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Results - Analysis
AUM up 28%, stable margins and asset quality
SBFC Finance
28-Apr-2025, 05:55
SBFC Finance has posted 29% increase in the net profit to Rs 94.40 crore in the quarter ended March 2025 (Q4FY2025). The income from operation of SBFC Finance increased 29% to Rs 360.58 crore in Q4FY2025. Overall OPM has increased to 74.49% in Q4FY2025 from 72.39% in Q4FY2024, leading to 33% rise in operating profit to Rs 268.61 crore.
Other income eased 8% to Rs 0.60 crore. Interest cost increased 34% to Rs 117.99 crore. Provisions surged 53% to Rs 20.86 crore. Depreciation moved up 26% to Rs 4.56 crore. PBT moved up 30% to Rs 125.80 crore. The effective tax rate rose to 25.0% in Q4FY2025 compared to 24.2% in Q4FY2024. Provision for tax was expense of Rs 31.40 crore, compared to Rs 23.49 crore. Profit after tax jumped 29% to Rs 94.40 crore.
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SBFC Finance has posted 29% increase in the net profit to Rs 94.40 crore in the quarter ended March 2025 (Q4FY2025). The income from operation of SBFC Finance increased 29% to Rs 360.58 crore in Q4FY2025. Overall OPM has increased to 74.49% in Q4FY2025 from 72.39% in Q4FY2024, leading to 33% rise in operating profit to Rs 268.61 crore.
Other income eased 8% to Rs 0.60 crore. Interest cost increased 34% to Rs 117.99 crore. Provisions surged 53% to Rs 20.86 crore. Depreciation moved up 26% to Rs 4.56 crore. PBT moved up 30% to Rs 125.80 crore. The effective tax rate rose to 25.0% in Q4FY2025 compared to 24.2% in Q4FY2024. Provision for tax was expense of Rs 31.40 crore, compared to Rs 23.49 crore. Profit after tax jumped 29% to Rs 94.40 crore.
Business highlights
The Asset under management of the company increased 28% to Rs 8747 crore end March 2025 over March 2024. The disbursements of the company rose 6% yoy to Rs 766 crore in Q4FY2025. The active loan accounts increased 33% on yoy basis to 1.71 lakh end March 2025. The share of secure MSME loan book in the overall asset under management was steady at 83% and gold loans at 17% end March 2025. The share of secured loan book was at 100% compared with 99% end December 2024. The yield on loan book rose on sequential basis to 17.88%, while the cost of borrowing rose to 9.35% in Q4FY2024. The spreads rose to 8.53% in Q4FY2025. On asset quality front, the gross stage 3 asset book rose 4 bps qoq to 2.74% while the net stage 3 assets ratio declined 12 bps qoq to 1.51% end March 2025. The provision coverage ratio jumped to 45.7% and collection efficiency eased qoq to 97.74% from 97.88%. The capital adequacy ratio was strong at 36.1% end March 2025. The company has added 8 branches raising the overall branch network to 205 branches end March 2025. The employee count has increased to 4294 employees end March 2025Financial performance FY2025
The income from operation of SBFC Finance increased 28% to Rs 1305.12 crore in FY2025. Overall OPM has increased to 74.12% in FY2025 from 71.26% in FY2024, leading to 33% rise in operating profit to Rs 967.30 crore. Other income declined 23% to Rs 0.99 crore. Interest cost increased 20% to Rs 419.24 crore. Provisions jumped 57% to Rs 73.72 crore. Depreciation moved up 25% to Rs 16.81 crore. PBT increased 45% to Rs 458.52 crore. The effective tax rate declined to 24.7% in FY2025 compared to 25.0% in FY2024. Provision for tax was expense of Rs 113.35 crore, compared to Rs 79.04 crore. Profit after tax jumped 46% to Rs 345.17 crore in FY25.| SBFC Finance: Results | ||||||
| Particulars | 2503 (3) | 2403 (3) | Var % | 2503 (12) | 2403 (12) | Var % |
| Income from Operations | 360.58 | 278.81 | 29 | 1305.12 | 1018.54 | 28 |
| OPM (%) | 74.49 | 72.39 | ' | 74.12 | 71.26 | ' |
| OP | 268.61 | 201.83 | 33 | 967.30 | 725.86 | 33 |
| Other Income | 0.60 | 0.65 | -8 | 0.99 | 1.28 | -23 |
| PBDIT | 269.21 | 202.48 | 33 | 968.29 | 727.14 | 33 |
| Interest (Net) | 117.99 | 88.30 | 34 | 419.24 | 350.64 | 20 |
| PBDT | 151.22 | 114.18 | 32 | 549.05 | 376.50 | 46 |
| Provisions | 20.86 | 13.63 | 53 | 73.72 | 47.03 | 57 |
| Depreciation / Amortization | 4.56 | 3.63 | 26 | 16.81 | 13.41 | 25 |
| PBT before EO | 125.80 | 96.92 | 30 | 458.52 | 316.06 | 45 |
| EO | 0.00 | 0.00 | - | 0.00 | 0.00 | - |
| PBT after EO | 125.80 | 96.92 | 30 | 458.52 | 316.06 | 45 |
| Tax Expenses | 31.40 | 23.49 | 34 | 113.35 | 79.04 | 43 |
| PAT | 94.40 | 73.43 | 29 | 345.17 | 237.02 | 46 |
| EPS * | 3.5 | 2.7 | ' | 3.2 | 2.2 | ' |
| Adj BV (Rs) | 28.2 | 25.1 | ' | 28.2 | 25.1 | ' |
| * Annualized on current equity of Rs 1086 crore. Face Value: Rs 10, Figures in Rs crore, PL: Profit to Loss, LP: Loss to Profit | ||||||
| Source: Capitaline Corporate Database | ||||||
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