SBFC Finance (SBFC) Q2 24/25 earnings summary

Executive summary

• Asset under management (AUM) reached ₹7,715 crore, up 33% year-over-year and 8% sequentially.

• Profit after tax (PAT) for Q2 FY25 was ₹84 crore, a 60% increase year-over-year and 7% sequentially; consolidated net profit for Q2 FY25 was ₹841.62 million.

• Unaudited standalone and consolidated financial results for the quarter and half year ended 30 September 2024 were approved, showing strong year-over-year growth in revenue and net profit.

• Statutory auditors issued unmodified review reports for both standalone and consolidated results.

• Branch network expanded to 192 branches across 155 cities in 16 states and 2 UTs.

Financial highlights

• Total income for Q2 FY25 was ₹314 crore, up 27.4% year-over-year; H1 FY25 total income was ₹612 crore, up 28.4%.

• Standalone net profit for Q2 FY25 was ₹839.84 million, up from ₹526.07 million in Q2 FY24; half-year net profit was ₹1,626.99 million.

• Earnings per share (basic) for the half year stood at ₹1.52 (standalone and consolidated).

• Gross NPA stood at 2.69% in Q2 FY25, up 32 bps year-over-year; net NPA at 1.63%.

• Return on average AUM (ROAAUM) for Q2 FY25 was 4.56%, up 72 bps year-over-year.

Outlook and guidance

• MSME financing market in the ₹5–30 lakh segment estimated at ₹3.21 lakh crore, growing at 24% CAGR.

• Continued focus on granular, secured lending and pan-India expansion.

• No deviation in the use of proceeds from NCDs; all funds were utilized as intended for lending to secured MSMEs and gold loans.

• The company maintains sufficient security cover for its listed NCDs, with a security cover ratio of 1.11x (exclusive) and 1.55x (pari-passu).