Ranvir’s Portfolio

Arman Financial Services Q1 concall updates –

Historical performance –

2016-2023 growth CAGR –

AUM – 41 pc
PAT – 42 pc

Present RoE- 36.5 !!
RoA – 7.8 !!

Positive ALM

Present in –

10 states
343 branches
139 districts

Current customers – 6.8 lakh

Present breakup of loan book –

Microfinance – 82 pc
MSME loans – 13 pc
2-wheeler loans – 3 pc
Individual business loans – 2 pc

AUM’s geographical breakup –

Gujarat – 28 pc
UP – 24 pc
MP – 15 pc
Rajasthan – 12 pc
Maharashtra – 11 pc
Others – 10 pc

Microfinance in Q1 –

AUM – 1800 cr
Yield – 24.4 pc
NIM – 12.0 pc
RoA- 7.6
GNPA – 2.4 pc
NNPA – 0.03 pc
RoE – 38 pc
Avg ticket size – 45 k

MSME loans in Q1 –

AUM – 276 cr
Yield – 36.1 pc
GNPA – 2.4 pc
NNPA – 0.4 pc
Avg ticket size – 75k

2W loans in Q1 –

AUM – 66 cr
Yield – 28.4 pc
GNPAs -4.5 pc
NNPAs- 1.3 pc
Avg ticket size – 67k

Q1 financial outcomes –

AUM – 2143 cr ( up 54 pc )
PAT – 40 cr ( up 154 pc )
GNPAs – 2.5 pc down 115 bps yoy
NNPAs – 0.14 pc down 20 bps yoy

Avg loan tenure in micro finance is 2 yrs

Company intends to go deeper in the current geographies it is present in. Also evaluating opportunities to enter new states. Company does a lot of brain storming/data analytics before entering a new state

Company has over last 1-2 yrs entered – Bihar, Jharkhand, Haryana, Telangana

Bihar performing really well both wrt growth and asset quality

Haryana – results are mixed wrt growth, Asset quality has been stable

Jharkhand, Telangana have been the more recent ones

Aim to keep growing AUM at 35 pc CAGR for next 3-4 yrs

ESOP programs of the company are avlb to all employees – right from field level to senior management !!!

It varies from 40 shares to 1000 shares. Avg is about 300 shares

Current provisions held @ 3.5 pc of the book

Avg cost of borrowing for the company is around 12.5 pc

Disc: holding a tracking position. Intend to build on if the business keeps performing