Corporate Feature     

Published: May 15, 2023
Updated: May 15, 2023

Abans Holdings Limited

Key player in financial services :
On the fast track of growth

Abans Holdings Limited, a leading diversified financial services company, announced a strong financial performance for the fourth quarter as well as for fiscal year 2023. The company showcased significant growth across various financial metrics, reinforcing its position as a key player in the industry.

For FY23, the company reported a net profit of Rs 70.3 crore, a growth of 14% YoY as compared to the net profit of Rs 61.8 crore in FY22. Operating profit during FY23 grew 15% YoY to Rs 76 crore. Revenue from operations during the year was reported at Rs 1,150.97 crore, a rise of 80.2% YoY as compared to the revenue of Rs 638.62 crore in FY22. Agency income surged by 83%, reaching Rs 43 crore in March ‘23. EPS for the year stood at Rs 14.81 per share. The company continues to maintain strong risk management with net NPAs continuing to remain at zero.

In addition to its strong results, Abans Holdings outlined its strategic expansion plans, aiming to drive future growth and strengthen its leadership position in key areas as under:

1. Diversification of Business Operations: Abans Holdings aims to expand beyond its current holding company status and also act as sponsors and investment managers for managing schemes floated by all categories of Alternative Investment Funds (AIF). The alteration of the object clause has been approved by the registrar of companies, and revenue generation from these activities is anticipated to commence in H1FY24, subject to regulatory approval.

2. Agency Income Growth: Despite capital market volatility, Abans Holdings has successfully achieved an impressive 83% YoY growth in agency income by expanding its global footprint.

3. Expansion into Remittance Services: Corporate Avenue Services Limited (CASL), a subsidiary of Abans, has obtained a licence from the FCA UK, enabling the provision of remittance services to global clients transacting in multiple currencies. This business segment holds tremendous potential and is expected to serve as a growth driver for the group.

4. Acquisition of SATCO Growth and Momentum Portfolio: To further enhance its assets under management (AUM), Abans Broking Services Private Limited (ABSPL), a subsidiary of Abans Holdings, has entered into a MoU with SATCO Capital Markets Limited (SATCO). The agreement entails taking over the SATCO Growth and Momentum Portfolio, including its performance history, investors, AUM and fund management, subject to regulatory approval. The SATCO Growth and Momentum Portfolio currently stands at Rs 80 crore AUM and has delivered a notable 21.6% CAGR since its inception. Going forward, such mergers and acquisitions will strengthen the company’s presence and fuel its growth trajectory.

STRATEGIC FOCUS

Ticking growth boxes

• Consolidated net profit increased by 14% YoY, reaching Rs 70 cr in March ’23
• Operating profit rose by 15% YoY to Rs 76 cr in March ’23
• Agency income surged by 83% YoY, reaching Rs 43 cr in March ’23
• NPA remains at zero