Key Highlights from the Annual Report of Arohan Financial Services for FY24:

22 October 2024

• Revenue and Profitability: Arohan Financial Services saw substantial growth in FY24. The total revenue from operations surged by 50% from ₹1,069 crore in FY23 to ₹1,591 crore in FY24. This increase was primarily driven by a rise in interest income and fee income due to the expansion of its average Assets Under Management (AUM). Similarly, profit before tax skyrocketed by 358.5%, moving from ₹90 crore in FY23 to ₹413 crore in FY24, demonstrating significant operational efficiency. Profit after tax also soared by an impressive 343.8%, reaching ₹314 crore compared to ₹71 crore in the previous year.
• Financial Position: The company’s total assets grew by 33.7%, from ₹6,018 crore in FY23 to ₹8,115 crore in FY24. Key contributors to this growth were the loan portfolio and cash equivalents. Arohan's equity also increased significantly by 43%, with total equity rising from ₹1,338 crore in FY23 to ₹1,915 crore in FY24. This was supported by successful capital raises, including ₹266 crore in equity from key investors such as FMO and IFU. However, borrowings also increased, with total liabilities rising from ₹4,633 crore to ₹6,130 crore, marking a 32.3% rise.
• Future Prospects: Arohan's robust financial performance and strategic initiatives indicate a promising outlook for FY25 and beyond. The company plans to raise ₹8,000 crore in debt capital through multiple instruments to fuel further growth. In addition, its strategic entry into Southern India, combined with expanding product offerings like the ArohanPrivilege programme and Micro Enterprise Loan team, positions it well for continued success. The company aims to exceed ₹10,000 crore in Assets Under Management by focusing on financial inclusion, diversifying its lender base, and exploring fixed-income securities to optimize returns.