Manba Finance Ltd (NSE: MANBA) Q4 2025 Earnings Call dated May. 23, 2025
Corporate Participants:
Unidentified Speaker
Manish Shah — managing director
Mr. Jai Mota — executive director and CFO
Analysts:
Unidentified Participant
Mr. Mahek Shah — Analyst
neemen doshi — Analyst
Presentation:
operator
Ladies and gentlemen, good day and welcome to the Q4 and FY25 earnings conference call of Manba Finance Limited hosted by MK Global Financial Services Limited. As a reminder, all participant lines will be in the listen only mode and there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during the conference call, please signal an operator by pressing Star then zero on your touchstone phone. Please note that this conference is being recorded. I now hand the conference over to Mr. Mahek Shah from MK Global Financial Services. Thank you.
And over to you sir.
Mr. Mahek Shah — Analyst
Good afternoon everyone. I would like to welcome the management and thank them for this opportunity we have with us today. Mr. Manisha, Managing Director, Mr. Jai Mota, Executive Director and Chief Financial Officer. I shall now hand over the call to the management for their opening remarks. Over to you gentlemen.
Manish Shah — managing director
I am Manish Shah, the Managing Director. Good evening all everyone and thank you for joining Manba Finance Limited’s earning call today to discuss the fourth quarter and full year performance of financial year 2025. I would also like to thank MK Global for hosting this earnings call. In the interest of some of the people who are new to the company, let me first start with by giving a brief overview of the company and operational highlights followed by which our CFO will brief you on the financial performance for the quarter and financial year 2025. Manba Finance Limited is an NBFC offering a range of financial solutions including loans to new two wheeler, three wheeler, used cars, small business loan, top up loan and used two wheeler loans.
We are currently operating in 73 locations across six states precisely Maharashtra, Gujarat, Rajasthan, MP, Chhattisgarh and UP. Our distribution network includes over 1,200 plus dealers. We have secured funding from three public sector banks, nine private sector banks and 25 NBFCs. We have a total team size approximately of 1483 employees out of which more than 700 employees are part of our sales team. Our internal collection team ensures lowest NPAs in the industry. The company commands one of the fastest turnaround times for loan sanctions in the industry with over 60% of loans sanctioned in one minute and 92% of the loan sanctioned on the same day.
Some key operational highlights for the period under review. We have increased our provision coverage ratio by 4%. A strategic move driven by tightening of credit norms. This step is part of our broader commitment to reducing the risk and ensuring long term financial stability and strengthening our balance sheet. Additionally, we have consistently maintained a healthy liquidity buffer of approximately 100 crore at all times during the year. Reinforcing our financial resilience and operational readiness. Now coming to business Highlights for the period during this quarter, we are excited to announce our partnership with Bigoss Auto Private Limited. We will provide retail financing to their customers.
Through this collaboration, we will offer financing solutions to customers who are purchasing Bagoz products, making it easier for them to access the finance they need. Further, our partnership with Prosperity provides us with an advanced digital platform to streamline credit flow, improve risk management and support the growth of electrical vehicles. Additionally, our collaboration with Finn Cooper Capital enhance our vehicle financing options offering competitive rates and faster approvals. This alliance will help expand our presence in Madhya Pradesh, strengthen our dealer network and make EV financing more accessible to potential buyers.
Unidentified Speaker
Sorry to interrupt, sir. Your voice is breaking in between.
Mr. Jai Mota — executive director and CFO
The company also achieved a record high disbursement of 842 crores in the financial year 25, marking a significant increase from 633 crores in 24. This resulted in strong growth with improvements in NIMS due to usage of equity proceeds from IPO for loan disbursements. Now I request our CFO Mr. Jai Mota to brief you on the financial performance.
Mr. Mahek Shah — Analyst
Thank you Manish sir and good evening everyone. Let me provide a brief overview of the financial performance for the fourth quarter and full financial year 2025. For the fourth quarter under review, our net interest income stood at Rs. 36.5 crore reflecting a 38% year on year growth with net interest margin at 13.62%. Profit after tax for the quarter is around Rupees 8 crore. For the financial year 2025, the company recorded net interest income of around 129 crore representing a 49% year on year growth with net Interest margin of 14.03%. Profit after tax stood at approximately Rupees 38 crore with a year on year growth of 21% as on 31st March 2025.
Our asset under management stands at R1,331 Karod reflecting a year on year growth of 42%. Loan disbursement for the financial year were Rupees 842 crore reflecting a year on year growth of 33%. The cost of borrowing currently stands at 10.80%. We have successfully reduced our GMPA to 3.23% and and NPA to 2.45% as on 31st March 2025 and our capital adequacy ratio has improved to 29.81% due to funds raised in our IPO highlighted a greater Financial stability. With this, we can now open the floor for the question and answer session.
Questions and Answers:
operator
Thank you very much. We will now begin the question. Anyone who wishes to ask a question may press star and one on their touchstone telephone. If you wish to remove yourself from the question queue, you may press star and two participants are requested to use handsets while asking a question. Ladies and gentlemen, we will wait for a moment while the question queue assembles. The first question is from the line of Nemeen Doshi from Geojit pms. Please go ahead.
neemen doshi
Yeah. Hi team. Thanks for this opportunity. I have few questions. Firstly, what led to the slower single digit QOQ growth in AUM for the quarter and in continuation QOQ increase in interest income was lower than AUM growth. On contrary, our average yields on loans have increased from 20.76% in nine months to 24.09percent for the full year. So what am I missing here? Just.
Manish Shah
Can you just repeat your first question. Is
neemen doshi
what led to the lower QOQ. Growth in AUM
Manish Shah
Q3 to Q4, right? AUM or so AUM. This is our seasonal month where in the October, November mainly so two wheeler generally mostly sells more in Ganpati, Dasera and Diwali. In January there are hardly any festivals were there. And as our AUM has been already grown by 40% more than 40%. So there is a lot of inflow of repayment is also there from the same loan which we have dispersed in last few months. So inflow and outflow we have been managed and we are strengthening our. You know some credit norms also. So that is those are the.
And still we have grown by marginally by 31 crore rupees of AUM in this three months also generally historically also our AUM growth generally happens in the seasonal month also from last four years. Numbers you can also check verify.
Mr. Jai Mota
Okay. Okay. Secondly sir, are the QQ interest increase in interest income was lower than our Aum growth. While on contrary our average yields on loans increased for the nine months from 23.76% to 24.09% for the full year. So what’s the gap? What am I missing here?
Manish Shah
It is increased, right?
neemen doshi
Yes. Yes. So your loan growth has increased by about 2% while your interest income has only increased by 1%. This suggests that there would be a decline in average yield. But however our yield for the quarter has also improved. So what led to lower interest income growth than our AUM growth on a quarterly basis.
Mr. Jai Mota
See, whatever business we have done, it was done in the Q3. So the income which we have received in on this major portfolio was from Q3 to Q4. It was not for the entire year. So that’s why. And when you take the average it will be like some lower age. Okay. So entire Q3 income we have started receiving in Q4.
Mr. Jai Mota
And our cycle date is 5th of next month. So all the cases, all the loans which have been disbursed till 20th of the month after 20th of the month say for example 21st of the month they get a first repayment date next to next month. So that comes to quarter four. So that’s why that gap has been visible.
neemen doshi
Okay. Okay. Next on some data keeping questions. So there has been an increase in our other expenses for about 7% QoQ. So what is let. I mean sorry, not 7%. It has 31% QoQ. So what led to this increase?
Manish Shah
So about the. Yeah.
neemen doshi
So Q and Q. The major increase in the expense was due to the increase in PCR. We have increased our PCR from 20% to 24% on the stage four assets. Stage three asset. So in that case the 4% increases costed around 2.30 crore. And the secondly there was a ARC revaluation of the ARC asset due to which we had to provide for a 1 crore rupees in that case. So that’s why 1 cr 8 lakhs. So due to which the 3 crore expense was higher.
Mr. Mahek Shah
But that would be reflected in our provisions, right? And not in operating expenses. I’m talking about other expenses.
Mr. Jai Mota
Specifically operating expense we have increased around 1.08 crore only. And rest there was a 75 lakh expense was because of something operating expense Q1Q there was major change was only.
Mr. Mahek Shah
This because of the ERC expense.
neemen doshi
And lastly sir are other operating expense income has also declined.
Mr. Jai Mota
So the other income is also connected. Linked with the business only. So it was like processing fees and which we are we have received during the Q3 there was a good business means higher business due to the season it was 326 crore. And in quarter four we have done a disbursement of 171 crore. So the there is a 1.25 crore decline due to the processing fees.
Mr. Mahek Shah
So the upfront income which you we used to get on, you know at the time of disbursement that is been almost 50% in this quarter.
neemen doshi
Okay. Okay.
Mr. Mahek Shah
And 171 itself is a good number. But when you compare it with a season quarter then it looks like it like this.
neemen doshi
Perfect sir, perfect. Got it. Thanks thank you. Thank you so much.
operator
Thank you. We’ll take our next question from the line of Vishal Balada from who is an individual investor. Please go ahead.
Unidentified Speaker
Wanted to know what is the market share of MANBA for EV financing?
Unidentified Speaker
Yeah, so market sharing in the area of operation. As I rightly told that we are in six states and with 73 locations. So in area where we are present our market share in the EV is around 8%.
Mr. Mahek Shah
Okay. And so what are the plans to increase the them? Like would it be geographically you’re going to expand and also at the same time like adding new dealers in the same locations?
Mr. Jai Mota
Yeah, so because we have you know started some of the location in last 18 to 24 months only. So we would like to further penetrate the existing location first. So the geography expansion will not take place in the next first nine months. After the season gets over we’ll start about the new geography expansion because there is a huge potential available because we have not reached you know in the some of the location like up like NP Chhattisgarh our market share is only 3 to 4%. There is a huge potential to to penetrate further in the same locations.
neemen doshi
Okay so my last question is which is the most revenue generating state for you?
Mr. Jai Mota
So revenue generating more state is a Maharashtra and the second is Gujarat.
Unidentified Speaker
All right, thank you so much sir.
operator
Thank you. Participants in order to ask a question please press star and 1. The next question is from the line of Tushar who is an individual investor. Please go ahead.
Manish Shah
Hi sir has just few questions to ask. The first one is basically the company is having lowest NPAs in the industry. So just want to say no. How would a company is managing its assets different than its peers to maintain such a lowest NPLs, you know amongst the peers.
Unidentified Speaker
Yeah. So there are a couple of you know things which attach to this that we have an in house, you know collection team who collects almost 85% of our total bounce EMIs and we have a separate team for non starter and early defaulters. So where you know we come to know from the very initial part that what’s wrong with this customers as well as there is a sufficient manpower has been, you know given for each data allocation. We utilize lot of AI generated weapons only for you know, quick solution and we also take help of legals also and these are the few things because the main in house collection plays a very very vital role and early defaulted treatment plays a very vital role for the lowest npa.
And on the other hand we are very very careful in sanctioning the Loans also we always believe that we require min. 20% of customer equity. So if that is the case then it is, you know, very less chance then he will bounce and he will not serve the EMIs. So both the way we take a care first while sourcing the business and second, you know, into collections.
Unidentified Participant
Some management. So I. Your line is interrupting. We cannot hear you. Well, can you speak from JSO speaker?
Unidentified Participant
Okay, one moment. Yeah. So now it’s audible properly. Hello.
Unidentified Speaker
No sir, there is a static sound coming. I’ll reconnect to you again. Ladies and gentlemen, this is the conference operator. Please note that we will be reconnect the reconnecting the management request you to stay connected. Ladies and gentlemen, this is the conference operator. We request you to stay connected. We are reconnecting the management team.
Unidentified Speaker
Sam Foreign.
operator
Ladies and gentlemen, please stay connected. The conference will begin shortly. We are connecting the management. Please stay connected. The conference will begin shortly. Thank you. Ladies and gentlemen, please stay connected. The conference will begin shortly. Participants, please stay connected. Please do not disconnect. The conference will begin shortly. Thank you.
Unidentified Speaker
Sam Sa Sat. Sam.
operator
Thank you everyone for your patience. The management line is connected. So please go ahead. Thank you. We’ll take our next question from the line of Sanjeev Damani from SKD Consulting. Please go ahead.
Unidentified Speaker
Namaskar. Am I audible?
Unidentified Speaker
Yes.
Unidentified Participant
I am requesting that the management where they are sitting. I think more than two or three mobiles are on which are making this sound disturbing. So if they can close down and be on one mobile or on one speaker then I think this ECO will not come.
Unidentified Speaker
No, there is no mobile only in the office. This cabin.
Unidentified Participant
Now maybe two or three connections given. So the ECO is coming. I think because of that. Anyway, sir, I. I proceed.
Mr. Jai Mota
Okay, now it’s clear.
Mr. Mahek Shah
Now it is better yet. Now it is somewhat better.
Unidentified Participant
Sir. Yes. Yes.
Unidentified Speaker
1. One question is regarding the fact that you are holding bank balance of 111 crore in the asset side.
Unidentified Participant
Right. So.
Unidentified Participant
So that means. Sir, we are carrying lot of cash in our books always or this is at year end that we have got such a big amount.
Unidentified Participant
Yes. So we. We always keep a high liquidity. At least for a one and a half months business development in hand. Okay.
Unidentified Speaker
And also what we have in the past experience we had like in the month of April due to the transfer and everything. We get some lesser sanctions from the bankers and nbfc. So that’s why we used to keep some higher liquidity at the end of the march. To avoid any mismatch in the cash flow.
Unidentified Participant
Okay. Okay. I mean, I have seen your presentation and if I am not mistaken, you are giving loans against old and new vehicles. Are you also into housing finance or are you intending to go into housing finance or finance against properties? Then gold loans and all other things are. So I just want a answer for that.
Unidentified Participant
Yeah. So first of all, we are not into gold loans. We are into vehicle loans, two wheeler loans, three wheeler loan, used car loans, top up loans, the small business loan. So so far company has not seen sanction and disbursed a single gold loan number one. Number two, in near future, company has no plans to go for home loans or loan against property.
Unidentified Speaker
Okay, Gold loan also can we start or are we thinking to start?
Unidentified Participant
Yeah, that is Gold loan and loan against property are, you know, under the consideration of. But not before the season. This season. That is up to November.
Unidentified Speaker
Up to November. So. But. And it is not difficult to start that business or we have to take RBI approval or some formalities are involved or you can start it any day that way.
Unidentified Participant
Yeah. So as far as loan against property is concerned, it is easy to charge. There is no need to any specific permission from rbi. But for the gold loan we have to explore and we have to consult our consultants. Okay.
Unidentified Speaker
One more thing. I want to ask that. Sir, out of our loan books, how we are accounting for NPA in the sense that bankers are required some 90 days or something. When they do not receive interest or installment, three or four installment, then they transfer it to npa. So how do we close on closing of the year, how do we account for.
Unidentified Participant
Yes, we are giving the same treatment recognizing on the 90th 90 plus days.
Unidentified Speaker
Okay, so installment not received up to 90 days and interest not received up to 90 days is accounted as NPA. So whole, whole amount is transferred to NPA.
Unidentified Participant
Sir.
Unidentified Participant
When we, when we talk about the NPA then it is a pause principle outstanding on that day.
operator
Okay, thank you very much and all the better. You are running a very good show as a private financer and I appreciate that you are putting lot of efforts and lot of competition is there in this line. But still you are surviving and growing, sir. So all the best from my side.
Manish Shah
Thank you very much.
operator
Thank you. Participants who wish to ask question may please press char and one. I repeat, to ask a question, you may press char and one. Now the next question is from the line of Mohit Pardhyay, an individual investor. Please go ahead.
Unidentified Speaker
Hello. Am I audible?
Unidentified Speaker
Yeah.
Unidentified Speaker
Yes sir.
Unidentified Participant
So. Hi sir, first of all, congratulations on the good set of numbers and just wanted one clarification on the return on asset. So which has decreased from quarter on quarter. So any specific reason or reason why the return on asset has decreased?
Mr. Mahek Shah
No, there is no, not a major decrease. It is decreased from 3.18 to 3.10. And it is because of the higher liquidity and everything we have kept at the end of the year. That’s why there is a slight decrease in the return on asset.
neemen doshi
Okay. Okay. Thank you so much sir. And all the best. Thank you.
Manish Shah
Thank you.
operator
Thank you. Participants who wish to ask question may press star and 1. Ladies and gentlemen, as there are no further questions from the participants. I now hand the conference over to the management for closing comments.
Manish Shah
Thank you all for participating in this earning calls. I hope we have been able to answer your questions satisfactorily. If you have any further questions or would like to know more about the company, please reach out to our IR managers at Valorum Advisors. Thank you. Thank you very much. And once again, thank you MK Global for organizing this earning call.
operator
Thank you on behalf of MK Global Financial Services limited That concludes this conference. Thank you for joining us. And you may now disconnect your lines.