. CRISIL Ratings has in place a ratings code of conduct and policies for analytical firewalls and for managing conflict of interest. CRISIL is a global analytical company providing ratings, research, and risk and policy advisory services. Connect with us: TWITTER | LINKEDIN | YOUTUBE | FACEBOOK. During the nationwide lockdown imposed between March and June 2020, collection efficiencies after dropping to 41%, in April 2020, have subsequently improved to. Furthermore, net repossessed assets stood at 0.9% of AUM as on December 31, 2020. * Moderate asset quality metrics and earnings profile. The Corporate Governance report, introduced by our Chair, Paula Rosput Reynolds, contains details about the activities of the Board and its Committees during the year.
Any opinions expressed here are in good faith, are subject to change without notice, and are only current as of the stated date of their issue.
About CRISIL Limited CRISIL is majority owned by S&P Global Inc., a leading provider of transparent and independent ratings, benchmarks, analytics and data to the capital and commodity markets worldwide For latest rating information on any instrument of any company rated by CRISIL Ratings you may contact CRISIL RATING DESK at CRISILratingdesk@crisil.com, or at (0091) 1800 267 1301.
Annualised NIM fell to 3.9% for the first nine months of fiscal 2021, owing to low revenue and limited growth. Ratings from CRISIL Ratings are statements of opinion as of the date they are expressed and not statements of fact or recommendations to purchase, hold, or sell any securities / instruments or to make any investment decisions. We are India's leading ratings agency. Asset quality metrics, albeit stable, remained elevated, with delinquencies at 4.5% (pro-forma) as on December 31, 2020, [as measured by 90 days past due (dpd)], as compared to 4.4% as on March 31, 2020 and 4.7% as on March 31, 2019. About CRISIL Ratings Limited albeit stable, were elevated with delinquencies, as measured by 90 days past due (dpd), at 4.5%, as on December 31, 2020, vis--vis 4.4% as on March 31, 2020, and 4.7% as on March 31, 2019. This disclaimer forms part of and applies to each credit rating report and/or credit rating rationale (each a "Report") that is provided by CRISIL Ratings Limited (hereinafter referred to as "CRISIL Ratings") . All rights reserved @ CRISIL Ratings Limited.
On the other hand, due to increased provisioning, credit cost also increased to 2.6% (annualised) in the first nine months of fiscal 2021, vis-a-vis 2.4% for fiscal 2020. The Report is intended for the jurisdiction of India only. CRISIL believes HLF will continue to receive strong support from Ashok Leyland and the Hinduja group, and will also increase its share in the Indian vehicle finance market over the medium term. Existing shareholders have also infused capital at regular intervals; and have infused fresh capital of around Rs 650 crore since June 2017. Also, under the one-time restructuring scheme announced by the Reserve Bank of India (RBI), HLF has restructured around 1-2% of portfolio till Mar-21. Scale of operations has improved significantly, with AUM recording 28% CAGR over the past four fiscals, to Rs 26,450 crore as on March 31, 2020. The Ashok Leyland portfolio vehicles constituted around 35% of HLFs portfolio as on December 31, 2020. With a tradition of independence, analytical rigour and innovation, we set the standards in the credit rating business. Prior year comparatives restated for treatment of UK Gas Transmission asadiscontinuedoperation. Here you can view or download our full Annual Report and Accounts, or its separate sections the Strategic Report, Corporate Governance Report, Financial Statements and Additional Information. The promoters have also infused capital at regular intervals, with Rs 650 crore infused since June 2017, through a rights issue. its rating on the non-convertible debentures of Rs.150 crore (See Annexure 'Details of Rating Withdrawn' for details) on confirmation from the debenture trustee as it is fully redeemed. Earnings profile remains modest, driven by a. relatively lower net interest margin (NIM), though partially offset by the lower-than-industry average operating expenses ratio. The Hinduja group entities held 99.36% in HLF as on December 31, 2020, with Ashok Leyland being the primary shareholder with around 68.81% stake. It was promoted as a captive financier by the Hinduja groups flagship automobile manufacturing company, Ashok Leyland. Please refer Annexure - List of entities consolidated, which captures the list of entities considered and their analytical treatment of consolidation. While CRISIL Ratings has obtained information from sources it believes to be reliable, CRISIL Ratings does not perform an audit and undertakes no duty of due diligence or independent verification of any information it receives and / or relies in its Reports. HLF forayed into these segments so as to diversify its business mix and increase the share of the non-vehicle portfolio.
We may use your contact information, such as your name, address, and email id to fulfil your request and service your account and to provide you with additional information from CRISIL.For further information on CRISILs privacy policy please visit www.crisil.com.DISCLAIMER HLF, incorporated in 2008, commenced operations in 2010. HLF plans to come out with an initial public offering (IPO) in the near to medium term. CRISIL Ratings assumes no obligation to update its opinions following publication in any form or format although CRISIL Ratings may disseminate its opinions and analysis. Over the past four years, scale of operations has improved significantly, with assets under management (AUM) registering a compounded annual growth rate (CAGR) of 28% to reach Rs 26,450 crore as on March 31, 2020. customercare.nbfc@saveind.in, For Save Financials services Pvt Ltd (NBFC) customercare.nbfc@saveind.in, For Save Micro finance Pvt Ltd (NBFC-MFI)customercare@savemfi.in, Copyright document.write(new Date().getFullYear()); All rights reserved | This website is developed and powered by, 3rd floor, Save Tower, AP Colony, Gaya - 823001, Bihar, Unit No. as on December 31, 2020, [as measured by 90 days past due (dpd)], as compared to 4.4% as on March 31, 2020 and 4.7% as on March 31, 2019. CRISIL respects your privacy. In no event shall any CRISIL Ratings Party be liable to any party for any direct, indirect, incidental, exemplary, compensatory, punitive, special or consequential damages, costs, expenses, legal fees, or losses (including, without limitation, lost income or lost profits and opportunity costs) in connection with any use of any part of the Report even if advised of the possibility of such damages. Consequently, return on managed assets (RoMA) remained stable at 1.1% (annualised) in nine months ended December 31, 2020 aided by reduction in operating expenses and increase in other income.
Segment-wise, the 90+ dpd in vehicle portfolio stood at 5.5% as on December 31, 2020, slightly better than 5.6% as on March 31, 2020. We have also instituted several innovations in India in the rating business, including rating municipal bonds, partially guaranteed instruments and infrastructure investment trusts (InvITs).
Collection efficiencies after dropping to 41%, in April 2020, following the lockdown imposed in March 2020, have improved to. The company has also been buying portfolios over the past two years to diversify its product profile, thereby augmenting net interest margin. Even post the IPO, the Hinduja group may continue to hold the majority stake. In addition to the financial review included within this section, we provide additional analysis and commentary including the performance of our operating segments within the unaudited commentary sections of the financial statements.