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Auxilo’s profit jumps 2.5X in FY24; revenue grows double

EntrackrEntrackr · 11m ago
Auxilo’s profit jumps 2.5X in FY24; revenue grows double
Medial

Overseas education loans have picked up steam in India in the last few years, and the specialized companies in the space have been growing exponentially. Incred, LeapFinance and Leverage Edu reported significant uptick in their financing business focused on education. Earlier last year, HDFC had sold off its education loan business, HDFC Credila to a clutch of PEs at a hefty premium too, indicating the bullishness around the sector. The focus of the story today is education-focused non banking financial company Auxilo which posted a two-fold growth in its revenue to Rs 356.68 crore in FY24 from Rs 178 crore in FY23, its annual financial statements with the Registrar of Companies (RoC) shows. Auxilo has churned the majority of its collection through processing fees and interest received on the loan disbursements. This income accounted for 94.8% of the revenue which surged 94.5% to Rs 338.2 crore in the fiscal year ending March 2024 from Rs 173.81 crore in FY23. The company also made Rs 10.64 crore from non-operating sources which pushed its total income to Rs 367.32 crore in FY24. On the expense side, interest on borrowing formed 61.35% of the total expense. This expense mounted by 144.58% to Rs 168.49 crore in FY24 from Rs 68.89 crore in FY23. Meanwhile, its employee benefit cost grew 28.45% to Rs 41.76 crore in FY24 from Rs 32.51 crore in FY23. Other expenses including legal-professional, business sourcing, advertising increased by 17.91% to Rs 54.6 crore in FY24. Auxilo Finserve’s overall cost grew 2X to Rs 274.63 crore in FY24 from Rs 156 crore in FY23. Significantly, its profit also increased 2.5X to Rs 69.21 crore in FY24 from Rs 26 crore in FY23. Its ROEC and EBITDA stood at 8.57% and 79.91%, respectively. On a unit level, the company spent Re 0.77 to make a rupee of operating revenue in FY24. FY23-FY24 FY23 FY24 EBITDA Margin 70.48% 79.91% Expense/₹ of Op Revenue ₹0.88 ₹0.77 ROCE 6.68% 8.57% Considering that most education loans are not collateral backed, or unsecured, one has to wonder if the industry is not overheating. High growth rates for education loans, when seen in context of the headlines around the tightness in the jobs market, makes you wonder. Of course, lenders are betting on a cyclical turnaround by the time these loans fall due in a couple of years or earlier, besides the surging demand for overseas study in India. But froth is surely building up. Even loans given for study overseas, which form a significant chunk of these, are not the sure thing they used to be as immigration rules and conditions for work go through a churn in many of the destinations due to tight job markets. It does seem to be a classic case of venture and PE funding driving founders to stay the course, even when they would ordinarily have paused for considering a course correction. We will be watching out for the signs that speed breakers do exist on this seemingly smooth growth highway [overseas education loans].

Is Axis Bank's share price fall a knee-jerk reaction?

LivemintLivemint · 11m ago
Is Axis Bank's share price fall a knee-jerk reaction?
Medial

Axis Bank, one of the Nifty 50 stocks, faced a decline of around 6% on Thursday. Although the bank's performance in Q1FY25 was satisfactory, investors showed concern about the increase in credit cost. The management stated that the higher credit cost in the last quarter was due to seasonality and lower recoveries, and it is unclear whether this will be a one-off or a trend. The fall in the share price may be due to investors expecting the credit cost to remain low, despite FY24 being a strong year for Axis Bank with low gross NPAs. The bank's gross slippage ratio increased to 2%, with a significant portion coming from the retail portfolio, which includes a growing high-risk unsecured segment. Despite a growth in net interest income and a robust pre-provisioning operating profit, loan loss provisions doubled year-on-year, resulting in a lower pre-tax profit growth.

Accel and Peak XV-backed grocery brand Apna Mart revenue jumps 86% in FY24

EntrackrEntrackr · 7m ago
Accel and Peak XV-backed grocery brand Apna Mart revenue jumps 86% in FY24
Medial

Following eight-fold growth in FY23, Bharat-focused franchise-led grocery chain Apna Mart delivered another strong performance, achieving an 85.6% year-on-year spike in its operating scale in FY24. However, the company's losses also grew by 50% but remained under Rs 35 crore during this period. Three-year-old Apna Mart’s revenue from operations grew to Rs 59.4 crore in the last fiscal year from Rs 32 crore in FY23, its annual financial statements sourced from the Registrar of Companies (RoC) show. Founded by Chetan Garg and Abhishek Singh, Apna Mart is a franchise-driven omnichannel grocery and FMCG chain that delivers within 15 minutes. It operates in 14 cities including Ranchi, Hazaribagh and Bilaspur. The sale of fast-moving consumer goods (FMCG) was the sole source of revenue in FY24. Apna Mart also added Rs 3.6 crore from interest on deposits and mutual fund redemption, bringing its overall income to Rs 63 crore during the last fiscal year, compared to Rs 32.2 crore in FY23. For the consumer goods store, the cost of procurement for products accounted for 61% of the overall expenditure. To the tune of scale, this cost increased by 85% to Rs 58.4 crore in FY24 from Rs 31.6 crore in FY23. Its employee benefits surged by 82.4% to Rs 16.6 crore in FY24, including a Rs 2 crore non-cash ESOP cost. Advertising, legal, and manpower charges were among the other major overheads that pushed the firm’s total expenditure up by 77.8% to Rs 96 crore in FY24 from Rs 54 crore in FY23. On the back of increased burn on procurement and employee benefits, Apna Mart's losses grew 51.4% year-on-year to Rs 33 crore in FY24. Its ROCE and EBITDA margin stood at -57.7% and -49.76%, respectively. The firm’s expense-to-earnings ratio stood at Rs 1.62 in FY24. Apna Mart has total current assets of Rs 28.3 crore including a cash balance of Rs 1 crore at the end of the fiscal year ending March 2024. According to the startup data intelligence platform TheKredible, Apna Mart has raised over $14 million in funding to date. Backed by Accel Partners, Peak XV Partners, Titan Capital, Disruptors Capital, and Sparrow Capital among others, the firm is currently valued at Rs 397 crore (approximately $48 million). Its enterprise value to revenue multiple stood at 6.68X in the previous fiscal year. In a fast evolving sector line quick commerce, Apna Mart’s focus on tier 2 cities is a huge question, considering how difficult it has been to turn a profit in those markets. It's scale also doesn't offer any significant procurement advantage yet. We believe that the firm has many challenges to tackle before it can breathe easy. A Franchisee based model might have helped control costs, and losses somewhat, but it should be interesting to see how far that can travel.

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