Finance company Northern Arc Capital announced Q4FY25 & FY25 results Net Interest Income grew by 33% YoY to Rs 1,147 crore in FY25 & 39% YoY to Rs 320 crore in Q4FY25 Fee & Other income was Rs 102 crore in FY25 and Rs 30 crore in Q4FY25 Opex ratio improved by 40 bps YoY to 3.6% in FY25 PPoP grew by 46% YoY to Rs 791 crore in FY25 and 66% YoY to Rs 229 crore in Q4FY25 Credit cost was Rs 405 crore for FY25 and Rs 194 crore in Q4FY25 Profit after tax for FY25 was flat YoY at Rs 305 crore and Rs 38 crore in Q4FY25. The performance was impacted mainly due to one-time provision of Rs 68 crore in Q4FY25. Excluding this one-time provision, PAT would have been Rs 356 crore for FY25, up 15% YoY Return on Assets for FY25 was 2.4% for FY25 Return on Equity was 10.0% for FY25. Raised fresh equity capital of Rs 882 crore in FY25 Commenting on the Q4FY25 & FY25 results MD & CEO Ashish Mehrotra said, "We are pleased to report a resilient performance in FY25, with AUM growing by 16% to Rs 13,634 crore and a profit of Rs 305 crore. This performance, delivered in a challenging environment, is a testament to the strength and adaptability of our diversified business model. The year was marked by macroeconomic and sectoral headwinds, along with a tightened credit environment, which had a moderating effect on overall performance. Despite these pressures, our disciplined and proactive approach to risk management allowed us to protect the quality of our portfolio. In fact, had we not taken a prudent one-time provision of Rs 68 crore on account of regulatory guidance on Default Loss Guarantee accounting, our profit would have reflected a 15% year-on-year growth highlighting the underlying robustness of our business. As we look ahead to FY26, we are cautiously optimistic. Early signs of recovery and an easing interest rate environment point to improving economic momentum. We believe this will translate into a stronger credit landscape, creating opportunities for sustainable growth. With our strong fundamentals and strategic positioning, we are confident in our ability to capitalise on these tailwinds and continue serving as an enabler for India’s growing economy." Result PDF
Finance company Northern Arc Capital announced Q3FY25 results Pre-provision operating profit (PPoP) grew by 9% YoY to Rs 176 crore for Q3FY25 Profit after tax was Rs 76 crore for Q3FY25 Lending Assets Under Management (AUM) grew by 16% YoY to Rs 12,250 crore Gross NPA and Net NPA ratio was 0.90% and 0.37% respectively as on December 31, 2024 Networth grew by 55% YoY to Rs 3,405 crore Gross Transaction Volume for Q3FY25 was Rs 7,523 crore Of which, Disbursements grew by 31% YoY to {NR 4,780 crore Net Interest Income grew by 10% YoY to Rs 267 crore for Q3FY25 Fee & Other income was Rs 21 crore for Q3FY25 PPoP grew by 9% YoY to Rs 176 crore for Q3FY25 Credit cost was Rs 81 crore for Q3FY25 compared to Rs 53 crore for Q3FY24 Profit after tax was Rs 76 crore for Q3FY25 compared to Rs 75 crore for Q3FY24 Return on Assets was stable at 2.4% for Q3FY25 Commenting on the Q3FY25 & 9MFY25 results MD & CEO Ashish Mehrotra said, “The first nine months of this financial year have presented considerable challenges for the lending industry. In these dynamic times, our business model has demonstrated its resilience, enabling us to effectively manage our sectoral exposure. This agility allows us to adjust our focus by strategically ramping up or scaling down sectors in response to changing market conditions. Despite these headwinds, we have achieved a 16% YoY growth in AUM, reaching Rs 12,250 crore, with 52% of our portfolio consisting of a granular, direct-to-customer segment. Our disciplined approach to risk management and targeted expansion has also led to a 22% YoY increase in PAT to Rs 267 crore, with a ROA of 2.9% in 9MFY25" Result PDF
Finance company Northern Arc Capital announced H1FY25 & Q2FY25 results Pre-provision operating profit (PPoP) grew by 59% YoY to Rs. 387 crore for H1FY25 and by 74% YoY to Rs. 212 crore in Q2FY25. Profit after tax grew by 33% YoY to Rs. 191 crore in H1FY25 and by 24% YoY to Rs. 98 crore in Q2FY25. Lending Assets Under Management (AUM) grew by 22% YoY to Rs. 12,309 crore. Gross NPA ratio was 0.60% on Q2FY25. Return on Assets improved by 16 bps YoY to 3.1% for H1FY25. Fresh Equity capital infusion of Rs. 500 crore through IPO in Q2FY25. Return on Equity was 13.6% for H1FY25. Total capital adequacy ratio was 24.9% as on Q2FY25. Ashish Mehrotra, MD & CEO, Northern Arc Capital, 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.” Result PDF