Arman Financial Services net up by 36% rise in gross profit

Company's revenue during fiscal 2014-15 grew by 21% to Rs 29.61 cr from Rs 24.47 cr of last year

Ahmedabad-based non-banking finance company (NBFC) Arman Financial Services Ltd. saw its net profit for the year ended March 31, 2015 rise by 36 per cent to Rs 6.16 crore as against Rs 4.53 crore in last year.

The company's revenue during fiscal 2014-15 grew by 21 per cent to Rs 29.61 crore from Rs 24.47 crore of last year.

Overall disbursement of the company increased 22 per cent, from Rs 138 crore in FY 13-14 to Rs 168 crore in FY 14-15. Moreover, disbursement in microfinance business increased by 35 per cent. The company has registered Rs 9.26 crores of profit before tax during fiscal 2014-15, indicating 39 per cent rise from the Rs 6.67 crore reported during 2013-14.

The micro-finance firm has been registering a 51 per cent CAGR in PAT since last five years. Arman Financial Services has also declared 12 per cent dividend, which is two per cent more than last year's 1 per cent. Moreover, the company's dividend pay-out has doubled in last four years from six per cent in 2011-12.

With positives steps taken by the central government, management of Arman Financial Services is very upbeat for the future of micro finance business in India. The company stated that efforts taken by Modi government in financial inclusion will create lot of opportunities for companies.

"Arman's results are showing that financial inclusion space is not only vital for the advancement of India's poor, but also commercially viable with a suitable business model. Financial inclusion should not be considered a charity, but should emerge out of a commercially viable model to be sustainable in the long run," said Aalok Patel, executive director of Arman Financial Services.