Authum Investment & Infrastructure (539177) Q4 23/24 earnings summary

Executive summary

• Achieved record financial performance in FY 2023-24, with revenues up 545% to ₹2,412.01 crore and PAT up 1,117% to ₹2,923.68 crore year-over-year.

• Net worth increased to ₹10,345 crore as of March 31, 2024, with negligible debt and robust liquidity.

• Successfully completed the demerger of Reliance Commercial Finance Limited (RCFL) lending business into the company, effective October 1, 2023.

• Diversified business model with a 50:50 revenue split between equity investments and credit/lending.

• Strategic focus on building a sustainable institution, leveraging equity gains to fund credit business growth.

Financial highlights

• Total revenues for FY 2023-24: ₹2,412.01 crore, up 545% year-over-year.

• Profit after tax: ₹2,923.68 crore, up 1,117% year-over-year.

• EBITDA: ₹2,990.20 crore, up 795% year-over-year.

• Assets under management: ₹10,682.22 crore, up 176% year-over-year.

• Net worth: ₹10,345 crore as of March 31, 2024.

• Debt: ₹351.68 crore; leverage ratio under 0.5x.

• No dividend recommended for FY 2023-24.

Outlook and guidance

• Targeting sustainable compounded returns in the high-teens percentage range.

• Capital allocation to shift from 100% equity to a projected 60:40 equity-to-credit mix.

• Plans to create multiple synergistic platforms and evolve into a full-suite financial services company.

• Focus on building an asset reconstruction company and deepening compliance and process maturity.