💰 Financial Performance

Revenue Growth by Segment

The loan book grew 6.58% YoY to Rs. 1693.57 Cr as of March 31, 2025. Segmental exposure is dominated by tourism and tourism projects at 65% (up from 61% in FY24), with the remaining 35% allocated to other sectors including manufacturing and NBFCs.

Geographic Revenue Split

Not disclosed in available documents; however, the company is headquartered in New Delhi and operates as a pan-India financial institution.

Profitability Margins

Profit After Tax (PAT) grew 14.28% YoY to Rs. 104 Cr in FY25 from Rs. 91 Cr in FY24. Return on Average Total Assets (RoTA) improved to 4.95% from 4.41%, and Return on Net Worth (RoNW) increased to 9.05% from 8.71%.

EBITDA Margin

Net Interest Margin (NIM) in relation to average total assets improved to 5.08% in FY25 from 4.59% in FY24, driven by reduced gearing and healthy internal accruals despite marginal compression in spreads due to increased cost of funds.

Capital Expenditure

Not applicable for financial services; focus is on loan book growth. Tangible Net Worth increased 12.32% to Rs. 1207.28 Cr as of March 31, 2025, supported by a Rs. 50.02 Cr capital infusion in Q1 FY25.

Credit Rating & Borrowing

Ratings reaffirmed at BWR/CareEdge 'Stable'. Gearing remains low at 0.72 times as of March 31, 2025, down from 0.91 times in FY24, indicating significant headroom for borrowing to fund future disbursements.

⚙️ Operational Drivers

Raw Materials

Debt Capital (Borrowings) represents the primary 'raw material' cost, comprising Non-Convertible Debentures (39%), Bank Loans (30%), NBFC Loans (23%), and Financial Institution loans (9%).

Import Sources

Domestic India; the resource base is concentrated across nine lenders, largely public sector banks.

Key Suppliers

Key resource providers include Life Insurance Corporation of India (LIC), The Oriental Insurance Co. Ltd., and various public sector banks.

Capacity Expansion

Current AUM stands at Rs. 1693.57 Cr. Growth is targeted through new product segments like Loan Against Securities (LAS) and increased exposure to manufacturing and NBFC sectors.

Raw Material Costs

Cost of funds is the primary operational cost. While NIM improved to 5.08%, the company witnessed marginal spread compression in FY25 due to rising borrowing costs.

Manufacturing Efficiency

Not applicable; however, operating expenses as a % of Average Total Assets rose to 1.28% in FY25 from 1.15% in FY24 due to higher employee costs.

Logistics & Distribution

Not applicable.

📈 Strategic Growth

Expected Growth Rate

12-15%

Growth Strategy

Diversification away from tourism (currently 65% of book) into manufacturing, NBFCs, and real estate. Launch of Loan Against Securities (LAS) to boost short-term disbursements and improve AUM churn.

Products & Services

Project loans for hotel and tourism infrastructure, corporate loans, Loan Against Securities (LAS), and financial assistance to NBFCs/HFCs/ARCs.

Brand Portfolio

Tourism Finance Corporation of India Limited (TFCI).

New Products/Services

Loan Against Securities (LAS) introduced in FY25, expected to boost disbursement volumes though with shorter tenures (up to one year).

Market Expansion

Targeting the NBFC/HFC/ARC sector which is projected to grow at 12-15% annually, and exploring digital transformation avenues in manufacturing lending.

Market Share & Ranking

Not disclosed; established position as a specialized lender for the tourism sector since 1989.

Strategic Alliances

Engaged in co-lending activities within the NBFC sector to expand reach and manage risk exposures.

🌍 External Factors

Industry Trends

NBFC sector is evolving with a 12-15% growth outlook. There is a shift toward digital transformation in manufacturing and services, requiring innovative financial solutions.

Competitive Landscape

Stiff competition from banks and other NBFCs, particularly for refinancing operational projects with stable cash flows.

Competitive Moat

Durable advantage in specialized underwriting for hospitality projects (30+ years experience), which are often complex for standard commercial banks to assess.

Macro Economic Sensitivity

Highly sensitive to tourism sector health and interest rate mismatches between assets and liabilities.

Consumer Behavior

Shift toward digital financial services and rapid transformation in the manufacturing sector affecting lending demand.

Geopolitical Risks

Not disclosed; however, global travel disruptions can indirectly impact the 65% tourism-heavy loan portfolio.

⚖️ Regulatory & Governance

Industry Regulations

Regulated as an NBFC-ML by the RBI; currently implementing new guidance on Operational Risk Management and Operational Resilience.

Environmental Compliance

Industry nature results in low exposure to environmental risks; TFCI focuses on sustainable financing for environmentally friendly projects.

Legal Contingencies

Not disclosed; management focuses on NPA/Stressed Asset Management and recovery of high-ticket stressed assets (7.67% of earning assets).

⚠️ Risk Analysis

Key Uncertainties

Volatility in asset quality due to high average ticket sizes (Rs. 30-31 Cr); slippage in just 2-3 accounts can cause significant spikes in GNPA ratios.

Geographic Concentration Risk

Not disclosed; however, the tourism portfolio is likely concentrated in major Indian travel hubs.

Third Party Dependencies

High dependency on a limited pool of 9 lenders for resource mobilization.

Technology Obsolescence Risk

Managed through a dedicated IT Governance and Information Security framework led by a Chief Technology Officer with 32 years of experience.

Credit & Counterparty Risk

Stressed assets (GNPA + Stage 2 + Security Receipts) stood at 7.67% of earning assets as of March 31, 2024, requiring active monitoring.