Moneyboxx Finance reports earnings for Q3FY21

The Board of Directors of MONEYBOXX FINANCE LIMITED (MBFL) at its meeting today considered and approved the unaudited results for the quarter ended 31st December 2020. Moneyboxx Finance reported 30.6% increasein its total Income for Q3FY21 at INR 2.88 crore compared to INR 2.21 crore for Q2FY21. Despite COVID-19 pandemic, the Total Income from Operations during the first nine month of FY21 stood at INR 7.18 crore comparedto INR 1.96 crore in 9M FY20, thus registering a growth of 266% mainly driven by improving business at existing branches and addition of new branches.

MBFL has also registered whopping 109.9% growthin its loan book, which stood at INR 45.38 crore as on December 31, 2020 in comparison of a loan book of INR 21.62 crore as on December 31, 2019.

Performance Highlights of Q3 FY21

- MBFL significantly expanded its operations by adding 11 new branches in its existing states during Q3FY21, taking total branch count to 22 across Rajasthan, Haryana, Punjab and Madhya Pradesh. MBFL expandedits presence to leverage its position in existing states by drawing comfort from high collection efficiency, strong asset quality despite COVID-19 pandemic and strong financial position after equity fund raise of INR 11.65 crore in February 2020

- Disbursements during Q3FY21 were INR 19.66 crore, registering a growth of 37.5% compared to Q3FY20 driven by improving productivity at existing branches and addition of new branches

- Loan Book as of 31.12.2020 stood at INR 45.38 crore which translates into a growth of 41.7% compared to 30.09.2020 and 109.9% compared to 31.12.2019. Focus on borrowers in essential services (Livestock, Kirana) has helped MBFL build a strong book with negligible NPAs mainly due to high collection efficiency.

- Total Operating Income for Q3FY21 was INR 2.88 crore compared to INR 2.21 crore for Q2FY21, registering a growth of 30.6% over previous quarter (Q2FY21) in line with the business growth. Total Income from Operations for 9M FY21 was INR 7.18 crore comparedto INR 1.96 crore in 9M FY20, reporting a growth of 266% despite CoVID-19 driven by improving business at existing branches and addition of new branches

- Net Loss for Q3FY21 was INR 1.10 crore compared to Net Loss of INR 0.49 crore in Q2FY21 as employee benefits & other expenses increased due to opening of 11 new branchesin Q3FY21. Net Loss for 9M FY21 was INR 2.46 crore compared to NetLoss of INR 1.79 crore in 9M FY20

- High collection efficiency of 95% during moratorium period and over 99% during Q3FY21, a testimony of strong underwriting standards and collection efficiency

- Strong asset quality with 99.05% of loan portfolio in current category as of 31.12.2020. Gross NPA ratio of 0.19% as of 31.12.2020 compared to Nil as of 31.03.2020. Net NPA ratio of 0.10% as of 31.12.2020 compared to Nil as of 31.03.2020

- Expected Credit Loss (ECL) provisions stood at INR 30.32 Lakhs (0.67% of Loan Book) as of 31.12.2020 compared to INR 30.32 Lakhs (1.04% of Loan Book) as of 31.03.2020

- Adequately capitalized with Capital Adequacy Ratio of 54.91% (of which Tier-I 54.34%) as of 31.12.2020 compared to 93.68% (of which Tier-I 92.65%) as of 31.03.2020

- Diversified funding sources by adding 5 new lendersin Q3FY21. The new lendersincluded leading names - Caspian Debt, Ashv Finance, BlackSoil Capital, Hinduja Leyland Finance and Ambit Finvest. Total debt raise was INR 20 crore in 9MFY21. Total number of lending partners increased to 7 from 2 in Q2FY21. Debt/Equity ratio stood at 1.16 as of 31.12.2020 compared to 0.59 as of 31.03.2020. Continued supportfrom existing lenders and addition of new lenders demonstrate the confidence of the lenders in MBFL's credit processes, asset quality, collection efficiency and the management team

Commenting on Q3FY21 results, Mr. Deepak Aggarwal (Co-CEO & CFO) said, "We are witnessing recovery of overall economic activity which is led by rural economy. As we mostly operate in semi- urban and rural areas, where thereis a decent pick-up in demand for new loans, we are targeting total disbursementof INR 70 crorein this financial year compared to INR 34 crore in FY20. Also, due to our robust collection efficiency, we have been reasonably successful in attracting new lending partners despite challenging environmentfor NBFCs, which has helped us in growing our AUM."

Shares of Moneyboxx Finance Ltd was last trading in BSE at Rs.50.75 as compared to the previous close of Rs. 49.5. The total number of shares traded during the day was 5910 in over 18 trades.

The stock hit an intraday high of Rs. 50.95 and intraday low of 47.05. The net turnover during the day was Rs. 284312.

Source : Equity Bulls

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