Fedbank Financial Services (FEDFINA) Q4 23/24 earnings summary

Executive summary

• FY24 AUM reached ₹121,919 mn, up 34% YoY; disbursements were ₹135,787 mn, up 26% YoY, and Q4 disbursements rose 30% QoQ to ₹43,361 mn.

• FY24 PAT increased 36% YoY to ₹2,447 mn; Q4 PAT rose 73% YoY and 3% QoQ to ₹677 mn.

• Q4 gross Stage III fell 53 bps QoQ to 1.7%; off-book AUM share rose to 18.7% from 17.4% QoQ.

• Audited FY24 results received an unmodified audit opinion.

Financial highlights

• FY24 total income was ₹16,230 mn, net interest income ₹8,120 mn, operating profit ₹3,939 mn and PBT ₹3,281 mn.

• FY24 core NII increased 29% YoY to ₹7,783 mn; net total income rose 27% to ₹9,433 mn and operating profit rose 28% to ₹3,939 mn.

• Q4 core NII rose 31% YoY to ₹2,120 mn; net total income increased 24% to ₹2,543 mn and operating profit increased 32% to ₹1,086 mn.

• FY24 operating cash flow was negative ₹77,552 lakh versus negative ₹1,47,400 lakh in FY23; cash and cash equivalents closed at ₹18,554 lakh.

Outlook and guidance

• Targets 25%+ advances growth, with scope to exceed this if favorable market tailwinds persist; sustainable impairment cost is guided at 80 bps.

• Customer yields are expected to hold and spreads to remain broadly constant; greater gold co-lending or lower short-term rates could support spreads.

• FY25 cost to AUM is targeted to improve by 30–40 bps from FY24’s 5.2%.

• FY25 expansion plan includes 50 gold-loan branches and 30 small-mortgage locations, concentrated in existing regions.

• Strategy targets self-employed MSME customers across gold-backed, property-backed and unsecured lending, with an ambition to scale the product platform ten-fold.