Consolidated AUM grows to Rs. 722.5 crore; up 57% Y-o-Y
Ahmedabad, September 14, 2019: Arman Financial Services Ltd (Arman), a Gujarat based non-banking financial company (NBFC), with interests in microfinance, two wheelers and micro-enterprise (MSME) loans, announced its financial results for the first quarter ended 30th June 2019.
|Particulars (In Crores)||Q1 FY20||Q1 FY19||YoY%||FY19 *|
|Assets Under Management (AUM)||722.5||460.3||57%||684.7|
|Gross Total Income||48.2||28.5||69%||141.1|
|Profit After Tax||12.1||5.1||138%||21.3|
|GNPA %||1.1%||1.6%||-51 bps||1.0%|
|NNPA %||0.6%||1.1%||-41 bps||0.9%|
|RoE %**||34.6%||18.3%||1,635 bps||25.9%|
Note: *FY19 figures are as per I-GAAP while quarterly figures are as per IndAS Accounting standards
** RoE figures are annualized on a fully diluted equity base
Consolidated Financial Highlights – Q1 FY2019-20 (April – June 2019) v/s. Q1 FY2018-19 (April – June 2018)
- Asset under management as on 30 June 2019 stood at Rs. 722.5 crore (+57% YoY)
- Total Disbursements as on 30 June 2019 stood at Rs. 191.8 crore (+24% YoY)
- Gross Total Income increased by 69% to Rs. 48.2crore from Rs. 28.5crore
- Net Total Income increased by 75% to Rs. 29.9crore from Rs. 17.1crore
- Cost-to-Income Ratio improved to35.5% for Q1 FY20 as against 43.5%
- Profit after tax increased by 138% to Rs. 12.1 crore from Rs. 5.1 crore
- Consolidated Debt-Equity Ratio (on a fully diluted basis) as of 30 June 2019 stood at 4.58
Commenting on the Company’s performance for Q1FY2019-20, Mr. Jayendra Patel, Vice Chairman & Managing Director, Arman Financial Services said, “Despite the ongoing liquidity tightening and other macroeconomic headwinds, Armandelivered a strong all-round performance in the first quarter, driven by robust growth in our loan bookcombined withimprovement in NIM,cost-to-income ratio and asset quality. This was the first quarter of Indian Accounting Standard (IndAS) implementation, which resulted in several notional changes in the Financials compared to the previous iGAAP Standards.Growth in our loan assets was characterised by a healthy jumpacross all 3 of our lending segments. Further, we enhanced our geographic presenceby launching41 new branches during the quarter as a part of our FY20 expansion strategy.
Positive ALM, superior asset quality and a strong performance track record have helped us keep our finance costs in check and maintain adequate liquidity, despite thetough liquidity conditions faced by the NBFC sector in general. Disciplined lending backed by a rigorous credit appraisal and collection modelhave enabled us to keep our credit costs under control.Our consolidated Debt-Equity Ratio stood at 4.58:1, which provides us sufficient capital to drive growth in the current year. Moving forward, our endeavour is to continue our growth momentum, whileexercising prudence in lending and maintaining adequate liquidity. We will closely monitor rural macroeconomic indicators and make all necessary adjustments to protect asset quality.”
Operational Highlights – Q1 FY2019-20 (April – June 2019) v/s. Q1 FY2018-19 (April – June 2018)
- The total operational branches as on 30 June 2019 are 209, of which 178 are in Microfinance segment, 26in MSME and the rest are in 2-Wheeler.
- Robust asset quality – Consolidated Gross NPA of 1.1% and Net NPA of 0.6%
egmental Performance Update – Q1 FY2019-20 (April – June 2019) v/s. Q1 FY2018-19 (April – June 2018)
Microfinance – Financial Highlights Two-wheeler & MSME – Financial Highlights
|Particulars (In Rs. Crores)||Q1 FY20||Q1 FY19||YoY%||Particulars (In Rs. Crores)||Q1 FY20||Q1 FY19||YoY%|
|Assets Under Management||513.7||316.3||62%||Assets Under Management||208.8||144.1||45%|
|Total Disbursement||139.5||116.1||20%||Total Disbursement||51.9||38.7||34%|
|Gross Total Income||32.4||19.9||63%||Gross Total Income||16.2||9.5||70%|
|Profit After Tax||7.2||3.4||110%||Profit After Tax||5.2||2.0||161%|
|GNPA %||0.7%||1.1%||-44 bps||GNPA %||2.0%||2.6%||-57 bps|
|NNPA % ***||0.7%||1.1%||-44 bps||NNPA %||0.5%||0.9%||-37 bps|
*** Provisioning for NBFC-MFIs are on Standard Assets. The NNPA% does not consider provisioning on Standard Assets.
|· Microfinance contributed 71% of total AUM in Q1 FY20
· Q1 FY20 MFI AUM stood at Rs. 513.7 crore (+62% YoY)
· Q1 FY20 Net Profit increased by 110% YoY to Rs. 7.2 Cr, mostly as a result of a proportionately lower increase in operational expenses, finance costs; and higher margins on securitized assets.
· Net NPA improvedto 0.7% as on 30 June 2019
· 2W & MSME contributed29% of total AUM in Q1 FY20
· Q1 FY20 AUM stood at Rs. 208.8 crore (+45% YoY).
o MSME AUM stood at Rs. 110 crores
o 2W AUM stood at Rs. 98.8 crores
· Q1 FY20 Net Profit increased by 161% YoY to Rs. 5.2 Cr driven by higher NIM in the MSME book
· Net NPA improved to 0.5% as on 30 June 2019 as a result of lower GNPA and higher provisioning.
Corporate Comm India(CCI Newswire)