Any current/future new fundraising through debt or equity?

Recent capital raise was done through warrants, with an initial Rs. 20 crore expected soon and the balance over an 18-month period. The company has started taking leverage, with a credit line of Rs. 15 crore from one bank already in place. Discussions with multiple lenders are ongoing to increase leverage for loan book growth. Current loan book leverage is negligible but is expected to grow to about Rs. 60-70 crore of leverage on a Rs. 180 crore equity base. Board has approved a leverage of up to 1x on net worth for the current year, with plans to revisit for higher leverage to reach Rs. 500 c

Any current/future capex/capital investment/strategic investment?

The company has taken a credit line of Rs. 15 crores as leverage to grow its lending book, indicating capital deployment towards lending growth. Rs. 20 crores from recent capital raise (warrants) will be deployed to shore up the balance sheet and support lending business expansion. Tech expenses saw an increase (~Rs. 2 crores) mainly to get ready with enough server space and infrastructure for new product launches like prepaid cards, reflecting strategic tech investment. No significant increase in tech expenses expected in the next couple of quarters as current build compensates for scalabilit

Future growth expectations in sales/revenue/volumes?

The company targets a loan book growth to Rs. 250 crore by FY24 and aims for Rs. 500 crore by the next year, which implies substantial credit growth. The Board has approved a leverage of 1x on net worth for the current year, with expectations to increase leverage to 2-2.2x to support growth. Gross Transaction Value (GTV) demonstrated strong growth of 70% quarter-on-quarter, reaching approx. Rs. 9,900 crore in Q1 FY24, with July 2023 alone at Rs. 3,600 crore, projecting an annualized run rate of about Rs. 12,000 crore. The company expects to leverage operating efficiencies with limited increase

Future growth expectations in earnings/operating earnings/profits/EPS?

Q1 FY24 showed strong operational growth with 70% Q-on-Q growth in GTV; optimism continues for H1 FY24 and beyond. Operating leverage is visible, with revenues growing faster than costs; potential breakeven expected in 1-2 quarters if current trends sustain. FY25 targets include Rs. 500 crore loan book and Rs. 50-60 crore EBITDA, reflecting profitability focus. Net take rate expected to stabilize around 9-10 basis points with new higher-margin products like neo banking and prepaid cards contributing. Loan book growth target of Rs. 250 crore in FY24 with gradual increase in leverage (up to 1x a

Current/ Expected Orderbook/ Pending Orders?

The company targets building a lending book of about Rs. 250 crore by the end of FY24. Currently, they have a lending book of around Rs. 160 crore equity deployed, expected to increase to Rs. 180 crore after a Rs. 20 crore capital infusion. Leverage on this book is currently negligible (~Rs. 13 crore) but expected to increase to Rs. 60-70 crore to support growth. The board has approved a leverage of 1x on net worth for this year and plans to scale to Rs. 500 crore loan book next year, with 2x-2.2x leverage. The focus remains on calibrated and thoughtful growth to ensure creditworthiness and su

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Niyogin Fintech LtdQ2 FY23Finance

Niyogin Fintech Ltd Q2 FY23 Earnings Call Analysis

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

Price: ₹41.9Market Cap: ₹529 CrSector: Finance

Management growth scorecard

Revenue

Category 1

Margin

Category 1

Fundraise

Yes

Order

Yes

Capex

Yes

5 of 5 growth signals are positive — a strong management growth story.

Full analysis

Revenue guidance

Category 1

→The company targets a loan book growth to Rs. 250 crore by FY24 and aims for Rs. 500 crore by the next year, which implies substantial credit growth.
→The Board has approved a leverage of 1x on net worth for the current year, with expectations to increase leverage to 2-2.2x to support growth.
→Gross Transaction Value (GTV) demonstrated strong growth of 70% quarter-on-quarter, reaching approx. Rs. 9,900 crore in Q1 FY24, with July 2023 alone at Rs. 3,600 crore, projecting an annualized run rate of about Rs. 12,000 crore.
→The company expects to leverage operating efficiencies with limited increase in expenses, indicating improved profitability as volumes scale.
→New products like neo banking and prepaid cards with better margins are expected to contribute to future revenue expansion.
→Expansion of Banking as a Service (BaaS) partners to 796 (+20% YoY) supports increasing footprint and transaction volumes.

Margin guidance

Category 1

→Q1 FY24 showed strong operational growth with 70% Q-on-Q growth in GTV; optimism continues for H1 FY24 and beyond.
→Operating leverage is visible, with revenues growing faster than costs; potential breakeven expected in 1-2 quarters if current trends sustain.
→FY25 targets include Rs. 500 crore loan book and Rs. 50-60 crore EBITDA, reflecting profitability focus.
→Net take rate expected to stabilize around 9-10 basis points with new higher-margin products like neo banking and prepaid cards contributing.
→Loan book growth target of Rs. 250 crore in FY24 with gradual increase in leverage (up to 1x approved, possibly 2-2.2x in FY25).
→Expect slight profit in FY24 driven by operating leverage and growth in both lending and transaction businesses.
→Provisioning impacts are one-off and not expected to recur, supporting improved margins going forward.

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Fundraise plans

Yes

→Recent capital raise was done through warrants, with an initial Rs. 20 crore expected soon and the balance over an 18-month period.
→The company has started taking leverage, with a credit line of Rs. 15 crore from one bank already in place.
→Discussions with multiple lenders are ongoing to increase leverage for loan book growth.
→Current loan book leverage is negligible but is expected to grow to about Rs. 60-70 crore of leverage on a Rs. 180 crore equity base.
→Board has approved a leverage of up to 1x on net worth for the current year, with plans to revisit for higher leverage to reach Rs. 500 crore loan book next year.
→The company aims to grow the loan book while being calibrated to maintain commercial sense and risk management.
→No explicit mention of upcoming equity fundraising beyond warrant conversions and capital already raised.

Order book

Yes

→The company targets building a lending book of about Rs. 250 crore by the end of FY24.
→Currently, they have a lending book of around Rs. 160 crore equity deployed, expected to increase to Rs. 180 crore after a Rs. 20 crore capital infusion.
→Leverage on this book is currently negligible (~Rs. 13 crore) but expected to increase to Rs. 60-70 crore to support growth.
→The board has approved a leverage of 1x on net worth for this year and plans to scale to Rs. 500 crore loan book next year, with 2x-2.2x leverage.
→The focus remains on calibrated and thoughtful growth to ensure creditworthiness and sustainability.
→Multiple fintech partnerships (e.g., Khatabook, Capital Trust, Bizongo) support robust underwriting and book growth.
→Aim to achieve Rs. 500 crore book with Rs. 50-60 crore EBITDA by FY25.

Capex plans

Yes

→The company has taken a credit line of Rs. 15 crores as leverage to grow its lending book, indicating capital deployment towards lending growth.
→Rs. 20 crores from recent capital raise (warrants) will be deployed to shore up the balance sheet and support lending business expansion.
→Tech expenses saw an increase (~Rs. 2 crores) mainly to get ready with enough server space and infrastructure for new product launches like prepaid cards, reflecting strategic tech investment.
→No significant increase in tech expenses expected in the next couple of quarters as current build compensates for scalability.
→Future leverage expected to grow for loan book expansion: aiming for Rs. 250 crore book by FY24 and Rs. 500 crore by next year, with incremental capital needs to be approved by the Board.
→Focus on technology infrastructure investment to enable differentiated, fully digital lending and product capabilities in partnership networks.

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