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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’."
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