Trust Fintech’s Net Profit Jumps 3X To INR 12.5 Cr In FY24

Fintech SaaS company Trust Fintech posted a 210% jump in its net profit to INR 12.5 Cr in the financial year 2023-24 (FY24) from INR 4 Cr in the previous fiscal.

The company, which made its public market debut in April this year, posted its first-ever earnings report since listing. Operating revenue jumped 55.4% to INR 35 Cr during the year from INR 22.5 Cr in FY23.

Founded by Hemant Chafale, Heramb Ramkrishna, and Mandar Kishor Deo in 1988, the Nagpur-based company offers SaaS products and fintech solutions for ERP implementation, and offshore IT services for the BFSI sector. It serves district central cooperative banks, urban cooperative banks, rural banks, commercial banks, credit cooperative societies, and NBFCs. 

Trust Fintech had reported a net profit of INR 7.3 Cr in H1 FY24 on a revenue of INR 18.8 Cr. In H2 FY24, the company’s net profit declined from the first half to INR 5.2 Cr. Revenue also fell to INR 16.2 Cr.

On the expenditure front, Trust Fintech’s total expenses increased 7.5% to INR 18.6 Cr in FY24 from INR 17.3 Cr in the previous year.

In that, it spent INR 3.6 Cr on cost of materials. This was a 16.2% year-on-year (YoY) decline.

Trust Fintech’s spending towards employee benefit expenses also fell by almost 39% to INR 6.45 Cr in FY24 from INR 10.55 Cr the previous year.

On the other hand, the company’s other expenses doubled YoY to INR 7.2 Cr in FY24.

Trust Fintech made a strong market debut at a premium of 42% on the NSE SME platform in April. The stock has gained over 87% since its listing.

Currently, its shares are trading at INR 268.65 apiece. 

In its IPO papers, Trust Fintech said it would utilise the proceeds from the public issue to establish a new development facility in Nagpur, procure hardware and upgrade IT infrastructure, enhance, maintain, and upgrade existing products, and fund its global and domestic business development, among others.