Navi Finserv Ltd, the non-bank lender part of Flipkart co-founder Sachin Bansal’s Navi group, reported a drop in revenue and operating profit for the year through March 2024, weighed down by loan write-offs.
Consolidated revenue from operations fell about 7% in the last financial year to Rs 1,906.2 crore from Rs 2,040.6 crore the year before, according to its annual report. Interest income—which contributes 85% to its toptline—dropped about 12% from a year earlier to Rs 1,611.1 crore.
Navi Finserv is part of the Navi group, which has offerings across asset management, lending, insurance, and bill payments. The non-bank lender provides housing loans, personal loans and loans against property, among other products. The group was set up by Bansal along with former banker Ankit Agarwal in 2019.
During FY24, Navi sold its microfinance unit Chaitanya India Fin Credit Pvt Ltd to Ananya Birla-led Svatantra Microfin in one of the biggest deals in India's microfinance industry. Bansal had acquired Chaitanya for Rs 150 crore in October 2019 following his exit from Flipkart. Navi completed the sale of Chaitanya in November 2023. The transaction resulted in a gain of Rs 704 crore, Agarwal, who is managing director at the firm, said in the annual report.
Agarwal also said that the company's total loan book stood at Rs 8,527.2 crore as of March 2024.
After Chaitanya’s sale, Navi Finserv’s net profit from continuing operations slumped by about 56% to Rs 115.6 crore from Rs 264.1 crore in the previous year.
Profit was weighed down by bad loans with the company booking a write-off of Rs 406 crore during the year, up from Rs 125 crore in FY23.
However, net profit after including the gains from the sale of Chaitanya jumped to Rs 545 crore from Rs 264.1 crore the year before, the annual report showed.
