Q2FY25 results released by Arohan Financial

19 November 2024

• Revenue Growth: Arohan Financial Services Limited experienced mixed financial performance in Q2 FY2025. The company reported a revenue from operations of ₹456 crores, reflecting a 15.1% YoY growth compared to ₹396 crores in Q2 FY2024. However, on a QoQ basis, revenue declined by 4.7% from ₹478 crores in Q1 FY2025. The company’s profit before tax (PBT) stood at ₹59 crores, which marked a 59.5% YoY decrease from ₹145 crores in Q2 FY2024 and a 57.5% QoQ decline from ₹139 crores in Q1 FY2025. Similarly, the net profit after tax (PAT) amounted to ₹45 crores, representing a 57.3% YoY drop from ₹105 crores and a 57.1% QoQ decline from ₹104 crores.
• Increased Expenses: Impairment on financial instruments rose sharply to ₹99 crores in Q2 FY2025, compared to ₹6 crores in Q2 FY2024 and ₹40 crores in Q1 FY2025, significantly impacting profitability. Employee benefits and other expenses also increased, with staff costs rising to ₹96 crores, up from ₹89 crores in Q1 FY2025. Finance costs grew to ₹167 crores in Q2 FY2025, reflecting a 15.9% YoY increase from ₹146 crores in Q2 FY2024. Although slightly lower than ₹176 crores in Q1 FY2025, high borrowing costs continued to exert pressure on margins.
• These results indicate revenue growth but with significant pressure on profitability metrics during the quarter.