Moneyboxx Finance Limited , a non-banking financial company (NBFC) focused on MSME lending in semi-urban and rural India, has reported a mixed set of financial results for the first quarter. The company's strategic shift towards secured lending has driven asset growth, but profitability has been impacted by asset quality challenges.

Strong AUM Growth and Business Transformation

Moneyboxx Finance's Assets Under Management (AUM) grew by 23% year-on-year to ₹918.00 crore in Q1. This growth was primarily driven by the company's successful transformation to secured lending, with 64% of disbursements now being secured compared to 36% in the previous year. The company has expanded its secured book to 49% of AUM from 27% last year and is targeting to reach 70% by March 2026.

Financial Performance

Despite the robust AUM growth, the company's profitability declined significantly:

• Total income grew by 29% to ₹59.12 crore
• Profit After Tax (PAT) dropped by 94% to ₹0.24 crore from ₹4.30 crore in the same quarter of the previous year

Asset Quality Concerns

The company faced challenges in asset quality during the quarter:

• Gross Non-Performing Assets (GNPA) rose to 7.28% from 1.59% in the same quarter of the previous year
• Net Non-Performing Assets (NNPA) increased to 3.78% from 0.80% in the same quarter of the previous year

Capital and Liquidity Position

Moneyboxx Finance maintains a strong capital position:

• Capital Adequacy Ratio (CRAR) stood at 28.4%
• Liquidity of ₹165.00 crore as of the end of the quarter

Operational Highlights

The company continues to expand its presence:

• Operating 163 branches across 12 states
• Focus on MSME lending in semi-urban and rural India
• Average ticket sizes: ₹3.90 lakhs for secured loans and ₹1.80 lakhs for unsecured loans

Strategic Focus

Moneyboxx Finance is concentrating on:

1. Increasing segment diversification towards non-livestock sectors
2. Focusing on the upper tier of micro-enterprises with average ticket sizes of ₹7-10 lakhs
3. Leveraging emerging technologies in lending, including ML and AI-supported underwriting

Management Commentary

Deepak Aggarwal, Co-Founder, Co-CEO and CFO of Moneyboxx Finance, stated, "Our strategic shift towards secured lending is yielding positive results in terms of AUM growth. However, we acknowledge the challenges in asset quality and are intensifying our collection efforts to address these issues."

The company's board has also approved an enabling authorization for the issuance of Non-Convertible Debentures, Commercial Papers, and other Securities for an aggregate amount of up to ₹500.00 crore, subject to shareholder approval.

As Moneyboxx Finance continues its transformation journey, the focus remains on balancing growth with asset quality improvement in the coming quarters.

Moneyboxx Finance , a financial services company, has taken a significant step towards expanding its market presence by applying for a listing on the National Stock Exchange (NSE). The company officially submitted its application to the NSE on June 12, seeking in-principle approval for the listing of its equity shares.

Listing Application Details

The move to list on the NSE marks a crucial milestone for Moneyboxx Finance, potentially opening up new avenues for growth and investor participation. The NSE, being one of India's premier stock exchanges, offers companies increased visibility and access to a broader investor base.

Implications of NSE Listing

If approved, the listing on the NSE could bring several benefits to Moneyboxx Finance:

1. Enhanced Liquidity: A listing on the NSE typically results in improved liquidity for the company's shares, making it easier for investors to buy and sell.

2. Wider Investor Base: The NSE's extensive reach could expose Moneyboxx Finance to a diverse range of institutional and retail investors.

3. Increased Market Visibility: Being listed on a major exchange like the NSE often leads to greater market visibility and potential coverage by analysts and financial media.

4. Access to Capital: A successful listing could provide Moneyboxx Finance with improved access to capital markets for future fundraising efforts.

Next Steps

The application for in-principle approval is an initial step in the listing process. Moneyboxx Finance will need to await the NSE's response and, if approved, complete further regulatory requirements before its shares can be traded on the exchange.

Investors and market participants will be keenly watching for updates on the progress of Moneyboxx Finance's listing application. The company's move to seek an NSE listing suggests confidence in its business model and future prospects.

As the situation develops, more details about the potential listing timeline and any associated public offerings may become available. Stakeholders are advised to stay tuned for further announcements from Moneyboxx Finance and the NSE regarding this significant corporate action.