Ahmedabad based Arman Financial reports 138% increase in Q1 FY20 profit after tax at Rs. 12.1 crore

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. 

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

*** Provisioning for NBFC-MFIs are on Standard Assets. The NNPA% does not consider provisioning on Standard Assets. 

Corporate Comm India(CCI Newswire)