Arman Financial Services (ARMANFIN) Q4 02/03 earnings summary

Executive summary

• FY03 net profit rose to Rs 17.00 lakh from Rs 14.04 lakh, while operating income eased to Rs 115.04 lakh from Rs 120.03 lakh.

• NBFC operations focused on two-wheeler and consumer-durable financing, with the business reporting satisfactory operating performance despite tighter competition and narrower lending spreads.

Financial highlights

• Operating income was Rs 115.04 lakh versus Rs 120.03 lakh YoY; other income was Rs 6.996 lakh versus Rs 13.948 lakh.

• Profit before tax was Rs 28.28 lakh versus Rs 18.12 lakh; profit after tax was Rs 17.00 lakh versus Rs 14.04 lakh.

• Net worth reached Rs 530.57 lakh, compared with Rs 519.36 lakh in FY02.

• Loss from share trading was Rs 2.01 lakh versus Rs 15.69 lakh; the closing-stock diminution charge was Rs 1.86 lakh versus Rs 6.73 lakh.

Outlook and guidance

• Management cited GDP growth of 5–6% over coming years and expected infrastructure and service-sector expansion to support financial-services opportunities.

• A good monsoon was expected to support per-capita income and demand for two-wheelers and consumer durables, creating opportunities to deploy funds at attractive returns.