Manba Finance Limited — Credit Ratings, 04-01-2025: Credit Rating

**Consolidated Financials:**

Manba Finance Limited reported a consolidated revenue of ₹191.63 crore for the financial year FY24, reflecting a robust growth of 43.5% over the previous year's revenue of ₹133.32 crore. This growth can be attributed to increased demand in the two-wheeler financing sector and strategic expansion efforts, which allowed the company to capture a larger market share.

**Profit and EPS:**

The net profit for FY24 stood at ₹31.42 crore, up from ₹16.58 crore in FY23, marking an impressive year-over-year increase of 90%. The Earnings Per Share (EPS) for the latest fiscal year is calculated at ₹2.37, compared to ₹1.14 in FY23. Key drivers of this profitability improvement included stable net interest margins and controlled operational expenses.

**Operational Costs:**

Operational costs have shown a slight increase, but MFL has managed to maintain a disciplined cost structure, resulting in stable net interest margins. This suggests effective cost management, particularly in relation to growth activities and staff expenses.

**Balance Sheet & Cash Flow:**

The total assets increased to ₹1261.43 crore as of H1FY25, reflecting a 30% growth compared to ₹972.23 crore in FY24. Coupled with a capital adequacy ratio of 37.15%, the balance sheet demonstrates a strong financial footing. Cash and cash equivalents stood at ₹241 crore, ensuring good liquidity against contractual obligations.

**Strategic Position and Outlook:**

MFL's strategic focus on expanding its two-wheeler financing and entering new product lines like electric vehicle loans positions it well for future growth. The positive outlook hinges on sustained scaling of operations while maintaining asset quality and profitability metrics.

**Investor Insight:**

Given the strong profit growth, efficient cost management, and promising expansion strategy, a buy insight is warranted for MFL. Monitoring advancements in asset quality and market competition will be crucial for maintaining positive momentum.