Kissht parent Q2 net profit doubles to Rs 125 crore

Bengaluru: Digital lending platform Kissht’s parent OnEMI Technology Solutions reported a doubling of consolidated net profit to Rs 125.1 crore in the September quarter from Rs 62.4 crore a year earlier, as revenue grew with an expanding loan portfolio.

Revenue from operations rose 44.7% year-on-year to Rs 731.8 crore from Rs 505.7 crore, according to the company's stock exchange filing on Wednesday.

On a sequential basis, net profit increased 31.6% from Rs 95.1 crore in the June quarter, while revenue grew 9.3% from Rs 669.5 crore.


The Mumbai-based company's total expenses increased 34.9% to Rs 586 crore from Rs 434.5 crore a year earlier. Impairment charges on financial instruments, which include provisions for expected credit losses, rose 8.7% to Rs 133.1 crore from Rs 122.4 crore. Other expenses, however, increased 65.9% to Rs 308 crore.

The earnings follow the company's earlier disclosure that its assets under management (AUM) grew 68.4% to Rs 9,317 crore at the end of September from Rs 5,533 crore a year earlier.

The loan portfolio expanded 16.4% sequentially from Rs 8,001 crore at the end of June, adding about Rs 1,316 crore during the quarter.

Loan disbursements rose 56% year-on-year to Rs 4,612 crore from Rs 2,963 crore. They were up 21% sequentially from Rs 3,812 crore in the June quarter.

Kissht has also been expanding its secured lending business, with loans against property accounting for 7.9% of its AUM at September-end, compared with 4.1% a year earlier.

Separately, OnEMI's board on Wednesday approved a Rs 624.1-crore capital infusion into its wholly owned lending subsidiary, Si Creva Capital Services, through a rights issue.

The investment will be funded through proceeds from the Rs 832.2-crore preferential share issue completed on October 23. The company allotted 26.49 million shares to 34 investors, including Axis Mutual Fund, HDFC Mutual Fund, Groww Mutual Fund and Bandhan Mutual Fund.

The fresh capital will support Si Creva's lending operations and future growth requirements.

OnEMI made its stock market debut in May through a Rs 926-crore initial public offering, including a fresh issue of Rs 850 crore.

Of the IPO proceeds, the company had already infused Rs 637.5 crore into Si Creva by September-end, which the subsidiary utilised for loan disbursements, according to the filing.