Arman Financial Services surge 13 per cent after positive Q3 results

The shares of Arman Financial Services Limited (AFSL) were trading close to their 52-week high on Wednesday when the company reported impressive results for the quarter ended December 2019.

The company reported gross total income of Rs 57 crore in Q3FY20, increasing 51 per cent from Rs 37.8 crore in the same period for the previous fiscal year. The total Asset under Management (AUM) rose by 41 per cent to Rs 814.2 crore in Q3FY20, from Rs 579.6 crore in Q3FY19. Total disbursement saw a growth of six per cent on a YoY basis to Rs 224.1 crore in Q3FY20.

The cost-to-income ratio improved by 37.1 per cent in Q3FY20, lowering by 780 bps for the same period in the previous fiscal year. The company reported a net profit of Rs 13.6 crore in Q3FY20, growing by 88 per cent from Rs 7.2 crore in Q3FY19.

Commenting on the performance, Jayendra Patel, Vice-Chairman and Managing Director of Arman Financial Services stated that the company remained confident of sustaining its positive growth trajectory by focussing on scaling up its business in a calibrated manner while prioritising the quality of its book and profitability.

Arman Financial Services Limited is an asset finance company engaged in providing microfinance and financing the purchase of two- and three-wheelers.

At 3 pm on Wednesday, the stock was trading at Rs 966.40, up by 13.29 per cent or Rs 113.40 per share. The 52-week high is recorded at Rs 972 and the 52-week low is Rs 326.10 on BSE.