Leading MSME Focused NBFC Company Posts 37.6 Per Cent Jump in PAT, Revenue Up 30 Per Cent
Net profit jumped by an impressive 37.6 per cent YoY, reaching Rs 88.08 crore in Q3 FY25, compared to Rs 64.02 crore in the same period last year.
SBFC Finance, a leading player in the MSME lending segment, reported strong financial performance for the third quarter of FY25, with significant growth in profit and income.
Financial Performance:
The company’s total income surged by 26.3 per cent YoY to Rs 333.25 crore in Q3 FY25, compared to Rs 264 crore in Q3 FY24.
Net profit jumped by an impressive 37.6 per cent YoY, reaching Rs 88.08 crore in Q3 FY25, compared to Rs 64.02 crore in the same period last year. The profit before tax (PBT) stood at Rs 117.47 crore, a growth of 37 per cent YoY from Rs 85.73 crore posted in Q3 FY24.
The net interest margin (NIM), a key profitability indicator, remained steady at 10.27 per cent in Q3 FY25, marginally improving from 10.26 per cent in Q3 FY24. The pre-provisioning operating profit (PPOP) recorded robust growth of 39.3 per cent YoY, reaching Rs 137 crore, up from Rs 98 crore in the corresponding quarter last year.
The company maintained an Expected Credit Loss (ECL) provision of Rs 126 crore for the quarter ended 31 December 2024.
Asset Quality
The gross Non-Performing Assets (NPA) ratio stood at 2.70 per cent as of 31 December 2024, compared to 2.69 per cent as of 30 September 2024 and 2.38 per cent as of 31 December 2023. The net NPA remained steady at 1.63 per cent as of 31 December 2024, consistent with the previous quarter but slightly higher than 1.36 per cent recorded in the same quarter last year.
Despite posting strong Quarterly Results, the stock price fell 2.17 per cent, closing at Rs 86.25, as midcap and smallcap stocks faced selling pressure.
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Stock Price Performance
The company’s stock performance has been relatively stable, with a 0.88 per cent decline over the past year, underperforming the Nifty 50, which gained 6.41 per cent during the same period. However, since its listing on 16 August 2023, the stock has risen by 43.86 per cent from its issue price of Rs 82. SBFC Finance currently has a market capitalization of Rs 9,551 crore.
About the Company
Founded in 2008, SBFC Finance Limited is a systemically important NBFC (NBFC-ND-SI) specializing in Secured MSME Loans and Loans against Gold. The company is recognized as a leader in the MSME segment, boasting one of the highest Assets Under Management (AUM) growth rates in the industry.
Disclaimer: This article is for informational purposes only and not investment advice.