Q2 2025 SBFC Finance Ltd Earnings Call Transcript
Key Points
- SBFC Finance Ltd (BOM:543959) reported a 33% year-over-year growth in assets under management (AUM), reaching INR 7,715 crores.
- The company has maintained a stable cost of borrowing at 9.32%, despite rising market rates.
- Return on average AUM for the quarter was 4.56%, with return on average equity improving to 12.67%.
- SBFC Finance Ltd added six new branches, increasing the total branch count to 192, indicating expansion and growth.
- The company has managed to increase its spreads by 14 basis points, even as leverage increased, demonstrating effective financial management.
- The credit cycle is presenting challenges, with credit costs at the upper end of the guided range of 8,200 basis points.
- Finding lendable customers has become more challenging due to tightened credit underwriting since February.
- The company's gross non-performing assets (GNPA) increased slightly by nine basis points to 2.69%.
- There is a noted difficulty in bringing back customers who have slipped into delinquency, reflecting challenges in collections.
- The regulatory environment is demanding, with increased compliance requirements impacting operational processes.
Ladies and gentlemen, good day. And welcome to the SBFC Finance Limited Q2 FY25 earnings conference call on hosted by ICICI Securities Limited.
(Operator Instructions)
Please note that this conference is being recorded. I now hand the conference over to Mr Renish from ICICI Securities Limited. Thank you and over to you, sir.
Thank you, Neha. Good morning, everyone.
I will now hand over the call to Sanket for management.
Yeah, over to you Sanket.
Morning, everyone. Welcome to the Q2 FY25 conference call of SBFC Finance. Thank you for joining in early in the morning. I have with me along with me, I have the, the management of SBFC Mr. Aseem Dhru , MD&CEO; Mr. Mahesh Dayani, CBO; Mr. Narayan Barasia ,CFO and Mr Pankaj Poddar,CRO. We will start with the opening remarks from the team and followed up with the financial detailing from the narayan and then we'll open the
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