NewsEarningsPaisalo Digital Reports Strong Q2 Results with 20% AUM Growth and Robust Asset QualityPaisalo Digital Reports Strong Q2 Results with 20% AUM Growth and Robust Asset Quality
Paisalo Digital, a digitally-enabled NBFC, announced robust Q2 FY24 results. AUM grew 20% YoY to Rs 54,494.00 million, disbursements increased 41% YoY to Rs 11,025.00 million, and PAT rose 3% YoY to Rs 515.00 million. The company expanded its customer base to 13 million, maintained strong asset quality with GNPA at 0.81%, and reported a capital adequacy ratio of 38.2%. Strategic developments include the conversion of USD 4.00 million FCCBs and increased promoter stake to 41.2%.
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Paisalo Digital , a leading digitally-enabled NBFC, has announced its financial results for the quarter ended September 30, showcasing robust growth and operational resilience.
Key Financial Highlights
- Assets Under Management (AUM) grew by 20% year-over-year to Rs 54,494.00 million
- Disbursements surged 41% YoY to Rs 11,025.00 million
- Total income increased by 20% YoY to Rs 2,240.00 million
- Net Interest Income rose by 15% YoY to Rs 1,262.00 million
- Profit After Tax (PAT) grew by 3% YoY to Rs 515.00 million
Operational Performance
Paisalo Digital continued to expand its reach and customer base during the quarter:
- Customer franchise expanded to approximately 13 million, with the addition of 1.8 million customers
- Total touchpoints increased to 4,380 across 22 states, comprising 402 branches, 2,585 distribution points, and 1,393 Business Correspondents
- Collection efficiency remained strong at 98.4%
Asset Quality and Capital Adequacy
The company maintained robust asset quality metrics:
- Gross Non-Performing Assets (GNPA) stood at 0.81%, down from 0.86% in the same quarter of the previous year
- Net Non-Performing Assets (NNPA) were at 0.65%, slightly up from 0.61% in the same period last year
- Capital Adequacy Ratio remained strong at 38.2%, with Tier 1 capital at 30.3%
Strategic Developments
Paisalo Digital made significant strides in strengthening its capital structure:
- Converted USD 4.00 million of its USD 50.00 million Foreign Currency Convertible Bonds (FCCBs) into share capital
- Expanded paid-up equity capital from Rs 90.21 crore to Rs 90.95 crore
- Promoters increased their stake to 41.2%, up by 4.1%, signaling strong long-term commitment
Management Commentary
Mr. Santanu Agarwal, Deputy Managing Director of Paisalo Digital Ltd, commented on the results: "Q2 demonstrated disciplined growth and consistent execution. Our customer base surpassed the significant milestone of ~13 million, with nearly 1.8 million new customers added during the quarter, underscoring the strong traction of our inclusive last-mile credit model. With a reinforced balance sheet and a scalable omnichannel platform, Paisalo is well-positioned for sustainable growth and to expand equitable credit access in the quarters ahead."
Outlook
Paisalo Digital's focus on technology-driven financial inclusion, coupled with its expanding geographic footprint and robust asset quality, positions the company for continued growth. The strategic conversion of FCCBs and increased promoter stake further strengthen the company's capital base, supporting its expansion plans in the underserved and emerging MSME/SME segments.
As Paisalo Digital continues to leverage its high-tech, high-touch approach, it remains well-placed to capitalize on the growing demand for accessible financial services across India's diverse economic landscape.
Disclaimer: This article is for informational purposes only and does not constitute investment advice. Investors should conduct their own research and consult with financial advisors before making investment decisions.
Historical Stock Returns for Paisalo Digital
| 1 Day | 5 Days | 1 Month | 6 Months | 1 Year | 5 Years |
|---|---|---|---|---|---|
| +2.78% | -4.58% | -9.58% | -0.72% | -20.94% | +68.22% |
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