MSME-focused NBFC Profectus Capital has reported a 15 per cent growth in its assets under management (AUM) as of September 2024 from the year-ago period. Announcing results for the half-year ended September 30 in the current financial year, the company said its AUM stood at Rs 3,109 crore as of September 2024 while pretax profit or net profit before tax for the April-September period was Rs 21 crore.
The total income from operations for the half year increased to Rs 202 crore compared to Rs 194 crore for the half year ended September 30, 2023. Its Gross Non-Performing Assets (GNPA) and Net Non-Performing Assets (NNPA) ratios were 1.8 per cent and 1.3 per cent respectively on the total AUM.
Speaking on the results, K V Srinivasan, Executive Director and CEO, Profectus Capital said the company aims to achieve optimal cost–income ratios and sustainable return on assets of about 3 per cent over the next few years.
“Our strong focus on appropriate risk management and state of the art systems will play an important role in enhancing scale of our operations and achieving our objective of supporting growth of the MSME sector in India,” said Srinivasan.
Profectus Capital, backed by global private equity firm Actis, recently raised $25 million through the issuance of non-convertible debentures (NCDs) to the International Finance Corporation (IFC).
In May last year, the company had received the Certificate of Registration (CoR) under the Factoring Regulations Act, 2011 from the Reserve Bank of India to provide factoring services to MSMEs in order to improve their working capital management and receive short-term finance to fund operations.
The MSME loan portfolio in FY24 grew by 17.8 per cent to Rs 64.1 lakh crore from the year-ago period, according to credit bureau CRIF High Mark. The total MSME loans originated or sanctioned in FY24 were 2.74 crore involving Rs 54.2 lakh crore, growing by 19.3 per cent in volume and 5.4 per cent in amount.