Details of the Corporate Bond:
1. Name of the Issuer: SK Finance Limited
2. Product: Senior unsecured Bonds (regulated by SEBI)
3. Yield: 9.00% p.a.
4. Tenure: 2 months
5. Min Investment: Rs. 65,000
6. Interest repayment: Monthly
7. Principal repayment: Monthly
8. Rating: AA- (ICRA)
Key Highlights:
1. SK Finance is an NBFC-MFI that has presence in 12 states and 1 union territory.
2. Backed by equity investors including Norwest Venture, Baring Private Equity, Evolvence Coinvest, TPG Growth.
3. The entity is profitable and has reported 9 months profits of 217 crore. It had achieved a PAT of INR 222.78 Cr in FY23.
4. Strong growth in the AUM with a book size of 9525 crore in Dec23 up from 7378 crore in Mar23, at a rate of 39%
Overview:
Sk Finance Limited is a NBFC incorporated on 21 November 1994. SK Finance caters to the financial requirements for individuals, businesses and enterprises. With experience of over 29 years as one of leading Non-Banking Finance Company, they have created a strong brand recall amongst the customers in the market. Today, they are present across 12 states and 1 union territory through over 530+ branches. They have started business from the state of Rajasthan and enhance presence in Gujarat, Madhya Pradesh, Punjab, Haryana, Maharashtra, Chhattisgarh, Himachal Pradesh, Uttarakhand, Delhi NCR, Uttar Pradesh and Karnataka. They have evolved to provide customized products to meet specific needs of the customers through empathy, trust and technology.
Management
Mr. Rajendra Kumar (Managing Director) Setia brings to the company extensive industry experience, decision-making, and mentorship. He has over two decades of experience in finance, specifically in the vehicle finance segment and was named to the Economic Times' list of Rajasthan's Business Leaders for 2019. He also served as the president of the Rajasthan Finance Companies Association, an organisation that represents the interests of Rajasthan's finance companies.
ATUL ARORA (CFO)
A Chartered Accountant, he has worked at Taurian Manganese & Ferro Alloy CISA which is based in the Ivory Coast. He joined the company with two years of global finance exposure, gaining invaluable experience over the years. He is the Chief Financial Officer at SK Finance, steering the company’s financial policies, compliance and future roadmap. He is responsible for outlining the company’s financial roadmap and streamlining its operations in sync with the same. He is the key to lead SK Finance to the next level of growth.
SAMEER Arora (COO)
A qualified civil engineer having more than 27 years of experience. He was initially an entrepreneur before venturing into the financial sector with SK Finance in 2007. With 10+ years of experience in operations, collections, and sales, he brings diversified skill-sets to the table including specialized insights and knowledge of marketing and sales. He is the brain behind creating new product and service strategies along with overseeing their implementation.
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Key Financials: |
|
|
|
|
Balance Sheet |
FY 22 |
FY 23 |
H1 FY24 |
|
Cash & cash equivalents |
174.55 |
757.48 |
406.45 |
|
Bank balances |
443.34 |
462.30 |
894.90 |
|
Loans Portfolio |
4,643.30 |
6,990.39 |
7,923.03 |
|
Other Receivables |
2.23 |
10.75 |
11.29 |
|
Other financial assets |
28.05 |
79.68 |
126.43 |
|
Other non-financial assets |
940.46 |
755.03 |
1063.74 |
|
Total Assets |
6,231.96 |
9,055.65 |
10,425.85 |
|
Debt Securities |
1,473.57 |
1,714.95 |
1,822.55 |
|
Borrowings (other than debt securities) |
3,003.78 |
5,328.18 |
5,754.60 |
|
Other Financial Liabilities |
120.39 |
157.22 |
170.59 |
|
Non-Financial Liabilities |
37.76 |
21.55 |
26.85 |
|
Total Equity |
1,596.43 |
1,833.73 |
2,651.25 |
|
Total Liabilities & Equity |
6,231.96 |
9,055.65 |
10,425.85 |
|
P&L Statement |
FY 22 |
FY 23 |
H1 FY24 |
|
Interest Income |
770.72 |
1,214.70 |
748.66 |
|
Total Income |
820.68 |
1,314.24 |
858.84 |
|
Finance cost |
346.81 |
547.47 |
361.66 |
|
Impairment on Financial instruments |
16.28 |
91.74 |
76.00 |
|
Profit Before Tax |
177.60 |
290.20 |
176.00 |
|
Tax Expense |
34.72 |
67.42 |
41.95 |
|
PAT |
142.87 |
222.78 |
134.10 |
Lenders:
The prominent lenders in NeoGrowth include:
Debt
· HDFC Bank
· RBL Bank
· Axis Bank
· Kotak Bank
· SIDBI
Equity
· Norwest Venture Partners X – Mauritius
· Baring Private Equity India AIF
· Evolvence Coinvest
· TPG
Growth
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.