Choice International Soars in Q1 FY2025: Strong Revenue and Profit Growth

Choice International Limited, a leading Indian financial services company, delivered robust results for the first quarter of FY2025 (Q1 ended June 30, 2024).

Financial Highlights

• Revenue: Surged 48% year-over-year (YoY) to ₹205.9 crore, demonstrating significant top-line growth.
• EBITDA: Increased 55% YoY to ₹58.2 crore, showcasing strong profitability.
• EBITDA Margin: Expanded to 28.27%, indicating efficient cost management.
• PAT (Profit After Tax): Climbed 51% YoY to ₹32.0 crore, reflecting healthy bottom-line growth.
• PAT Margin: Remained stable at 15.54%, maintaining profitability levels.

Business Segment Performance

• Broking & Distribution (67% of Revenue): Achieved a remarkable 57% YoY growth in revenue, reaching ₹129.6 crore in Q1 FY2025.
• Stock Broking: Added 42,000 new demat accounts, bringing the total to 8,90,000. The segment witnessed impressive growth through user retention strategies and expansion into Tier II and beyond cities.
• Mutual Funds: AUM (Assets Under Management) reached ₹878 crore, reflecting a significant 111% YoY increase. This growth is attributed to intensified cross-selling efforts and a diverse product portfolio.
• Advisory (21% of Revenue): Maintained a healthy order book of ₹545 crore.
• NBFC (Non-Banking Financial Company) (12% of Revenue):

1. Total loan book stood at ₹453 crore at the end of Q1 FY2025.
2. Retail loan book reached ₹286 crore in Q1 FY2025.
3. Maintained a low Net Non-Performing Assets (NNPA) ratio of 1.25% as of June 30, 2024, indicating a positive credit quality.

• Insurance: Generated ₹47 crore in premiums, reflecting a 39% YoY increase.

1. Number of policies sold surged by 236% YoY to 26,916.

Commenting on the Q1 FY25 performance, Mr Kamal Poddar, Managing Director, said, “The Indian economy has started the new financial year on a strong note, establishing a solid foundation for the year ahead. Q1FY25, being focused on elections, led to a stock market rally, with Nifty and Sensex reaching all-time highs and providing excellent returns to investors. Choice has also ended the quarter on a higher note, clocking a revenue growth of 48%, achieving Q1FY25 revenue of ₹206 Cr. Our EBITDA and PAT for Q1FY25 stood at ₹58 Cr and ₹32Cr, respectively, further solidifying our success.

He further added, “Our steady performance in the first quarter underscores our commitment to achieving the financial goals we set for this year. The Choice Business Associate Network continues to grow each quarter, driven by rising financial literacy among individuals, especially in underdeveloped regions of the country. Currently, our network comprises more than 41,000 CBAs who have been instrumental in driving our expansion and are still growing.”

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.