AYE FINANCE LTD. 2024-25 Annual Report Analysis

Wed, 4 Mar

AYE FINANCE LTD. has announced its results for the year ended March 2025. Let us have a look at the detailed performance review of the company during the year 2024-25.

AYE FINANCE LTD. Income Statement Analysis

• Interest income during the year rose 40.3% on a year-on-year (YoY) basis.
• Interest expenses were up by 43.4% YoY during the same period.
• Operating expenses increased by 57.1% YoY during the year.
• The company's net interest income (NII) increased by 38.9% YoY during the fiscal. Consequently, net interest margins (NIM) witnessed a decline and stood at 19.6% in FY25 as against 2756.9% in FY24.
• Other income increased by 43.5% YoY during the year.
• Net profit for the year declined by 0.2% YoY.
• Net profit margins during the year declined from 11.7% in FY25 to 16.5% in FY24.

AYE FINANCE LTD. Income Statement – 2024-25

No. of Mths Year Ending		12 Mar-24*	12 Mar-25*	% Change
Interest Income	Rs m	10,402	14,597	40.3%
Other Income	Rs m	315	453	43.5%
Interest Expense	Rs m	3,288	4,716	43.4%
Net Interest Income	Rs m	7,114	9,882	38.9%
Operating Expense	Rs m	5,005	7,862	57.1%
Pre-provision Operating Profit	Rs m	2,424	2,472	2.0%
Provisions & Contingencies	Rs m	28	33	16.3%
Profit before tax	Rs m	2,279	2,250	-1.2%
Tax	Rs m	562	537	-4.3%
Profit after tax	Rs m	1,717	1,713	-0.2%
Minority Interest	Rs m	0	0	0.0%
Net Interest Margin	%	2756.9	19.6
Net profit margin	%	16.5	11.7

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AYE FINANCE LTD. Balance Sheet Analysis

• The company’s deposits during FY25 stood at Rs 0 m as compared to Rs 0 m in FY24, thereby witnessing an an increase of 0.0%.
• Advances for the year stood at Rs 49.5 bn as compared to Rs 0.0 bn during FY24, a rise of 0.0%.
• Cost of deposits for AYE FINANCE LTD. rose 0.0% and stood at 0.0, while yield on advances rose to 0.0.
• The lender’s investments rose to Rs 945 m during the year from Rs 258 m in FY24.
• Borrowing stood at Rs 22.1 bn, a growth of 44085.4% as compared to previous year.
• Overall, the total assets and liabilities for FY25 stood at Rs 62.8 bn as against Rs 48.3 bn during FY24, thereby witnessing a rise of 30.0%.

AYE FINANCE LTD. Balance Sheet – as on 2024-25

No. of Mths Year Ending		12 Mar-24*	12 Mar-25*	% Change
Networth	Rs m	12,141	16,272	34.0%
Advances	Rs m	0	49,502	0.0%
Deposits	Rs m	0	0	0.0%
Yield on advances	%	0.0	0.0
Cost of Deposits	%	0.0	0.0
Investments	Rs m	258	945	266.3%
Borrowings	Rs m	50	22,093	44085.4%
Total Assets	Rs m	48,291	62,771	30.0%

Current Valuations for AYE FINANCE LTD.

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 9.1, an improvement from the EPS of Rs 402.1 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs {{shareprice}}, stands at 0.0 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 0.0 times, while the price to income ratio stands at 0.0 times.
• The company’s price to cash flow (P/CF) ratio stood at 0.0 times its end-of-year operating cash flow earnings.

Per Share Data/Valuations

No. of Mths Year Ending		12 Mar-24*	12 Mar-25*
Income per share (Unadj.)	Rs	0.0	0.0
Earnings per share (Unadj.)	Rs	402.1	9.1
Diluted earnings per share	Rs	7.0	6.9
Avg P/CF ratio	Rs	0.0	0.0
Avg P/E ratio	Rs	0.0	0.0
Avg P/BV ratio	Rs	0.0	0.0
Avg Market Cap	Rs	0	0
Dividends per share (Unadj.)	Rs	0.00	0.00

Ratio Analysis for AYE FINANCE LTD.

• Efficiency Ratios

  Credit/Deposit Ratio: The company’s credit/deposit ratio improved and stood at 4,950,210.0x during FY25, from 0.0x during FY24. The credit/deposit ratio tells us how much money a company has raised in the form of deposits and has deployed as loans.

  Debt to Equity Ratio: The company’s debt to equity ratio increased and stood at 1.4x during FY25, from 0.0x during FY24. The debt to equity ratio of a company tells us how much debt a company uses relative to its equity.

• Liquidity Ratios

  Capital Adequacy Ratio (CAR): AYE FINANCE LTD.’s capital adequacy ratio (CAR) was at 34.9 as on 31 March 2025 as compared to 32.8 a year ago. This ratio helps measure the financial strength of the company or any finance company to meet their obligations using their assets and capital.

  A company that has a good CAR has enough capital to absorb potential losses. Thus, it has less risk of becoming insolvent and losing depositor’s money.

  Provision Coverage Ratio (PCR): The company’s provision coverage ratio stood at 22.1 as on 31 March 2025 as compared to 251.5 in the year ago period. Provisioning coverage ratio (PCR) is the percentage of funds that a company sets aside for covering losses due to bad debts.

  So a high PCR ratio means asset quality issues are under control and the company is not vulnerable.

  Liquidity Coverage Ratio (LCR): The LCR is designed to ensure that companies hold a sufficient reserve of high-quality liquid assets to allow them to survive a period of significant liquidity stress lasting 30 calendar days.

  AYE FINANCE LTD.’s LCR stood at {{lcrperc}} as of 31 March 2025 as compared to {{lcrpercprev}} a year ago.

• Profitability Ratios

  Return on Equity (ROE): The return on equity (ROE) ratio for the company deteriorated and stood at 10.5 during FY25, from 14.1 during FY24. The ROE measures the ability of a firm to generate profits from its shareholders capital in the company.

  Return on Assets (ROA): The return on asset (ROA) ratio of the company deteriorated and stood at 2.7 during FY25, from 3.6 during FY24. The ROA measures how efficiently the company uses its assets to generate earnings.

  Return on Capital Employed (ROCE): The ROCE for the company deteriorated and stood at 12.8 during FY25, from 14.3 during FY24. The ROCE measures the ability of a company to generate profits from its total capital (shareholder capital plus debt capital) employed in the company.

• NPA Ratios

  Gross NPA Ratio: The gross NPA ratio is the ratio of a company’s gross NPAs to gross advances. AYE FINANCE LTD.’s gross NPA ratio stood at 0.0 as of 31 March 2025 compared to 0.0 in the same period a year ago.

  A high gross NPA ratio is a bad thing as it indicates how much of a company’s loans are in danger of not being repaid.

  Net NPA Ratio: In simple language, net NPAs are simply the total non-performing assets minus the provision left aside. It gives you the exact value of NPAs after the company has made provisions.

  The net NPA ratio of AYE FINANCE LTD. was 1.4 in financial year 2025. This compared with 0.9 a year ago.

Key Ratio Analysis

No. of Mths Year Ending		12 Mar-24*	12 Mar-25*
Credit/Deposit Ratio	x	0.0	4,950,210.0
Debt to Equity Ratio	x	0.0	1.4
Loans / Deposits	x	0.0	0.0
Capital Adequacy Ratio	%	32.8	34.9
Provision Coverage Ratio	%	251.5	22.1
Liquidity Coverage Ratio	%	{{lcrpercprev}}	{{lcrperc}}
Return on Equity	%	14.1	10.5
Return on Assets	%	3.6	2.7
Return on Capital Employed	%	14.3	12.8
% of Gross NPAs	%	0.0	0.0
% of Net NPAs	%	0.9	1.4
Yield on Advances	x	0.0	0.0
Yield on Investments	x	0.0	0.0

To see how AYE FINANCE LTD. has performed over the last 5 years, please visit here.