Q1 2027 SBFC Finance Ltd Earnings Call Transcript
Key Points
- SBFC Finance Ltd (BOM:543959) reported a 27% year-on-year growth in total AUM, reaching INR11,922 crore.
- The company's cost of borrowing decreased by 90 basis points year-on-year, improving financial efficiency.
- Net Interest Margins (NIMs) increased to 10.6%, reflecting effective management of borrowing costs and asset pricing.
- The company maintained a strong capital adequacy ratio of 32%, ensuring financial stability.
- Profit After Tax (PAT) grew by 29% year-on-year, indicating robust profitability.
- The sub-INR10 lakh segment showed signs of leverage stress, requiring close monitoring.
- There was a 70 basis point increase in 0+ DPD during the quarter, indicating potential asset quality concerns.
- The company's operating expenses increased by 36 basis points quarter-on-quarter due to branch expansions and employee increments.
- The co-origination mix reset to 10% due to regulatory changes, impacting disbursal rates.
- Inflation has affected household disposable income, impacting repayment capacity and conversion rates.
Ladies and gentlemen, good day and welcome to the SBFC Finance Limited Q1 FY 2027 earnings conference call hosted by ICICI Securities. (Operator Instructions) Please note that this conference is being recorded.
I now hand the conference over to Mr. Dinesh from ICICI Securities. Thank you, and over to you, sir.
Yeah, Thank you, Swapnali. Hi, good evening, everyone; and welcome to SBFC Finance Q1 FY27 earnings call. On behalf of ICICI Securities, I would like to thank SBFC management team for giving us the opportunity to host this call. Today we have with us the entire top management team of SBFC represented by Mr. Aseem Dhru, Executive Vice Chairman; Mr. Mahesh Dayani, MD and CEO; Mr. Sanket Agrawal, Chief Financial Officer; and Mr. Rajeev Thakker, Chief Risk Officer.
I will now hand over the call to Aseem for his opening remarks, and then we'll open the floor for Q&A. Over to you, sir.
Thank you, Dinesh , and
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