Northern Arc Capital Limited has informed the Exchange regarding Change in Auditors of the company.
NORTHARC · price
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Northern Arc Capital's board approved audited Q4 and FY25 standalone and consolidated results. Total income for FY25 rose to Rs 2,28,411 lakhs (vs Rs 1,82,856 lakhs in FY24), a ~25% YoY increase, while profit after tax grew to Rs 34,261.50 lakhs (vs Rs 28,017.11 lakhs), up ~22% YoY. Statutory auditor Walker Chandiok & Co LLP issued an unmodified opinion but flagged an 'Emphasis of Matter' on an RBI email dated May 16, 2025, requiring the company to exclude credit enhancements under First Loss Default Guarantee (FLDG) from its Expected Credit Loss (ECL) computation by June 30, 2025, which could lead to additional provisions. The board also appointed M/s. Alagar & Associates as Secretarial Auditor for a 5-year term (April 2025 to March 2030) and approved a proposal to raise up to Rs 5,000 crore via private placement of Non-Convertible Debentures, both subject to shareholder approval. Capital Adequacy Ratio stood strong at 24.72% with Gross Stage 3 assets at 0.99%.
Healthy revenue and profit growth along with strong capital adequacy are positives for shareholders, but the RBI's FLDG directive creates near-term uncertainty over additional provisioning that could dent future earnings. The proposed Rs 5,000 crore NCD raise signals continued business expansion plans.