Arman Financial Services Limited has informed the Exchange about Transcript
ARMANFIN · price
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Arman Financial Services reported a sharp 70% YoY decline in FY25 net profit to Rs. 52 crores, weighed down by a 94% drop in microfinance subsidiary Namra Finance's profit to Rs. 7.8 crores due to higher provisioning. Consolidated AUM fell 15% to Rs. 2,245 crores as Namra's AUM shrank 23% to Rs. 1,686 crores, though the standalone MSME, micro-LAP, and 2-wheeler book grew 25% to Rs. 560 crores. Total income grew 10% to Rs. 730 crores, gross NPA improved 75 bps to 3.37%, and the company holds healthy capital adequacy of 37-48% with Rs. 269 crores surplus liquidity. Management has separated credit and recovery functions through a new BCM model (deployed in 140 of 391 branches) and enrolled 34% of the MFI book under the government-backed CGFMU guarantee scheme, while completing a Rs. 185 crore ARC transaction in March 2025.
Shareholders should brace for continued near-term margin pressure with elevated OPEX and provisions, but the company remains well-capitalized with strong liquidity. The strategic shift to individual credit assessment and the CGFMU guarantee cover signal management's commitment to long-term asset quality over short-term growth, which may support a gradual recovery as the rural microfinance stress eases.