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Profectus Capital Ltd profit for H1FY24 rises by 129%

Profectus Capital Ltd profit for H1FY24 rises by 129%

by Prashant Kapadia/NHN

  • Net Profit Before Tax for the half year up at Rs 32.80 crores, 129% rise.

  • Income for the half year up at Rs 19,416 crores, 61% up.

  • Gross NPA at 1.71%

  • The AUM stands at Rs 2,689 crores as of 30th September 2023

  • Credit Rating Upgraded to CARE A (Stable)

Mumbai, 2023: Profectus Capital Private Limited (PCPL), an NBFC backed by Actis, a global private equity firm, announced impressive performance during the half year ended 30th September 2023. PCPL’s AUM stands at Rs 2,689 crores as of September 2023, up 44 % from September 2022. The company is dedicated to funding micro, small and medium enterprises (MSMEs) across eleven product clusters in India that need tailor-made financing for their growth aspirations.

H1FY24 key performance highlights:

  • Total Income from Operations for the half year stood at Rs 194.16 crores compared to Rs 120.76 crores for the previous year’s half year (up by 61%)

  • Net Profit Before Tax is up to Rs 32.80 crores, a Y-O-Y growth of 129%.

  • The AUM grew to Rs. 2689 crores as of 30th September 2023, reflecting Y-O-Y 47% growth over the AUM as on September 30, 2022.

  • Receives a credit rating upgradation to CARE A (Stable) from CARE A-(Stable) by CARE Ratings, one of the leading credit rating agencies in India, basis positive factors like Strong Capitalization, Stable Asset Quality, Strategic Investor Support and Diversified Loan Portfolio.

  • Steady increase in the scale of operations, strong balance sheet, stable financial performance, and its ability to withstand market volatility has improved profitability in the past two years ended March 2023.

Commenting on the results, Mr K V Srinivasan, Executive Director and CEO, Profectus Capital Private Limited, said, “Our strong performance in this quarter reflects the strength of our distribution and credit processes. I believe that the time is ripe for us to reap the benefits of our investment in people, processes, technology and culture and increase the scale and profitability of our operations. The macro-economic factors are very positive for secured lending to MSMEs and Profectus Capital would endeavour to emerge as the most preferred financier to the sector over the next few quarters.”

While commenting on the credit rating upgrade to CARE A(Stable) he stated, ‘’The revised outlook accurately reflects our strong capital adequacy, prudent gearing levels, and our consistently low levels of non-performing assets (NPAs). We have shown sustained operational scale growth, with a return on total assets (ROTA) approaching 2%, and our successful mobilization of equity capital for future business expansion.”

About Profectus Capital Ltd:Profectus Capital Pvt Ltd (Profectus Capital) is a non-banking financial company (NBFC) that focuses on providing bespoke financial solutions to MSMEs in select manufacturing and services sectors. The company commenced operations in November 2017 and has financed entities in various sectors such as education, pharmaceuticals, healthcare, food processing, engineering and machine tools, printing and packaging, textiles, chemicals, and plastics. Most of the customers with a turnover of Rs 30-300 million. Profectus Capital has 28 branches in 28 cities across 13 states/union territories. Actis, a global private equity (PE) firm, holds a 100% stake in the Company.

Profectus Capital has built sectoral expertise and offers Cluster Specific Term Loans, Equipment Purchase Loans, Supply Chain Finance and Funding to smaller NBFCs. The company leverages cutting-edge technology for quicker and more robust loan processing, more accessible documentation, and consistent decision-making.

Website: http://www.profectuscapital.com

LinkedIn: https://www.linkedin.com/company/profectuscapital/

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