Financial Report Summary
The document comprises several filings by Hero FinCorp Limited, related to financial results and compliance with regulatory requirements as of March 31, 2025.
Board Meeting Outcome (April 29, 2025)
- Financial Results: Hero FinCorp's Board of Directors approved the audited standalone and consolidated financial results for the quarter and fiscal year ending March 31, 2025. These results are published on the company website and as required by SEBI regulations.
- Dividend Recommendations: A final dividend of Rs. 1.10 per equity share (face value Rs. 10) was recommended, pending shareholder approval. A dividend of Rs. 16.5 per Compulsorily Convertible Preference Share (Class A & B, face value Rs. 550) was also approved.
- Personnel Changes: The resignations of Mr. Anurag Agarwal (Head – Internal Audit) and Ms. Srishti Sethi (Chief Risk Officer) were noted.
- Non-Convertible Debentures: Approval was granted for a General Information Document (GID) concerning the issuance of Non-convertible Debentures.
- Audit Reports: The auditor's reports, issued by M/s M M Nissim & Co. LLP and M/s Deloitte Haskins & Sells LLP, Joint Statutory Auditors, contained an unmodified opinion on the company's financial results.
Independent Auditor's Report: Standalone Financial Results
- Opinion: Deloitte Haskins & Sells LLP and M M Nissim & Co LLP audited the standalone financial results for the year ending March 31, 2025. They confirm that the results comply with SEBI regulations and present a true and fair view of the company's net profit, comprehensive income, and financial information, as per Indian Accounting Standards.
- Unaudited Results Conclusion: Regarding the unaudited results for the quarter ending March 31, 2025, the review found no reason to believe that the information disclosed doesn't meet SEBI's regulatory requirements or contains material misstatements.
- Basis for Opinion: The audit was conducted according to the Standards on Auditing specified under Section 143(10) of the Companies Act, 2013.
- Other Matters: The statement includes the results for the quarter ended March 31, 2025 being the balancing figure between audited figures in respect of the full financial year and the published year to date figures up to the third quarter of the current financial year which were subject to limited review.
Independent Auditor's Report: Consolidated Financial Results
- Opinion: The auditors provide an opinion on the consolidated financial results of Hero FinCorp Limited (Holding Company) and its subsidiary, Hero Housing Finance Limited, for the year ending March 31, 2025. The results comply with SEBI regulations and present a true and fair view, as per Indian Accounting Standards.
- Subsidiary Audit: The report relies on the audit reports of other auditors for the subsidiary's financial statements.
- Other Matters: The statement includes the results for the quarter ended March 31, 2025 being the balancing figure between audited figures in respect of the full financial year and the published year to date figures up to the third quarter of the current financial year which were subject to limited review.
- Details for consolidated financial results: Total assets of Rs. 6,720.01 crores as at March 31, 2025 and total revenues of Rs. 203.81 crores and Rs. 762.58 crores for the quarter and year ended March 31, 2025 respectively, total net profit after tax of Rs. 16.56 crores and Rs. 51.10 crores for the quarter and year ended March 31, 2025 respectively and total comprehensive income of Rs. 14.87 crores and Rs. 49.66 crores for the quarter and year ended March 31, 2025 respectively and net cash flows of Rs. (69.33) crores for the year ended March 31, 2025.
Standalone and Consolidated Financial Results Details
- The statement includes detailed financial data, including revenue from operations (interest income, dividend income, profit on sale of investments, etc.), other income, expenses (finance costs, net loss on fair value changes, impairment on financial instruments, employee benefits expenses, depreciation and amortization, other expenses), profit before tax, tax expense, profit after tax, other comprehensive income/loss, and earnings per equity share. Numerical data is provided for the quarter ended December 31, 2024, March 31, 2024, March 31, 2025 and year ended March 31, 2025.
- Assets and Liabilities: Details of assets and liabilities are disclosed as per SEBI regulations, including financial assets (cash, bank balances, receivables, loans, investments), non-financial assets, financial liabilities (trade payables, debt securities, borrowings), non-financial liabilities, and equity.
Additional Disclosures and Notes
- NBFC Status: Hero FinCorp is registered with the Reserve Bank of India (RBI) as a Non-Banking Financial Company.
- Accounting Standards: The financial results are prepared according to Indian Accounting Standards (Ind AS) as prescribed under Section 133 of the Companies Act, 2013.
- Dividend Payment: A dividend of 3% per Class A & Class B Cumulative Compulsorily Convertible Preference Shares was approved.
- COVID-19 Resolution Framework: Disclosures are made regarding the implementation of a resolution framework for COVID-19 related stress.
- Loans Not in Default: Details are provided for loans not in default acquired or transferred through assignment during the year.
- Equity Shares: During the year ended March 31, 2025, the company issued and allotted 1,06,085 equity shares with the face of Rs. 10 each pursuant to the exercise of options under the Employee Stock Option Scheme.
- Compulsorily Convertible Preference Shares: A description of how Compulsorily Convertible Preference Shares are treated under Ind AS 32.
- Initial Public Offering (IPO): 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") and accordingly have filed the Draft Red Herring Prospectus dated July 31, 2024 with the Securities and Exchange Board of India ("SEBI").
- Business Segments: The company operates primarily in the financing business within a single geographical segment (domestic).
- Commercial Papers: The Company has listed Commercial Papers on National Stock Exchange (NSE).
Other Key Ratios and Information
- A table with details for various key ratios, including debt-equity ratio, debt service coverage ratio, net worth, current ratio, gross and net non-performing assets, and provision coverage ratio.
Related Party Disclosures
- Disclosures in compliance with Regulations 23(9) of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015 for the half year ended March 31, 2025. Includes relationship, names, and details of transactions with related parties.
Auditor's Certificate for Security Cover
- M/s MM Nissim & Co LLP provided an independent statutory auditor's certificate on the maintenance of security cover for listed non-convertible debt securities as of March 31, 2025, in compliance with Regulation 54 and 56(1)(d) of SEBI regulations. The company ensures maintenance of Asset Coverage Ratio and for preparation and maintenance of covenants list and compliance with such covenants on a continuous basis as per the debenture trust deed
and all the relevant requirements of the SEBI circular, SEBI Regulations, Companies Act, 2013 and other applicable laws and regulations, as applicable.
Statement of Utilization of Issue Proceeds
- A statement regarding the utilization of issue proceeds from private placements of Non-Convertible Debentures (NCDs). All proceeds from issuances of NCDs have been utilized fully against the object of the Issue stated in the Prospectus/ Offer document without any deviation.
In summary, the Hero FinCorp filings indicate regulatory compliance, financial performance for the fiscal year 2025, and transparency in disclosing related party transactions and debt security information. The company has obtained unmodified opinions from its auditors and provided detailed financial statements and key performance indicators.
