Bengaluru: Northern Arc Capital Limited announced its results for the quarter ended September 30, 2024, on October 28, 2024.
Northern Arc reported strong financial results for Q2FY25, with pre-provision operating profit (PPoP) surging 74% year-over-year (YoY) to INR 212 crore and profit after tax rising 24% YoY to INR 98 crore. Net Interest Income grew by 47% YoY to INR 288 crore, while Fee & Other income increased 29% YoY to INR 26 crore. Lending Assets Under Management (AUM) expanded 22% YoY, reaching INR 12,309 crore, with disbursements up by 23% YoY to INR 5,035 crore and Direct to Customer lending increasing to 52% from 43% YoY. Asset quality remained robust, with a Gross NPA ratio at 0.60% and a Net NPA ratio of 0.18%, supported by a strong provisioning coverage ratio of 72% on Stage III assets. Return on Assets held steady at 3.1%, and a fresh equity infusion of INR 500 crore through an IPO enhanced capital strength, with a Return on Equity at 12.7%. The total capital adequacy ratio stood at 24.9%, underscoring Northern Arc’s solid financial resilience and effective strategic execution.
Commenting on the Q2FY25 results MD & CEO Ashish Mehrotra said, “We are pleased to report another strong quarter of financial results, reflecting the resilience and effectiveness of our strategy. While we recognize the headwinds in today’s landscape, we remain dedicated to executing our vision with operational discipline. We continue to focus on growth in the MSME and other key sectors, while carefully calibrating our approach in the MFI segment. We are confident that our proactive measures, coupled with our diversified business model, will enable us to navigate these challenges and emerge stronger.”