SK Finance Unlisted Shares
SK Finance Limited
INE124N01039
Listing Status: DRHP Filed
About SK Finance Unlisted Shares
Overview of SK Finance Unlisted Shares
- SK is a prominent non-deposit-taking NBFC operating in the middle layer (NBFC ML).
- Vintage: It was founded by Rajendra Kumar Setia in 1994. (30 years)
- Focus Areas: The company specializes in Vehicle financing and MSME financing, offering tailored financial solutions to diverse customer segments.
- Market Leadership: According to the CRISIL Report, SK Finance is the fastest - growing company in both the vehicle and MSME financing segments among its peers, based on AUM CAGR from Fiscal 2021 to Fiscal 2023.
- Robust Distribution Network: As of December 31, 2023, SK Finance operates 535 branches across 11 states and one union territory, with a significant presence in rural areas, supported by a network of 8,853 direct sales agents (DSAs) and a dedicated on-ground sales team.
Product Portfolio
1. Vehicle Financing: SK Finance focuses on financing used and new light and medium commercial vehicles (LCVs and MCVs). They had a notable 77.41% share in used vehicle finance as of December 31, 2023 As of March 2023, their AUM for this segment was ₹3,471 crore (47% of overall AUM), with a 52% year-on-year growth driven by ₹2,731 crore in disbursements.
Verticals:
- Commercial Vehicles
- Cars
- Tractors
- Two-Wheelers
2. MSME Financing: Since 2016, SK Finance has focused on providing asset-backed loans for working capital requirements to MSMEs, targeting mid to low-income, self-employed, unbanked, or underbanked individuals in rural and semi-urban areas. As of March 2023, the AUM was ₹1,217 crore (16% of overall AUM), with a 109% year-on-year growth and ₹879 crore in disbursements. This segment's growth was driven by expanding branches and improved productivity, with MSME financing offered from 238 out of 447 branches.
Rating
Management
- Amar Lal Daultani - Chairperson and Non-Executive Independent Director:
- Holds a bachelor’s degree in science from Agra University.
- Over 34 years of experience in credit, forex, treasury, risk management, and other banking operations.
- Previously worked at Allahabad Bank and Corporation Bank.
- Rajendra Kumar Setia - Managing Director and Chief Executive Officer:
- Holds a bachelor’s degree in science from the University of Rajasthan.
- Over 29 years of experience in financial services.
- Recognized as one of the "ET Business Leaders of Rajasthan 2019" by the Times Group.
Awards and recognition
- Mr. Yash Setia, the whole-time director of SK Finance, was honoured with the prestigious Rajasthan Gaurav Award 2024.
- At BFSI Leadership Awards 2024:
o Mr. Atul Arora was honoured as CFO of the Year – NBFC
o Mr. Girish Dangayach Receives Best Digital Transformation Initiative – NBFC
o Mrs. Anubha Khandelwal Recognized as Chief Compliance Officer of the Year – NBFC
- The Economic Times honoured SK Finance as THE Best Brand of 2023.
- ITOTY Awards'23 for Fastest Growing Tractor Financer in India.
Insights of SK Finance Unlisted Shares
Financial Snapshot: All values in INR – Crs.
Financials |
9M FY23 |
FY 2023 |
FY 2022 |
% increase |
Revenue |
1308.7 |
1314.2 |
820.7 |
60.1% |
EBITDA |
4173 |
324.6 |
145.5 |
123.1% |
PAT |
217.1 |
222.8 |
142.9 |
55.9% |
PAT Margins |
16% |
24% |
17% |
|
EPS |
17.78 |
76.4 |
50.5 |
|
Key Takeaways:
- Total income increased to ₹1,314 Crs. in FY23 from ₹821 Crs. in FY22 | Y-o-Y growth: 60%.
- Net Interest Income increased to ₹695 Crs. in FY23 from ₹4258 Crs. in FY22 | Y-o-Y growth: 62%.
- Assets Under Management (AUM) reached ₹7,378 Crs. in FY23, up from ₹4,714 Crs. in FY22 an increase of 57%.
- Disbursements increased by 74%, reaching ₹5,623 Crs. in FY23 from ₹3,226 Crs. in FY22.
AUM Split: