Choice International reports robust performance, 9M FY25 Revenue increased by 23% YoY to Rs. 667 Cr
Choice International Limited (BSE: 531358, NSE: CHOICEIN), one of the leading financial services companies operating across India (“CIL”, “Choice” or the “Company”), announces its results for quarter and nine months ending December 31st, 2024.
Consolidated Financial Performance for Q3 FY25 v/s Q3 FY24
* Total Revenue of Rs. 212 Cr v/s. Rs. 210 Cr [á 1%]
* EBITDA of Rs. 62 Cr v/s. Rs. 69 Cr [â11%]. EBITDA Margins of 29.17% v/s 33.00%
* PAT of Rs. 31 Cr v/s. Rs. 40 Cr [â24%]. PAT Margins of 14.53% v/s 19.20%
* Revenue contribution of 65% from Stock Broking, 23% Advisory and 12% NBFC
Consolidated Financial Performance for 9M FY25 v/s 9M FY24
* Total Revenue of Rs. 667 Cr v/s. Rs. 543 Cr [á23%]
* EBITDA of Rs. 198 Cr v/s. Rs. 158 Cr [á25 %]. EBITDA Margins of 30.00% v/s 29.00%
* PAT of Rs. 109 Cr v/s. Rs. 91 Cr [á19 %]. PAT Margins of 16% v/s 17%
Key Business Highlights
* Number of Demat Accounts stood at 998K, a growth of 24% YoY
* AUM for Stock Broking stood at Rs. 46.5K Cr, a staggering growth of 38% YoY
* AUM for Wealth Products stood at Rs. 1,090 Cr, surge of 99% YoY
* Insurance premium generated of Rs. 73 Cr, an increase of 43 % YoY
* Number of policies sold stood at 54,892, a surge of 429% YoY
* Total Loan book for NBFC segment at the end of Q3 FY25 stood at Rs. 754 Cr
* Retail Loan Book for Q3 FY25 stood at Rs. 604 Cr
* Net Non-Performing assets (NNPA) as on 31st Dec, 2024 is 0%
* Advisory segment Order book stood at Rs. 555 Cr
Commenting on the Q3 & 9M FY25 performance Mr. Kamal Poddar, Managing Director said:
India, the fifth-largest economy with a $3.89 trillion GDP, continues to demonstrate resilience, growing 8.2% in 2024. Despite market volatility at the beginning of the year, India’s financial landscape remains robust. Against this backdrop, Choice International remains steadfast in its commitment to long-term growth and value creation. Choice ended the quarter reporting revenue of Rs. 212 Cr for Q3 FY25. For the nine months ended, revenue reached Rs. 667 Cr, with EBITDA and PAT at Rs. 198 Cr and Rs. 109 Cr, respectively. This performance underscores our ability to navigate market challenges while maintaining a strong foundation for sustainable growth.
Choice delivers across all key business segments:
I) The broking and distribution business, which accounts for 65% of our total revenues, recorded a YoY growth of 9%, generating Rs. 135 Cr in revenue for Q3 FY25
a. The stock broking business has added 67K demat accounts, increasing the total to 998K demat accounts. Our stock broking division has seen significant growth, driven by a strong emphasis on user retention and expanding into Tier III cities and beyond.
b. The Wealth Product business' AUM has reached Rs. 1,090 Cr, marking an impressive YoY growth of 99% fuelled by cross-selling initiatives and an extensive product portfolio.
II) Our insurance broking operations continue to gain momentum, driven by a customer-centric approach and innovative cross-selling strategies. Choice Insurance Broking achieved a premium of Rs. 73 Cr in Q3 FY25, demonstrating a robust YoY growth of 43%. The total number of policies sold surged to 54,892, marking a YoY increase of 429%. Our ongoing focus on corporate B2B and institutional clients has led to a higher conversion rate, achieving an impressive ratio of 74%.
III) The NBFC business, which contributes 12% to total revenues, has seen strong growth, with a total loan book of Rs. 754 Cr, including Rs. 604 Cr in retail loans. The growing demand for retail lending in Tier II-III cities presents a significant opportunity. Our focus on retail loans and digital lending through our mobile app, ‘Choice Money,’ has streamlined operations and driven revenue growth in this segment.
IV) The Choice Consultancy subsidiary, which drives our Advisory business contributes 23% of total revenues, with an impressive order book of Rs. 555 Cr. Our strong commitment in delivering exceptional performance in executing government projects on a grassroot level, enables us to win more orders thereby strengthening our order book
The Choice Business Associate Network continues to expand, with over 48,000 CBAs playing a crucial role in our outreach. Increased financial literacy, particularly in underdeveloped regions, is fuelling this growth and supporting our broader financial inclusion goals.
A key highlight this quarter was receiving in-principle approval from SEBI to sponsor and establish a mutual fund. This milestone allows Choice International to expand its financial services and reach a wider range of investors, strengthening our position in the industry.
Additionally, during the quarter, Choice Finserv, our NBFC division, successfully acquired the retail lending business through a slump sale. This strategic move has resulted in a 61% increase in total AUM, reaching Rs.7.54 billion, further enhancing our growth and ability to offer diversified financial solutions.
While the industry has experienced temporary headwinds in recent months, we remain confident in the strength of our business model and our strategic approach to achieve our long-term targets over the next five years. Our commitment to serving customers and stakeholders remains steadfast, guided by our vision to drive financial inclusion in India.
Looking ahead, we are well-positioned to navigate challenges and capitalize on opportunities, creating sustainable value for all our stakeholders driven by our aspiration to be "Sarvashrestha".
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