Shalibhadra Finance Limited, a non-banking financial company (NBFC) focused on rural and semi-urban areas, has reported strong financial results for the first quarter, along with strategic initiatives to enhance its market presence.

Financial Highlights

The company's performance in Q1 showcased robust growth across key financial metrics:

Asset Quality and Profitability

Shalibhadra Finance maintained strong asset quality with Gross Non-Performing Assets (GNPA) at 2.84% and Net Non-Performing Assets (NNPA) at 0.66%. The company's profitability metrics remained healthy, with Return on Assets (ROA) at 9.30% and Return on Equity (ROE) at 11.70%.

Strategic Initiatives

The Board of Directors has approved a proposal to list the company's equity shares on the National Stock Exchange (NSE). This move is expected to enhance market visibility and investor participation.

Capital Structure and Expansion Plans

In June, the company completed a 3:1 bonus issue, increasing its paid-up equity capital from ₹77.20 crore to ₹308.80 crore. With a robust Capital Adequacy Ratio of 87.00%, Shalibhadra Finance is well-positioned for future growth.

The NBFC currently operates through 53 branches across 40 districts in four states. It has set targets to expand its branch network to 100 by FY27 and grow its Assets Under Management to ₹2,750.00 crore in the same period.

Management Commentary

Minesh M. Doshi, Founder & Managing Director, commented on the results: "We are pleased to report another quarter of strong profitability, carrying forward our growth momentum. Our strategy remains focused on profitable, rural-led expansion. With a robust capital adequacy ratio, we are well-positioned to fund growth without external equity in the near term."

Future Outlook

Shalibhadra Finance aims to leverage its deep rural footprint and efficient service delivery model to capitalize on the growing demand for two-wheeler loans in India. The company plans to introduce new products such as used tractor loans, salaried personal loans, and affordable housing loans to diversify its portfolio and enhance returns.

As the company continues to expand its geographical presence and product offerings, it remains committed to its mission of catering to the diverse financial needs of rural India while creating sustainable value for all stakeholders.

Shalibhadra Finance Limited has reported a significant increase in its net profit for the quarter ended June 30, along with plans to list on the National Stock Exchange (NSE). The company's board of directors approved the unaudited financial results in a meeting held on August 11.

Financial Highlights

• Net profit rose to Rs 457.00 lakhs, a 34.41% increase from Rs 340.00 lakhs in the same quarter last year.
• Total revenue from operations increased to Rs 947.00 lakhs, up from Rs 896.00 lakhs year-over-year.
• Earnings per share (EPS) improved to Rs 1.48, compared to Rs 1.21 in the previous year's quarter.

Key Financial Metrics

Operational Performance

The company's primary revenue source, income from retail finance, showed a steady increase to Rs 941.00 lakhs, up from Rs 891.00 lakhs in the same period last year. This growth in core business activities contributed significantly to the overall revenue increase.

Cost Management

Shalibhadra Finance demonstrated effective cost management during the quarter:

• Finance costs decreased substantially to Rs 99.00 lakhs from Rs 168.00 lakhs, reflecting a 41.07% reduction year-over-year.
• Employee benefit expenses saw a moderate increase to Rs 104.00 lakhs from Rs 89.00 lakhs, indicating continued investment in human resources.

NSE Listing Plans

In a strategic move to enhance its market presence, Shalibhadra Finance's board has approved plans to list the company's securities on the National Stock Exchange of India Limited (NSE). The company will be making an application to NSE for this purpose, which could potentially increase its visibility and liquidity in the market.

Annual General Meeting

The board has scheduled the Annual General Meeting (AGM) for September 29, where shareholders will have the opportunity to review the company's performance and future strategies.

Management Commentary

Minesh Mukund Doshi, Managing Director of Shalibhadra Finance Limited, signed off on the financial results, indicating the board's confidence in the company's performance and future prospects.

Shalibhadra Finance's strong quarterly results, coupled with its plans for NSE listing, signal the company's growth ambitions and commitment to enhancing shareholder value. The significant reduction in finance costs and improved profitability metrics showcase the company's efficient operations and robust financial management.