Navi scales 48% in FY24; loan write-offs surpass Rs 400 Cr

Navi Finserv, led by Flipkart co-founder Sachin Bansal, sold its subsidiary Chaitanya India Fin Credit to Svatantra Microfin for Rs 1,166 crore in November 2023. This transaction is reflected in Navi Finserv's consolidated financials, with revenue from the divested subsidiary excluded from FY24 results.

Navi’s revenue from operations rose to Rs 1,906 crore in FY24 from Rs 1,238 crore in FY23, as per its standalone financial statements. The company provides a range of services, including personal and home loans, bill payments, insurance, digital gold, and mutual funds.

Interest income comprised 84.5% of Navi’s total revenue, growing by 36.5% to Rs 1,611 crore in FY24. Fees, commissions, and other allied services contributed Rs 225 crore, while gains from the sale of the subsidiary and miscellaneous income brought total revenue to Rs 2,614 crore for FY24.

As with other lending companies, finance costs were Navi’s largest expense, making up 37.6% of total expenditures and rising by 54.2% to Rs 658 crore. Additionally, employee benefits increased by 77%, reaching Rs 150 crore in FY24.

Notably, the firm’s loan write-offs totaled Rs 406 crore in FY24. Fees, commissions, software, legal expenses, customer onboarding, and other costs brought total expenditures to Rs 1,750 crore for FY24.

The 48.6% increase in scale helped Navi post a 49% rise in operating profits, reaching Rs 155 crore in FY24. Meanwhile, net profits stood at Rs 668 crore, largely driven by gains from the sale of its subsidiary.

According to Entrackr, Navi’s ROCE and EBITDA margins stood at 15.93% and 59.31%, respectively. On a unit level, it spent Re 0.92 to earn a rupee of operating income in the fiscal year ending March 2024.

Update at 2:55 pm, 8th Oct: After consulting with Navi's management, we are updating the story to include standalone financial statements, as the consolidated figures for FY23 and FY24 are not directly comparable due to the divestment of its subsidiary: Chaitanya India Fin Credit.