Baid Finserv Limited Q4 FY '24 Earnings Conference Call Summary
Company Overview
• Formerly known as Baid Leasing and Finance Co. Ltd.
• Focuses on secured MSME loans, loans against property, vehicle loans, and insurance products.
• Expanding presence in Rajasthan, Madhya Pradesh, and Gujarat.
Financial Performance (FY '24)
• Disbursed INR 179 crores; AUM reached INR 368 crores (22.31% increase).
• Total revenues: INR 66.36 crores; Net profit: INR 12.92 crores (24.59% growth).
• Targeting AUM of INR 500 crores by FY '25 and INR 600 crores by FY '26.
• Plans to expand branch network to 75 locations.
Strategic Initiatives
• Commitment to leveraging technology for operational efficiency.
• Introduction of new products, including electric vehicle loans.
• Deferred proposed rights issue; reconsideration planned for the future.
Financial Metrics
• Net worth: INR 167 crores; Borrowings: INR 250 crores (leverage ratio of 1.4x).
• Capital adequacy ratio: ~46%.
• Average borrowing cost: 11.75% to 12%, with expected reduction in FY '25.
• Stable net interest margins (NIMs) at 10.5% to 11%.
Growth Projections
• Anticipated revenue and profit growth of 20% to 25% in the coming year.
• Gross NPA: 2.6%; Net NPA: 0.36%, with expectations for improvement.
• Focus on hiring to support expansion into new states.
Business Risks and Resilience
• Potential employee attrition in older geographies.
• Confidence in resilience against external economic challenges.
Revenue and AUM Targets
• Conservative revenue estimate for FY '25: INR 80-85 crores.
• Plans to add approximately INR 120 crores in AUM.
MSME Segment Insights
• 80% of AUM from mortgage loans, including MSME and loans against property.
• INR 110 crores disbursed in MSME loans this year.
Collection Efficiency
• NPA reported at 2.5%; Collection efficiency improved to 95.5%.
• Plans for branch expansion to 70-75 branches by next year.
Future Expansion Plans
• Focus on deeper penetration in existing regions and new locations.
• Plans to open 4-5 branches in Maharashtra by next quarter.
Funding Strategy
• Diversifying funding sources; shifting from NBFCs to banks for lower borrowing rates.
• Noting growing market opportunities in rural areas.
Return on Equity (ROE)
• Current ROE: 6-7% due to low leverage; expected improvement as the company scales.
• Stable promoter holding at 34%; no plans for dilution.
Closing Remarks
• Call concluded with gratitude from Aman Baid and invitation for further queries.