LFSPL H1-FY24 loss at 1.72 cr
Amit Chettupuzha
KOCHI: Lulu Financial Services Pvt Ltd (LFSL) that runs a small-scale operation with assets under management to the tune of Rs27.6 crore as of September end, 2023, is mostly into gold loan business contributing to the extent of 90 per cent of the assets under management (AUM).
The company that commenced its operations as recently as November 2021 has plans to boost its personal loan business in a big way so as to contribute 15 per cent to its assets under management (AUM) by end-FY-25, according to a note released by India Ratings (IndRa).
IndRa has recently assigned IND BB+/Stable rating to the company’s non-convertible debentures (NCDs) valued at Rs40 crore and an equivalent amount of bank loans.
Profit still eludes
LFSPL is yet to come out of the ‘red’ with the FY24 first half (H1) loss posted by LFSPL being Rs1,72 crore compared with a loss of Rs2.31 crore for the full year FY23.
While the total assets of the company stood at Rs36.4 crore as of end H1-FY24, the total equity was at Rs19.9 crore. The company hopes to achieve Rs25 crore equity capital soon.
Strong parentage
LFSPL, which has a strong parentage by virtue of being part of the Abu Dhabi-headquartered Lulu group, is a registered non-banking financial company (NBFC) headquartered in Ernakulam, Kerala.
LFSPL has 31 branches and it started its operations in 2021. It is a subsidiary of LuLu Financial Holdings Ltd (LFHL) that is headquartered in Abu Dhabi..
