59 | Annual Report | 2024-2025 Arohan has consistently been at the forefront of digital innovation within the microfinance sector. Our mobile-first approach, cloud-based CRM system, seamless cashless transactions, data analytics capabilities, e-signature integration, and facial recognition technologies are just a few examples of how we’re leveraging technology to enhance both customer service and operational efficiency. By combining these digital solutions with our commitment to sustainable practices, Arohan is paving the way for a future-ready organisation, ready to lead the microfinance industry into a more efficient and ethical future. AROHAN’S DIVERSIFIED LIQUIDITY STRATEGY: ENABLING OPERATIONAL EFFICIENCY AND CUSTOMER WELL-BEING In FY 2025, Arohan adopted a proactive and diversified liquidity strategy to navigate industry headwinds and support customer-centric growth. Despite sector-wide challenges, Arohan ensured efficiency in operations and timely customer support. Investments in government securities and improved portfolio quality further enhanced confidence. As securitisation gains industry traction, Arohan remains committed to efficient liquidity management and inclusive financial services for underserved communities. Financial year 2025 has been a significant year for Arohan with total asset and gross portfolio at INR 6,886 Cr and INR 6,003 Cr respectively. Arohan closed the year with the following key financial results: • Total Revenue stands at INR 1,695 Cr. • Pre-Provisions Profit before Taxes stands at INR 536 Cr shows strong business model fundamentals. • Improved retained earnings along with increased Equity Capital base have resulted in healthy CRAR at 34.09% • Net worth stood at INR 2,025 Cr. Arohan continued its growth trajectory in FY 2025, 93% 6% 1% Interest Income Fee Income Other Income expanding its branch network from 975 in FY 2024 to 1,102 in FY 2024–25. The Company’s workforce also grew by 10%, with employee strength (excluding apprentices) rising from 9,333 to 10,252 during the same period. Throughout the year, Arohan maintained a strong liquidity position to ensure seamless operations and customer service. As of March 2025, total borrowings stood at approximately INR 4,703 Cr. A detailed analysis of the Company’s financial performance in FY 2025, compared to the previous fiscal year, is presented below. INCOME STATEMENT ANALYSIS Revenue Break-up of Revenue for FY 2025 Revenue grew modestly by 4% from FY 2024 to FY 2025. This limited growth was primarily driven by a decline in average Assets Under Management (AUM) during the year, a direct impact of the Cease & Desist Order issued by the Reserve Bank of India on October 17, 2024. Expenditure Finance cost has increased by 7% y-o-y in line with increase in average borrowings for the financial year and increase in borrowing benchmarks. With the employee count increasing from 9,333 in FY 2024 to 10,252 in FY 2025, employee costs increased from INR 325 Cr in FY 2024 to INR 389 Cr in FY 2025 showing a 20% increase over the previous year. The administrative costs have increased by 9% from the previous year in line with increase in business branches and manpower.
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