Hero FinCorp, an arm of India’s largest two-wheeler manufacturer, expects to “hopefully” cross the Rs 1,000 crore mark in profit after tax (PAT) in the current financial year, which would be about a 30% rise on year, the company’s management told reporters on Tuesday.
The non-banking financial company (NBFC) has registered a PAT of Rs 736 crore in April-December of FY24, which is 71% higher than the comparable period of last year. The asset-under management (AUM) of Hero Fincorp till December end stood at Rs 49,127 crore, as compared to Rs 39,381 crore AUM at the end of December 2022.
The company has a diversified asset portfolio, with personal loans accounting for about 34% of its total AUM, followed by two-wheeler and small and micro enterprises (SME) loans – both collectively forming 43% of its book size.
“In the coming year, Hero FinCorp is aiming to increase its book size by about 35%,” said Munjal.
The company’s net non-performing asset in FY24 till quarter ending December 23 is 2.3%, which is lower than 2.79% at the end of March 31, 2023.
The NBFC has a total of 11 million customers, of which 65% are first-time borrowers.