Fino Payments Bank’s Q2 Profit Jumps 8% YoY To INR 21 Cr

Fino Payments Bank posted a net profit of INR 21.15 Cr in the second quarter of the fiscal year 2024-25 (Q2 FY25), up over 8% from INR 19.52 Cr profit in the same quarter last year. 

However, the company’s profit declined 12% on a sequential basis. Fino’s net profit stood at INR 24.27 Cr in Q1 FY25. This marks the 19th consecutive profitable quarter for the Mumbai-based company. It turned profitable in Q4 FY20.

It is pertinent to note that Fino’s tax outgo stood at INR 4.78 Cr in Q2 FY25. This expense was nil in the year-ago quarter as well as in Q1 FY25. The company’s profit before tax rose 6.6% to INR 25.93 Cr during the quarter under review from INR 24.27 Cr in June quarter. Profit before tax jumped 33% from INR 19.52 Cr in Q2 FY24.

Total income in the September quarter zoomed 27% to INR 455.41 Cr from INR 358.58 Cr in the year-ago quarter. On a quarter-on-quarter (QoQ) basis, it rose 4% from INR 436.86 Cr. 

In a statement, the company’s managing director and CEO Rishi Gupta said, “I am delighted to announce that we have posted our highest-ever quarterly revenue and profit before tax (PBT), a testament to our TAM (Transaction, Acquisition and Monetisation) strategy and sustainable business model.” 

The biggest contributor in Fino’s revenue stream was CASA (Current Account Savings Account), which brought in INR 106.7 Cr in the quarter. Its BC banking offering, which allows users to instantly transfer funds domestically, raked INR 100 Cr. Fino made INR 51.2 Cr, or 12% of its revenue, from its remittance offering.

Fino said that the quarter saw it expand its customer base to near 1.3 Cr, of which 70% are active customers. It onboarded 8.2 Lakh new customers for its banking services during the quarter. In Q2 FY5, the bank facilitated transactions worth INR 1.06 Lakh Cr. 

Further, it said that its merchant network jumped 22% year-on-year (YoY) to 18.5 Lakh. Of this, 6.26 Lakh merchants registered with Fino are present in eastern India and 5.98 Lakh are present in the northern part. The state of Uttar Pradesh accounts for Fino’s most active user base. 

On the digital front, Fino said its digital payment services accounted for 17% of its total revenue pie for the quarter. The quarter saw Fino netting INR 79.3 Cr revenue from its digital offerings, a 10X jump from the INR 7.7 Cr it made in Q1 FY24. T

It said that it has more than 5 Lakh monthly active users for its digital platform, through which it offers users 60 services across payments, accounts, debit cards, among others. It had a 1.55% market share in the month of September in the bustling UPI digital payments ecosystem. 

“Our emphasis on ‘digital payment services’ is giving the necessary impetus to our growth, thereby contributing to the overall journey of ‘Digital as well as Vikasit Bharat,” Gupta said. 

Meanwhile, Fino’s total expenditure in the quarter rose 27% to INR 429.48 Cr from INR 338.50 Cr in Q2 FY24. While it spent INR 354.72 Cr on other operating expenses in the quarter, it managed to slightly trim its employee cost on a sequential basis. The company spent INR 4.91 Cr on its employees in the quarter, slightly lower from the INR 4.97 Cr it spent in the previous quarter. 

Shares of Fino ended today’s trading session 1.46% higher at INR 391.85 on the BSE.