Arman Financial Services (ARMANFIN) Q4 00/01 earnings summary

Executive summary

• FY ended 31 Mar 2001: profit after tax rose to Rs 4.99 lakh from Rs 2.24 lakh, while operating income declined to Rs 117.25 lakh from Rs 127.54 lakh.

• Two-wheeler financing cases grew despite increased competition; management cited improved credit selection and NPA levels below industry norms.

Financial highlights

• Total income was Rs 124.32 lakh vs Rs 129.83 lakh YoY; profit before tax was Rs 12.49 lakh vs Rs 13.74 lakh.

• Profit after tax reached Rs 4.99 lakh vs Rs 2.24 lakh; prior-year excess tax provision of Rs 6.98 lakh reduced current-year profit available for appropriation.

• Operating income comprised Rs 79.33 lakh hire-purchase charges, Rs 16.21 lakh lease income and Rs 11.09 lakh interest income.

• No dividend recommended; Rs 32.14 lakh was carried forward in the profit and loss account.

Outlook and guidance

• Management expected GDP growth of ~6%, infrastructure and industrial expansion, and a good monsoon to support NBFC opportunities and demand for consumer durables and two-wheelers.

• Management expected two-wheeler financing growth and conservative new corporate-finance exposure to support results and control NPAs and bad debts.