Kissht, the digital lender run by OnEMI Technology Solutions, doubled its consolidated net profit to ₹125.1 crore in the September quarter from ₹62.4 crore a year earlier, according to its exchange filing on Wednesday, October 28. Revenue from operations rose 44.7% to ₹731.8 crore.
A larger loan book drove the growth. Disbursements rose 56% to ₹4,612 crore. Total expenses grew more slowly than revenue, up 34.9% to ₹586 crore, and impairment charges, which include provisions for expected credit losses, rose 8.7% to ₹133.1 crore. Loans against property made up 7.9% of assets under management, against 4.1% a year earlier.
The board also approved a ₹624.1 crore rights issue to put capital into Si Creva Capital Services, its lending subsidiary. The money comes from an ₹832.2 crore preferential issue completed on October 23, in which 34 investors, including Axis, HDFC, Groww and Bandhan mutual funds, bought shares. OnEMI listed in May after a ₹926 crore IPO.
- Net profit: ₹125.1 crore (₹62.4 crore a year earlier)
- Assets under management: ₹9,317 crore, up 68%
- Return on average equity: 21.65% (annualised)
- Customers served to date: 12.8 million, up 22%
Why it matters: Impairment charges rose 8.7% while assets under management grew 68%, the figure that matters most for a lender built on personal loans, though a book growing this fast is young and its losses may show up later. The move into loans against property and fresh capital from domestic mutual funds suggest Kissht is preparing to grow its balance sheet further, with more secured lending in the mix.
Source: The Economic Times; Inc42; OnEMI press release (BSE filing)
Image: N. Vivekananthamoorthy, CC BY 4.0, via Wikimedia Commons
