Mumbai, January 29, 2025 – Choice International Limited (BSE: 531358 | NSE: CHOICEIN), a leading financial services conglomerate, has announced its Q3 FY25 results, reporting steady revenue growth and strategic expansions across its business segments. The company also secured SEBI’s in-principle approval to establish a mutual fund business, marking a significant milestone in its expansion strategy.
Financial Performance Overview
Q3 FY25 Consolidated Results
- Total Revenue from Operations: ₹20,934 lakh.
- Net Profit After Tax (PAT): ₹3,074 lakh.
- EBITDA: ₹6,169 lakh.
- Earnings Per Share (EPS): ₹1.54.
- PAT Margin: 14.53%.
Nine-Month (9M FY25) Performance
- Total Revenue: ₹65,738 lakh (23% YoY growth).
- PAT: ₹10,934 lakh (19.5% YoY increase).
- EBITDA: ₹19,760 lakh (25% YoY growth).
Key Business Highlights
Mutual Fund Approval & Asset Growth
- Choice International received SEBI’s in-principle approval to establish a mutual fund business, paving the way for its Asset Management Company (AMC) and a Trustee Company.
- This strategic move is expected to expand its wealth management vertical and attract long-term investors.
Retail Lending Expansion
- Choice Finserv, the company's NBFC arm, completed the acquisition of a retail lending portfolio, increasing total assets under management (AUM) by 61% to ₹7.54 billion.
- Retail loan book surged 126% YoY to ₹6.04 billion, reflecting strong demand in MSME lending.
- Non-performing assets (NNPA) remained at 0%, highlighting solid risk management.
Stock Broking & Distribution Growth
- Demat accounts grew 25% YoY to 998,000 active accounts.
- Stockbroking AUM rose 38% to ₹4,650 crores.
- Wealth products AUM increased 99% to ₹1,020 crore.
- Insurance premium collections jumped 43% YoY to ₹731 million.
Segment-Wise Breakdown
Broking & Wealth Distribution (65% of Revenue)
- Revenue from stock broking & distribution: ₹13,472 lakh.
- Wealth products & insurance contributions grew significantly.
- Digital adoption surged, with 69% of transactions now happening online.
NBFC & Lending (12% of Revenue)
- Total AUM: ₹7.54 billion.
- Retail loans dominate the portfolio (80%), with MSME and vehicle loans being the key products.
- Net Interest Margin (NIM) improved to 4.37%.
- Collection efficiency exceeded 90%, ensuring financial stability.
Government Advisory & Investment Banking (23% of Revenue)
- Order book stood at ₹5.55 billion, spanning multiple states and infrastructure projects.
- The company played a key role in urban development initiatives and policy advisory.
Technological Advancements
- Expanded digital trading platforms, including AI-driven advisory and robo-investing.
- Launched “Cover Order” for risk management, helping traders place stop-loss and limit orders in one step.
- Developed proprietary digital lending tools for MSMEs and vehicle loans.
Market Outlook & Growth Strategy
- Upcoming Mutual Fund Business: Choice International is expected to leverage its stock-broking client base to drive AUM growth in the mutual fund industry.
- Aggressive Expansion in Lending: The NBFC arm aims to expand its retail loan book further by focusing on priority sector lending (MSMEs and solar finance).
- Increased Digital Penetration: The company continues integrating AI and automation into stock broking, insurance distribution, and lending platforms.