Moneyboxx Finance Ltd Q2 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
Yes
Capex
N/A
2 of 4 growth signals are positive.
Full analysisRevenue guidance
Category 2- Moneyboxx Finance aims to grow their AUM to INR 5000-6000 crore over the next 3 to 5 years with around 400 branches.
- They expect to continue growing at a reasonably good pace while maintaining strong ROE numbers.
- Focus on increasing secured loans to improve customer longevity (secured customers tend to stay 5 years vs 2 years for unsecured).
- Repeat customers and increased ticket sizes will drive growth within mature branches.
- Potential expansion into new loan products like bike loans and home renovation for existing customers.
- Market opportunity is large: unsecured segment size ~ INR 22 lakh crore, livestock segment ~ INR 15 lakh crore, and Kirana market is even bigger.
- Plans to raise approx. INR 700-800 crore equity over next 4.5 years to support growth.
- Growth driven by focus on proprietary underwriting, disciplined sourcing, and strong asset quality management.
See what Moneyboxx Finance Ltd management said on margin guidance — free account, 30 seconds.
Fundraise plans
Yes- Moneyboxx Finance has a firm capital raising commitment of INR 75 crore planned for Q3 FY24.
- The company aims to raise an additional INR 700-800 crore over the next 4.5 years to support AUM growth to around INR 6,485 crore.
- For every INR 100 crore of equity, the company targets about INR 500 crore of AUM to maintain decent ROA and ROE.
- The fundraising mix could involve both equity and debt, but no specific mention of immediate new debt issuances was made.
- The company is focused on improving profitability and scaling efficiently, with fundraises aligned to support such growth.
- Borrowing costs are targeted to stay around 10–13%, with ongoing efforts to lower borrowing rates through lender confidence and scale.
See what Moneyboxx Finance Ltd management said on order book — free account, 30 seconds.
Capex plans
- Moneyboxx Finance plans to increase its AUM to around INR 5000 crore to INR 6000 crore in the next 3 to 5 years with about 400 branches.
- The company intends to continue growing at a reasonably good pace with good ROE numbers.
- They have a firm capital raising commitment of INR 75 crore for Q3 FY24 and may raise another INR 700-800 crore over the next 4.5 years to reach AUM targets (~INR 685 crore currently and planned scale-up).
- Equity to AUM ratio targeted at about 1:4 (INR 100 crore equity to INR 500 crore AUM) for maintaining decent ROA and ROE.
- Growth lever also includes shifting from unsecured to secured loans, improving the longevity of customers and increasing branch AUM sizes moderately (branches reaching INR 17-20 crore AUM).
- No explicit mention of specific strategic investments or capital expenditure beyond branch expansion and credit growth strategy.
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Margin guidance
Category 3- Moneyboxx Finance expects to grow its AUM to INR 5000-6000 crore over the next 3 to 5 years, supported by around 400 branches.
- The company aims to continue growing at a reasonably good pace with strong Return on Equity (ROE) numbers.
- Profitability is expected to improve with secured loans increasing customer longevity and repeat business.
- Current branches, even with AUMs of INR 11-20 crore, show healthy profitability with ~10% PBT margins, which provides a growth base.
- The firm plans to leverage existing customers by upselling and expanding product lines (e.g., bike loans, home renovation).
- Management targets INR 1 lakh crore AUM in two decades, implying long-term substantial growth.
- Capital raising plans (INR 75 crore planned, with up to INR 800 crore over 4.5 years) aim to support this growth sustainably.
- Asset quality focus remains a priority to maintain steady credit costs (~1.5-2%), underpinning profitable growth.
Order book
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What Moneyboxx Finance Ltd's management said in earlier quarters
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