Arman Financial Services Limited · NSE:ARMANFIN
Arman Financial Services — FY2025 Earnings Presentation
41 slides from Arman Financial Services's earnings presentation, May 2025
Slide 1: Arman Financial Services Limited
Arman Financial Services Limited Investor Presentation – May 2025
Slide 2: Safe Harbour
Safe Harbour This presentation and the accompanying slides (the “Presentation”), which have been prepared by Arman Financial Services Ltd. (the “Company”), have been prepared solely for information purposes and do not constitute any offer, recommendation or invitation to purchase or subscribe for an
Slide 3: Contents
Contents Business Update Page 4 - Page 7 About the Company Page 8 - Page 14 Presence in Attractive Retail Page 15 - Page 22 Lending Segments Efficient Liability Management Page 23 - Page 26 Strong Financial Performance Page 27 - Page 40
Slide 4: Business Update
Business Update Business Update
Slide 5: FY25 Performance Highlights
FY25 Performance Highlights INR 2,245 Crore INR 264 Crore* Assets Under Provisions Cumulative Provisions stood at INR 117.43 Crore as on 31st Management and Write offs March 2025 (-15% Y-o-Y) (covering 5.23% of the consolidated AUM, 6.55% on book) INR 1,713 Crore GNPA: 3.37% Disbursement Asset Quali
Slide 6: Track Record of Capital Raising (1/2)
Track Record of Capital Raising (1/2) 2018: Investment by SAIF Partners Shareholding Pattern as on 31 st March 25, on Fully diluted basis • In 2018, raised Rs. 50 crore by issuing compulsorily convertible debentures (CCDs) to SAIF Partners, a leading private equity firm Business Performance 22.1% 20
Slide 7: Track Record of Capital Raising (2/2)
Track Record of Capital Raising (2/2) Calculated as per IND-AS Net worth (INR Crore) Debt/Equity (x) # CRAR (%) 847 865 859 874 1.8 48.2% 48.4% 1.5 39.2% 43.8% 45.7% 1.4 1.3 37.9% 39.5% 37.3% Jun-24 Sep-24 Dec-24 Mar-25 Jun-24 Sep-24 Dec-24 Mar-25 Jun-24 Sep-24 Dec-24 Mar-25 Arman (Standalone) Namra
Slide 8: About the Company
About the Company About the Company
Slide 9: About Arman Financial Services
About Arman Financial Services About the Company Business Performance Efficient Liability Management • A diversified NBFC focusing on large under-served rural & semi-urban • Consistent rating upgrades backed by strong financial & operating retail markets performance • Namra & Arman credit rating upg
Slide 10: Journey so Far
Journey so Far 1992 1995 1998 2010 2011 • Company Incorporated • Listing on BSE – • Launched 2W Loans • Launched Microfinance • Raised PE funding • Started bill discounting Issue subscribed business from Incofin & Machine leasing 22x • Disbursement crosses INR 50 Crore 2019 2018 2017 2014-16 2013 •
Slide 11: Geographical Footprint
Geographical Footprint Geographical AUM Mix Number of (Consolidated) FY25 FY24 Branches 1% 10% Microfinance 391 319 2% 29% 5% 2% MSME 95 79 2 12 11% 2W & Rural 2W 3 4 93 58 60 16% Total 489 402 23% 18 91 79 2% Gujarat Rajasthan Bihar 45 Uttar Pradesh Telangana Others 23 Jharkhand Maharashtra Madhya
Slide 12: Strong Underwriting Measures by Leveraging Digital Transformation
Strong Underwriting Measures by Leveraging Digital Transformation Loan Management Instant Verification Of Key Details • Loan Utilization check • The LOS* & LMS* System facilitates instant verification • Instant pre-closure and pre-settlement and its • KYC Validation through OCR and face recognition
Slide 13: Eminent Board of Directors
Eminent Board of Directors Alok N. Prasad Jayendrabhai B. Patel Aalok J. Patel Chairman Vice Chairman & Managing Director Joint Managing Director • A veteran banker with over 35 years of regulatory, banking and • He has been an entrepreneur for 45 years. He was involved in a • He has 16 years of ban
Slide 14: Competitive Moat
Competitive Moat Focus on small ticket retail loans to the large under served informal segment customer in rural & semi urban geographies Diversifying products, geographies, sources of funds and delivering growth by increasing volumes rather than ticket sizes Competitive Conservative operations fram
Slide 15: Presence in Attractive Retail Lending Segments
Presence in Attractive Retail Lending Segments
Slide 16: Product Offerings across Verticals
Product Offerings across Verticals 74.5% 20.2% 3.5% Microfinance - JLG MSME Loans Two-Wheeler Loans Average Ticket Size : INR 48,000 Average Ticket Size: Average Ticket Size: (Cycle 1 & 2 -INR 25k - 60k INR 74,000 INR 75,000 Cycle 3+ -INR 25k – 75k) Tenur e: 18 -24 Mon th s Tenure: 24 Months Tenure:
Slide 17: Microfinance Loans
Microfinance Loans (INR Crore) AUM* Disbursement Total Income Profit After Tax Avg. Ticket Size (INR) 2,193 1,895 530 552 138 46,700 48,000 1,686 1,232 8 FY24 FY25 FY24 FY25 FY24 FY25 FY24 FY25 FY24 FY25 *Includes Individual Business Loans • Disbursement: 100% Cashless • JLG model with small ticket
Slide 18: MSME Loans
MSME Loans (INR Crore) AUM Disbursement Total Income Avg. Ticket Size (INR) 454 392 150 77,000 74,000 367 333 106 FY24 FY25 FY24 FY25 FY24 FY25 FY24 FY25 • Individual enterprise /working capital loans for small rural businesses in low competition • Disbursement: 100% Cashless areas • Credit Checks:
Slide 19: LAP Loans
LAP Loans (INR Crore) AUM Disbursement Total Income Avg. Ticket Size (INR) 28 9 1.20 4,60,000 4,10,000 4 6 0.27 Q1FY25 Q4FY25 Q1FY25 Q4FY25 Q1FY25 Q4FY25 Q1FY25 Q4FY25 • Disbursement: 100% Cashless • Credit Checks: CIBIL & CRIF Score; Home & Business Field Investigation, • Company launched and pilot
Slide 20: 2W and Rural 2W Loans
2W and Rural 2W Loans (INR Crore) AUM Disbursement Total Income Avg. Ticket Size (INR) 77 78 69 21 72,500 75,000 62 18 FY24 FY25 FY24 FY25 FY24 FY25 FY24 FY25 • Hypothecation (secured) loans given to self-employed /cash-salaried customer in the • Disbursement: 100% Cashless informal segment in semi-
Slide 21: MSME Process Overview
MSME Process Overview MSME Process Overview Sourcing Underwriting Collections • In-house sourcing team (No DSAs) • Credit bureau check (CRIF & CIBIL) • Team member that does sales also • handles collections • Feet-on-Street sales team model Physical FI & PD by in house credit manager at residence &
Slide 22: Collection Efficiency
Collection Efficiency Microfinance MSME Two-Wheeler Total 95.1% 95.2% 95.5% 95.2% 95.3% 95.7% 95.1% 96.8% 95.8% 95.2% 95.3% 95.6% Jan-25 Feb-25 Mar-25 Jan-25 Feb-25 Mar-25 Jan-25 Feb-25 Mar-25 Jan-25 Feb-25 Mar-25 Two- Update on Collections Particulars (INR Crore) Microfinance MSME Wheeler Total • T
Slide 23: Efficient Liability Management
Efficient Liability Management
Slide 24: Strong Capitalization with Sufficient Liquidity
Strong Capitalization with Sufficient Liquidity Capital Adequacy Ratio ALM Position (in Months) 62.7% 19 19 19 17 17 16 16 15 16 48.4% 15 43.8% 45.7% 39.2% 39.5% 37.3% 32.8% 31-Mar-24 30-Sep-24 31-Dec-24 31-Mar-25 Q4 FY 2 4 Q1 FY 2 5 Q2 FY 2 5 Q3 FY 2 5 Q 4 FY 2 5 Arman (Standalone) Namra Av g T enu
Slide 25: Borrowing Profile
Borrowing Profile Borrowing Mix (%) (INR Crore) Top 5 Lending Partners 2,261 2,217 2,019 1,765 1,769 Top 5 Lenders % of Borrowings Lender 1 - TL 10.53% 33.9% 32.2% 35.9% 41.1% 40.2% Lender 2 - TL & DA 9.58% Lender 3 - TL & DA 8.90% 3.7% 4.3% 4.4% 12.3% Lender 4 - DA 6.76% 5.1% 4.6% 11.8% 12.3% 11.6%
Slide 26: Securitization
Borrowings Bank Borrowings Non-Bank Securitization Lending Partnerships NCDs & ECB Partners The Brand Names mentioned are the property of their respective owners and are used here for identification purposes only 26
Slide 27: Financial Performance
Financial Performance
Slide 28: FY25 Consolidated Profit & Loss Statement
FY25 Consolidated Profit & Loss Statement Particulars (INR Crore) Q4FY25 Q4FY24 YoY % Q3FY25 QoQ% FY25 FY24 YoY % Income from Operations 199.4 182.9 164.8 730.0 661.5 Other Income 0.0 0.1 0.0 0.0 0.1 Gross Total Income 199.4 182.9 9% 164.8 21% 730.0 661.5 10% Finance Costs 51.7 63.0 57.0 239.4 265.5
Slide 29: Balance Sheet – 31st March 2025
Balance Sheet – 31st March 2025 Particulars (INR Crore) Consolidated Standalone Particulars (INR Crore) Consolidated Standalone ASSETS Mar-25 Mar-24 Mar-25 Mar-24 LIABILITIES & EQUITY Mar-25 Mar-24 Mar-25 Mar-24 Financial Assets Equity Share capital 10.5 10.5 10.5 10.5 Cash and cash equivalents 67.8
Slide 30: Consolidated Business Performance
Consolidated Business Performance (INR Crore) AUM Disbursement Gross Total Income 2,639 2,594 669 199 2,465 183 184 181 2,280 2,245 165 544 459 373 338 Q4FY24 Q1FY25 Q2FY25 Q3FY25 Q4FY25 Q4FY24 Q1FY25 Q2FY25 Q3FY25 Q4FY25 Q4FY24 Q1FY25 Q2FY25 Q3FY25 Q4FY25 Net Total Income Pre-provision Operating Pr
Slide 31: Consolidated Business Performance
Consolidated Business Performance Net Interest Margin (%) Cost to Income Ratio (%) Yield (%) 16.0% 35.9% 25.1% 25.4% 25.4% 24.8% 25.1% 15.2% 15.5% 15.1% 15.2% 33.3% 31.1% 28.7% 26.6% Q4FY24 Q1FY25 Q2FY25 Q3FY25 Q4FY25 Q4FY24 Q1FY25 Q2FY25 Q3FY25 Q4FY25 Q4FY24 Q1FY25 Q2FY25 Q3FY25 Q4FY25 Asset Qualit
Slide 32: PAR Movement
PAR Movement PAR 31-90 (%) Movement GNPA (%) 7.9% 6.9% 7.1% 4.4% 4.0% 6.8% 3.2% 3.7% 3.7% 3.4% 2.4% 4.4% 3.4% 2.2% 3.6% 4.8% 4.6% 2.8% 2.9% 4.4% Mar-22 Mar-23 Mar-24 Dec-24 Mar-25 4.7% 3.9% 4.5% NNPA (%) 2.3% 2.1% 1.1% 2.1% 1.9% 1.6% 0.5% 1.5% 1.4% 1.4% 0.3% 1.1% 1.4% 0.9% 0.9% 0.7% Mar-22 Mar-23 Ma
Slide 33: FY25 – Standalone P&L Statement (2W, MSME & LAP)
FY25 – Standalone P&L Statement (2W, MSME & LAP ) Particulars (INR Crore) Q4 FY25 Q4 FY24 YoY % Q3 FY25 QoQ% FY25 FY24 YoY % • Standalone AUM stood at ~INR 560 as on 31st March 2025 Income from Operations 50.6 37.7 45.0 181.9 133.5 • Disbursement of ~INR 151 Crore in Q4FY25; of Other Income 4.2 1.6
Slide 34: Standalone Business Performance
Standalone Business Performance (INR Crore) AUM Disbursement Gross Total Income* 560 151 48.9 494 512 137 12 471 78 125 42.3 43.3 6.1 448 83 15 39.2 82 85 106 109 5.2 5.0 79 25 34.1 4.7 14 18 4.4 454 130 410 120 41.6 383 398 91 34.2 36.6 37.3 367 89 86 29.7 2 6 11 19 28 2 4 5 9 9 0.3 0.6 0.9 1.2 Q4F
Slide 35: FY25 - Namra Finance Profit & Loss Statement
FY25 - Namra Finance Profit & Loss Statement • Over the years we have steadily expanded and Particulars (INR Crore) Q4 FY25 Q4 FY24 YoY % Q3 FY25 QoQ% FY25 FY24 YoY % deepened our MFI presence through our wholly owned subsidiary, Namra Finance. This Income from Operations 150.3 147.0 120.9 552.4 530
Slide 36: Microfinance Business Performance – Namra Finance (1/2)
Microfinance Business Performance – Namra Finance (1/2) (INR Crore) AUM Disbursement Gross Total Income 2,193 2,129 534 147 143 150 1,981 138 1,768 1,686 121 393 356 269 214 Q4FY24 Q1FY25 Q2FY25 Q3FY25 Q4FY25 Q4FY24 Q1FY25 Q2FY25 Q3FY25 Q4FY25 Q4FY24 Q1FY25 Q2FY25 Q3FY25 Q4FY25 Net Total Income Pre-
Slide 37: Microfinance Business Performance – Namra Finance (2/2)
Microfinance Business Performance – Namra Finance (2/2) Net Interest Margin (%) Cost to Income Ratio (%) Yield (%) 13.6% 13.0% 35.8% 23.8% 23.6% 23.0% 12.5% 12.0% 22.1% 21.6% 11.9% 31.2% 29.5% 26.2% 23.0% Q4FY24 Q1FY25 Q2FY25 Q3FY25 Q4FY25 Q4FY24 Q1FY25 Q2FY25 Q3FY25 Q4FY25 Q4FY24 Q1FY25 Q2FY25 Q3FY
Slide 38: AUM and Disbursements Trends
AUM and Disbursements Trends Total AUM (INR Crore) Total Disbursements (INR Crore) 2,639 2,297 14% 2,245 3% 14% 1,943 20% 1,767 3% 1,713 13% 13% 3% 1% 3% 3% 23% 1,233 4% 1,024 13% 83% 880 860 4% 778 14% 82% 814 16% 4% 685 17% 84% 75% 12% 84% 11% 15% 6% 547 12% 10% 509 72% 453 14% 10% 15% 83% 248 0%
Slide 39: Historical Metrics
Historical Metrics Gross and Net Total Income Yield & NIM (%) Asset Quality (INR Crore) COVID-19 Demonetization COVID-19 Demonetization 730 6.7% Demonetization COVID-19 662 28.3% 27.4% 26.7% 25.5% 24.4% 25.2% 25.2% 22.9% 491 21.5% 424 4.6% 396 16.5% 16.5% 15.9% 15.4% 3.3% 14.0% 14.3% 14.2% 13.8% 2.6
Slide 40: Annexure
Annexure • Gross Interest Income = Interest Income + processing fees / other charges • Net Interest Margins = Net Interest Income / Average AUM (On + Off -Book) • Yields = Gross Interest Income / Avg. AUM (On + Off Off -Book) • Cost-to -Income Ratio = Opex (excl. provisions) / Net Total Income • GNP
Slide 41: Thank You
Thank You Contact Information Company: Investor Relations Advisors: Arman Financial Services Limited Strategic Growth Advisors Pvt. Ltd. CIN: L55910GJ1992PLC018623 CIN: U74140MH2010PTC204285 Mr. Vivek Modi Mr. Abhishek Shah Chief Financial Officer (CFO) abhishek.shah@sgapl.net Email : vivek@armanind
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