💰 Financial Performance

Revenue Growth by Segment

The company operates 100% in the Finance Services segment. Historical total income grew 43.75% from INR 1.6 Cr in 2017 to INR 2.3 Cr in 2018. For FY 2024-25, operating profit increased due to higher revenue, though exact segment revenue figures were not disclosed.

Geographic Revenue Split

Primarily concentrated in Indore, Madhya Pradesh, which represents the core regional market for its corporate lending operations.

Profitability Margins

Operating profit margin was 23.30% in FY 2024-25. Net profit margin stood at 5.76% for the same period, showing an increase in net profit compared to the previous year.

EBITDA Margin

Operating profit margin of 23.30% reflects core profitability before interest and taxes, showing improvement due to higher revenue and better liability management.

Capital Expenditure

Not disclosed in available documents as the company is a financial services provider with low physical asset requirements.

Credit Rating & Borrowing

CRISIL assigned a 'CRISIL B+/Stable' rating to INR 5 Cr bank debt in June 2018, which was subsequently withdrawn in August 2018 at the company's request. Borrowing costs are influenced by the debt-equity ratio of 0.59.

⚙️ Operational Drivers

Raw Materials

Capital and debt funds represent 100% of the 'raw material' for lending operations.

Import Sources

Domestic sourcing from Indian banks and financial institutions.

Key Suppliers

Banks and financial institutions providing credit lines and shareholders providing equity through rights issues.

Capacity Expansion

Not applicable for financial services; however, authorized share capital was increased from INR 18.00 Cr to support larger loan disbursements.

Raw Material Costs

Cost of funds is the primary expense. Interest coverage ratio improved from 1.02 in FY 2023-24 to 1.47 in FY 2024-25, indicating better management of interest costs relative to profits.

Manufacturing Efficiency

Not applicable for financial services.

Logistics & Distribution

Not applicable.

📈 Strategic Growth

Expected Growth Rate

Not disclosed in available documents

Growth Strategy

Growth will be achieved through expanding geographic presence into new regions, digitalization to enhance customer experience, and product diversification to meet evolving needs. A significant rights issue in FY 2024-25 increased shareholder equity to fund this expansion.

Products & Services

Working capital requirement loans and unsecured corporate loans.

Brand Portfolio

Viji Finance

New Products/Services

Introduction of new financial products and services is planned to cater to evolving customer needs, though specific revenue contributions are not disclosed.

Market Expansion

Entering new geographic markets and regions to increase reach beyond the current Indore base.

Market Share & Ranking

Small-scale NBFC with regional concentration in Madhya Pradesh.

🌍 External Factors

Industry Trends

The NBFC sector is facing increased regulatory vigil from the RBI, focusing on contagion risk and scale-based regulations. NBFCs are adopting bank-like practices in governance and risk management to ensure stability.

Competitive Landscape

Competes with other regional NBFCs, fintech lenders, and banks providing corporate working capital.

Competitive Moat

Moat is based on promoter familiarity with borrowers and moderate capitalization. This is sustainable for niche corporate lending but faces challenges from fintech disruption.

Macro Economic Sensitivity

Highly sensitive to interest rate cycles and RBI monetary policy changes.

Consumer Behavior

Increasing demand for customized financial assistance among corporates and individuals.

Geopolitical Risks

Low direct impact as operations are domestic and regional.

⚖️ Regulatory & Governance

Industry Regulations

Subject to RBI scale-based regulations, liquidity ratio maintenance, and asset-liability management (ALM) practices. RBI has recently intensified scrutiny to address governance and risk management issues.

Environmental Compliance

Not applicable for financial services.

Legal Contingencies

The Board reviews major litigation and legal developments; however, specific pending case values in INR were not disclosed in the provided documents.

⚠️ Risk Analysis

Key Uncertainties

Credit risk from loan defaults and regulatory changes by the RBI are the primary uncertainties, with potential impact on margins and capital adequacy.

Geographic Concentration Risk

High concentration in Indore, Madhya Pradesh, making the company vulnerable to regional economic downturns.

Third Party Dependencies

High dependency on banks for funding lines and statutory auditors for internal control assessments.

Technology Obsolescence Risk

Risk of being outpaced by fintech competitors; mitigated by a strategic focus on digitalization.

Credit & Counterparty Risk

Asset quality is vulnerable; Gross NPA was 5% in 2018, and the company primarily provides unsecured loans to corporates.