The Business Bytes
TBB BUREAU
MUMBAI, NOV 30, 2023
Indel Money, the flagship non-banking finance company (NBFC) under Indel Corporation, has announced a significant rise by 127.21 per cent in profitability during the second quarter (Q2) of the fiscal year 2023-24. The revenue for the quarter rose by 61.09 per cent to Rs. 77.03 crore as compared to the same period in the previous year.
The first half (H1) of FY24 saw the company demonstrating a stellar performance with its profitability surging by a record 568.86 per cent buoyed by a strong AUM growth, heightened demand for gold loans, expansion into newer territories and operational efficiencies despite a challenging business environment.
The profitability rose to Rs.39.17crore during the first half as against Rs. 5.86 crore in the same period last year.
Operationally, annual disbursements so far have experienced a significant 70 per cent growth, reaching Rs.1800crore. The consolidated assets under management (AUM) for Q2 stands at Rs.1363 crore, reflecting a substantial increase over the corresponding quarter of FY23 and a notable quarter-on-quarter rise. The company’s focus on innovation and expansion is evident in its digital initiatives, including a user-friendly mobile app and hybrid gold loans, enhancing customer satisfaction and accessibility.
Commenting on the results, Umesh Mohanan, Executive Director and CEO, Indel Money, said: “We are delighted to report a profit of Rs 39.17 crore for the first half of FY24. This stellar performance underscores our steadfast commitment to the business expansion in newer territories and our ability to respond quickly to the changing market dynamics. Robust disbursements and a continued focus on gold loans have helped us in achieving this remarkable business growth. We’ve recently secured a forex business license from the RBI, and this holds significant potential to make a substantial contribution to our overall business.”
“Furthermore, the Non-Convertible Debentures (NCD) Tranche III for FY 24 witnessed an impressive 188% subscription, affirming investor confidence in the company’s financial instruments.We are planning Tranche IV of Rs. 200 crore NCD in Q4of the current financial year,” he added.
Indel Money has been maintaining a healthy Capital Adequacy Ratio (CAR) while meeting all the regulatory requirements. The company plans to add more than 100 branches in FY24, spreading it to four new states this fiscal year.
