06 September 2024
Financial Performance:
In FY24, the company's total income increased by 29.3%, rising to Rs 146 Cr from Rs 113 Cr. However, Profit After Tax (PAT) decreased to Rs 0.1 Cr from Rs 3 Cr. Total assets were reported at Rs 637.65 Cr, with Assets Under Management (AUM) reaching Rs 472.18 Cr. The company’s net worth stood at Rs 85.11 Cr, and it had a debt-to-total assets ratio of 0.73x. Despite a satisfactory overall performance, profit margins were lower in FY24 due to increased operational costs associated with branch expansions and other major expenses. The company anticipates improved profit margins in FY25 as it consolidates its operations.
Operational Developments:
In FY24, ICL Fincorp expanded its branch network by opening 54 new branches, bringing its total to 292, with notable expansions in Mumbai and Ahmedabad, each gaining 5 new branches and a regional office. This expansion targets growth in the western and northern markets. The company remains committed to financial inclusion by offering accessible gold-backed credit solutions to underserved rural and semi-urban areas, aiming to empower communities and prevent exploitation by illegal financial establishments. Enhancements in technology include the launch of a new interactive website, a digitized loan disbursement system, and ongoing discussions for further tech adoption, along with paperless board meetings and digital document e-authentication. Looking ahead to FY25, ICL Fincorp plans to further expand into northern and eastern India, with 60 new branches set for Delhi, Rajasthan, and West Bengal, and additional growth in Mumbai and Ahmedabad. Additionally, the company aims to diversify its loan portfolio into project finance, using premium vehicle loans, microfinance, and credit cards, striving to become a comprehensive Non-Banking Financial Company (NBFC) serving a wide range of customer needs.
Future Financial Ambitions:
ICL Fincorp has set an ambitious target to reach an AUM size of Rs 5,000 Cr and expand to over 1,000 branches across India in the next five years. This aligns with its goal to be a prominent NBFC catering to all classes of citizens nationwide
