Akme Fintrade (India) Limited — Important, 07-02-2025: Financial Result Updates

Akme Fintrade (India) Ltd. witnessed a robust financial performance for the quarter ending December 31, 2024, highlighting a revenue surge of 41.07% year-over-year, totaling ₹28.10 crore, up from ₹19.92 crore in the previous year. This growth trajectory is attributed to increased interest income driven by a 30.50% expansion in the loan book, alongside improved asset quality metrics.

Net Profit stood at ₹8.93 crore, marking a significant increase of 59.51% compared to ₹5.60 crore in the same quarter last year, while Earnings Per Share (EPS) reached ₹2.03, up from ₹1.40. The dramatic rise in profitability is largely influenced by the strategic management of operational costs which saw an 18.03% increase, notably in finance costs and other operational expenses, reflecting ongoing investments in scaling operations.

The balance sheet remains robust, evidenced by a current net interest margin of 13.41% and a Gross NPA ratio improvement to 2.86%. Despite rising operational costs, the firm’s prudent risk management and diversified lending portfolio position it favorably for future growth.

In light of this performance, maintaining a buy outlook appears justified, considering the company's solid strategic direction, healthy financial metrics, and ongoing expansion initiatives, which aim to augment both market share and operational efficiencies.