Company Financials
|
Parameters (Rs billion) |
FY22 |
FY23 |
% growth |
|
Revenue from operation |
8.19 |
13.67 |
66.91% |
|
PAT |
0.43 |
1.29 |
200.00% |
|
Total Assets |
57.89 |
75.44 |
30.32% |
|
AUM |
54.46 |
74.99 |
37.70% |
|
Gross NPA (%) |
3.40 |
5.00 |
|
|
Net NPA (%) |
1.49 |
1.94 |
|
|
CRAR (%) |
23.96 |
22.32 |
|
|
Leverage |
5.90 |
5.98 |
|
Svatantra Microfin Private Limited (SMPL) is a non-deposit taking Systemically Important Non-Banking Finance Company-Microfinance Institution. It was formed in 2012 and commenced operations from March 01, 2013. The company is promoted by Aditya Birla family and other investment companies of Aditya Birla Group. The company operates through 804 branches in 19 states and has a base of 2.2 million clients as of March 2023. The gross AUM (Asset under Management) as on March 31, 2023, stood at Rs 75 billion.
Credit Rating upgradation- In June 2022, the rating agency CARE upgraded its rating to AA-(stable) from A(stable). In June 2023, CRISIL upgraded its rating to AA-(stable) from A+ earlier.
Credit Positive-
⮚ Strong Parentage
⮚ Operating efficiency
⮚ Adequate capitalization
Credit Negatives-
⮚ Weakening asset quality
⮚ High leverage
⮚ Sectoral risk
Strong parentage support- Having strong linkage to Aditya Birla group, SMPL receives significant support in terms of capital infusion, operational and management. This helps the company to remain well capitalised. The company has received Rs 0.75 billion and Rs 2.55 billion as equity infusion in HFY22 and FY22 respectively from its promoters.
Capitalization- Due to regular capital infusion, SMPL has been well capitalised. As of 31st March 23, its tangible net worth stood at Rs 10.47 billion with capital adequacy ratio stood at 22.32%. Gearing ratio came in at 5.98as of FY23.
Operational efficiency- Given the resilience of the economy from covid pandemic, the company’s performance has been improved. Its net profit rose by 66% during FY23 on a yearly basis while AUM increased by 37% during the same period.
Deterioration in asset quality- Owing to covid pandemic and new NPA classification norms by RBI, its asset quality has been impacted negatively during FY23. GNPA deteriorated to 5% from 3.4% as of FY22 while NNPA stood at 1.94% from 1.49% as of FY22.