The shares of the financial service provider gained up to 6 percent after the company’s net profit and revenue increased by 69 percent and 34 percent YoY, respectively in the fourth quarter.
With a market capitalization of Rs 10,019.21 crore, the shares of SBFC Finance Ltd were trading at Rs 93.31 apiece, increasing around 3.02 percent as compared to the previous closing of Rs 90.45 apiece.
Looking into the company’s performance, SBFC Finance Ltd’s revenue increased by 6 percent on a quarter-on-quarter basis from Rs. 264 crore in Q3FY24 to Rs. 279 crore in Q4FY24. Further, revenue increased by 34 percent year on year, from Rs. 208 crore in Q4FY23 to Rs. 279 crore in Q4FY24.
SBFC Finance Ltd’s net profit increased by 14 percent on a quarter-on-quarter basis, from Rs. 64 crore in Q3FY24 to Rs. 73 crore in Q4FY24. Further, net profit increased by 69 percent year on year from Rs. 43 crore in Q4FY23 to Rs. 73 crore in Q4FY24.
SBFC is one of India’s major NBFCs, focusing on micro, small, and medium-sized industries. It has a strong presence in India, with 152 branches serving 120 cities throughout 16 states and two union territories.
SBFC Finance primarily serves consumers in tier II and tier III locations across the country. The company’s target market includes small and medium-sized borrowers who earn up to Rs 1.5 lakh per month. It reaches out to them through its 1,911-strong sales staff.
The firm has a robust on-the-ground collecting infrastructure that is technology-driven. As of March 31, 2023, non-cash EMI collections accounted for roughly 89.49% of their secured MSME loan collections and 90.92% of our unsecured loan collections. This helped to reduce their cash management risk and allowed consumers to obtain real-time payment receipts.
SBFC Finance Limited offers secured micro-small and medium-sized enterprises (MSME) loans as well as loans against gold. The bulk of its customers are entrepreneurs, small company owners, self-employed persons, salaried and working-class citizens. It has created a PhyGital model.
Written by:- Abhishek Singh
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