SBFC Finance shares surge nearly 8% on strong Q1 results

Shares of SBFC Finance Ltd. surged nearly 8 per cent on Wednesday after the newly listed company reported strong financial results for the June quarter (Q1FY24). The financial services company's net profit saw a remarkable rise of 47 per cent, reaching Rs 46.96 crore in June quarter compared to Rs 32.1 crore in the same period last year.

The company’s net interest margin (NIM), which stood at 9.1 per cent for Q1FY24, dropped marginally from the previous year's 9.5 per cent.

SBFC Finance Q1 result: Key indicators

The financial service provider’s Net Interest Income (NII) surged from Rs 80 crore to Rs 115 crore, representing a substantial growth of 43.7 per cent YoY.

The company reported a Gross Non-Performing Assets (GNPA) of 2.54 per cent, displaying a marginal decrease from the preceding quarter's 2.57 per cent.

SBFC Finance reported a Net Non-Performing Assets (NNPA) of 1.55 per cent, indicating a marginal drop from 1.58 per cent in the same quarter a year ago.

In addition to these impressive financial figures, the company received board approval for an investment in its subsidiary, SHFL, presumably SBFC Home Finance Ltd. This investment involves an equity share capital infusion of Rs 21 Crores.

The company's Q1FY24 pre-provisioning operating profit amounted to Rs 72.9 crore, displaying a 47.7 per cent increase from Rs 49.4 crore in Q1FY23. SBFC Finance also allocated a total Expected Credit Loss (ECL) provision of Rs 88 crore for the quarter ending June 30, 2023.

The company reported a 43.6 per cent increase in total income at  Rs 229.9 crore compared to Q1FY23. Alongside this growth, the company's gross NPA stood at 2.54 per cent, down from 2.87 per cent in the previous year.

Furthermore, the company's collection efficiency for April to June 2023 was an impressive 97.17 per cent. Disbursals for the first quarter totalled Rs 655 crore, showcasing YoY increase of 32 per cent. Assets under management witnessed a significant YoY increase of 47 per cent, amounting to Rs 5,327 crore in Q1FY24.

Specialising in secured MSME loans, loans against gold, affordable home loans, and loan management, SBFC Finance has expanded its presence to 152 branches and boasts a workforce of over 3,000 employees across 18 states and union territories since its inception.

SBFC Finance share price

Shares of SBFC Finance were trading 4.5 per cent higher at Rs 89.93 apiece on BSE at 11:44 AM. The stock hit an intraday high of Rs 92.88 apiece, marking an impressive 7.9 per cent increase. Notably, the company's stock has achieved 10 per cent gain since its market debut on August 16, further underscoring its strong performance.