Arman Financial vaults on strong business update

13 Apr 2022 , 02:39 PM

The Gujarat based non-banking finance company (NBFC) said that its consolidated Asset Under Management (AUM) as on 31 March 2022 stood at about Rs 1,222 crore, higher by 50% year-on-year (YoY) and 17% quarter-on-quarter (QoQ). The improvement was backed by enhanced branch network, demand from existing customers, and addition of new customers in existing geographies.

Consolidated disbursements for Q4 FY22 stood at Rs 339 crore and for FY22 at Rs 1,049 crore, higher by 23% and 106% YoY respectively.

Consolidated collection efficiency for March 2022 stood at 97.8%, steadily moving towards Pre-COVID levels. The collection efficiency was aided by localised, on-ground workforce, increased touchpoints, continuous customer interaction and customer focus approach.

The company added 68,853 new borrowers in Q4 FY22 at the consolidated level and the number of new borrowers added over the financial year stood at 1,87,417.

The firms branch network grew by 24 branches during the quarter, taking the total number of branches to 286 as on 31 March 2022.

To achieve deeper penetration and reduce geographical concentration risk, the group has expanded into newer regions in the past four years, which has resulted in a decline in concentration in Gujarat from about 80% in FY17 to 39% in FY21 and 33% in FY22. Other key states contributions to AUM stood at Madhya Pradesh (21%); Maharashtra (12%); Uttar Pradesh (20%) & Rajasthan (10%). The group has also expanded its footprint in Uttarakhand, Haryana and Bihar.

Jayendra Patel, vice chairman & managing director, Arman Financial Services, said: The last two years tested us on all parameters and made us more resilient and stronger to weather any challenges, FY22 being especially challenging with the Second Wave of COVID, which was more challenging than the first wave. With the new RBI guidelines becoming applicable to MFIs from April 1, 2022, it will bring new opportunities to expand along with its operational challenges. Going forward, our larger interest will be to rebuild our profitability and asset quality to pre-covid levels. We are quite optimistic about our sustainable growth and earning potential in the coming years.

Arman Financial Services is a category A Non-Banking Finance Company (NBFC) active in the 2-wheeler, MSME, and microfinance lending business. The group operates primarily in unorganised and underserviced segments of the economy. It mainly serves niche rural markets in Gujarat, Madhya Pradesh, Uttar Pradesh, Maharashtra, Uttarakhand, Rajasthan, Haryana & Bihar through its network of 286 branches.

On a consolidated basis, the companys net profit rose 140.41% to Rs 7.02 crore on 22.56% increase in total income to Rs 58.68 crore in Q3 December 2021 over Q3 December 2020.

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