- Net profit soars 291.2% to INR 1.64 crore in Q1 FY24 compared to net profit of INR 0.42 crore in Q4 FY23 and net loss of INR 1.60 crore in Q1 FY23
- Improving operating efficiency with growing AUM and healthy net interest margins underpin the strong improvement in profitability
- Resilient business model with strong asset quality and adequate capitalization
| Results at a glance: | Q1 FY24 | Q4 FY23 | Q1 FY23 | % YOY | % QOQ |
| Quarter ending | 30-Jun-23 | 31-Mar-23 | 30-Jun-22 | ||
| Branches | 68 | 61 | 31 | 119.4% | 11.5% |
| AUM (INR crore) | 380 | 338 | 130 | 191.8% | 12.4% |
| Key Financial (INR crore): | |||||
| Total Income | 23.52 | 18.62 | 8.48 | 177.5% | 26.3% |
| Profit (Loss) after taxes | 1.64 | 0.42 | -1.60 | 291.2% | |
| Key Ratios | |||||
| ROA (PAT / Average Total Assets) * | 2.0% | 0.6% | -4.2% | ||
| ROE (PAT / Average Equity) * | 8.5% | 2.6% | -14.6% | ||
| Leverage (TOL/Owned Funds) | 3.55 | 3.67 | 2.32 | ||
| Gross NPA (90+ PAR % of AUM) | 0.74% | 0.59% | 0.75% | ||
| Net NPA | 0.35% | 0.30% | 0.38% |
* Calculated on annualized basis
August 14, 2023, Mumbai: Highlights of Q1 FY24 Financial Results
- AUM grew by 191.8% to INR 380 crores as on June 30, 2023, in comparison to INR 130 crores as on June 30, 2022, led by branch expansion, higher productivity and growth in partnership business
- Total Income grew strongly by 177.5% to INR 23.52 crores in Q1 FY24 compared to INR 8.48 in a in Q1 FY23, in line with strong growth in business and AUM
- Profit soars on the back of growing AUM and improving branch productivity with vintage. The Company posted profit after taxes of INR 1.64 crores in Q1 FY24 compared to profit after taxes of INR 0.42 crore in Q4 FY23 and a net loss of INR 1.60 crore in Q1 FY23. The Company has strong unit economics with NIM margin of over 15%, and profitability is further expected to improve driven by declining cost of borrowings, improving branch productivity, increased share of secured lending business, and the benefit of operating leverage with growing scale of operations
- Achieved ROA of 2.0% and ROE of 8.5% in Q1 FY24, improving significantly from 0.6% of ROA and 2.6% of ROE in Q4 FY23.
- Robust asset quality: Moneyboxx has strong asset quality with very low NPAs and write-offs owing to its focus on essential sectors and robust underwriting practices. Asset quality remains stable with Gross NPA of 0.74% and Net NPA of 0.35% as on June 30, 2023, compared to Gross NPA of 0.75% and Net NPA of 0.38% as on June 30, 2022.
- Adequate Capitalization: Moneyboxx strengthened its capital base by raising INR 48.4 crores equity in FY23 (including INR 3.36 crore warrants issue). Leverage ratio (TOL/Owned Funds) improved to 3.55 as on 30.06.2023 in comparison to 3.67 as on 31.03.2023.
- Diversified funding mix and declining cost of borrowings: With the addition of leading banks and NBFCs in the last one year, the Company has diversified its funding sources and reduced its cost of borrowings. The Company is supported by 27 lenders as of date, including 8 leading banks (SBI, HDFC Bank, IDFC First Bank, DCB Bank, Federal Bank, AU SFB, Utkarsh SFB and Fincare SFB) and leading NBFCs and impact funds. The Company availed INR 33.95 crore of debt funding in Q1 FY24.
Commenting on the results, Deepak Aggarwal (Co-CEO & CFO) said, “Strong improvement in Q1 FY24 profitability validates the strengths of our business model. We have built a sustainable, scalable, and tech-driven business model with robust underwriting practices to cater to the underserved INR 1-10 Lakhs business loan market in rural and semi-urban areas. Given the huge credit gap for micro enterprises in the INR 1-10 Lakhs loan segment in Tier-III and below areas, we see strong growth opportunities and aim to transform lives of micro entrepreneurs through our various beyond-lending impact initiatives such as free vet advisory and agro-forestry for livestock and agricultural borrowers. Moneyboxx is committed to change the way impact investing is looked at and bring significant positive change in the lives of its borrowers.”
