Choice Groups’ Revenue Soars by 77% in Q1 FY24

I am thrilled to share with you the outstanding performance of Choice during the first quarter of FY24. As the CEO of this organization, I couldn't be prouder of our team's dedication and relentless pursuit of excellence. The past year has been nothing short of remarkable, as our company soared to new heights and achieved its financial objectives with resounding success. We have entered the new financial year with great enthusiasm and zeal.

“The secret to wealth is simple: Find a way to do more for others than anyone else does. Become more valuable. Do more. Give more. Be more. Serve more. And you will have the opportunity to earn more.” Following this quote I can say that we are dedicated to enabling individuals and businesses alike, equipping them with innovative financial solutions that pave the way for the realization of their aspirations. Our goal of enabling financial independence across the country is intact and we are working towards expanding our reach to every corner of the country.

This blog will not only shed light on our remarkable achievements but also provide insights into our vision for the future as we expand our horizons and drive financial inclusion to even the most remote corners of the country.

A Quarter of Excellence:

This first quarter of FY24 has been a period of triumph for Choice. I am delighted to announce that we have reached new heights and, setting new records for revenue growth and profitability.

In Q1 FY24 Choice has delivered a revenue of Rs. 1,393 Mn, representing a growth of 77% YoY. Consolidated EBITDA and PAT for FY23 was Rs. 376 Mn and Rs. 213 Mn respectively. This remarkable achievement inspires us to aim even higher and continue striving for greater success.

Our Vision for Financial Inclusion:

Business Segment Performance

FY23 was a year of consolidation but FY24 will be a year of expansion and new growth opportunities.

The Broking industry in India has been gradually consolidating with new players entering and existing players changing their business models. With higher compliance costs, tightened regulations, moderation in client accretion and enhanced technological costs, the industry has gone through massive change. However, this has been beneficial for Choice, we have been able to translate these barriers into opportunities by developing new revenue streams through diversification, our in-house tech expertise, and strong and ever growing network in the country.

Our Broking business which includes Stock Broking, Wealth Advisory and Insurance broking accounted for 59% of our total revenues that is Rs. 824 Mn, which is a growth of 72% YoY. Our Stock Broking business stood strong and we have successfully added 41k demat accounts this year which was a growth of 29% YoY taking our total demat accounts to 721k for this quarter. There has been flattish growth in the number of active clients in the industry, however, we are pleased to announce that Choice has held its 16th rank as per NSE’s active (UCC) list while maintaining 5th Rank in Full Service Brokers category. This was possible through our cross-selling capability, low acquisition cost, increasing focus on adding clients from Tier III cities and beyond and easy-to use proprietary platform ‘Choice FinX’.

With increasing awareness for SIPs amongst the youth of our country, our mutual fund business has been growing steadily. We have seen a promising upward trend in the client base, which stood at 84,000 in this quarter, which is a growth of 24% YoY. Total AUM for the MF business stood at Rs. 4,054 Mn, a growth of 28% YoY. The monthly SIP book for this quarter stood at Rs. 52 Mn, a growth of 53% YoY. We are constantly upgrading our fleet of products for the Wealth vertical.

According to the Commission Regulation Act of 2023, the previous limit on individual commission payments for insurance products has been replaced with a new overall limit on management expenses incurred by insurers, this move will be beneficial for us and serve as a key growth factor. Insurance sector in India is undergoing multiple changes due to constantly evolving regulations by the regulatory body. We have sold more than 8,000 policies in Q1FY24, which is a growth of 106% YoY, generating a premium of Rs. 338 Mn, a growth of 186% YoY. We have also successfully partnered with more insurance players to sell their products on our Choice FinX app. We are proud to have provided insurance coverage to over 75,000 lives through our insurance business. With a claim settlement ratio exceeding 95%, we have consistently prioritized our clients' needs and ensured prompt resolution of claims. Furthermore, we are introducing new features that will help clients to identify any errors in their policy documents to avoid claim delays/rejections. Along with that, we are implementing a digital vault feature for easy access and to store all important documents. These enhancements reflect our commitment to delivering exceptional service and convenience to our valued clients.

Moving on to our Advisory business, it has delivered exquisite performance every quarter, contributing 28% to our total revenues for Q1FY24. The current order book stood at 5.27 Bn, a staggering growth of 79% YoY. Our focus is to assist the government in executing projects on the grassroot level and with that in mind till date we have served more than 200k PMAY beneficiaries in the country. We are working closely with the government on their Mission projects to ensure the service delivery to the last mile beneficiary. We are poised for a higher growth with strong credentials, dignified talent pool and technology at core for operational efficiency in the upcoming quarters.

Choice has successfully scaled up the NBFC business that contributed 13% to the overall revenues, and currently has a total loan book of Rs. 4,152 Mn. The focus has been in increasing our retail loan book, which stood at Rs. 1,484 Mn in Q1FY24. The NBFC business is poised to empower MSMEs through retail lending tailored specifically for the semi urban and rural population. Our aim is to regularize the informal lending sector and digitize the journey for a customer. We are constantly improvising on our mobile application ‘Choice Money’ and making it simple to use for a customer. We believe this segment has a huge growth opportunity with evolving regulatory framework and new schemes launched by the government. We aim to serve the MSME sector and serve 10X more MSME customers in the underserved geographies in the next three years.

Choice operates on a very unique asset-light B2B2C business model providing tech-led financial services with a human touch. We enable individual agents to become financial advisors with the help of proprietary engine, engaging trainings and digital execution of services. I am proud to announce that today we are a family of more than 32K Choice Business Associates who are helping us serve the customers across India.

Pioneering Digital Financial Services:

In today's fast-paced world, embracing digital innovation is not just an option; it's a necessity. At Choice, we recognize the significance of technology in transforming lives and enhancing financial accessibility. That's why our major focus is on digital financial services product development.

Our dedicated team of experts is working tirelessly to create cutting-edge digital solutions that will revolutionize the way financial services are accessed and utilized. With user- friendly interfaces and robust security measures, we aim to empower individuals to manage their finances with ease, even from the comfort of their homes. This marks a significant step forward in our commitment to embrace the digital era and cater to the evolving needs of our tech-savvy clientele.

A Bright Future Awaits:

As we reflect on our extraordinary achievements during Q1FY24, we do not rest on our laurels. Choice Group is determined to lead the charge towards a future where financial inclusion is a reality for all, regardless of their location or background.

With expansion across newer cities, we aim to elevate our product portfolio and focus on tech innovation. Another focus area for this year is going to be MSME lending especially retail lending with a ticket size of less than Rs. 1 Mn.

Our journey has just begun, and the road ahead is brimming with possibilities. We owe our success to our esteemed clients, dedicated employees, and supportive stakeholders. Together, we will continue to drive change and build a legacy of empowerment that transcends generations.

Thank you for being a part of our journey, and we look forward to creating a brighter, more inclusive future for everyone.

Arun Poddar

Arun Poddar is the CEO and Executive Director of Choice International Limited. With extensive experience in the financial sector, he leads the company with strategic vision and expertise. Arun Poddar is committed to driving growth and ensuring excellence in operations, contributing to the success of Choice.