Poonawalla Fincorp Q2 Results: PAT grows 77% to ₹ 230 cr

Poonawalla Fincorp Limited, a significant NBFC, specializing in consumer and MSME finance, reported a Profit After Tax (PAT) of Rs 230 crores up by 77 per cent year-on-year (YoY) basis in Q2FY24 ended 30th September 2023.

In the second quarter of 2023, Poonawalla Fincorp achieved a record high in several key areas. They disbursed a remarkable ₹7,807 crore, marking a substantial 151 per cent increase YoY and an 11 per cent rise from the previous quarter. Furthermore, the company’s Assets Under Management (AUM) reached ₹20,215 crore, a remarkable 54 per cent YoY increase and a 14 per cent increase from the previous quarter, reflecting the trust of its customers.

Notably, Poonawalla Fincorp improved its asset quality during this period. The Gross Non-Performing Assets (NPA) reduced to 1.36 per cent, showing a 41 basis points decrease compared to the previous year and a 6 basis points decrease from the previous quarter. The Net NPA also improved to 0.72 per cent, with a 22 basis points reduction year-on-year and a 4 basis points reduction quarter-on-quarter.

Poonawalla Fincorp reported a record Profit After Tax (PAT) of ₹230 crore, indicating a substantial 77 per cent YoY increase and a 15 per cent increase from the previous quarter. The Return on Assets (RoA) stood at 5.0 per cent, marking a 96 basis points improvement YoY and a 19 basis points improvement QoQ. The Net Interest Margin (NIM) reached 11.42 per cent, with a notable 106 basis points increase compared to the previous year and a 2 basis points increase from the previous quarter.

The company effectively managed its operating expenses, which decreased to ₹194 crore, down 8 per cent year-on-year. This contributed to the growth of the Operating Profit (PPOP), which reached ₹336 crore, marking a significant 167 per cent year-on-year increase and a 14 per cent increase from the previous quarter.

Poonawalla Fincorp maintained a robust financial position. The Capital Adequacy Ratio was at a strong 42 per cent, indicating their ability to meet financial obligations. The company also held a healthy liquidity buffer, with ₹3,823 crore in reserves.

Additionally, the company also welcomed Sunil Samdani as the Whole-time Director (Executive Director) for a period of five years, effective immediately.

Commenting on the results, Abhay Bhutada, Managing Director, Poonawalla Fincorp, said, “The first half of FY24 has been extremely promising for us with exceptional results for the second quarter as well. We continued to build on the momentum by crossing ₹ 20,000 crore mark in AUM, achieving highest profitability, best-in-class asset quality and significant growth across various financial parameters. We have started offering instant personal loans through our recently launched cutting-edge mobile app, a step forward in shaping the financial landscape. We are fully prepared and excited about the journey ahead and are confident of delivering stellar performance going ahead.”