Profectus Capital Reports Remarkable Growth in Q2FY24 Results: AUM at Rs 2,689 Crores, Profit Soars by 129%

Profectus Capital Private Limited (PCPL), a leading non-banking financial company (NBFC) backed by Actis, announced its robust performance for the second quarter of the fiscal year 2023-24. The company’s half-yearly results, ending on September 30, 2023, showcased impressive financial growth, with a substantial increase in its Assets Under Management (AUM) and a remarkable surge in profits.

Key Highlights of Profectus Capital’s Q2FY24 Results

Stellar Financial Performance

Profectus Capital’s Net Profit Before Tax for the half-year period reached an impressive Rs 32.80 crores, indicating a staggering 129% increase compared to the previous year. This remarkable growth is a testament to the company’s robust business strategies and effective financial management.

Rapid Expansion of AUM

The company’s AUM surged to Rs 2,689 crores as of September 30, 2023, marking a significant 44% increase from the corresponding period in the previous year. This substantial growth underscores Profectus Capital’s dedication to funding micro, small, and medium enterprises (MSMEs) across diverse sectors in India.

Credit Rating Upgrade

Profectus Capital received a credit rating upgrade to CARE A (Stable) from CARE A- (Stable) by CARE Ratings, one of India’s leading credit rating agencies. This upgrade reflects the company’s strong capital adequacy, prudent gearing levels, consistently low levels of non-performing assets (NPAs), and a diversified loan portfolio. Such positive recognition emphasizes Profectus Capital’s stable and reliable financial standing.

Strategic Vision and Focus

Mr. K V Srinivasan, Executive Director and CEO of Profectus Capital Private Limited, expressed confidence in the company’s future endeavors. He highlighted the significance of their investments in people, processes, technology, and culture. Mr. Srinivasan emphasized the favorable macro-economic factors supporting secured lending to MSMEs, indicating Profectus Capital’s commitment to becoming the preferred financier for the sector in the upcoming quarters.

Operational Excellence

Profectus Capital’s operational scale growth was evident, with a return on total assets (ROTA) approaching 2%. The company showcased a steady increase in the scale of its operations, supported by a strong balance sheet and stable financial performance.

Diverse Financing Solutions

Profectus Capital offers a wide array of financial solutions to MSMEs in select manufacturing and services sectors. These solutions include Cluster Specific Term Loans, Equipment Purchase Loans, Supply Chain Finance, and funding for smaller NBFCs. The company’s expertise and commitment to supporting various sectors have contributed significantly to its rapid growth and success.

Commenting on the results, Mr K V Srinivasan, Executive Director and CEO, Profectus Capital Private Limited, said, “Our strong performance in this quarter reflects the strength of our distribution and credit processes. I believe that the time is ripe for us to reap the benefits of our investment in people, processes, technology and culture and increase the scale and profitability of our operations. The macro-economic factors are very positive for secured lending to MSMEs and Profectus Capital would endeavour to emerge as the most preferred financier to the sector over the next few quarters.’’

While commenting on the credit rating upgrade to CARE A(Stable) he stated, ‘’The revised outlook accurately reflects our strong capital adequacy, prudent gearing levels, and our consistently low levels of non-performing assets (NPAs). We have shown sustained operational scale growth, with a return on total assets (ROTA) approaching 2%, and our successful mobilization of equity capital for future business expansion.’’

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Profectus Capital Pvt Ltd, commonly known as Profectus Capital, stands as a pioneering non-banking financial company (NBFC) that specializes in delivering tailor-made financial solutions to micro, small, and medium enterprises (MSMEs) within specific manufacturing and services sectors. Since its inception in November 2017, the company has been dedicated to providing personalized financial services, empowering businesses to thrive and reach their full potential.

Over the years, Profectus Capital has emerged as a beacon of support for a diverse range of industries, including education, pharmaceuticals, healthcare, food processing, engineering, machine tools, printing, packaging, textiles, chemicals, and plastics. The company’s clientele primarily consists of enterprises with a turnover ranging from Rs 30 to 300 million, reflecting its commitment to aiding businesses across various scales.

With a robust presence, Profectus Capital has strategically established 28 branches in 28 cities, spanning across 13 states and union territories in India. This extensive network ensures that the company’s services are accessible to businesses in both urban centers and emerging industrial hubs, fostering economic growth in regions that need it the most.

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One of the distinctive aspects of Profectus Capital’s operations is its association with Actis, a global private equity (PE) firm. Actis holds a significant 100% stake in the company, aligning Profectus Capital with a wealth of global financial expertise and strategic insights.

Profectus Capital takes pride in its sectoral expertise, catering to the specific needs of businesses through a range of financial products. These include Cluster Specific Term Loans, Equipment Purchase Loans, Supply Chain Finance, and funding options for smaller NBFCs. The company’s commitment to staying at the forefront of the financial industry is exemplified by its adoption of cutting-edge technology. Leveraging advanced tools, Profectus Capital ensures efficient and swift loan processing, simplifies documentation procedures, and maintains consistent decision-making protocols. This technological prowess not only enhances customer experience but also reinforces the company’s reputation for reliability and innovation.