August 01st July 2024: Fino Payments Bank Limited (‘Fino’ or ‘Bank’) released its results for the quarter ended 30th June 2024 (Q1’25). Fino witnessed a significant growth of 25% in revenue by broadening and improving its range of digital products. The Bank’s strategic emphasis on advanced technology primes for future opportunities.
Financial Highlights for Q1’25
- Revenue increased 25% YoY to ₹ 436.9 crs.
- EBITDA expanded by 31% YoY to ₹ 53.2 crs and PBT grew by 30% YoY to ₹ 24.3 crs.
- PBT margins in Q1’25 at 5.6% up from 5.4% in Q1’24.
- Q1’25 RoE at 15.2 % v/s 13.6% in Q1’24.
Throughput and Transaction Highlights for Q1’25
- Overall throughput value grew by 39% YoY to ₹ 1,05,610 crs in Q1’25.
- Digital throughput grew 141% YoY to ₹ 44,197 crs in Q1’25; digital impetus leads to digital contributing 42% to overall throughput in Q1’25 v/s 24% in Q1’24.
- ~57 crs UPI transactions in Q1’25; contributed 1.42% to overall UPI ecosystem volume.
Operational Highlights for Q1’25
- Distribution network: Our merchant network climbed 25% YoY to 18.1 lakh, substantially deepening penetration and Fino’s distribution reach thereby dovetailing our philosophy of growing all channels to monetise the model adequately.
- Customer ownership: 8.1 lakh bank s were opened during Q1’25, up 6% YoY laying the groundwork for a significant cross and up-selling opportunity. Our total customer base is now ~ 1.2 million.
- Product mix continues to play vital role in margins: Revenue from CASA and CMS is 30% of total revenue in Q1’25 (29% in Q1’24).
- Annuity business experienced higher growth on renewal income which grew 54% YoY in Q1’25 to ₹ 40.4 crs.
- Average deposits grew 37% YoY to ₹ 1,699 crs in Q1’25.
- CMS transaction value increased 26% YoY to ₹ 19,796 crs in Q1’25, riding on increased client base, which stands at 217 ending Q1’25 v/s 189 ending Q1’24.
- Digital Payment Services – now s for 15% of the revenue pie.
Rishi Gupta, CEO & Managing Director said, “I am pleased to announce our highest profitable first quarter, a testament to our sustainable business model and strategy. Our new vertical “digital payment services” is growing on a profitable basis and giving the necessary impetus to our TAM (Transaction, Acquistion and Monetisation) strategy. As we move forward, our priority remains moving up the customer value chain, diversification and innovation. We are committed to maintaining our growth momentum by exploring new avenues and prepare ourselves for monetising our differentiated model.”
Ketan Merchant, Chief Financial Officer said, “We are excited to announce our 18th consecutive profitable quarter, accentuating our lean model and digital-centric success. In light of our business momentum, we are revising our guidance from 20% YoY revenue growth to 25% for FY’2024-25. Our consistent profit margins demonstrate strength and sustainability in our business model and our accelerated growth plans.