Gross NPA ratio was 0.60% on September 30, 2024
FinTech BizNews Service
Mumbai, October 28, 2024: Northern Arc Capital Limited announced its results for the quarter ended September 30, 2024, on October 28, 2024.
Key highlights for H1FY25 & Q2FY25
· Pre-provision operating profit (PPoP) grew by 59% YoY to Rs. 387 Cr for H1FY25 and by 74% YoY to Rs. 212 Cr in Q2FY25
· Profit after tax grew by 33% YoY to Rs. 191 Cr in H1FY25 and by 24% YoY to Rs. 98 Cr in Q2FY25
· Lending Assets Under Management (AUM) grew by 22% YoY to Rs. 12,309 Cr
· Gross NPA ratio was 0.60% on September 30, 2024
· Return on Assets improved by 16 bps YoY to 3.1% for H1FY25
· Fresh Equity capital infusion of Rs. 500 Cr through IPO in Q2FY25
· Return on Equity was 13.6% for H1FY25
· Total capital adequacy ratio was 24.9% as on September 30, 2024.
Summary of Northern Arc’s Performance – Q2FY25:
Ø Assets
§ Lending AUM grew by 22% YoY to Rs. 12,309 Cr as on September 30, 2024
§ Fund AUM (AIF) was Rs. 2,812 Cr as on September 30, 2024
§ Gross Transaction Volume for Q2FY25 was Rs. 9,116 Cr
o Of which, Disbursements grew by 23% YoY to Rs. 5,035 Cr
§ Share of Direct to Customer lending has increased to 52% on September 30, 2024, compared to 43% on September 30, 2023
Ø Financials
§ Net Interest Income grew by 47% YoY to Rs. 288 Cr in Q2FY25
§ Fee & Other income grew by 29% YoY to Rs. 26 Cr in Q2FY25
§ PPoP grew by 74% YoY to Rs. 212 Cr in Q2FY25
§ Credit cost was Rs. 78 Cr for Q2FY25
§ Profit after tax grew by 24% YoY to Rs. 98 Cr in Q2FY25
§ Return on Assets was stable at 3.1% for Q2FY25 compared to last year
§ Equity capital infusion of Rs. 500 Cr; Return on Equity was 12.7% for Q2FY25
Ø Asset quality
§ Gross NPA ratio was 0.60% as on September 30, 2024
§ Net NPA ratio was 0.18% as on September 30, 2024
§ Provisioning coverage ratio on Stage III assets was 72% on September 30, 2024
Ø Capital Adequacy
§ Capital adequacy ratio was 24.9% on September 30, 2024.
Commenting on the Q2FY25 results MD & CEO Ashish Mehrotra said, “We are pleased to report another strong quarter of financial results, reflecting the resilience and effectiveness of our strategy. While we recognize the headwinds in today’s landscape, we remain dedicated to executing our vision with operational discipline. We continue to focus on growth in the MSME and other key sectors, while carefully calibrating our approach in the MFI segment. We are confident that our proactive measures, coupled with our diversified business model, will enable us to navigate these challenges and emerge stronger.”
