Abans Financial Services LtdQ3 FY24

Abans Financial Services Ltd Q3 FY24 Earnings Call Analysis

Revenue, margin, capex, fundraise and order book outlook from management commentary.

Price: ₹201P/E: 8.0Market Cap: ₹1.0K CrSector: Finance

Management growth scorecard

Revenue

Category 2

Margin

Category 3

Fundraise

N/A

Order

N/A

Capex

Yes

1 of 3 growth signals are positive — mixed outlook.

Full analysis

Revenue guidance

Category 2
  • Consolidated revenues showed strong growth: Q3 FY24 revenues were 501 crores, up 93% YoY and 40% QoQ; nine months FY24 revenues reached around 1100 crores, a 92% YoY increase.
  • Agency business EBITDA increased significantly due to growth in brokerage, remittance fees, and asset management fees, indicating higher revenue visibility.
  • Asset under management (AUM) grew from 1665 crores in March 2023 to about 2560 crores by December 2023, driven by performance of global arbitrage funds and acquisition of PMS schemes.
  • NBFC business AUM expanded by 47% over four years, reflecting lending business growth.
  • Positive outlook on GIFT City operations expected to further augment top line and bottom line through asset management, broking, and lending businesses.
  • Commodity ETF mutual fund space targeted as a niche growth area.
  • Overall, management projects strong growth driven by expanding financial services, asset management, and international operations.

See what Abans Financial Services Ltd management said on margin guidance — free account, 30 seconds.

Fundraise plans

  • There is no explicit mention of any current or planned fundraising through debt or equity in the provided call transcript.
  • The company raised about ₹345 crores from a recent IPO, with ₹100 crores invested in the NBFC business and ₹25 crores used for general corporate purposes; the remainder was an offer for sale to promoters.
  • No indications were given about upcoming equity offerings or new debt issuances.
  • The management emphasized steady growth and regulatory approvals rather than raising new capital imminently.
  • NBFC liquidity was recently infused with ₹100 crores in Dec 2023, and borrowings are currently moderate at ₹60 crores.
  • Overall, the company appears focused on organic growth, regulatory approvals, and business expansion (especially in GIFT City) without immediate plans for fresh fundraising.

See what Abans Financial Services Ltd management said on order book — free account, 30 seconds.

Capex plans

Yes
  • The company has infused ₹100 crores liquidity into its NBFC business in December 2023 to support lending operations.
  • About ₹25 crores from IPO proceeds were used for general corporate purposes and to grow other businesses.
  • Abans Holdings has set up a branch in GIFT City aiming to expand asset management, broking, and lending business there, pending regulatory approvals.
  • The company is awaiting regulatory approvals to start lending business in GIFT City through a wholly owned subsidiary.
  • Plans to form category three funds onshore and in GIFT City are in progress, awaiting final regulatory approvals.
  • Investment is being made into technological upgradation for the international payments business licensed via Corporate Revenue Services Limited.
  • ESOP expenses, approved for a three-year period starting August 2023, reflect investment in employee incentives and retention.
  • No mention of any geographical expansion or major new capex beyond the above.

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