{"id":137978,"date":"2022-11-25T07:35:59","date_gmt":"2022-11-25T12:35:59","guid":{"rendered":"https:\/\/44.250.171.167\/?p=137978"},"modified":"2022-11-25T07:36:00","modified_gmt":"2022-11-25T12:36:00","slug":"arman-financial-services-limited-q2-fy23-earnings-conference-call-insights","status":"publish","type":"post","link":"https:\/\/alphastreet.com\/india\/arman-financial-services-limited-q2-fy23-earnings-conference-call-insights\/","title":{"rendered":"Arman Financial Services Limited Q2 FY23 Earnings Conference Call Insights"},"content":{"rendered":"<p><strong>Key highlights from Arman Financial Services Limited (<a href=\"https:\/\/44.250.171.167\/symbol\/ARMANFIN\/\">ARMANFIN<\/a>) Q2 FY23 Earnings Concall<\/strong><\/p>\n<p><strong>Q&amp;A Highlights:<\/strong><\/p>\n<ul>\n<li>[00:10:28] Virat with Shah Investments enquired about AUM and disbursement growth target for FY23. Jayendra Patel MD said that typically, ARMANFIN tries to grow between 35-40% CAGR over the long run. So it will be about in line with that.<\/li>\n<\/ul>\n<ul>\n<li>[00:11:07] Virat with Shah Investments asked how does the company plan to utilize the fund raise of INR115 crores. Jayendra Patel MD said that in NBFC there are capital adequacy ratio to maintain and ARMANFIN is approaching close to that. The funds will be used for onward lending and to leverage that to increase AUMs.<\/li>\n<\/ul>\n<ul>\n<li>[00:12:11] Anjana from Shah Investments asked about the reduction of MFI book pie from 80% to 60%. Jayendra Patel MD said that there is a long term plan to diversify the product line into other ancillary products. The long term goal is to get more into micro-ancillary products than the JLG products. However, the company still plans to be in the micro retail segment.<\/li>\n<\/ul>\n<ul>\n<li>[00:14:23] Anjana from Shah Investments also asked how the company is seeing its two-wheeler and MSME business panning out. Jayendra Patel MD replied that MSME is doing extremely well. On two-wheeler industry, it has been in the doldrums since COVID and before that. ARMANFIN expects tough times in future also for the two-wheeler segment.<\/li>\n<\/ul>\n<ul>\n<li>[00:16:17] Anjana from Shah Investments asked about future disbursement of loans under IBL segment in coming quarter. Jayendra Patel MD said that in coming quarter, it\u2019s too early to tell. But in next couple of years, the idea is to graduate a lot of microfinance customers to graduate them away from the group based loans into individual loans. Also, the natural progression is to get away from cash based collection to cashless collection.<\/li>\n<\/ul>\n<ul>\n<li>[00:19:52] Savi Jain of 2Point2 Capital asked if the company\u2019s liquidity challenges in 2Q23 has been normalized. Jayendra Patel MD replied that it\u2019s completely normalized. ARMANFIN in fact is facing a reverse issue.<\/li>\n<\/ul>\n<ul>\n<li>[00:22:47] Savi Jain of 2Point2 Capital asked about the difference between individual loan and the MSME loans. Jayendra Patel MD clarified that it\u2019s similar, but the clientele is slightly different. In MSME, ARMANFIN is finding cash customers. And in individual, it\u2019s graduated microfinance customers. So the underwriting might not be as stringent.<\/li>\n<\/ul>\n<ul>\n<li>[00:26:47] Savi Jain of 2Point2 Capital enquired if provisioning with respect to COVID is over in 2Q23. Jayendra Patel MD said that everything pre-COVID, that is assets dispersed prior to March 2020 is written off or provided for.<\/li>\n<\/ul>\n<ul>\n<li>[00:34:51] Srinath V from Bellwether also asked if the company has opened any new geographies or micro markets. Jayendra Patel MD said the company has not done it yet, but it\u2019s in the plan for long run. ARMANFIN moved into Bihar and plans to expand on that. On micro markets, the last few quarters have been challenging. Moving to micro markets will be slower.<\/li>\n<\/ul>\n<ul>\n<li>[00:38:58] Yash Mandawewala with Mandawewala Family Office asked if the new software installation is done and where the company is seeing value add from new software. \u00a0Jayendra Patel MD replied that already the company\u2019s TAT has reduced by about 30-40%. Overall it\u2019s been a big success.<\/li>\n<\/ul>\n<ul>\n<li>[00:41:38] Balkrushna Vaghasia at Axanoun Investment enquired about the avg. customer turnaround time for micro finance and MSME business. Jayendra Patel MD answered that for micro finance it\u2019s approx. 4.6 days. In MSME, it\u2019s now at 8 days from 12 days and there is still lot of room for improvement there.<\/li>\n<\/ul>\n<ul>\n<li>[00:43:50] Balkrushna Vaghasia at Axanoun Investment asked about the change in avg. lending rate in microfinance. Jayendra Patel MD replied that about 2.5% has been the increase.<\/li>\n<\/ul>\n<ul>\n<li>[00:48:11] Amit Mantri of 2Point2 Capital enquired that on a static pool basis, what was the credit cost of the MFI book. Jayendra Patel MD answered that it was 10-12%.<\/li>\n<\/ul>\n","protected":false},"excerpt":{"rendered":"<p>Key highlights from Arman Financial Services Limited (ARMANFIN) Q2 FY23 Earnings Concall Q&amp;A Highlights: [00:10:28] Virat with Shah Investments enquired about AUM and disbursement growth target for FY23. Jayendra Patel MD said that typically, ARMANFIN tries to grow between 35-40% CAGR over the long run. So it will be about in line with that. [00:11:07] [&hellip;]<\/p>\n","protected":false},"author":1767,"featured_media":125416,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"jetpack_post_was_ever_published":false,"footnotes":"","jetpack_publicize_message":"Arman Financial Services Limited Q2 FY23 Earnings Conference Call Insights #ARMANFIN #Q2 #FY23 #Earnings #Stocks","jetpack_publicize_feature_enabled":true,"jetpack_social_post_already_shared":true,"jetpack_social_options":{"image_generator_settings":{"template":"highway","default_image_id":0,"font":"","enabled":false},"version":2}},"categories":[9825,392,1],"tags":[151,10169,9708],"class_list":["post-137978","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-earnings-call-highlights","category-earnings","category-finance-stocks","tag-banking","tag-earnings","tag-nbfc"],"jetpack_publicize_connections":[],"jetpack_featured_media_url":"https:\/\/alphastreet.com\/india\/wp-content\/uploads\/2021\/11\/Earnings-Coverage.jpg","jetpack_likes_enabled":false,"jetpack-related-posts":[{"id":133454,"url":"https:\/\/alphastreet.com\/india\/arman-financial-services-limited-q1-fy23-earnings-conference-call-insights\/","url_meta":{"origin":137978,"position":0},"title":"Arman Financial Services Limited Q1 FY23 Earnings Conference Call Insights","author":"Praveen","date":"August 25, 2022","format":false,"excerpt":"https:\/\/youtu.be\/qnpsnaO_ZzM Key highlights from Arman Financial Services Limited (ARMANFIN) Q1 FY23 Earnings Concall Q&A Highlights: Shubham Ajmera from Soic Ventures asked if the company has increased interest margin for the risky customers during 1Q23 and future plans. Jayendra Patel MD replied that during 1Q23 the rates were increased by about\u2026","rel":"","context":"In &quot;Concall Highlights&quot;","block_context":{"text":"Concall Highlights","link":"https:\/\/alphastreet.com\/india\/category\/earnings-call-highlights\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2021\/11\/Earnings-Coverage.jpg?resize=350%2C200&ssl=1","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2021\/11\/Earnings-Coverage.jpg?resize=350%2C200&ssl=1 1x, https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2021\/11\/Earnings-Coverage.jpg?resize=525%2C300&ssl=1 1.5x"},"classes":[]},{"id":143106,"url":"https:\/\/alphastreet.com\/india\/arman-financial-services-limited-q3-fy23-earnings-conference-call-insights\/","url_meta":{"origin":137978,"position":1},"title":"Arman Financial Services Limited Q3 FY23 Earnings Conference Call Insights","author":"Praveen","date":"March 1, 2023","format":false,"excerpt":"Key highlights from Arman Financial Services Limited (ARMANFIN) Q3 FY23 Earnings Concall Q&A Highlights: [00:12:50] Amit Mantri from 2Point2 Capital asked about the reason for finance costs increasing significantly QonQ. Aalok Patel MD said that it\u2019s a combination of both. Interest on the CCDs and the provisions on the OCRPS.\u2026","rel":"","context":"In &quot;Concall Highlights&quot;","block_context":{"text":"Concall Highlights","link":"https:\/\/alphastreet.com\/india\/category\/earnings-call-highlights\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2021\/11\/Earnings-Coverage.jpg?resize=350%2C200&ssl=1","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2021\/11\/Earnings-Coverage.jpg?resize=350%2C200&ssl=1 1x, https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2021\/11\/Earnings-Coverage.jpg?resize=525%2C300&ssl=1 1.5x"},"classes":[]},{"id":128150,"url":"https:\/\/alphastreet.com\/india\/arman-financial-services-limited-q3-fy22-earnings-conference-call-insights\/","url_meta":{"origin":137978,"position":2},"title":"Arman Financial Services Limited Q3 FY22 Earnings Conference Call Insights","author":"Praveen","date":"March 8, 2022","format":false,"excerpt":"https:\/\/youtu.be\/8w4sKSWi4Xw Key highlights from Arman Financial Services Limited (ARMANFIN) Q3 FY22 Earnings Concall \u00a0Management Update: ARMANFIN\u2019s consolidated loan book as on 31 Dec., 2021 crossed the INR1,000 crore milestone, reaching INR1,045 crores. The company also closed a INR100 crore direct assignment transaction in January 2022, representing the largest DA transaction\u2026","rel":"","context":"In &quot;Concall Highlights&quot;","block_context":{"text":"Concall Highlights","link":"https:\/\/alphastreet.com\/india\/category\/earnings-call-highlights\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2021\/11\/Earnings-Coverage.jpg?resize=350%2C200&ssl=1","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2021\/11\/Earnings-Coverage.jpg?resize=350%2C200&ssl=1 1x, https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2021\/11\/Earnings-Coverage.jpg?resize=525%2C300&ssl=1 1.5x"},"classes":[]},{"id":130889,"url":"https:\/\/alphastreet.com\/india\/arman-financial-services-limited-q4-fy22-earnings-conference-call-insights\/","url_meta":{"origin":137978,"position":3},"title":"Arman Financial Services Limited Q4 FY22 Earnings Conference Call Insights","author":"Praveen","date":"June 29, 2022","format":false,"excerpt":"https:\/\/youtu.be\/7pFAn2GFsbY Key highlights from Arman Financial Services Limited (ARMANFIN) Q4 FY22 Earnings Concall Q&A Highlights: Amit Mantri of 2Point2 Capital asked about the reasons for yield spiking in 4Q22. 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The company reported robust Q3 FY2025-26 results, demonstrating sequential recovery in earnings, stable asset quality, and diversification across multiple retail lending segments. Management\u2026","rel":"","context":"In &quot;LATEST&quot;","block_context":{"text":"LATEST","link":"https:\/\/alphastreet.com\/india\/category\/latest\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2021\/10\/Earnings-Coverage.jpg?resize=350%2C200&ssl=1","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2021\/10\/Earnings-Coverage.jpg?resize=350%2C200&ssl=1 1x, https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2021\/10\/Earnings-Coverage.jpg?resize=525%2C300&ssl=1 1.5x"},"classes":[]},{"id":154059,"url":"https:\/\/alphastreet.com\/india\/arman-financial-services-ltd-q1fy24-150-rise-in-profits\/","url_meta":{"origin":137978,"position":5},"title":"Arman Financial Services Ltd Q1FY24; 150% rise in Profits","author":"Divyansh_Kasana","date":"August 16, 2023","format":false,"excerpt":"Arman Financial Service Ltd is an RBI-registered category \u2018A\u2019 Non-Banking Finance Company. 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