SBFC Finance (SBFC) Q3 24/25 earnings summary

Executive summary

• AUM reached ₹8,148 crore, up 30% year-over-year and 6% quarter-on-quarter, with 99% secured by property and gold.

• Profit after tax for Q3 FY25 was ₹88 crore, up 38% year-over-year and 5% quarter-on-quarter; nine-month profit exceeded the previous full year.

• Unaudited standalone and consolidated financial results for the quarter and nine months ended 31 December 2024 were approved, reflecting continued growth in revenue and profitability.

• Statutory auditors issued unmodified limited review reports for both standalone and consolidated results, indicating no material misstatements.

• Pan-India presence with operations in 16 states and 2 union territories, covering 157 cities.

Financial highlights

• Net interest margin (NIM) held steady at 10.26%; yield for the quarter was 17.81% with a spread of 8.5%.

• Standalone net profit for Q3 FY25 was ₹880.78 million, up from ₹640.18 million in Q3 FY24; nine-month net profit reached ₹2,507.73 million, up from ₹1,635.94 million year-over-year.

• Total income for Q3 FY25 was ₹333 crore, up 26.2% year-over-year and 6% sequentially.

• Gross NPA stable at 2.7%; credit cost at 0.97% for the quarter.

• Return on average AUM was 4.49%; ROE improved to 12.75%.

Outlook and guidance

• Maintains guidance of 5%-7% quarter-on-quarter growth, 50 bps annual operating cost reduction, and credit cost at the higher end of 80-100 bps.

• Expects to reach 15% ROE by the last quarter of next financial year or Q1 of the following year.

• Continued focus on secured MSME lending with granular, well-collateralized loan book and technology-driven credit underwriting.

• Targeting further AUM growth and branch expansion across India.

• No plans to change underwriting filters in the near term; will reassess after another quarter.