Paisalo Digital Ltd (NSE: PAISALO) Q3 2025 Earnings Call dated Feb. 07, 2025
Corporate Participants:
Harish Singh — Executive Director & Chief Financial Officer
Sunil Agarwal — Managing Director
Presentation:
Harish Singh — Executive Director & Chief Financial Officer
Good evening everyone. My name is Harish Singh and I am the executive director and CFO for Paisalo Digital Limited. On the declaration of the results for the third quarter ended December 31, 2024 for financial year 2024-25, it gives me immense pleasure to welcome the analysts, investors and our colleagues to this virtual meeting. We have with us today our MD and CEO Mr. Sunil Agarwal ji.
In this call all participants will be in a listen only mode. The earnings presentation is uploaded on our websites www.paisalo.in and on the stock exchanges. However, if you have any questions please email at ir@paisalo.in.
Before I hand over the call, I would like to read out the Safe Harbor Statement. This presentation contains forward looking statements which may be identified by their use of words like bounds, expects, estimates or other words of similar meaning. All statements that address expectations or predictions about the future, including but not limited to statements about strategy for growth, product development market position of forward statements based on rational and data. Actual results may vary materially given market circumstances.
I will now hand over the call to our MD Mr. Sunil Agarwal ji to discuss the business detail. Thank you
Sunil Agarwal — Managing Director
Thank you, Harish ji and good evening everyone. I would like to extend a very warm welcome to all those joining today’s earnings call. At the outset I would like to wish all of you and your loved ones a very healthy, happy and prosperous New Year.
Today we shall discuss our business performance for quarter three, FY25 and nine months ended December 31, 2024. Our mission at Pasalo is to simplify small ticket in size income generation loans by establishing ourselves as a trusted high tech high touch financial companion for the people of India, catering to their diverse financial needs. This integration of high tech, high touch, consumer centric approach and data analytics empowers us to deliver tailored scalable solutions while minimizing risk and maintaining the highest standard of governance and regulatory adherence.
Now I will take you through the earning presentation which is uploaded on our website www.pesalo.in and also on the stock exchanges. I will jump straight in on page 3 and take you through some highlights from page 4, page 5, page 17 and page 25. Good quarter on volumes AUM and Opex we added a record 1.41 million customers to its franchise. Total customer franchise stood at 7.93 million. We delivered the highest AUM as at Q3 FY2025 up 12.31% at Rupees 47,400. As against Q3 FY 2024 at 42,280 million.
The company continues to protect its margin profile. Interest income as at Q3 QFY 2025 was up 25% at 5773 million as against rupees 4635 million. In Q3FY 2024 the company has posted 7.13% increase in PVT and 8.06 increase in PAT year on year, quarter on quarter and year on year. Financial comparisons are appended in the Financial section of the presentation on page 23 and 24. The company successfully issued its first foreign currency convertible bond FCCV amount to USD50 million approximately Indian Rupees 4230 million.
In Q3 the company added a record 1.41 million customers to its franchise. In the first nine months the company has added 4.46 million customers to its customer franchise. Total customer Franchise stood at 7.93 million as of Q3FY2025 as compared to 3.47 million as of Q3FY2024. Our agency to an expanding customer base as stated in page 20 of the presentation is providing us valuable insights which combined with our data analytics and EWS framework as stated in page 16 of the presentation is making us better able to identify what customer wants, when they want it and how they want it from a customer centric point of view and help us enhance credit character and credential analysis from EWS point of view.
Cost of Funds come at 11.26% a decrease of 5 basis points on a sequential basis. NIM came in at 6.59% an increase of 94 basis points on a sequential basis. OPEX to net total income improved to 18.7% versus 22.8 last year same time. We continue to optimize operating expenses. I would say as we have mentioned in past quarters presentation that it’s one of the levers that we have continued to pull through both by optimization on the one hand and continue to invest in technology and AI to improve productivity so we may see some variance in terms of increase or decrease in OPEX to net total income. NTI on a short to medium term basis. Employee headcount stood at 2998 people in Q3FY2025.
The company delivered annualized ROE of 13.91%. The company delivered analyzed ROA of 4.49% as against 14.53% and 5.16% in Q3FY2024. As of Q3FY2025, GNPA and NNPA stood at 1.10% and 0.84% respectively. Tesa has written off bad debts totaling Rupees 384 million and recovered old retain of bad debts worth 268 million. The company is continuing to augment its debt management infrastructure as a mitigation measure. We should start to normalize by Q4 2025.
The company is proactively burning as required in terms of liquidity coverage ratio it Is stood at 462% had against regulated requirement of 85% with positive asset liability management across all buckets. The tangible net worth is Rupees 14,638 million versus bank borrowing secured Rupees 18,273 million. That is 1.25 times against the leverage threshold of 7 times. Credit rating of company is IVR AA stable outlook bracket IVRAA with a stable outlook and IVR A1 plus for commercial paper capital adequacy remains strong at 42.26 as Q3 FY 2025 total geographic footprint stood at 3538 touch points across 282 states. In Q3 the company added two hundred and sixty three new touch points.
With our ongoing enhanced distribution and a scalable high tech high touch stack, we are and have been firmly in an expansion Mode. In conclusion, Q3 FY25 has been a good quarter on volumes, AUM, OPEX and our ongoing processes across our businesses. The growing brand recognition and ecosystem of Paisalo, a modern high tech, high touch tech, data analytics capacity capabilities, cost levers and a focus on governance is giving everyone that is us, our investors bracket like like large institutions, mutual funds etc. Our individual investors and our borrowers the right to win.
Thank you everyone for joining this call. As we conclude our earnings call, we invite you to explore the detailed earning presentation available on our website and stock exchanges. We look forward for your email queries on ir@paisalo.in. Thank you.