New Delhi: May 2023 Performance Highlights of Q4 FY23 and FY23 ending 31st March 2023
- Robust business growth led by branch expansion and higher productivity: Disbursements more than tripled to INR 341 crores in FY23 from INR 112 crore in FY22 driven by branch expansion (addition of 31 branches in FY23) and strong improvement in branch productivity. The company posted record quarterly disbursements of INR 146 crores in Q4 FY23, growing by 211.9% compared to Q4 FY22 and registering a sequential growth of 45.9% over Q3 FY23
- AUM grew by 184% to INR 338 crores as on March 31, 2023, in comparison to INR 119 crores as on March 31, 2022, led by strong business growth and lending partnerships
- Total Income grew strongly by 116% to INR 50.44 crores in FY23 compared to INR 23.31 crores in FY22, in line with strong growth in business and AUM. Total Income at INR 18.62 crores in Q4 FY23 grew by 144.3% compared to Q4 FY22
- The company reached an inflection point in profitability, posting profits in Q4 FY23 driven by improving branch productivity and rising scale of operations. The company posted a profit after taxes of INR 0.42 crore compared to a net loss of INR 2.70 crore in Q3 FY23. The Company has strong unit economics (NIM margin of over 15%) and profitability is further expected to improve driven by declining marginal cost of borrowings, improving branch productivity, increased share of the secured lending business, and the benefit of operating leverage with growing scale and AUM
- Robust asset quality: Moneyboxx has exceptional asset quality with very low NPAs and write-offs owing to its focus on essential sectors and robust underwriting practices. Asset quality remains strong with a Gross NPA of 0.59% and a Net NPA of 0.30% as on 31st March 2023.
- Continuous validation by lenders including banks and global impact funds: The company further diversified funding sources and lowered the cost of funding by adding exposure from leading lenders (SBI, IDFC First Bank, DCB Bank, Federal Bank, AU SFB, Utkarsh SFB, and Tata Capital). The Company raised debt of INR 235 crores in FY23 compared to INR 105 crores in FY22.
Commenting on the results, Deepak Aggarwal (Co-CEO & CFO) said, “We have a proven, highly scalable, and profitable business model with robust underwriting practices and a strong technological backbone with entirely digital processes. We see strong growth opportunities given the huge unmet credit gap for micro-enterprises in INR 1-10 Lac loan segment in Tier-III and below areas and we aim to transform the lives of micro-entrepreneurs through our various beyond-lending impact initiatives such as free vet advisory and agro-forestry for livestock and agricultural borrowers. Moneybox is committed to changing the way impact investing is looked at and bringing significant positive change in the lives of its borrowers.”