Northern Arc Capital Limited — PPTs, 14-02-2025: Investor Presentation

**Financial Highlights:** Northern Arc Capital reported a robust performance for Q3FY25, with a Profit After Tax (PAT) of INR 76 Cr. Over the nine months of FY25, PAT reached INR 267 Cr. Return on Assets (RoA) stood at 2.4%, while Return on Equity (RoE) was 8.9%. The Assets Under Management (AUM) grew to INR 12,250 Cr, reflecting a solid financial health despite challenging market conditions.

**Strategic Initiatives and Growth Drivers:** The company continues to diversify its AUM, with a significant shift toward Direct to Customer (D2C) lending, now representing 52% of the portfolio. Northern Arc raised INR 882 Cr in equity capital in 9MFY25, enhancing its liquidity position and flexibility to pursue growth.

**Business Developments:** The firm has seen a healthy growth trajectory, with disbursements reaching INR 8,037 Cr during the first nine months of FY25. The lending business remains buoyant, supported by a strong network of originator partners and a comprehensive distribution strategy.

**Market Position and Competitive Advantage:** Northern Arc is positioned strongly within the retail lending ecosystem, leveraging technology and data analytics to enhance risk management and customer engagement. Its diversified funding sources and emphasis on ESG compliance further bolster its market standing.

**Investor Implications:** The positive operational metrics and strategic initiatives suggest a favorable outlook for investors. The transition towards direct consumer lending and continued expansion point towards potential growth opportunities, making it a company to watch closely.