Finance company Fedbank Financial Services announced Q4FY24 & FY24 results: Q4FY24 Financial Highlights: Interest Income: Fedbank Financial Services Limited reported an increase in interest income to Rs 3,854 million in Q4FY24, marking a quarterly growth of 3% and a significant YoY increase of 28%. Interest Expenses: The company's interest expenses slightly decreased by 1% in the quarter, down to Rs 1,734 million, and experienced a 23% rise when compared to Q4 FY23. Net Interest Income (Core): This key profitability metric reached Rs 2,120 million for Q4FY24, up 6% from the previous quarter, and surged by 31% YoY. Operating Profit: Fedfina saw its operating profit reach Rs 1,086 million for Q4FY24, a slight decrease of 2% from the previous quarter but up by 32% compared to the same quarter the previous year. Profit After Tax (Net Profit): The net profit for Q4 was Rs 677 million, a 3% increase QoQ and a significant 73% jump when compared to Q4FY23. FY24 Financial Highlights: Interest Income: The full-year interest income amounted to Rs 14,580 million in FY24, showcasing a robust growth of 36% from FY23. Interest Expenses: Over the entire fiscal year, interest expenses climbed by 44% to Rs 6,797 million. Net Interest Income (Core): The full-year figure stood at Rs 7,783 million, indicating an increase of 29% from FY23. Operating Profit: For the entire FY24, the company's operating profit rose to Rs 3,939 million, growing by 28% YoY. Profit After Tax (Net Profit): Overall, the net profit for FY24 was Rs 2,447 million, marking a 36% rise from the previous year. Operational Highlights: Assets Under Management (AUM): AUM grew by 34% YoY to Rs 1,21,919 million. Disbursements: Total disbursements for FY24 amounted to Rs 1,35,787 million, which reflects a growth of 26% YoY. Key Financial Ratios: Ratios such as the Cost to Income, Return on Average Assets (ROA), and Return on Average Equity (ROE) were reported for both quarterly and yearly time frames, showing stable performance and significant improvements in areas like ROA and ROE for FY24. Branch Expansion and Employee Growth: Fedfina expanded its presence with 12 new branches in Q4, reaching a total of 621 branches. The employee count increased to 4,298. Asset Quality: Stage III Assets: The Gross Stage III assets decreased to 1.7% from the previous quarter, indicating an improvement in asset quality. The company also sold off a large Non-Performing Asset (NPA) during Q4FY24. Commenting on the performance, Anil Kothuri, MD & CEO, Fedbank Financial Services said, “We continued to make strides towards realising our mission to empower emerging India with easy access to loans. The last quarter was a busy one where we saw record disbursals, improving quality as well as higher profitability.” Result PDF
Conference Call with Fedbank Financial Services Management and Analysts on Q3FY24 Performance and Outlook. Listen to the full earnings transcript.