Helpage Finlease Ltd Management Discussions

- Overview:

Helpage Finlease Limited is a non-deposit taking and non-systematically important Non-Banking Financial Company (NBFC) registered with the Reserve Bank of India (RBI) under Section 45-IA of Reserve Bank of India Act, 1934, listed on Bombay Stock Exchange (BSE).

The Company is engaged into the lending business mainly focused for catering the financial needs of small and medium enterprise (SMEs) which eventually have a high role to play to boost the growth of developing country like India. The Company has also obtained registration with four CICs (Credit Information Companies) and maintaining the data as required.

The Management Discussion and Analysis Report (MDAR) provide an insight into the performance of the Company in the previous years, in the current year and its future plans besides the risks, uncertainties associated with the Companys business along with the management perception and vision to win over the anomalies of future business situations. The Management Discussion and Analysis Report (MDAR) contains managements interpretation of financial performance of the Company more over actual results are reflected in the financial statements which should be studied in consonance with the Management Perspective.

- Macro-Economic performance of Industry and Outlook:

NBFCs forms an integral segment of the Indian Financial Sector of the Country; complementing the Banks in catering the credit needs of the different sectors of the economy. They have emerged as the driving force behind Indias rapid economic growth.

NBFCs are stronger and more resilient today, and better positioned in almost all operationally critical parameters.

During FY 2024 25, the Indian economy remained resilient, recording GDP growth of around 6.5% despite global headwinds. The prolonged Russia Ukraine conflict continued to disrupt global commodity markets, keeping crude oil and essential metal prices volatile and exerting intermittent inflationary pressures worldwide. While advanced economies experienced a moderation in growth due to tighter monetary policies, emerging markets like India benefited from robust domestic demand, healthy investment activity, and sustained government capital expenditure, particularly in infrastructure.

According to the International Monetary Fund (IMF), global GDP growth stood at approximately

3.1% in 2024, with India remaining one of the fastest-growing major economies, significantly outpacing the global average. Headline CPI inflation in India moderated to an average of about

5%, remaining within the RBIs tolerance band due to easing commodity prices, improved supply chain conditions, and effective policy measures. The RBI maintained the policy repo rate at 6.50% through the year to anchor inflation expectations, resulting in a stable but relatively high-interest rate environment.

The NBFC sector continued to perform strongly, recording nearly 20% year-on-year credit growth, substantially higher than the 12% growth of scheduled commercial banks. Retail lending, gold loans, MSME financing, and vehicle finance remained the primary growth drivers. Asset quality was stable, with gross NPAs averaging 5 6%, supported by prudent underwriting standards and robust collection efficiencies. On the regulatory front, the RBI advanced the implementation of the Scale-Based Regulation (SBR) framework, issued revised Fraud Risk Management directions effective July 2024 to enhance governance and internal controls, and expanded the Account Aggregator framework to strengthen data protection and consent-based financial information sharing.

Looking ahead to FY 2025 26, the IMF projects Indias GDP growth to be in the range of 6.5-6.7%, driven by resilient consumption, continued public capital expenditure, and a rebound in rural demand. However, uncertainties persist due to ongoing geopolitical tensions, including the Russia Ukraine conflict and related global supply chain risks, which could impact commodity prices and inflation dynamics. Credit demand in retail and MSME segments is expected to remain robust, particularly in Tier-2 and Tier-3 markets, supported by formalization of the economy and rising disposable incomes. Digital transformation, AI-driven underwriting, and partnerships with fintechs are anticipated to further enhance operational efficiency and customer reach. While stable domestic interest rates and improved funding access are likely to support growth, potential challenges include volatility in global financial markets, shifts in foreign capital flows, and climate-related disruptions. Regulatory oversight will remain stringent, with a continued emphasis on governance, capital adequacy, and risk management to ensure the long-term resilience of the NBFC sector.

Your Company is committed to address these changes strengthen by its potency in market position, strong execution capabilities, Committed Team and Excellent Management foresight.

Strengths

Large untapped markets in rural areas and small towns Judicious fund management techniques Flexible operations & ability to innovate Cost advantages

Weakness

Weak Brand Name and Poor recoveries High Resource Cost structure Dynamic Political environment Negative effects of Economic downturn

Opportunities

Untapped potential of markets Low entry barriers

Govt. reliefs provided to the NBFC sector amidst the Covid pandemic

Meeting working capital needs of SMEs sector

Threats

Competition with banks and peer groups Risks associated with liquidity stress

Deterioration of asset quality and mounting off Non-performing Assets (NPAs).

Exposure to abnormal industrial risk factors of interest rate volatility, economic cycle and credit risk

- Risk Management:

Risk management forms an integral part of our Companys Business. Being a lending institution, there are inherent financial and nonfinancial risks. We have a proper risk management framework to identify, assess, monitor and manage various types of internal and external risks. The company identifies and monitors risks periodically.

- Performance highlights:

The highlights of the Companys performance are as under: -

Total Revenue from operations increased from Rs. 4,55,13,800/- to Rs. 8,64,615,00/- Net Profit for the year increased from Rs. 87,34,500/- to Rs1,47,53,900. /- Earnings per share (diluted) had increased from Rs. 0.88 to Rs. 1.54.

- Segment Wise or Product Wise Performance

	FY 2024-25		FY 2023-24
	Student Education Fee Finance	SME Lending	Student Education Fee Finance	SME Lending
Income	35,90,568	8,28,70,922	17,57,915	4,37,55,843
Grand Total	35,90,568	8,28,70,922	17,57,915	4,37,55,843
Expenses	14,40,624	6,97,11,205	10,80,966	3,55,86,537
Grand Total	14,40,624	6,97,11,205	10,80,966	3,55,86,537
Profit	21,49,944	1,31,59,717	6,76,949	81,69,306

- Human Resources/Industrial Relations:

The Company recognize that employees are the wealth of an organization which can help it in achieving its goals. It continues to lay emphasis on people, its most valuable resource and developing industrial relations. In an increasingly competitive market for human resources, it seriously focuses on attracting and retaining the right talent. It provides an equal opportunity to employees to deliver results.

- Internal Control Systems & Adequacy:

The Company has a disciplined approach to cost and follows prudential norms in every sphere of its activities. The Company has established internal control systems for ensuring optimum use of resources, safeguarding the assets, avoid errors and frauds and systematic control of business activities.

A dedicated concurrent audit team functioning within the Company supported by an outsourced concurrent audit team confirms that the activities are in compliance with its policies and occurrences of deviations are reported to the Management. The Company has further strengthened its internal audit function by investing in domain specialists to increase effectiveness of controls. The audit committee of the Board of Directors reviews the internal audit reports and the adequacy and effectiveness of internal controls regularly to ensure compliance and suggests measures for improvements.

- Key Financial Ratios:

There have been significant changes (i.e., change of 25% or more) in the ratios as compared to previous financial year.

Particulars	Current Year	Previous Year	%CHANGE	Reason for >25% Change
Current Ratio	1.59	4.25	-62.65	due to decrease in current assets
Debt-Equity Ratio	4.93	2.88	70.94	due to Increase in borrowings
Debt Service Coverage Ratio,	0.11	0.10	3.79	-
Return on Equity Ratio	0.09	0.06	57.63	due to Increase in Net profit
Inventory turnover ratio	NA	NA	NA	-
Trade Receivables turnover ratio	1.57	0.60	-12.57	-
Trade payables turnover ratio	4.24	1.63	49.04	due to Increase in Finance cost
Net capital turnover ratio	0.53	0.30	77.28	due to Increase in Income
Net profit ratio	0.17	0.19	-11.08	-
Return on investment	NA	NA	NA	-
Interest Service Coverage Ratio	1.35	1.54	-12.19	-
Operating Profit Margin (%)	0.24	0.26	-9.09	-
Net Profit Margin (%)	0.17	0.19	-11.08	-

Disclosure of Accounting Treatment:

There has been no change in the preparation of financial statements, a treatment different from that prescribed in an Accounting Standard.

- Cautionary Statement:

The statements made in this report describing the Companys objectives, projections, estimates and expectations, may constitute ‘forward-looking statements within the meaning of applicable laws and regulations. Although the expectations are based on reasonable assumptions, the actual results might differ.

	By the order of Board
	For Helpage Finlease Limited
	Sd/-
	Sidharth Goyal
Date: 26th May, 2025	Managing Director
Place: Delhi	DIN:02855118