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Choice International Results: Latest Quarterly Results & Analysis

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Choice International Ltd. 30 Jan 2025 12:36 PM

Q3FY25 Quarterly Result Announced for Choice International Ltd.

Capital Markets company Choice International announced Q3FY25 results

Q3FY25 Financial Highlights:

  • Total Revenue of Rs 212 crore v/s.Rs 210 crore 1%.
  • EBITDA of Rs 62 Crv/s.Rs 69 crore -11%.
  • EBITDA Margins of 29.17% v/s 33.00%.
  • PAT of Rs.31 Crv/s. Rs 40 crore -24%. PAT Margins of 14.53% v/s 19.20%.
  • Revenue contribution of 65% from Stock Broking, 23% Advisory and 12% NBFC.

Business Highlights:

  • Number of Demat Accounts stood at 998K, a growth of 24% YoY.
  • AUM for Stock Broking stood at Rs 46.5K crore, a staggering growth of 38% YoY.
  • AUM for Wealth Products stood at Rs 1,090 crore, surge of 99% YoY.
  • Insurance premium generated of Rs 73 crore, an increase of 43 % YoY.
  • Number of policies sold stood at 54,892, a surge of 429% YoY.
  • Total Loan book for NBFC segment at the end of Q3 FY25 stood at Rs 754 crore.
  • Retail Loan Book for Q3 FY25 stood at Rs 604 crore.
  • Net Non-Performing assets (NNPA) as on 31st Dec, 2024 is 0%.
  • Advisory segment Order book stood at Rs 555 crore.

Kamal Poddar, Managing Director said: India, the fifth-largest economy with a USD 3.89 trillion GDP, continues to demonstrate resilience, growing 8.2% in 2024. Despite market volatility at the beginning of the year, India’s financial landscape remains robust. Against this backdrop, Choice International remains steadfast in its commitment to long-term growth and value creation. Choice ended the quarter reporting revenue of Rs 212 crore for Q3FY25. For the nine months ended, revenue reached Rs 667 crore, with EBITDA and PAT at Rs 198 crore and Rs 109 crore, respectively. This performance underscores our ability to navigate market challenges while maintaining a strong foundation for sustainable growth.

Choice delivers across all key business segments:

  • The broking and distribution business, which accounts for 65% of our total revenues, recorded a YoY growth 0f 9%, generating Rs 135 crore in revenue for Q3FY25.
    • The stock broking business has added 67K demat accounts, increasing the total to 998K demat accounts. Our stock broking division has seen significant growth, driven by a strong emphasis on user retention and expanding into Tier Il cities and beyond.
    • The Wealth Product business’ AUMhas reached Rs 1,090 crore, marking an impressive YoY growth of 99% fuelled by cross-selling initiatives and an extensive product portfolio.
  • Our insurance broking operations continue to gain momentum, driven by a customer-centric approach and innovative cross-selling strategies. Choice Insurance Broking achieved a premium of Rs 73 crore in Q3FY25, demonstrating a robust YoY growth of 43%. The total number of policies sold surged to 54,892, marking a YoY' increase of 429%. Our ongoing focus on corporate B2B and institutional clients has led to a higher conversion rate, achieving an impressive ratio of 74%.
  • The NBFC business, which contributes 12% to total revenues, has seen strong growth, with a total loan book of Rs 754 crore, including Rs 604 crore in retail loans. The growing demand for retail lending in Tier II-III cities presents a significant opportunity. Our focus onretail loans and digital lending through our mobile app, ‘Choice Money,” has streamlined operations and driven revenue growth in this segment.
  • The Choice Consultancy subsidiary, which drives our Advisory business contributes 23% of total revenues, with an impressive order book of Rs 555 crore. Our strong commitment in delivering exceptional performance in executing government projects on a grassroot level, enables us to win more orders thereby strengthening our order book

The Choice Business Associate Network continues to expand, with over 48,000 CBAs playing a crucial role in our outreach. Increased financial literacy, particularly in underdeveloped regions, is fuelling this growth and supporting our broader financial inclusion goals.

A key highlight this quarter was receiving in-principle approval from SEBI to sponsor and establish a mutual fund. This milestone allows Choice International to expand its financial services and reach a wider range of investors, strengthening our position in the industry.

Additionally, during the quarter, Choice Finserv, our NBFC division, successfully acquired the retail lending business through a slump sale. This strategic move has resulted in a 61% increase in total AUM, reaching Rs.7.54 billion, further enhancing our growth and ability to offer diversified financial solutions.

While the industry has experienced temporary headwinds in recent months, we remain confident in the strength of our business model and our strategic approach to achieve our long-term targets over the next five years. Our commitment to serving customers and stakeholders remains steadfast, guided by our vision to drive financial inclusion in India.

Looking ahead, we are well-positioned to navigate challenges and capitalize on opportunities, creating sustainable value for all our stakeholders driven by our aspiration to be."

Result PDF

Capital Markets company Choice International announced Q1FY25 results:

Consolidated Financial Highlights:

  • Total Revenue of Rs 205.9 crore v/s. Rs 139.3 crore, up by 48%
  • EBITDA of Rs.58.2 crore v/s. Rs 37.6 crore, up by 55%. EBITDA Margins of 28.27% v/s 26.99%
  • PAT of Rs.32.0 crore v/s.Rs 21.3 crore, up by 51%. PAT Margins of 15.54% v/s 15.29%
  • Revenue contribution of 67% by Broking & Distribution, 21% by Advisory and 12% by NBFC 

Business Highlights:

  • Number of Demat Accounts stood at 890K, a growth of 23% YoY
  • AUM for Stock Broking stood at Rs 41.3K crore, a staggering growth of 28% YoY
  • AUM for Mutual Funds stood at Rs 878 crore, a spike of 111% YoY
  • Insurance premium generated Rs 47 crore, an increase of 39% YoY
  • Number of policies sold stood at 26,916, a surge of 236% YoY
  • Total Loan book for NBFC at the end of Q1 FY25 stood at Rs 453 crore
  • Retail Loan Book for Q1 FY25 stood at Rs 286 crore
  • Net-Non-Performing assets (NNPA) as on 30t Jun, 2024 was 1.25%
  • Advisory Order book stood at Rs 545 crore

Commenting on the Q1FY25 performance  Kamal Poddar, Managing Director said: "The Indian economy has started the new financial year on a strong note, establishing a solid foundation for the year ahead. Q1FY25, being focused on elections, led to a stock market rally, with Nifty and Sensex reaching alltime highs and providing excellent returns to investors. Choice has also ended the quarter on a higher note, clocking a revenue growth of 48%, achieving Q1FY25 revenue of Rs 206 crore. Our EBITDA and PAT for Q1FY25 stood at Rs 58 crore and Rs 32 crore respectively, further solidifying our success. Our steady performance in the first quarter underscores our commitment to achieving the financial goals we set for this year."

Result PDF

Capital Markets company Choice International announced Q2FY24 & H1FY24 results:

1. Financial Performance:
- H1FY24 Revenue increased by 112% YoY to Rs 333.2 crore.
- Total Revenue of Rs 193.9 crore for Q2FY24, a growth of 147% YoY.
- EBITDA of Rs 51.6 crore for Q2FY24, with EBITDA Margins of 26.6%.
- PAT of Rs 29.9 crore, a growth of 264% YoY, with PAT Margins of 15.4%.

2. Business Segments:
- Revenue contribution of 60% from Stock Broking, 30% from Advisory, and 10% from the NBFC segment.
- Number of Demat Accounts stood at 768k, a growth of 27% YoY.
- AUM for stock broking stood at Rs 311 billion, a growth of 89% YoY.
- AUM for mutual funds stood at Rs 436.2 crore, a surge of 24% YoY.
- Insurance premium generated Rs 49.2 crore, an increase of 307% YoY.
- Number of policies sold stood at 8,755, a surge of 248% YoY.

3. NBFC Segment:
- Total Loan book for the NBFC segment at the end of Q2FY24 stood at Rs 474.2 crore.
- Retail Loan Book for Q2FY24 stood at Rs 205.9 crore.
- Net Non-Performing assets (NNPA) as of Sep 30, 2023 is 0.64%.

4. Advisory Segment:
- Advisory segment Order book stood at Rs 545 crore, an increase of 79% YoY.

Commenting on the H1FY24 & Q2FY24 performance Kamal Poddar, Managing Director said, "Choice has ended the first half of this financial year with a staggering growth of 112% YoY reporting a revenue of Rs 333.2 crore in H1FY24. In Q2FY24 we reported a revenue of Rs 193.9 crore, a growth of 147% on a YoY basis. We have delivered consistent performance in the second quarter of FY24 and are on track for the goals set for this financial year. Our consolidated EBITDA and PAT for Q2FY24 stood at Rs 51.6 crore and Rs 29.9 crore respectively.

Choice has always over-delivered across all segments. Our broking and distribution business which is our core strength delivered strong performance for the quarter clocking in revenue of Rs 121.6 crore in Q2FY24, a growth of 117% YoY. The stock broking business added 47k demat accounts, taking the total to 768k demat accounts. Choice has withheld its position of 5th Rank in the Full Service Brokers category as per NSE’s active (UCC) list. The AUM for the Mutual Fund business stood at Rs 436.2 crore, a growth of 24% YoY. This growth has been backed by continuous expansion in Tier II cities and beyond and also cross-selling services to existing clients.

Choice Insurance Broking generated a premium of Rs 49.2 crore in Q2FY24, a staggering growth of 307% on a YoY basis. The total number of policies sold stood at 8,755, a growth of 248% YoY. We have focused aggressively on the corporate insurance policies during the quarter. There has been an increase in enquiries for insurance policies by 163% on a YoY basis, and we have maintained a conversion ratio of 68%.

The relatively newer business of the group, which is the NBFC business, has grown well in the last one year, clocking in a total loan book of Rs 474.2 crore which includes a retail loan book of Rs 205.9 crore. The focus continues to be on growing the retail loan book. This growth is on the back of increasing geographical expansion across Tier III and below cities where the demand for small ticket-size loans is surging. We are focusing on regularizing the informal lending sector and digitizing the journey for the customer through our easy-to-use mobile application ‘Choice Money’."

 

 

Result PDF

Non-banking Financial Company Choice International announced Q1FY24 results:

  • Q1FY24 v/s. Q1FY23:
    • Total revenue of Rs 139.3 crore vs Rs 78.7 crore, up 77% YoY
    • EBITDA of Rs 37.6 crore vs Rs 17.6 crore, up 114% YoY. EBITDA margins of 27% vs 22.3%
    • PAT of Rs 21.3 crore vs Rs 7.7 crore, up 177% YoY. PAT margins of 15.3% v/s 9.8%
    • Revenue contribution of 59% Stock Broking, 28% Advisory and 13% NBFC
  • Q1FY24 v/s. Q4FY23:
    • Total revenue of Rs 139.3 crore vs Rs 139.5 crore, down 0.14% QoQ
    • EBITDA of Rs 37.6 crore vs Rs 47.4 crore, down 20.7% QoQ. EBITDA margins of 27% vs 34%
    • PAT of Rs 21.3 crore vs Rs 30.3 crore, down 29.7% QoQ. PAT margins of 15.3% vs 21.7%
  • The number of demat accounts increased by over 29% YoY to 721k
  • AUM for stock broking stood at Rs 32,200 crore, higher by 102% YoY
  • AUM for mutual funds stood at Rs 405.4 crore, a surge of 28% YoY
  • Monthly SIP book increased by 53% YoY to Rs 5.2 crore
  • Insurance premium generated Rs 33.8 crore, an increase of 186% YoY
  • Loan book at the end of Q1FY24 stood at Rs 415.2 crore. Retail Loan Book for Q1FY24 stood at Rs 148.4 crore
  • Net Non-Performing assets (NNPA) as on June 30, 2023, is 0.27%
  • Advisory segment generated revenues of Rs 39.4 crore with an order book of Rs 527 crore

 

 

Result PDF

Finance firm Choice International announced Q4FY23 & FY23 results:

Consolidated Q4FY23:

  • Total Revenue of Rs 1,395 million v/s Rs 934 million [Up 49%]
  • EBITDA of Rs 474 million v/s Rs 274 million [Up 73%]. EBITDA Margins of 34% v/s 29.3%
  • PAT of Rs 303 million v/s Rs 154 million [Up 97%]. PAT Margins of 21.7% v/s 16.5%
  • Revenue contribution of 58% Stock Broking, 32% Advisory and 10% NBFC

Consolidated FY23:

  • Total Revenue of Rs 3,952 million v/s Rs 2,860 million [Up 38%]
  • EBITDA of Rs 1,087 million v/s Rs 923 million [Up 7.7%]. EBITDA Margins of 27.5% v/s 32%
  • PAT of Rs 601 million v/s Rs 536 million [Up12.1%]. PAT Margins of 15.2% v/s 18.7%

 

 

Result PDF

Banking and Finance firm Choice International announced Q3FY23 results:

  • Q3FY23 vs Q3FY22:
    • Total Revenue of Rs 984 million v/s Rs 677 million [up 45%].
    • EBITDA of Rs 263 million v/s Rs 224 million [up 17%]. EBITDA margins of 26.7% v/s 33.1%.
    • PAT of Rs 139 million v/s Rs 136 million [up 2%]. PAT margins of 14.1% v/s 20.1%.
    • Revenue contribution of 65% Stock Broking, 21% Advisory and 14% NBFC.
  • Key highlights:
    • Number of Demat Accounts increased by over 91% YoY to 640K
    • AUM for stock broking stood at Rs 206 billion, higher by 19% YoY
    • AUM for mutual funds stood at Rs 3,630 million, surge of 11% YoY
    • Monthly SIP book increased by 43% to Rs 40 million
    • Insurance premium generated Rs 96 million an increase of 63% YoY
    • Loan book at the end of Q3FY23 stood at Rs 3,235 million
    • Net Non-Performing assets (NNPA) as on 31st Dec, 2022 is 0.01%
    • Advisory segment generated revenues of Rs 207 million with an order book of Rs 3.44 billion

Commenting on the Q3 FY23 performance Mr. Kamal Poddar, Managing Director said: As we enter the final quarter of the year, we are pleased to report that Choice continues to perform well and meet its financial targets. Our revenue for the year is on track to exceed expectations. Choice has delivered revenue of Rs 984 Mn, which represents a growth of 45% compared to the same quarter last year. Our consolidated EBITDA and PAT for Q3 FY23 was Rs 263 Mn and Rs 139 Mn respectively.

During the quarter, we have issued 900K Employee Stock Ownership Plan (ESOPs) to eligible employees. This is a significant step in our commitment to align the interests of our employees with those of the company, and to provide a meaningful stake in the long-term success of the organization. We believe that this will lead to increased engagement and motivation among our workforce, and ultimately drive better performance and growth for the company.

During the quarter we continued to gain significant market share across Broking and Distribution business. In our Broking business, Average Daily Turnover (ADTO) has grown to Rs 7.4 Bn in Q3 FY23. Choice International is presently ranked 15th by NSE’s active (UCC) list. We have transformed Jiffy App into a Super App Choice FinX, offering users the ability to leverage and easily invest in a variety of financial instruments all in one place. With cutting-edge technology it provides a simplified investing experience for users.

In our Mutual Fund Distribution business, customer AUM for mutual funds increased by 11% to Rs 3,630 Mn compared to the same quarter last year. Choice Insurance Broking generated insurance premium of Rs 96 Mn, a growth of 63% on YoY.

The Digital Lending Loan book of our NBFC surged 2.6 times during the quarter to Rs 532 Mn bringing the total loan book to Rs 3.24 Bn. Furthermore, our Choice FinX and Choice Money continues to show strong customer interest across the financial services industry.

In the Advisory business, during the quarter, we have been once again awarded the contract under the Jal Jeevan Mission (JJM). Our Advisory business generated Rs 209 Mn in revenue with order book of Rs 3.44 Bn in Q3 FY23.

As we move forward, our commitment towards excellence and growth remains unchanged. We will continue to prioritize customer satisfaction and innovation, while also seeking out new opportunities for expansion and diversification in India. With favourable demography, robust economy, and supportive government policies, the potential for success and value creation for our shareholders will be tremendous.

Result PDF

NBFC firm Choice International announced Q2FY23 results:

Consolidated H1 FY23:

  • Revenue growth of 25.9% YoY to Rs.1,572 million
  • EBITDA of Rs. 350 million; Margin of 22.24%
  • Net Profit of Rs.159 million; Margin of 10.12%
  • Revenue contribution of 66.98% Broking and Distribution, 20.78% Advisory and 12.24% NBFC

Consolidated Q2 FY23:

  • Revenue growth of 24% YoY to Rs. 785 million
  • EBITDA of Rs. 174 million; Margin of 22.1%
  • Net Profit of Rs. 82 million; Margin of 10.5%
  • Revenue contribution of 72% Broking and Distribution, 15% Advisory and 13% NBFC

Mr. Kamal Poddar, Managing Director said: "We are delighted to announce Q2 FY23 Revenues of Rs.785 million, which represents a growth of 24% compared to same quarter last year. Our consolidated EBITDA and PAT for Q2 FY23 was Rs.174 million and Rs.82 million respectively. The Broking Services’ Revenue and PAT grew by 17% and 40% on QoQ basis respectively. This robust revenue growth trajectory is a reflection of Choice’s ability to consistently innovate digitally in line with our growing customer base requirements. Furthermore, we have a successful track record of developing financial products to service rural and semi-urban populations and bridging the financial gap. Our technology focused approach not only allows us to deliver consistent revenue growth but also enhances customer retention and lower customer acquisition cost. This quarter we have onboarded 2,500 Choice Business Associates which takes our total headcount to 28K associates.

During the quarter we continued to gain significant market share across Broking and Distribution business. In our Stock Broking business, Average Daily Turnover (ADTO) has grown by 10% QoQ to Rs 8.72 billion in Q2FY23. The total number of our Demat accounts increased by 31% in the last six months with an increase in number of active clients by 146% in the last one year. Choice is ranked 15th by National Stock Exchange’s active (UCC) list. Our financial platforms coupled with our distribution network have enabled us to become a family of over 669K clients and growing.

In our Mutual Fund Distribution business, customer AUM increased by 124% to Rs.3,514 million compared to the same quarter last year. We generated insurance premium of Rs.121 million, a growth of 124% on YoY basis. During the quarter, we partnered with Government of Maharashtra under the Gopinath Munde Shetakari Accident Insurance Scheme to settle insurance claims. We are proud to announce that under the scheme, we will be serving over 3 crore farmers in Maharashtra, which is in line with our vision of meeting the requirements of the underserved population of India.

Overall, Choice’s businesses are supported by the favourable Indian demography, rapid growth of the Indian economy, eased monetary and fiscal policies and other favourable policies by the Indian government. These factors will further generate multiple opportunities for us going forward and creating shareholder value".

 

 

Result PDF

Finance firm Choice International announced Q1FY23 Result :

  • Q1 Revenue grows by 24.1% YoY
  • Retail lending recorded 22.3 Mn digital lending loan book within 15 days of launch
  • Revenue Growth of 24.1% YoY to Rs. 745 Mn
  • EBITDA of Rs. 176 Mn; Margin of 22.3%
  • Net Profit of Rs. 77 Mn; Margin of 9.8%
  • 61% revenue share form broking service compared to 27% from Advisory and 12% from NBFC

Commenting on the initiative, Mr. Kamal Poddar, Managing Director said: “Building on our stellar performance during FY22, we recorded a strong start of the fiscal year 2023. We at Choice are confident of continuing our growth journey driven by our resilient business model due to the diverse nature of our business. I am glad to showcase our achievement during the Q1 FY23. Customer confidence on Choice broking service continued to remain strong reflected through increase in number of Demat accounts by 21% and number of Active clients by 7.5%, on QoQ basis. Choice ranked 16th as per NSE’s active UCC list. Further to this assets held by our stock broking clients increased to Rs. 160 bn a growth of over 80% YoY. Similarly, AUM for mutual funds stood at Rs. 3,176 mn. We generated insurance premium of Rs 118 mn, a growth of 99% YoY.

NBFC business was one of our prime focuses during the quarter and we continue to build a strong team to facilitate our transformation from institutional lending to retail lending which is expected to be one of primary driver for future growth. We started digital lending for retail during the quarter with a focus on Tier 3-5 cities, which received a very encouraging initial response. Our retail Loan book stood at Rs 22.3 Mn within the first 15 days of launch. During the quarter our total Loan Book grew by 13% YoY to Rs. 3.22 Bn. The execution of Jal Jeevan mission project during the quarter was in line with our expectation, which is part of our Advisory business. During the quarter we experienced growth of 25% YoY for this segment to Rs. 207 mn.

During the quarter, our revenue recorded a robust growth of 24.1% to Rs. 745 Mn and expect this growth trajectory to continue going forward. Our consolidated EBITDA and PAT for Q1 FY23 was Rs. 176 mn and Rs. 77 mn, respectively. Our consolidated margins during the quarter were impacted due to higher cost on account of launch of new retail lending business during the quarter, we expect the margins to normalize on full year basis. “

Result PDF

Finance (Including NBFCs) firm Choice International declares Q4FY22 result:

  • FY22 Revenue and PAT Growth of 61% and 221%, respectively.
  • Active customers growth of 3.75x with doubling of demat accounts
  • FY22 Financial Highlights
    • Revenue Growth of 61% YoY to Rs. 2,860 Mn
    • EBITDA growth of 123% YoY to Rs 923 Mn; Margins expanded to 32.3% from 23.5%
    • Net Profit growth of 221% YoY to Rs. 536 mn; Margins of improved to 18.7% from 9.5%
    • Revenue share of 63% from Broking & Distribution services, 14 % from NBFC, 23% from Advisory Services
  • Q4 FY22 Financial Highlights
    • Revenue Growth of 79% YoY to Rs. 934 Mn
    • EBITDA growth of 244% YoY to Rs. 274 mn; Margins expanded to 29.3% from 15.3%
    • Net Profit growth of 545% YoY to Rs. 154 Mn; Margins improved to 16.5% from 4.6%

Commenting on the initiative, Mr. Kamal Poddar, Managing Director said: “Our Performance across business remained robust during the year with top line growth of 61% and PAT growth of 221% during FY22. This was driven by our efforts towards financial inclusion by reaching and expanding our presence across tier 3 and tier 4 cities.

We moved to 16th position on NSE as per NSE active users list with 3.75x increase in our active customers during the year supported by almost doubling of our demat accounts to 4,63,000. AUM for mutual funds also increased by 2.8x to Rs. 326.3 Mn during the year. We have expanded our NBFC team by 93 employees and loan book size by 32% YoY to 3.26Bn from Rs. 2.46 bn in FY22. Our Advisory business won multiple contracts worth over Rs. 1 bn, further validating our expertise in executing and delivering projects over time.

Going forward we will be focused on our goal of financial inclusion and reaching further towards villages, tier 4 and tier 5 cities along with improving service quality and effectiveness. We have been consistent in delivering superior results over the years and will continue to do so by leading and catering to the underserved market. “

 

Result PDF

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