Overview
The financial operations of a business are critical to
its success and sustainability. These operations encompass all activities
related to the management of the company's financial resources, including
budgeting, forecasting, financial reporting, tax compliance, and managing
working capital. This summary provides an overview of the key components of
financial operations, the challenges faced, and the strategies employed to
ensure financial stability and growth.
- Market Cap ₹ 3,435 Cr.
- Current Price ₹ 413
- High / Low ₹ 419 / 249
- Stock P/E 37.4
- Book Value ₹ 66.4
- Dividend Yield 0.00 %
- ROCE 8.68 %
- ROE 15.6 %
- Face Value ₹ 10.0
- Industry PE 12.0
- Promoter
holding 75.0 %
- Pledged
percentage 0.00 %
- Debt to equity 2.45
- Profit Prev 12M ₹ 86.2 Cr.
- EPS ₹ 11.0
- Price to book
value 6.22
- EVEBITDA 22.0
- Price to
Earning 37.4
- No. Eq. Shares 8.32 Cr.
breakout Retest chart on weekly Time frame
Weekly chart
Financial Performance
- Quarterly
Revenue: Achieved
highest-ever quarterly revenue of ₹436.9 crores, marking a 25%
year-on-year growth.
- Profitability: Continued profitability with a PBT
increase; EBITDA for the quarter at ₹53.2 crores, reflecting a 31.4%
Y-o-Y growth.
- Margins: EBITDA margin increased to 12.2%
from 11.6% in Q1 FY '24, indicating effective cost management amidst
investment in technology and personnel.
- Operating Leverage: Cost-to-income ratio maintained at 25.4%, showcasing operational efficiency despite ongoing investments.
Monthly Chart
Digital Payment Service
- Revenue surged
from ₹7.7 crores in Q1 FY '24 to ₹66.8 crores in Q1 FY '25, an
eightfold increase.
- Digital
payments now contribute 15% to overall revenue; UPI transactions account
for 1.42% of the total UPI ecosystem volume.
- Digital
throughput grew by 141% YoY to nearly ₹44,200 crores.
Current Account Saving Account
- Revenue from
CASA stood at ₹93.6 crores, a 40% increase YoY.
- Renewal income
from CASA grew by 54% YoY to ₹40.4 crores, now constituting 43% of
CASA income.
- Average
deposits increased by 37% to ₹1,699 crores; 68% of CASA accounts
are active
Cash Management Service
- CMS revenue
reached ₹39.4 crores, marking a 10% YoY growth; throughput increased by 26%
YoY, reaching approximately ₹20,000 crores.
- CMS remains a
high-margin segment, contributing 9% to overall business.
Guidance and Future Outlook:
- Revenue Growth
Guidance: Increased
from 20% to 25% for FY '25, reflecting confidence in business momentum.
- Focus on
Digital Expansion: Commitment to enhancing digital capabilities and customer-centric
services as part of long-term growth strategy.
- Ownership
Business Growth: Emphasis on
increasing new CASA accounts and enhancing digital penetration in rural
markets.
Pros
- Company is
expected to give good quarter
- Company has
delivered good profit growth of 27.6% CAGR over last 5 years
Cons
- Stock is
trading at 6.22 times its book value
- Though the
company is reporting repeated profits, it is not paying out dividend
- Tax rate seems
low
- Earnings
include an other income of Rs.1,405 Cr.