Fincare Business Annual Reports, Balance Sheet and Financials

Fincare Business Services Limited Balance Sheet (Rs in Millions)

Fincare Business Services Limited Profit & Loss Statement (Rs in Millions)

Particulars	31-03-2024	31-03-2023
Revenue from operations
Interest income	27,324	17,938
Fee and commission income	1,052	676
Net gain on derecognition of financial instruments	577	-
Other operating income	475	275
Other income	103	78
Total Income	29,531	18,966
Expenses
Finance cost	10,486	6,669
Impairment on financial instruments	1,640	2,510
Employee benefit expenses	7,973	5,695
Depreciation and amortization	463	412
Other expenses	4,447	2,652
Total Expenses	25,009	17,938
Profit/(Loss) before tax	4,522	1,028
Prior year tax	136	46
Current tax	1,478	80
Deferred tax	(350)	79
Profit/(Loss) for the year	3,258	823
Other Comprehensive Income
Items that will not be reclassified to profit and loss
Remeasurement of the net defined benefit plans	24	2
Income tax relating to the above	(6)	(1)
Items that will be reclassified to profit and loss
Changes in fair value of investments	(311)	659
Income tax relating to above item	78	-166
Other comprehensive income for the year, net of tax	(215)                                     495	495
Total comprehensive income for the year	3043	1317
Profit/(Loss) for the year attributable to:
Owners of the Company	2,630	628
Non-controlling interest	628	194
Other Comprehensive Income attributable to:
Owners of the Company	(175)	389
Non-controlling interest	-40	106
Total Comprehensive Income attributable to:
Owners of the Company	2,455	1,017
Non-controlling interest	588	300
Earning per equity share
Basic	7.95	1.91
Diluted	7.84	1.87

Fincare Business Services Limited Consolidated Cash Flow Statement (Rs in Millions)

Here is a summary of the Cash Flow Statement for the years 2024 and 2023:

Cash Flow from Operating Activities:

The company started with a profit before tax of Rs. 4,522 million in 2024, a significant improvement from Rs. 1,028 million in 2023, reflecting stronger operational performance. However, after accounting for various non-cash adjustments and changes in working capital, the company faced a net cash outflow from operating activities of Rs. (14,311) million in 2024, a deterioration from Rs. (8,288) million in 2023. This increase in outflow was driven primarily by the following factors:

Loan portfolio written off: The company had a lower amount of loan write-offs in 2024 (Rs. 3,028 million vs. Rs. 5,516 million in 2023), which suggests that fewer loans were classified as bad debts, although this remains a significant cash outflow.

Increase in deposits: A major driver of the negative cash flow was a large increase in deposits (Rs. 24,885 million in 2024, up from Rs. 15,770 million in 2023). This increase indicates that the company raised more funds from customers or clients, but these funds are tied up and not immediately available for other uses.

Increase in loans and advances: The company significantly increased its lending (Rs. (43,794) million in 2024 vs. Rs. (28,595) million in 2023), which further strained cash flow as funds were used to support this growth.

Despite this, the company benefited from adjustments like depreciation and amortization (Rs. 463 million) and the amortization of investments (Rs. 120 million), both of which are non-cash items.

Thus, the overall cash outflow from operating activities reflects the significant cash requirements for expanding the loan portfolio and raising deposits.

Cash Flow from Investing Activities:

The company’s investing activities showed a net outflow of Rs. (3,526) million in 2024, slightly higher than Rs. (2,230) million in 2023. Key movements included:

Purchase of government securities: There was a significant increase in purchases of government securities (Rs. (4,322) million in 2024 vs. Rs. (2,452) million in 2023). This suggests that the company was investing more in low-risk securities, possibly to manage liquidity or meet regulatory requirements.

Proceeds from the maturity of government securities: The company received Rs. 1,170 million from maturing securities in 2024, compared to Rs. 570 million in 2023. This inflow, though positive, was not enough to offset the overall outflow from investing activities.

Capital expenditures: The company spent Rs. 389 million on property, plant, and equipment, in line with its ongoing investment in infrastructure.

In summary, the company’s investing activities consumed cash, as it increased its holdings in low-risk assets (government securities) and made capital expenditures.

Cash Flow from Financing Activities:

In terms of financing activities, the company saw a net inflow of Rs. 21,342 million in 2024, a substantial increase from Rs. 6,127 million in 2023. This increase in financing cash flow was driven by:

Proceeds from borrowings: The company raised significant funds through borrowings, with Rs. 25,450 million in 2024, up from Rs. 10,280 million in 2023. This indicates that the company relied heavily on debt to support its operations and growth.

Issuance of equity shares: The company raised Rs. 55 million through the issuance of equity share capital in 2024, though this amount is relatively small compared to the overall financing inflows.

Subordinated debt: The company issued Rs. 2,340 million in subordinate debt securities, further boosting its cash position.

Repayment of borrowings: The company made repayments of Rs. (6,102) million in 2024, up from Rs. (3,071) million in 2023, indicating that it managed its debt obligations while also raising new debt.

These financing activities provided much-needed liquidity, enabling the company to offset cash outflows from operating and investing activities.

Net Increase in Cash and Cash Equivalents:

As a result of the above activities, the company saw a net increase in cash and cash equivalents of Rs. 3,504 million in 2024, compared to a decrease of Rs. (4,391) million in 2023. This is a positive development, as it indicates an improvement in liquidity compared to the prior year.