Q4FY2025 Results of Hero Fincorp Limited

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Hero FinCorp Limited's board meeting on April 29, 2025, approved the audited financial results for the quarter and financial year ended March 31, 2025. These results, both standalone and consolidated, are compliant with SEBI Listing Regulations. Key approvals and considerations included:

Financial Results & Statements:

• Audited Financial Results (Standalone and Consolidated) of the Company were approved, adhering to Regulation 52(4).
• Statements of disclosures under Regulation 52(4) were approved.
• A declaration regarding the utilization of issue proceeds and material deviation under Regulations 52(7) and 52(7A) was given.
• Security cover details for Non-Convertible Debt Securities as of March 31, 2025, were disclosed per Regulation 54.
• Related party transactions, as per Regulation 23(9)/62K(9), were disclosed for the half year ended March 31, 2025.
• Issuance of Commercial Papers and Non-Convertible Debentures was approved on a private placement basis, in one or more tranches during the financial year.
• Audited financial results for the quarter and financial year ended March 31, 2025 will be published in the newspaper. The results will also be made available on the website of the Company

Dividend & Share Matters:

• A final dividend of Rs. 1.10 per equity share (face value of Rs. 10 each) was recommended, pending member approval at the Annual General Meeting.
• A dividend of Rs. 16.5 per Compulsorily Convertible Preference Share (Class A and Class B) was approved (face value of Rs. 550 each).

Personnel Changes:

• The board noted the resignation of Mr. Anurag Agarwal as Head – Internal Audit.
• The board noted the resignation of Ms. Srishti Sethi as Chief Risk Officer.

Debt Issuance:

• The board approved the General Information Document (GID) for the issuance of Non-convertible Debentures.

Auditor's Report & Opinion (Standalone):

• M/s M M Nissim & Co. LLP and M/s Deloitte Haskins & Sells LLP, Joint Statutory Auditors, issued an Audit Report with an unmodified opinion on the company’s financial results for the year ended March 31, 2025.
• The Standalone Financial Results for the year ended March 31, 2025 are presented in accordance with Regulation 52 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, as amended; and
• gives a true and fair view in conformity with the recognition and measurement principles laid down in the Indian Accounting Standards and other accounting principles generally accepted in India of the net profit and other comprehensive income and other financial information of the Company for the year then ended.

Auditor's Report & Opinion (Consolidated):

• Deloitte Haskins & Sells LLP and M M Nissim & Co LLP conducted the audit of the consolidated financial results for Hero FinCorp Limited and its subsidiary, Hero Housing Finance Limited.
• The Consolidated Financial Results for the year ended March 31, 2025 include the financial results of Hero FinCorp Limited and Hero Housing Finance Limited.
• The Consolidated Financial Results are presented in accordance with the requirements of Regulation 52 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, as amended; and
• gives a true and fair view in conformity with the recognition and measurement principles laid down in the Indian Accounting Standards and other accounting principles generally accepted in India of the consolidated net profit and consolidated other comprehensive income and other financial information of the Group for the year ended March 31, 2025.

Key Financial Data (Standalone Results, in Crore):

• Total income for the year ended March 31, 2025 was 9,152.85, compared to 7,804.69 for the previous year.
• Profit before tax for the year ended March 31, 2025 was 198.37, compared to 925.20 for the previous year.
• Total equity was 5,712.40 as of March 31, 2025, compared to 5,775.55 as of March 31, 2024.

Cash Flow Statement (Standalone Results, in Crore):

• Net cash used in operating activities was (2,729.06).
• Net cash used in investing activities was (435.61).
• Net cash generated from financing activities was 5,099.82.
• Cash and cash equivalents at the end of the year were 1,963.49

Key Financial Data (Consolidated Results, in Crore):

• Total income for the year ended March 31, 2025 was 9,903.33.
• Profit before tax for the year ended March 31, 2025 was 256.09.

COVID-19 Resolution Framework Disclosure:

• The company disclosed information related to the resolution framework for COVID-19 related stress for individuals and small businesses, as per RBI notifications. As of March 31, 2025, the exposure to accounts classified as standard because of the implementation of the resolution plan, was 91.99 crore.

Loans Acquired/Transferred via Assignment:

• During the year ended March 31, 2025, the company acquired 5,663 loan accounts amounting to 199.99 Crore through assignment. The company transferred 1,064 loan accounts amounting to 1,209.55 Crore.

Additional Points:

• The Board of Directors of the Company and its Shareholders have approved a resolution towards listing of equity shares through an Initial Public Offer ("IPO"). The company have filed the Draft Red Herring Prospectus dated July 31, 2024 with the Securities and Exchange Board of India ("SEBI").
• The secured non-convertible debentures issued by the Company are fully secured by pari-passu charge by way of hypothecation of loan receivables of the Company

Related Party Transactions:

• A detailed listing of related party transactions, including those with Hero MotoCorp Limited, Hero Housing Finance Limited, and other entities with director interests, is provided for the half year ended March 31, 2025. These transactions covered areas such as subvention income, support services, staff welfare, and loan repayments.

Independent Auditor's Certificate Regarding Security Cover:

• MM Nissim & Co LLP issued a certificate verifying that Hero FinCorp maintains the required security cover for its listed non-convertible debt securities as of March 31, 2025, in compliance with SEBI regulations. The firm performed procedures to assess the accuracy of the asset cover calculation and compliance with debt covenants and has stated that, based on their procedures, nothing has come to their attention that would cause them to believe the financial statements of the company are inaccurate.

Utilization of Issue Proceeds:

• The utilization of the issue proceeds from NCDs that were issued at various dates during the period ranging from 31.12.2024 to 12.02.2025 were in accordance with the stated objectives.