Choice International Delivers Strong Performance - FY23 Revenue Skyrockets 38%

By Arun Poddar - CEO at Choice International Limited

As we complete the financial year, we at Choice have a lot to celebrate.  The past year has been a great success for us, with the company achieving its financial goals and reaching new heights.

Our mission is to empower individuals and businesses and provide innovative financial solutions that help them achieve their goals. We believe that access to transparent and affordable financial services is crucial for inclusive growth and development, and we're committed to making it a reality for millions of people across the country.

Over the years, we have built a reputation for excellence and integrity, and our customers trust us to deliver quality services that meet their evolving needs. With a strong presence in key markets and a talented team of professionals, we're well-positioned to drive growth and value for all our stakeholders.

Financial Year 2022-23 was a year of reaching new heights and we managed to deliver what we have promised at the beginning of the year.

Performance for the Year Ending

Financial Performance:

In FY 22-23 we are delighted to report that Choice has performed exceptionally well. Our yearly revenue has exceeded expectations of our initial projections.

Choice has delivered revenue of Rs. 3,952 Mn, representing a growth of 38% YoY. Consolidated EBITDA and PAT for FY23 was Rs. 1,087 Mn and Rs. 601 Mn respectively.

Business Segment Performance:

FY23 was a year of consolidation. All the efforts taken during the year will pace us for the phenomenal growth expected in the coming years.

The Broking industry has seen a lot of changes due to the global and domestic factors. Despite these headwinds, our Broking business stood strong and we have successfully added 217k demat accounts this year which was a growth of 47% YoY. The number of active clients for the industry has been subdued due to volatility in the stock market, however, we are pleased to announce that Choice has held its 16th rank this year as well, as per NSE’s active (UCC) list.

Mutual Fund industry has seen a surge in investor participation especially from the youth in the recent years. Factors such as favorable market conditions, strong performance of mutual funds, broad range of investment options and the availability of online investment platform have contributed to the growth of AUM. Our Mutual Fund vertical ended the year with an AUM of Rs. 3,635 Mn, a growth of 11% YoY. We have expanded out fleet of products under our Wealth division like Government Bonds, GSec, and T-bills that are seeing an active traction from the customers.

Another turnaround was seen in our Insurance vertical where there has been phenomenal growth. Insurance business clocked in a total premium of Rs. 535 Mn with a total of 17,171 policies sold in FY23. We are proud to announce partnership with Government of Maharashtra under the Gopinath Munde Shetakari Accident Insurance Scheme to settle insurance claims. Under the scheme, we will be serving over 3 crore farmers in Maharashtra, which is in line with our vision of meeting the requirements of the underserved population of India.

The major highlight for our Broking & Distribution business was our initiative to transform the ‘Jiffy’ App into a Super App ‘Choice FinX’ in October. With cutting-edge technology it provides a simplified investing experience for users. This has enabled us to offer users the ability to leverage and easily invest in a variety of financial instruments all in one place, which has led to the major growth in users in the second half of the financial year.

One of the prime focus this year was our NBFC business and we are proud to inform that we have built a strong team and an easy to use application – ‘Choice Money’ to facilitate our transformation from institutional lending to retail lending. This is expected to be one of the primary drivers for future growth. This year we ended with a total loan book at Rs. 2,356 Mn and a retail loan book of Rs. 1,105 Mn. We started retail lending during Q2 with a focus on Tier 3-5 cities, which received a very encouraging initial response. Our retail Loan book stood at Rs 22.3 Mn within the first 15 days of launch. We aim to serve the MSME sector and serve 10X more MSME customers in the underserved geographies in the next three years.

We are delighted to inform you that our Advisory business is growing steadily and has an order book of Rs. 3.80 Bn majorly catering to Water Management projects under the Jal Jeevan Mission of the Government. 70% of these projects are catering to the state of Maharashtra. This segment has a huge potential for growth as we are one of the trusted partners of the Government to execute projects on the ground level seamlessly. We are focusing on other sectors as well and will generate more projects in Railways, Petroleum and Gas, and related sectors in the coming years.

This year was all about expansion. Choice has added 41  new branches across different states during the year to strengthen its foot in the industry. Our focus is always going to be Tier III-VI regions and with this in mind we are planning to expand in the Northern regions for the next financial year.

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 full service financial advisors with the help of proprietary engine, engaging trainings and digital execution of services. We can proudly say that we have a family of 31,252 Choice Business Associates executing our services on the ground level.

One of our core strengths is our in-house team of industry experts that lends the organization the technological prowess to develop easy-to-use APIs for clients .We are working hard to generate value for our shareholders and keeping this as our target we have issued 1:1 Bonus to our shareholders. Also, we are happy to inform that this year we were listed on NSE as a main board company, which was one of the biggest achievement for our company. Choice believes that its backbone is its employees and to thank them for their efforts we have taken the initiative to issue 900K+ Employee Stock Ownership Plan (ESOPs) to eligible employees. This is a significant step in our commitment to align the interests of our employees with those of the company.

Beyond Choice

At Choice International Limited, our focus is not just growing our company but also giving back to the society we live in. We believe in creating a positive impact on society, and that includes providing employment opportunities for people from diverse backgrounds. In line with this philosophy, we have recently announced plans to hire 3000 new employees as part of our expansion in the country.

Furthermore, we believe that as a responsible corporate citizen, we have a duty to give back to the communities we serve. This is why we have launched several CSR initiatives aimed at promoting financial literacy and inclusion. For example, we have organized free financial education camps across the country, including in rural and semi-urban areas, to empower people with the knowledge of modern-day instruments of savings and investments.

In addition, we have partnered with various NGOs and social organizations to promote financial inclusion, education, and entrepreneurship. Our goal is to create a more financially literate and empowered society, where people from all walks of life have access to transparent, regulated, and reliable financial services.

Overall, we believe that our commitment to employment and CSR, combined with our innovative financial solutions and expansion plans, sets us apart from our competitors. At Choice, we are not just in the business of making profits, but also in the business of creating a positive impact on society.

Way Forward:

As I look towards the future of Choice International, I am filled with a sense of excitement and optimism. Our recent expansions in Madhya Pradesh, Rajasthan, and Northern India are just the beginning of our journey to bring innovative financial solutions to people across India. We are committed to reaching every corner of the country and ensuring financial inclusion for all.

Our agenda for financial inclusion is not just a business strategy, but a mission that we truly believe in. Our focus on providing comprehensive financial services through Choice FinX and enhancing lending through our Choice Money App is driven by the goal of making financial services accessible and convenient for everyone, regardless of their demographics and status.

Looking ahead, I am confident that our continued dedication to our mission and our commitment to providing the highest level of customer service will enable us to achieve our financial targets and continue to make a positive impact on the lives of people across India.