AUM of INR 746 crore in Q1 FY25 up 93% compared to INR 386 crore in Q1 FY24
FinTech BizNews Service
Mumbai, August 9, 2024: Moneyboxx witnessed a remarkable 93% growth in AUM over the prior year, reaching INR 746 crore as of June 30, 2024, driven by branch expansion and higher productivity with vintage and scale. The Company announced an equity raise of INR 271 crore in July’24, which will boost its capital position and support growth plans. The Company is supported by 33 lenders, including prominent banks such as State Bank of India, HDFC Bank, Kotak Mahindra Bank, RBL and IDFC First Bank.
„ Reports net profit of INR 4.30 crore in Q1 FY25 up 163% compared to INR 1.64 crore in Q1 FY24
„ AUM of INR 746 crore in Q1 FY25 up 93% compared to INR 386 crore in Q1 FY24
„ Announced equity raise of INR 271 crore in July‘24 to double net worth and support growth plans
„ Secured book increased to 27% of AUM as of Jun’24 compared to 8% as of Jun’23
„ Credit rating upgraded to CRISIL BBB Stable leading to decline in incremental cost of borrowing
Results Summary: | Q1 FY25 | Q4 FY24 | Q1 FY24 | % YOY |
Period ending | 30-Jun-24 | 31-Mar-24 | 30-Jun-23 |
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Branches | 104 | 100 | 68 | 52.9% |
Disbursements (INR crore) | 106 | 290 | 90 | 17.4% |
AUM (INR crore) | 746 | 730 | 386 | 93.0% |
Key Financial (INR crore): |
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Total Income | 45.69 | 42.41 | 23.52 | 94.2% |
Profit (Loss) after taxes | 4.30 | 4.12 | 1.64 | 162.7% |
Key Ratios |
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ROE * | 10.0% | 10.1% | 8.5% |
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Leverage (TOL/Owned Funds) | 3.47 | 3.54 | 3.55 |
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30+ PAR % of AUM | 2.84% | 2.16% | 1.31% |
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Gross NPA (90+ PAR % of AUM) | 1.65% | 1.54% | 0.74% |
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Net NPA % | 1.11% | 1.04% | 0.35% |
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* ROE = Annualized net profit / Average equity during the period
Highlights of Q1 FY25 Financial Results
„ Robust franchise well positioned for growth with increasing branch vintage and expansion: Company expanded operations to 104 branches across 8 states as of Jun’24 compared to 68 branches in 6 states in Jun’23. Geographic and product diversification improved with entry into the states of Gujarat and Bihar in FY24. Additionally, the share of secured lending increased from 8% of AUM in Q1 FY24 to 27% in Q1 FY25.
„ AUM grew by 93% to INR 746 crores in Q1 FY25 compared to Q1 FY24, led by branch expansion and higher productivity with vintage and growing scale of operations. Reported Disbursements of INR 106 crore during Q1 FY25, growing by 17% over Q1 FY24.
„ Growing profitability: Total Income grew strongly by 94% to about INR 45.69 crore in Q1 FY25 compared to INR 23.52 crore in Q1 FY24, in line with strong growth in AUM. The Company posted profit after taxes of INR 4.30 crore in Q1 FY25 compared to INR 4.12 crore in Q4 FY24 and INR 1.64 crore in Q1 FY24. PAT remained stable in Q1 FY25 compared to Q4 FY24 despite higher credit cost. Operating efficiency continues to improve with Opex declining to 12.0% of avg AUM in Q1 FY25 compared to 13.3% in Q1 FY24 despite significant growth in operations.
„ Achieved ROE of 10.0% in Q1 FY25 against 8.5% in Q1 FY24. Profitability is further expected to improve driven by continuous decline in marginal cost of borrowing, improving branch productivity with vintage, and the benefit of operating leverage with growing AUM.
„ Equity funding of INR 271 crore to boost capital position and support growth plans: Moneyboxx announced equity fund raise of INR 271 crore in its board meeting held on July 17, 2024. The capital raise includes INR 158 crore through preferential equity issue (of which INR 94 crore is from new investors) and INR 113 crore through issue of equity warrants to promoters and existing non-promoter investors. The equity funding will significantly strengthen the Company’s capital position and support its growth plans. Out of the total equity capital raise, INR 186 crore is to be infused by August 2024, which will more than double the Company’s existing capital base to INR 350 crore.
„ Declining cost of borrowings: With the addition of leading banks and NBFCs, and issue of debt via securitization and NCD issuance, the Company has diversified its funding sources and reduced its cost of borrowings (cost of incremental borrowing stood at 12.05% during Q1 FY25 compared to 13.73% in Q1 FY24). The Company is supported by 33 lenders as of date, including 11 leading banks.
„ Stable asset quality: While asset quality moderated during the quarter due to sluggishness in the rural economy, Moneyboxx maintained stable asset quality with one of the lowest NPAs in the segment owing to its focus on essential sectors and robust underwriting practices. Gross NPA increased to 1.65% of AUM in Q1 FY25 compared to 1.54% in Q4 FY24 and 0.74% in Q1 FY24. Net NPA increased to 1.11% for the given quarter compared to 1.04% sequentially and 0.35% yearly. The Company expects near-term credit pressure to subside as the festive demand picks up and expected recovery in rural economy. Increasing focus on secured lending should support asset quality.
Commenting on the results, Deepak Aggarwal (Co-CEO & CFO) said, “In these challenging times, the relatively minor increase in NPAs underscores the strength of our underwriting capabilities. Additionally, the fact that over 65 % of the upcoming equity raise comes from existing investors, including promoters, demonstrates their strong confidence in our business model”
