Gold loan non-banking finance company Indel Money has witnessed a rise of 127.21% in its net profit in the second quarter of FY24 to 18.91 crore from Rs 8.32 crore in the corresponding period of FY23. The revenue for the quarter rose by 61.09% to Rs. 77.03 crore as compared to the same period in the previous year.
The first half of FY24 saw the company demonstrating a robust performance with its profitability surging by a record 568.86% buoyed by strong AUM growth, heightened demand for gold loans, expansion into newer territories and operational efficiencies despite a challenging business environment.
The profitability rose to Rs 39.17 crore during the first half as against Rs. 5.86 crore in the same period last year.
Operationally, annual disbursements so far have experienced a significant 70% growth, reaching Rs.1800 crore. The consolidated assets under management (AUM) for Q2 stands at Rs 1363 crore, reflecting a substantial increase over the corresponding quarter of FY23 and a notable quarter-on-quarter rise.
Commenting on the results, Mr Umesh Mohanan, Executive Director and CEO, Indel Money, said: “Our performance underscores our steadfast commitment to the business expansion in newer territories and our ability to respond quickly to the changing market dynamics. Robust disbursements and a continued focus on gold loans have helped us in achieving this remarkable business growth. We have recently secured a forex business license from the RBI, and this holds significant potential to make a substantial contribution to our overall business.”
“Furthermore, the Non-Convertible Debentures (NCD) Tranche III for FY 24 witnessed an impressive 188% subscription, affirming investor confidence in the company’s financial instruments. We are planning Tranche IV of Rs. 200 crore NCD in Q4 of the current financial year”, Mohanan added.
The company plans to add more than 100 branches in FY24, spreading it to four new states this fiscal year.
