Baid Finserv Ltd Q4 FY24 Earnings Call Analysis
Revenue, margin, capex, fundraise and order book outlook from management commentary.
Management growth scorecard
Revenue
Category 2
Margin
Category 3
Fundraise
Yes
Order
N/A
Capex
Yes
2 of 4 growth signals are positive.
Full analysisRevenue guidance
Category 2- Targeting 20-25% growth year-on-year in both revenues and profit.
- Expect total revenue for FY25 around INR 80-85 crores (INR 100 crores considered tough).
- Aiming to disburse around INR 200 crores of fresh loans in FY25.
- Projecting total AUM of approximately INR 500 crores by end of FY25 and INR 600 crores by FY26.
- Plan to expand branch network to 75 locations by FY25.
- Introduce new products including electric vehicles and two-wheelers in vehicle loan segment to boost yield.
- Will tie up with large lenders, NBFCs, and small finance banks for micro-housing products.
- Growth driven by market expansion (Maharashtra entry), technological advancements, and improved risk management tools.
See what Baid Finserv Ltd management said on margin guidance — free account, 30 seconds.
Fundraise plans
Yes- Rights issue for equity fundraising was proposed but later deferred; no current plans to dilute promoter holding or issue rights in the near term.
- Current capital adequacy is strong (around 45-46%), with low leverage (~1.4x), giving enough headroom for growth without immediate need for fresh capital.
- Borrowings primarily through term loans from banks and large NBFCs; considering issuance of NCDs soon to diversify funding sources.
- Major borrowings now come from scheduled banks (e.g., IDFC, Federal Bank, ICICI Bank, ESAF Small Finance Bank, Capital Small Finance Bank, SBI).
- Future fundraising plans focus on associating with more banks and large NBFCs for better rates and increased borrowings.
- No immediate plans for fresh equity; additional capital raise might be considered once AUM reaches around INR 500 crores.
See what Baid Finserv Ltd management said on order book — free account, 30 seconds.
Capex plans
Yes- Current capex for branch expansion is modest, typically around INR 2-3 lakhs per branch, primarily for basic infrastructure.
- Each new branch becomes viable and self-sustainable within 5-6 months with an AUM of INR 3-4 crores.
- No major IT or infrastructure splurges on branch setup; emphasis is on efficient, lean operations.
- Plans to open 4-5 branches in Maharashtra in the next quarters.
- Target branch strength of 75 by FY26.
- Considering issuance of Non-Convertible Debentures (NCDs) soon for funding diversification.
- Exploring tie-ups with large lenders, NBFCs, and small finance banks for micro-housing loan products.
- Focus on technological advancements: usage of LOS, LMS software from Graviton, Collect-ON app, and other digital payment solutions for process efficiency.
- No large strategic investments or significant capital expenditure beyond branch expansion and IT tool enhancements mentioned.
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Margin guidance
Category 3- Baid Finserv expects 20% to 25% growth in profit and income in the coming year (FY25).
- Revenue for FY25 is projected around INR80-85 crores, though INR100 crores looks tough.
- AUM is targeted at around INR500 crores by the end of FY25, with plans to reach INR600 crores by FY26.
- They aim to expand the branch network to 75 locations by FY26 from around 70 currently.
- EBITDA showed strong growth of 30% in FY24 with a margin of 62.7%, net profit increased 24.6% with a margin of 19.5%.
- Earnings per share grew 11.3% in FY24; future growth in EPS is expected aligned with profit growth.
- Continuous addition of new product portfolios, including electric vehicles and two-wheelers, is expected to improve yields and margins.
- Cost of borrowing is expected to reduce by approximately 25 basis points, possibly enhancing NIMs marginally beyond the current 10.5%-11%.
Order book
- Baid Finserv aims to achieve an AUM (Assets Under Management) of around INR 500 crores by the end of FY 2025.
- Plans to further increase the loan book to INR 600 crores by FY 2026.
- Targets a 25% to 30% annual increase in AUM going forward.
- Fresh disbursement target for the current year is around INR 200 crores.
- With principal collections and closures, they expect an addition of approximately INR 120 crores to the existing AUM.
- Currently maintaining a capital adequacy of around 45%, allowing expansion without fresh capital infusion for roughly 2 years.
- The company plans branch expansion to 75 branches by FY 2026 to support growth in the orderbook.
- Expected to leverage up to 2 to 3 times, which will improve volumes and ROE.
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