Transcript of Conference call held on May 9, 2025
SGFIN · price
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SG Finserve reported a strong recovery in Q4 FY25 after regulatory headwinds in H1. Loan book (AUM) grew 48% quarter-on-quarter to INR2,326 crores by March 2025, up from INR1,568 crores in December. Q4 total income rose 27% QoQ to INR54 crores with PBT of INR31 crores, broadly flat versus Q3. Full-year FY25 PAT was INR81 crores versus INR78 crores in FY24. The company now has 45+ anchor partners including Tata, JSW, Adani, Bajaj and Vedanta, with anchor MOU flow potential at INR5,500 crores. Management reaffirmed loan book targets of INR4,000 crores by FY26 and INR6,000 crores by FY27, with ROE of 18-20% and ROA of 4.5-5%. Spreads remain healthy at 4% (12.5% yield, 8.5% borrowing cost), and the company has 14 bank lenders with sanctioned limits of INR1,500 crores.
Positive signal for shareholders: the company is guiding for a near-doubling of PAT to ~INR200 crores run rate within 12 months and potentially INR300 crores over 24 months. Equity base is set to grow from INR1,015 crores to INR1,500 crores by FY27, supporting growth without dilution pressure. The retail investor base should note that the stock has lagged despite strong operational recovery, but management indicated a dividend policy is under board consideration.