Optimus Finance Limited (**OFL**) is a Vadodara-based **Non-Banking Financial Company (NBFC)**, registered with the **Reserve Bank of India (RBI)** as a **Non-Deposit taking (NBFC-ND)** entity. Classified under the **Base Layer (NBFC-BL)** of the RBI’s Scale Based Regulation, the company has evolved from a traditional lending firm into a diversified holding group with significant interests in international trade, petrochemical manufacturing, and infrastructure development. --- ### **Group Structure and Global Footprint** OFL operates through a sophisticated network of domestic and international subsidiaries, enabling a presence in high-growth markets across the Middle East and East Africa. | Entity | Relationship | Location | Core Activity | | :--- | :--- | :--- | :--- | | **Maximus International Limited (MIL)** | Subsidiary (**BSE Listed**) | India | Trading of Base Oils & Petro-chemicals | | **Maximus Infra Ventures Limited** | Wholly Owned Subsidiary | India | Real Estate & Infrastructure (Inc. **July 2024**) | | **Maximus Global FZE** | Step-down Subsidiary | UAE | Marketing & Export of Lubricants | | **Maximus Lubricants LLC** | Step-down Subsidiary | UAE | Manufacturing (Lubricants & Specialty Oils) | | **Quantum Lubricants (E.A.) Ltd** | Step-down Subsidiary | Kenya | Manufacturing (Lubricants & Chemicals) | | **MX Africa Limited** | Step-down Subsidiary | Kenya | Marketing & Distribution | The group maintains a consolidated manufacturing capacity of **50,000 KL per annum** for lubricants and specialty oils. Its East African operations serve as a hub for **Uganda, Tanzania, and Rwanda**, while its UAE units export to GCC countries including **Qatar, Kuwait, Saudi Arabia, Oman, and Bahrain**. --- ### **Core Business Segments & Revenue Drivers** The group’s operations are categorized into two primary reportable segments under **Ind AS-108**: #### **1. Financing and Investment** This segment focuses on the core NBFC activities of granting **loans**, making **strategic investments**, and trading in **marketable securities** and **mutual funds**. OFL leverages technology to optimize credit delivery, offering **competitive interest rates** and faster sanctioning processes compared to traditional banks. #### **2. Manufacturing and Trading (Oils & Chemicals)** Conducted primarily through **Maximus International Limited (MIL)**, this segment involves sourcing, manufacturing, and marketing lubricants and base oils. * **Performance:** MIL achieved consolidated revenue of **INR 156.84 crore** in the most recent cycle, surpassing its **INR 150 crore** milestone. * **Growth:** The segment saw **26% EBITDA growth** and **14% PAT growth**. * **Expansion:** Plans are underway to enter **Jordan, Ghana, Nigeria, and South Africa**. --- ### **Strategic Diversification: Infrastructure & Real Estate** In **July 2024**, the group incorporated **Maximus Infra Ventures Limited (MIVL)** as a Wholly Owned Subsidiary. This move marks a strategic pivot to capitalize on the Indian **real estate, infrastructure, and construction** sectors. MIVL is designed to execute value-driven infrastructure projects, enhancing the group's corporate agility and diversifying its asset base beyond financial services and petrochemicals. --- ### **Capital Restructuring and Financial Engineering** OFL has undertaken several corporate actions to improve market liquidity and fund its aggressive expansion: * **Stock Split (March 2025):** Executed a **1:10 sub-division**, reducing the face value of equity shares from **Rs. 10** to **Re. 1** to encourage retail participation. * **Borrowing Expansion:** Shareholders approved an increase in borrowing limits to **Rs. 100 Crores** (beyond paid-up capital and reserves) to support working capital and CAPEX. * **Equity Conversion:** Provisions allow lenders to convert outstanding financial assistance into **Equity Shares**, providing a flexible mechanism for debt management. * **Capital Base:** Following the conversion of **19,00,000 warrants** in **January 2023**, the Authorized Share Capital stands at **Rs. 7,50,00,000** (divided into **7,50,00,000** shares of **Re. 1**). --- ### **Financial Performance and Asset Quality** The company has demonstrated consistent growth, transitioning into a pivotal player in the NBFC ecosystem. #### **Comparative Financial Summary** | Metric | FY 2024-25 (Standalone) | FY 2023-24 (Consolidated) | FY 2022-23 (Consolidated) | | :--- | :--- | :--- | :--- | | **Total Revenue** | **₹1.49 crore** | **₹108.8 crore** | **₹100.29 crore** | | **Net Profit (PAT)** | **₹53.22 Lakhs** | **Steady Growth** | **₹7.39 crore** | | **Cash & Equivalents**| **₹65.34 Lakhs** | - | **₹2.17 crore** | | **EPS (Face Value ₹10)**| - | - | **₹7.53** | #### **Credit Risk Management** The group employs an **Expected Credit Loss (ECL)** model to manage impairment. Despite a significant increase in trade receivables, the allowance percentage has remained stable. | Particulars | March 31, 2025 | March 31, 2024 | | :--- | :--- | :--- | | **Trade Receivable** | **₹7872.31 Lakhs** | **₹4403.08 Lakhs** | | **ECL Allowance** | **₹29.89 Lakhs** | **₹19.25 Lakhs** | | **Allowance %** | **0.38%** | **0.44%** | --- ### **Liquidity and Debt Profile** The group utilizes a mix of internal accruals and strategic credit facilities: * **Domestic Debt:** MIL utilizes an **SBI Cash Credit** facility at **11% p.a.** and a **Yes Bank** loan against property at **10.25%** (repayable through **2038**). * **International Debt:** UAE subsidiaries maintain **INR 6.35 Cr** in facilities with **ADCB Bank** (**EIBOR + 7%**). Kenyan operations utilize **INR 6.61 Cr** in bill discounting from **Stanbic Bank**. * **Inter-company Optimization:** The group uses tripartite agreements (e.g., with **Neo lubritech FZ-LLC**) to offset inter-company receivables and payables, optimizing global liquidity. --- ### **Risk Framework and Mitigation** OFL operates a systematic risk management framework overseen by the Board to address several key threats: * **Market Competition:** High rivalry from traditional banks and unorganized money lenders in rural markets. The company counters this through **customer-centric retail lending**. * **Macroeconomic Volatility:** Exposure to **services inflation** and "higher-for-longer" interest rates. * **Currency & Price Risk:** Managed via a formal foreign exchange risk policy and a board-approved portfolio framework for equity investments. * **Contingent Liabilities:** * **GST/Customs:** Disputed demands of **INR 44.21 Lakhs** (India) and **INR 8.69 Lakhs** (Kenya). * **Guarantees:** Corporate guarantees totaling approximately **INR 18.73 Cr** in favor of international banks for subsidiary operations. * **Regulatory & Governance:** The company recently updated its **Registrar and Share Transfer Agent (RTA)** to **Bigshare Services** and addressed a non-compliance regarding **Secretarial Standard-1 (SS-1)**. In **August 2023**, the company saw the resignation of its statutory auditor (**CNK**) following a fee dispute related to increased disclosure requirements.