Conference Call with Choice International Management and Analysts on Q4FY25 & Full Year Performance and Outlook. Listen to the full earnings transcript. Management in attendance
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