NBFC Stock Clocks 131% PAT Growth In Q1, Gains 178% From 52-Week-Low

The booming MSME Loans (LAP) and Vehicle Loans provider Baid Finserv Ltd India has released its financial results for the quarter ended June 30, 2023. In addition, the board recommended a final dividend of Rs. 0.10 (5% of each equity share worth Rs. 2) per share for the fiscal year (FY) 22-23, subject to the members' approval at the upcoming AGM.

The company reported a net revenue of Rs 18.30 Cr in Q1FY24 up by 33% YoY from Rs 13.76 Cr reported in Q1FY23. Its EBITDA reached Rs 12.90 Cr during the quarter under review up by 73.57% YoY from Rs 7.43 Cr recorded in the year-ago quarter. The net profit of Baid Finserv stood at Rs 5.61 Cr in Q1FY24 up by 131% YoY from Rs 2.42 Cr recorded in the same quarter of FY23. The company's AUM growth was at 12.79% YoY while loan Disbursals grew by 55.57% and its GNPA down by 42 Bps at 2.74% during the quarter ended June 30, 2023.

Commenting on the Q1FY24 Performance, Management added,

"We are thrilled to share our remarkable financial performance for the first quarter of FY24. In Q1FY24, our Revenue from Operations surged by 29.61%, reaching Rs. 1823.72 lakhs compared to Rs. 1283.61 Lakhs in Q1FY23. This substantial growth is a testament to the dedication and hard work of our team. This growth was primarily driven by increase in AUM & disbursements. Equally noteworthy is the significant increase in our EBITDA, which rose by an outstanding 73.57% from Rs. 743.19 lakhs in Q1FY23 to Rs. 1290.02 Lakhs in Q1FY24. It is evident that our focus on operational efficiency and strategic decision-making has resulted in this impressive growth."

"We are delighted to report that our EBITDA margins witnessed a substantial improvement, rising from 53.99% in Q1FY23 to an impressive 70.48% in Q1FY24, marking a remarkable 1649 bps increase. This achievement underscores our ability to optimize costs and deliver strong financial performance. Our Profit After Tax (PAT) also experienced exceptional growth, soaring by 131.22% from Rs. 242.63 lakhs in Q1FY23 to Rs. 561.01 Lakhs in Q1FY24. This remarkable milestone reflects our focus on shareholder value and financial prudence," said the management.

Commenting on the balance sheet, the management of Baid Finserv said "Additionally, our PAT margins saw a noteworthy surge, increasing from 17.62% in Q1FY23 to 30.64% in Q1FY24, representing a significant 1302 bps improvement. This progress highlights our ability to generate higher investment returns and capitalize on market opportunities. We saw an AUM growth of 12.79%, and loan disbursals grew by 55.57%. The GNPA also decreased by 42 bps, to 2.74% showcasing our commitment to have a stronger balance sheet."

"In light of our strong financial performance, the Board recommended a final dividend of Re. 0.10 per share for FY 22-23. This decision reflects our commitment to sharing our success with our esteemed shareholders. Furthermore, we are excited to announce the approval for the issuance of Non-Convertible Debentures on a private placement basis, in one or more tranches, with an aggregate amount not exceeding Rs. 250 crores. This move will bolster our capital structure and support our growth initiatives.

However, it is subject to our valued members' approval at the Annual General Meeting. As we look ahead, we remain confident in our strategic direction and committed to sustainable growth and shareholder value. We extend our gratitude to all our stakeholders, including our customers, employees, and investors, for their unwavering support and trust in our journey," added the management.

On Monday, the shares of Baid Finserv opened on the BSE at Rs 44.50 apiece. The stock made a 52-week-high of Rs 48.51 on (28/06/2023) and a 52-week-low of Rs 16.00 on (19/10/2022).