Driven by higher profitability and branch expansions, Moneyboxx, a base-layer non-banking financial corporation (NBFC) has reported a net profit of Rs 4.30 crore in the first quarter of the current financial year (Q1FY25), marking a 162.7 per cent year-on-year (YoY) increase. The assets under management (AUM) of the company also registered a 93 per cent YoY growth, reaching Rs 746 crore in Q1FY25.
In line with the strong AUM, the total income of the company grew by 94 per cent to Rs 45.69 crore in Q1FY25, from Rs 23.52 crore in Q1FY24. Despite higher credit costs, the profit after taxes in Q1FY25 remained stable from Rs 4.12 crore in Q4FY24.
The company expanded operations to 104 branches as of June 2024, up from 68 branches in June 2023. The geographic and product diversification improved due to the entry into Gujarat and Bihar in FY24. In addition to this, the share of secured lending increased to 27 per cent of AUM in Q1FY25 from 8 per cent in Q1FY24, the company stated in a press release.
Even after the growth in operations, the operating efficiency of the company improved as the opex declined to 12 per cent of average AMU in Q1FY25 from 13.3 per cent a year ago.
By diversifying its funding sources with the addition of leading banks and NBFCs, the company has reduced its cost of borrowing as the cost of incremental borrowing stood at 12.05 per cent during Q1FY25, down from 13.73 per cent in Q1FY24. The company achieved a return on equity (RoE) of ten per cent in the recently concluded quarter, up from 8.5 per cent in Q1FY24, as per the results.
Deepak Aggarwal, co-chief executive officer (co-CEO) and chief financial officer (CFO) of the company 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.
Strengthening the company’s capital position and supporting its growth plans, Moneyboxx notified about the equity raise of Rs 271 crore in its board meeting on 7 July 2024. This included Rs 158 crore through preferential equity issue and Rs 113 crore through the issue of equity warrants to promoters and non-promoter investors.
