Details of the offering:
- Name of the Issuer: Berar Finance Ltd.
- Product: Senior secured Bonds (regulated by SEBI)
- Yield: 11.00% p.a.
- Tenure: 17 months
- Min. Investment: Rs. 6,00,000
- Interest repayment: Monthly
- Principal repayment: Quarterly
- Rating: CARE 'BBB+'
Key Highlights:
- Berar started its operations in 1990 and has a long track record & experience in the 2W finance business
- As of March 2023, the company had a gross AUM of INR 947 crore and a Net Worth of INR 275 crore
- The organization has been profitable for the last 10 years, despite macro-economic shocks like Covid-19
- The company has healthy capitalization with CAR of 26.33% and net Gearing ratio of 2.64x as of March, 2023
- The company has witnessed strong growth in FY23 - balance sheet grew by 9% to INR 1,141 crore and revenue grew by 24% to INR 218 crore
Overview:
Berar is a Nagpur-based deposit-taking non-banking financial company (NBFC) registered with the Reserve Bank of India (RBI). It is promoted by Mr. M. G. Jawanjar and was incorporated in 1990. Berar primarily finances two-wheelers. It also provides used car loans, commercial vehicle loans, agriculture equipment loans and personal loans.
While Its operations are concentrated in Maharashtra, Berar has, over the years expanded to five other states, i.e. Chhattisgarh, Madhya Pradesh, Telangana, Gujarat and Karnataka. As of March 2023, the Company had 115 branches - 42 in Maharashtra, 22 in Madhya Pradesh, 21 in Chhattisgarh, 17 in Telangana, 8 in Gujarat and 5 in Karnataka.
Management:
Mr. M.G. Jawanjar is the Executive Chairman of the company. He is a Company Secretary by qualification and has prior experience in academics as well as in the financial services industry.
Mr. Sandeep Jawanjal is the Managing Director of the company since 2006. He has completed his graduation in Faculty of Commerce. He heads the overall management of the company with key focus on collections, systems & funding.
Key Financials:
All figures in INR crore
|
Balance Sheet |
FY 23 |
FY 22 |
|
Cash & cash equivalents |
105.25 |
95.07 |
|
Bank balances |
15.81 |
43.72 |
|
Loans Portfolio |
922.13 |
819.34 |
|
Investments |
18.29 |
15.62 |
|
Other financial assets |
41.33 |
40.64 |
|
PPE |
18.67 |
17.95 |
|
Total Assets |
1,141.08 |
1,043.66 |
|
Debt Securities |
146.41 |
122.24 |
|
Borrowings (other than debt securities) |
499.84 |
480.65 |
|
Other Financial Liabilities |
25.44 |
19.25 |
|
Non-Financial Liabilities |
9.15 |
7.11 |
|
Total Equity |
275.24 |
259.14 |
|
Total Liabilities & Equity |
1,141.08 |
1.043.66 |
|
P&L Statement |
FY 23 |
FY 22 |
|
Interest Income |
206.05 |
158.89 |
|
Total Income |
217.96 |
175.60 |
|
Finance cost |
99.94 |
90.21 |
|
Impairment on Financial instruments |
30.68 |
9.64 |
|
Profit Before Tax |
21.73 |
22.37 |
|
Tax Expense |
4.65 |
4.95 |
|
PAT |
17.08 |
17.42 |
The products provided by the company include two wheeler loans, vehicle refinance loans, used car loans, personal loans and Fixed Deposits.
Lenders:
The prominent lenders in Berar Finance are:
Banks:
- DCB Bank
- Federal Bank
- IndusInd bank
- IDFC Frist bank
- IDBI Bank
- PNB
- SBI
- Jana SFB
NBFCs and FIs:
- Northern Arc Capital
- Bajaj Finance
- Hinduja Leyland Finance
- Ambit Finvest
- Credit Saison
- Incred Finance
- Vivriti Capital
Disclaimer: The content of this blog should not be considered as financial or investment advice. Readers/Viewers may consult their financial advisor before any investment.