Fincare Business Services Ltd. announced its FY24 results

10 September 2024

Financial Performance:

Standalone Performance- FBSL's standalone revenue increased to Rs 0.8 Cr in FY24 from Rs 0.3 Cr in the previous year. However, the company reported a net loss of Rs 10 Cr, up from a loss of Rs 8 Cr in the prior year. The losses are primarily attributed to the company's business model, which relies heavily on investment income from its subsidiary.

Consolidated Performance- On a consolidated basis, the group’s revenue grew significantly to Rs 2,953 Cr in FY24 from Rs 1897 Cr in FY23. The group recorded a net profit of Rs 304 Cr, a significant improvement compared to the profit of Rs 132 Cr in the previous year. The financial results reflect the combined performance of Fincare Business Services Limited and its subsidiary, Fincare Small Finance Bank Limited.

Operational Developments:

A key event during the year was the amalgamation of Fincare Small Finance Bank (FSFB), a subsidiary of FBSL, with AU Small Finance Bank. Effective April 1, 2024, this merger received approvals from the Reserve Bank of India and the Competition Commission of India. As a result, FBSL acquired 5,978,387 equity shares of AU Small Finance Bank, representing an 8.05% stake. Following the merger, FBSL's primary purpose—to hold shares of FSFB—became redundant, prompting the Board to initiate voluntary liquidation. The decision was driven by the lack of viable business prospects and long-term financial resources, leading to the approval of a liquidator to manage the winding-up process.