• AUM growth guidance: Following a robust Q1 performance, Aye Finance maintains its full-year growth guidance of 25% to 30%, with management planning to review the target for a potential upgrade after the second quarter.
• Margin expansion: Margins improved by 20 basis points quarter-on-quarter, supported by reduced slippages and a roughly 20-basis-point decline in borrowing costs following a rating upgrade post-IPO.
• Credit cost outlook: Gross credit costs fell by 28 basis points in Q1 to 4.01%, with management expecting the full-year credit cost to decline to between 3.5% and 4%.
• RoA and pricing: The company targets a sustainable RoA of 4% to 5% and intends to pass on any excess margin gains or cost-of-fund advantages directly to its micro-enterprise customers through lower pricing.