Arman financial reports a 100% increase in H1 FY20 profit after tax at Rs 24.2 crore

Arman Financial Services Ltd (Arman), a Gujarat based non-banking financial company (NBFC), with interests in microfinance, two-wheelers, and micro-enterprise (MSME) loans, announced its financial results for the second quarter ended September 30, 2019.

Consolidated Financial Highlights - Q2 FY2019-20 (July - Sep 2019) v/s. Q2 FY2018-19 (July - Sep 2018)

Consolidated Financial Highlights - H1 FY2019-20 (April - Sep 2019) v/s. H1 FY2018-19 (April - Sep 2018)

Operational Highlights - Q2 FY2019-20 (July - Sep 2019) v/s. Q2 FY2018-19 (July - Sep 2018)

"We delivered a resilient and solid all-round performance in the first half of this year, despite the prevailing macro-economic challenges and ongoing liquidity squeeze impacting the NBFC space. Such a performance in tough times validates the robustness of our business model. Further, just to point out, we have implemented Indian Accounting Standard (IndAS) in H1 FY20, which has resulted in many national changes in the financials compared to the previous iGAAP Standards," said Jayendra Patel, Vice Chairman and Managing Director, Arman Financial Services, commenting on the Company's performance for H1 FY2019-20.

"Continued traction in the MFI and MSME business, coupled with an improvement in the cost-to-income ratio, has enabled us to post strong operating performance. Asset quality remained well within check and steady vis-a-vis last year, as we continue to prioritize the quality of the book," he said.

"Although the NBFC sector, in general, continues to face tough liquidity conditions, having a positive ALM, superior asset quality, and a strong performance track record has helped us to successfully raise debt capital albeit at slightly higher rates. On the leverage front, we remain comfortable and have sufficient capital to drive growth in the current year, Patel added.

"As a part of our FY20 expansion strategy, we have launched 14 new branches during the second quarter. Looking ahead, we are confident of continuing our positive growth momentum through the successful ramp-up of the newly launched branches, penetration into newer geographies, and expansion of our customer base in a calibrated manner. More importantly, we will continue to exercise prudence and closely track rural macroeconomic indicators and make all necessary adjustments to protect asset quality," Patel further added.

Segmental Performance Update - Q2 & H1 FY2019-20 v/s. Q2 & H1 FY2018-19

Microfinance - Financial Highlights

o Post ECL adjustment, NNPA stood at 0.2%. Additional ECL provision of Rs 0.7 crores (a notional charge) was made in Q2 after taking into account the prevalent challenging macro-environment and impact of floods in few states

Two-Wheeler & MSME - Financial Highlights

o MSME book witnessed strong traction - growing by 94% YoY to Rs 125.8 crores

o 2W AUM stood at Rs 96.0 crore, a minor decline over the previous year due to the ongoing slump in two-wheeler sales in India.

This story is provided by PRNewswire. ANI will not be responsible in any way for the content of this article.