Arman Financial Services Limited — Updates, 14-11-2024: Press Release

**Investor Presentation Summary**

**Financial Highlights:**

Arman Financial Services reported a consolidated Asset Under Management (AUM) of approximately INR 2,465 Cr, an annual growth of 7%. Gross total income increased by 13% year-on-year to INR 181.5 Cr, contributing to a pre-provisioning operating profit (PPoP) of INR 77.6 Cr, up 12%. However, profit after tax (PAT) significantly declined by 63% to INR 15.3 Cr.

**Strategic Initiatives and Growth Drivers:**

The company has adopted a cautious growth strategy, prioritizing collection and portfolio quality amidst industry challenges. Disbursements fell 31% year-on-year to INR 373 Cr in Q2FY25, indicating a focus on asset quality over rapid expansion.

**Business Developments:**

Total borrowings stood at approximately INR 2,020 Cr, with a healthy liquidity position of INR 281.2 Cr in cash and liquid investments.

**Market Position and Competitive Advantage:**

Despite a competitive landscape and increased credit costs in the microfinance sector, Arman’s strong capital base, with a capital adequacy ratio of 39.2%, positions it well for future resilience.

**Investor Implications:**

Investors should watch closely as the company emphasizes risk management and collections to navigate current headwinds, which may provide a foundation for potential growth as industry conditions stabilize.