S.M.I.L.E Microfinance Ltd. announced its FY24 results

21 October 2024

• Financial Performance: In the financial overview for FY24, their total income decreased significantly to ₹7 Cr from ₹19 Cr in the previous year, signaling a challenging year. However, they managed to reduce their expenses to ₹4 Cr from ₹11 Cr, showcasing a strategic scaling down of operations. Their Profit Before Tax (PBT) also decreased to ₹3 Cr from ₹8 Cr in FY23, highlighting the impact of the challenging business environment. Despite these challenges, they achieved a positive turnaround in our Profit After Tax (PAT), reaching ₹3 Cr from a loss of ₹6 Cr in the previous year. The company declared an interim dividend of ₹31.70 per share, amounting to ₹54.96 crore, reflecting a healthy payout from accumulated profits.
  
• Discontinued operations: After a slump sale of its microfinance operations to Northern Arc Capital Ltd, S.M.I.L.E. Microfinance Limited discontinued its core microfinance operations and has not been active since April 12, 2022. The company voluntarily surrendered its NBFC-MFI certification and received a cancellation from RBI on January 5, 2024. Since selling its microfinance business, the company has not pursued any new business ventures and has no outstanding portfolio.
  
• Wrapup: The company has decided to voluntarily wind up in accordance with the provisions of the Insolvency and Bankruptcy Code (IBC). This resolution was passed during the July 2024 board meeting following the surrender of its NBFC license. Mr. Anil Khicha, an Insolvency Professional, has been appointed as the liquidator to manage the winding-up process.