Kinara Capital FY24 results: 9th consecutive year of profitability; PAT jumps 51%

financialexpress.com:

MSME lender Kinara Capital on Thursday reported its FY24 results, marking the ninth consecutive year of profitability. The company said it closed the previous fiscal year with profit after tax (PAT) of Rs 62 crore, registering a 51 per cent growth from FY23.

In FY24, Kinara Capital reported year-on-year revenue growth of 47 per cent to Rs 723 crore while the operational expenses (OpEx) as a percentage of the AUM (assets under management) dropped by 32 per cent. 

The company’s loan book also grew by 26 per cent in FY24 with its year-end AUM at Rs 3,142 crore. 

Kinara Capital had disbursed over 26,343 new business loans in FY24, leading to a 35 per cent year-on-year jump in the number of loans disbursed. In terms of customers, the company’s active MSME customer base increased by 30 per cent in FY24 while there was a 42 per cent growth in its active customer base of women-owned MSMEs.

Speaking on the fiscal results, Hardika Shah, Founder & CEO, Kinara Capital, said the company also expanded reach to MSMEs in other states with embedded finance solutions through partnerships. 

“Looking ahead, we are excited as we set our sights on supporting thousands more MSMEs, doubling our AUM by FY26 and crossing the $$100 million mark in revenues in FY25,” she added.

Since its inception in 2011, Kinara Capital said it has cumulatively disbursed more than Rs 6,700 crore across over 1.2 lakh collateral-free business loans for job creation and income generation in local economies.

Importantly, growth in loans by NBFCs to the MSME sector was more than three times that of banks, according to a report by the Reserve Bank of India (RBI) on the performance of the banking sector during 2022-23 and 2023-24 till December.

According to the RBI, the