Northern Arc Capital Sees 43% PAT Growth in Q1FY25; Share Price Rises by 1.27%

Northern Arc Capital Limited has concluded its Initial Public Offering (IPO) and made its debut on the stock exchanges on September 24, 2024. The IPO raised a total of ₹777 crore, comprising ₹277 crore from an offer for sale and ₹500 crore from fresh equity capital. Earlier in April 2024, the company had already raised ₹382 crore in fresh equity capital from prominent investors, including the International Finance Corporation (IFC).

Northern Arc announced its Q1 FY25 results, showcasing impressive performance across several key financial metrics. The company reported a pre-provision operating profit (PPoP) of ₹175 crore for the quarter, reflecting a 43% year-on-year growth. Similarly, profit after tax also rose by 43% year-on-year to reach ₹93 crore. The company’s Lending Assets Under Management (AUM) grew by 32% year-on-year, reaching ₹11,869 crore.

Additionally, Northern Arc’s gross non-performing asset (NPA) ratio improved to 0.47% as of June 30, 2024, down from 0.49% a year prior. The return on assets (ROA) increased to 3.1% in Q1 FY25 compared to 2.8% in the same period last year, while the return on equity (ROE) improved to 14.7% from 13.3%. Net interest income also saw a significant increase of 40% year-on-year, totalling ₹272 crore for the quarter.

Commenting on these achievements, the MD and CEO of Northern Arc, Ashish Mehrotra, expressed gratitude for the overwhelming IPO response and emphasised the company’s commitment to enhancing access to retail credit. He highlighted the firm’s strong operational performance and adaptive business model, which positions it for sustainable future growth while delivering value to all stakeholders and addressing the credit needs of underserved households and businesses across India.

On October 01, 2024, the share price of Northern Arc Capital Ltd opened at ₹310.00, touching the day’s high at ₹314.00, as of 11:14 AM on the NSE.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.