SUMMARY
- Navi’s revenue from operations fell to Rs 1,906 crore in FY24 from Rs 2,041 crore in FY23.
- The company noted a total expense of Rs 1,750 crore in FY24.
- It’s operating profits fell to Rs 159 crore from Rs 335 crore in FY24.
Flipkart co-founder Sachin Bansal’s Navi‘s revenue from operations fell to Rs 1,906 crore in FY24 from Rs 2,041 crore in FY23, as reported in its consolidated annual statement.
While interest income accounted for 84.5% of its total revenue, it experienced a 12.3% drop, reaching Rs 1,611 crore in FY24.
The company’s total income from various sources, including fees, commissions, gains on fair value, and other financial activities, decreased to Rs 1,909 crore in FY24 from Rs 2,078 crore in the previous year with a 8.1% YoY decrease.
The company provides services including personal and home loans, bill payments, insurance, digital gold, and mutual funds.
Like other financial institutions, Navi’s biggest expense was in finance, making up 37.6% of its total costs. However, these finance costs saw a decrease of 4.8%, reaching Rs 658 crore in the year under review. Additionally, Navi cut back on employee benefits by 41.9% in the same period.
Its loan write-offs surged 3.2X to Rs 406 crore in FY24 from Rs 125 crore in FY23. This, along with higher fees, commissions, software, legal fees, customer onboarding, and other operational costs, led to a total expense of Rs 1,750 crore in FY24.
The decline in scale and the significant increase in loan write-offs resulted in a 56% drop in operating profits, falling to Rs 159 crore from Rs 335 crore in FY24. Yet, Navi managed to post a net profit of Rs 545 crore in the year under review, largely due to a gain of Rs 429 crore from the sale of a former subsidiary, Svatantra Microfin. Svatantra Microfin was sold to Chaitanya India Fin Credit for a total amount of Rs 1,166 crore in November 2023.
Navi’s ROCE and EBITDA margins also deteriorated to 5.39% and 12.80%, respectively. On a per-unit basis, it spent Re 0.92 to earn a rupee in FY24.
