AFILNSEDecember 31, 2024

Akme Fintrade (India) Limited

5,746words
124turns
12analyst exchanges
3executives
Management on call
Nirmal Kumar Jain
CHAIRMAN & MANAGING
Akash Jain
CEO, AKME FINTRADE (INDIA) LIMITED
Rajni Gehlot
CFO, AKME FINTRADE (INDIA) LIMITED
Key numbers — 40 extracted
60%
ease of credit access. Our company began with the two-wheeler financing acknowledging that nearly 60% of first- time buyer requires structured financial support. Over the year, our commitment to custo
2 lakh
l support. Over the year, our commitment to customer centric lending has enabled us to serve over 2 lakh customers, many of whom have become our strongest advocates bringing referral business and streng
rs,
r the year, our commitment to customer centric lending has enabled us to serve over 2 lakh customers, many of whom have become our strongest advocates bringing referral business and strengthening our
8%
, four-wheeler financing and used car loan. In Quarter 3 Financial Year ‘25, our AUM increased by 8% to Rs. 523 crores reflecting our disciplined approach to growth by maintaining asset quality. Ado
Rs. 523 crore
-wheeler financing and used car loan. In Quarter 3 Financial Year ‘25, our AUM increased by 8% to Rs. 523 crores reflecting our disciplined approach to growth by maintaining asset quality. Adopting a processed
Rs. 65 crore
our strong risk management framework. To support our work and mission, we successfully procured Rs. 65 crores term loan sanctioned from different financial institutions and during this quarter out of that R
Rs. 10 crore
es term loan sanctioned from different financial institutions and during this quarter out of that Rs. 10 crores by Shriram Finance, Rs. 25 crores from Maanaveeya Development & Financial Private Limited, Rs. 2
Rs. 25 crore
rent financial institutions and during this quarter out of that Rs. 10 crores by Shriram Finance, Rs. 25 crores from Maanaveeya Development & Financial Private Limited, Rs. 25 from Indian Overseas Bank, and R
Rs. 25
crores by Shriram Finance, Rs. 25 crores from Maanaveeya Development & Financial Private Limited, Rs. 25 from Indian Overseas Bank, and Rs. 5 from MAS Financial Services. Additionally, we further raise
Rs. 5
es from Maanaveeya Development & Financial Private Limited, Rs. 25 from Indian Overseas Bank, and Rs. 5 from MAS Financial Services. Additionally, we further raised Rs. 35 crores through convertible war
Rs. 35 crore
om Indian Overseas Bank, and Rs. 5 from MAS Financial Services. Additionally, we further raised Rs. 35 crores through convertible warrant, which will be instrumental in fulfilling our expansion plan includi
INR 523 crore
en more dynamic and transformational for our company. I am pleased to report that our AUM reached INR 523 crores, reflecting a strong 30% year-on-year growth. During the quarter, our vehicle loan segment has s
Guidance — 20 items
Nirmal Kumar Jain
opening
“35 crores through convertible warrant, which will be instrumental in fulfilling our expansion plan including the launch of new branch in new graphical location thereby enhancing credit availability across our operational network.”
Akash Jain
opening
“Additionally, our digital transformation journey is progressing well, and we anticipate having full scale digital operations by the end of this financial year.”
Rajni Gehlot
opening
“I am pleased to present the key financial highlights for the quarter: Disbursement for Q3 FY25 stood at Rs.”
Rajni Gehlot
opening
“Interest income for 9 months FY25 reached to Rs.”
Rajni Gehlot
opening
“45.19 crores for 9 months FY25, reflecting a 49.96% year-on-year growth.”
Balance sheet and key ratio
opening
“Loan asset net of ECL increased to INR 479.92 crores up from INR 365.84 crores in 9 months FY25, reflecting a 31.18% year-on-year growth.”
Balance sheet and key ratio
opening
“65 crores was raised in Q3, bringing borrowings to INR 243.15 crores as of 9 months FY25.”
Asset quality trends
opening
“We continue to witness positive trends in asset quality with a gross NPA reducing to 2.86% from 3.13% and net NPA to 1.27% from 1.47% at Q2 FY25.”
Conclusion
opening
“In summary, Q3 FY25 has been a strong quarter characterized by higher disbursement, robust loan book growth and disciplined cost management.”
Kabir Shah
qa
“The first one being what would be the plan to utilize the funds that we have raised from the current warrant issue?”
Risks & concerns — 15 flagged
The 3rd Quarter of Financial Year ‘25 has been eventful and transformative figure for Akme Fintrade, despite challenges such as stress in the MFI segment and overleveraging risk in the industry, we remain committed to prudent disbursement, strategic and maintaining strong collection efficiency.
— Nirmal Kumar Jain
Adopting a processed lending strategy we have prioritized financial stable borrowers and reduce exposure to over-leverage segment which has continue to a consistent decline in the gross NPA in pursuing our strong risk management framework.
— Nirmal Kumar Jain
And one last question, do you see any kind of stress in the assets or are we experiencing any kind of delays in the money to recover from our interest receivables?
— Kabir Shah
So, as per the current trend, our stress levels are under control.
— Akash Jain
We are not experiencing any significant increase in the stress level in our assets.
— Akash Jain
In the new loans that we are doing also, we are not stressing much of the stress that even the stress that is there, it is under control and as per the overall NPA level of the company.
— Akash Jain
We are not doing unsecured business, so the major stress that industry is facing is under unsecured business.
— Akash Jain
So, we are not facing a challenge in terms of raising the money.
— Akash Jain
So, sir, I just wanted to understand what is our capital to risk-weighted asset ratio?
— Aniket Redkar
Sir, one last question, regarding this interstate fluctuation, so how are we going to managing this kind of risk?
— Aniket Redkar
So, my question was regarding industry dynamics that are we experiencing any stress on the receivables or the asset side?
— Sania Sakkam
So, the major stress that is currently faced by industry is under unsecured loans.
— Akash Jain
As far as our loan products are concerned, we have not witnessed any significant stress, increasing stress in our portfolio in the last two quarters.
— Akash Jain
Definitely, I cannot say for the future, but currently there has not been any increased stress.
— Akash Jain
And in the coming quarters, do you see any impact of that coming in our balance sheet?
— Sania Sakkam
Q&A — 12 exchanges
Q
Yes, hello, sir. I have a couple of questions. The first one being what would be the plan to utilize the funds that we have raised from the current warrant issue?
Akash Jain
So, the amount that we are going to raise through warrants will be deployed in for our operational purpose only. So, currently, out of the total warrant amount, we have received till date only 25% of the amount. The balance will be received within a period of 18 months, so this amount will be used for our onward lending purposes only. Like, can you give us a little more elaboration on that, like even though it is just 25% like raised right now, but like a little more details or plan on that? Your voice is not audible. Can you speak loudly? Is it audible now?
Q
Yes, I am. Is it audible now?
Akash Jain
Yes, it is better, but not that audible. Yes, go ahead. So, I was asking like if you could give us a little more color on the operational part, like what would be purpose of it, a little more detail or color on that would be nice? So, the amount that we are raising through warrant, currently we will receive only 25% of that amount as per the warrant conditions. The balance 75% amount will be received within a period of 18 months depending upon our requirement and the investor’s plan. We are using this amount for the purpose of our onward lending purposes only. So, whatever amount we are receiv
Q
Hi, sir. Sir, my question is on the PAT, so basically in the last con-call, you gave the guidance of Rs. 35 crores PAT as we have done around Rs. 25.7 crores in the 9 months. So, would you like to revise the guidance upwards?
Akash Jain
Deepak, we have given the earlier guidance of around Rs. 35 crores for the whole year. Currently, we stood at around Rs. 25 crores as of now. We are hopeful that the amount of business that we have done during this 3rd Quarter, we will get the income impact in the fourth quarter of the business that we have done in quarter 4. So, we are hopeful that we will be achieving a total profit of around Rs. 10 crores in the fourth quarter, which will raise the total amount of PAT to Rs. 35 crores. And we are staying with our earlier guidance. There won't be any major deviation in the overall PAT of the
Q
Hi, good afternoon. Congratulations on a good set of numbers.
Akash Jain
Hello, good afternoon, sir. Hi. So, my first question is, can you provide your one-year lag of GNPA and NNPA numbers for this year and the last year? So, you want to know the GNPA figures for last year as well as for this year? No, I want to know the GNPA figure right now on 1-year-old book and 2-year-old book? Those figures will give. Those numbers are not with me right now. I will ask my Compliance Team to send you those numbers, but overall, I can give you guidance about that thing. For last one-year numbers, the GNPA numbers are less than 1% for the loans that has been originated in the la
Q
Hi, good afternoon, sir.
Akash Jain
Good afternoon. Sir, my first question is, sir, how are you planning to utilize the funds which we raised from warrant issuance? So, this question I already answered. The warrant amount we are getting 25% of that we are receiving right now and the balance will be received in 18 months period. This whole amount will be utilized for our operational purposes only for the onward lending purposes. Any projections for Q4 for AUM? So, our Q4 number will be around Rs. 600 crores. Rs. 600 crores, we are going to cross in Q4. This is the projections that we are doing right now. Sir, are we facing any pr
Q
Thank you for the opportunity and good afternoon, everyone. So, I have few questions. So, sir, I just wanted to understand what is our capital to risk-weighted asset ratio?
Akash Jain
Yes, come again? What is our CRAR? Aniket, am I correct? Yes, correct. Good afternoon, Aniket. Our CRAR is currently at 65%. So, this 65% is for the? As on December 25. And what would be for the FY25, can you just guide me in terms of range? So, it will be somewhere around 55%. We will close this year by around 55%. And sir, is there any plan to expand in new geographies or to introduce new financial product in the upcoming quarters? So, currently, we are working in four states and as you can see our current geographical presence, we are present in 14 branches in Rajasthan, 6 branches in MP, 5
Q
Yes, we are tying-up with the EV manage sections as well as Fintech company also through which we will smooth our business.
Aniket Redkar
Got it. And sir, in terms of digital transformation, are we taking any steps towards this digitization? What are the steps we are taking and the initiatives, how have these initiatives basically impacted our operational efficiency or customer acquisition? I just wanted to understand. So, we are completely digitizing the whole loan management system where LOS is there, LMS is there. So, we are targeting that from the loan initiation to the loan disbursement and the loan management. Complete journey happens through digitally and for the two-wheeler products, we have already started our product.
Q
Thank you for taking my question. So, my question was regarding industry dynamics that are we experiencing any stress on the receivables or the asset side?
Akash Jain
So, just to let you know that we are majorly doing secured business, we are mainly doing secured business. We are doing two products, vehicle loan and MSME business loans which are completely 100%. So, the major stress that is currently faced by industry is under unsecured loans. So, we are not in that space. As far as our loan products are concerned, we have not witnessed any significant stress, increasing stress in our portfolio in the last two quarters. Definitely, I cannot say for the future, but currently there has not been any increased stress. Currently, we are getting our payments on t
Q
Sir, my question is how are MSME, two-wheeler and commercial vehicle loan performing quality wise?
Akash Jain
Quality wise, I would just give you the figure that our overall GNPA is 2.86% and in case of vehicle loan, our GNPA is 2.96% and under SME it is 2.82%. And there is significant improvement as compared to quarter-on-quarter. Our vehicle loans GNPA has come down by around 2.4%. It has come down from 4.29% in September to 2.96% in this quarter. And similarly, MSME business loans, GNPA remains stagnant. There has not been much increase or decrease in that portfolio. So, we are hopeful that and we are confident that we will strengthened…. Sir, I have one more question is like would you be able to d
Q
Yes. Thank you for the opportunity, again. So, I don't have a question, just a suggestion. Right now, we are growing at a really great pace. All the AUM is growing, the NPAs are in control. So, the split announcement was a surprise for us. So, I will request the management to reconsider the proposal of a split because I think as a shareholder we have enough liquidity, right and the split, not only will increase liquidity, but also lead to the speculation in the stock. So, I will just request you to reconsider the proposal of the stock split. That is all.
Akash Jain
Deepak, I will forward your concerns to our management team also and definitely, we will consider whatever you have suggested us and we will let our Board know what you think. We will discuss it further in our Board also. Yes, sir. Thank you, sir.
Q
Yes. Hi. Good afternoon, sir.
Akash Jain
Good afternoon. Just had some broad questions in terms of your vision for the next 1 or 2 years, maybe say even 3 years? If you can give some very rough ballpark guidance in terms of topline and overall strategy, where we can see the company after 3 odd years? So, Rohan, definitely our management plan is to expand geographical presence. Looking at the current scenario of the concerns that has been raised by RBI as well as the overall NBFC industries and the muted growth in rural as well as in urban areas, looking at all these, we are expecting that we will grow our AUM by around 60% in the nex
Q
Before we conclude, I would like to take a moment to reflect on our journey. In the road ahead, this Quarter 3 Financial Year ‘25 has been a transformative period for Akme Fintrade India, marked by strong business growth, prudent financial management and steady progress in our digital initiatives. Our focus remains on expanding our presence in the high potential market, strengthening our customer relationship and maintaining robust asset quality. The confidence on our customers, partners and investors reinforces our commitment to delivering sustainable and profitable growth. As we move forward
Management
Speaking time
Akash Jain
51
Moderator
14
Aniket Redkar
11
Kabir Shah
9
Rohan Mehta
8
Supan Parekh
6
Shreyans Jain
5
Sana
5
Deepak
4
Sania Sakkam
4
Opening remarks
Nirmal Kumar Jain
Good afternoon, everyone. It is my pleasure to welcome you all to the Akme Fintrade (India) Limited Quarter 3- and 9-Months Financial Year ‘25 Earnings Conference Call. Thank you for taking the time to join us today. I am delighted to have with me our CEO - Mr. Akash Jain, our CFO – Ms. Rajni Gehlot along with our Investor Relations team and representative from the Adfactors PR. Before we discuss our business and financial performance, I would like to take a moment to reflect on our journey and highlight some key developments that continue to shape our growth. I am Nirmal Jain, a Chartered Accountant and Cost Accountant by profession. After practicing in Mumbai, I founded this Company, Akme Fintrade (India) Limited, in 1996. With blessing of our Gurudev Acharya Kunthu Sagarji Maharaj, my rural upbringing exposed me to financial hardship, as well individual and small entrepreneur in semi-urban and rural area, in recognizing the struggle to access structured financial solution, we launch
Akash Jain
Good afternoon, everyone. I sincerely appreciate your time and interest in Akme Fintrade (India) Limited. This quarter has been more dynamic and transformational for our company. I am pleased to report that our AUM reached INR 523 crores, reflecting a strong 30% year-on-year growth. During the quarter, our vehicle loan segment has shown significant growth of 37%. Because of this, our share of vehicle loan has been increased to 31.60% as compared to 25% as of September quarter in our overall portfolio. Our quarterly profit stood at INR Rs. 8.93 crores marking a significant 110% year-on-year growth. Disbursements for the quarter reached around Rs. 70 crores, up 18% quarter-on-quarter and impressive 185% year-on-year growth. To further accelerate AUM growth and enhance profitability, we have strengthened our partnership with leading banks and financial institutions. These collaborations will provide us with the necessary financial backing to scale our operational efficiency. Looking ahead
Rajni Gehlot
Thank you, Akashji. Good afternoon, everyone and a warm welcome to our Q3 FY25 Earnings Call. I am pleased to present the key financial highlights for the quarter: Disbursement for Q3 FY25 stood at Rs. 70.12 crores including trade advances to two-wheeler dealers, reflecting a 30.08% growth over Q2, timely driven by vehicle loans disbursed during the festive season. Asset under management expanded to Rs. 523.38 crores registering a 30.48% year-on-year increase. Interest income for 9 months FY25 reached to Rs. 69.74 crores, marking a 37.36% year-on-year growth. Net interest margin rose to Rs. 45.19 crores for 9 months FY25, reflecting a 49.96% year-on-year growth.
Expense and profitability metrics
Operational cost increased by 17.69% quarter-on-quarter, primarily due to our business expansion and new hiring. Our asset quality remained stable with provisioning of our GNPA of Rs. 7.87 crores. Profit before tex for the quarter stood at Rs. 11.88 crores reflecting a 17.69% quarter-on-quarter growth. Profit after tax was Rs. 8.90 crores, registering a 9.69% quarter-on-quarter growth.
Balance sheet and key ratio
Loan asset net of ECL increased to INR 479.92 crores up from INR 365.84 crores in 9 months FY25, reflecting a 31.18% year-on-year growth. A total of Rs. 65 crores was raised in Q3, bringing borrowings to INR 243.15 crores as of 9 months FY25. Return on equity stood at 11.63% while our net interest margin remains strong at 13.41%.
Asset quality trends
We continue to witness positive trends in asset quality with a gross NPA reducing to 2.86% from 3.13% and net NPA to 1.27% from 1.47% at Q2 FY25.
← All transcriptsAFIL stock page →