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Arman Financial Services Limited announces Business Update for Q4FY22

Posted On : 2022-04-13 15:44:23( TIMEZONE : IST )

Arman Financial Services Ltd (Arman), a Gujarat based Non-Banking Finance company (NBFC), with interests in Microfinance, Two-Wheelers, and Micro-Enterprise (MSME) loans, announced a business update on Key operational indicators for the quarter and year ended 31st March 2022. It delivered solid post-pandemic performance aided by improved Asset Quality.

Key Operational Highlights

- Consolidated Asset under Management as on 31st March, 22 stood at ₹ ~1,222 crore higher by ~50% YoY on the back of enhanced branch network, which helped in catering to new customers and geographies, the demand from existing customers, and the addition of new customers in existing geographies.

- Microfinance AUM grew by 59% YoY to ₹ 1,021 crore
- MSME AUM grew by 25% YoY to ₹ 157 crore

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

- Microfinance disbursements for Q4 FY22 stood at ₹ 281 crore and for FY22 at ₹ 866 crore, growing by 22% & 107% YoY respectively. For the first time, monthly disbursements crossed ₹ 100 crore mark to ₹ 107 crore in March 22, compared to the previous high of ₹ 90 crore.

- MSME disbursements for Q4 FY22 stood at ₹ 51 crore and for FY22 at ₹ 139 crore, growing by 34% & 106% YoY respectively. For the first time, monthly disbursements crossed ₹ 20 crore in March 22, compared to the previous high of ₹ 16 crore.

- Consolidated Collection Efficiency for March 22 stood at 97.8%, steadily moving towards Pre - COVID levels

Robust Collection efficiency is aided by our localised, passionate on-ground workforce, increased touchpoints, continuous customer interaction and customer focus approach.

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

- Branch Network grew by 24 branches during the quarter, taking the total No. of branches to 286 as on 31st March 22.

The key driver to the improved performance is the company's established track record of operations in all three segments, strength from business synergies, experienced promoters and management team, healthy resource raising ability, comfortable capital structure and healthy liquidity buffers with a diversified funding profile from more than ~30 banks and financial institutions.

Further, 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 ~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.

Mr. Jayendra Patel, Vice Chairman & Managing Director, Arman Financial Services, said, "Our strong operating performance in another challenging year is testimony to our robust business model, enabled by a customer-centric approach, continuous customer engagement, and our growing geographic reach. 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. We celebrate our 30th year in operations in FY23, and we thank all of our stakeholders for their continued support."

The numbers stated above as of 31st March 2022 are provisional unaudited numbers and are subject to review by the Audit Committee, statutory auditors, and Board of Directors.

Shares of Arman Financial Services Limited was last trading in BSE at Rs. 1143.80 as compared to the previous close of Rs. 1116.10. The total number of shares traded during the day was 2606 in over 383 trades.

The stock hit an intraday high of Rs. 1176.75 and intraday low of 1102.65. The net turnover during the day was Rs. 2947752.00.