Poonawalla Fincorp recorded highest ever PAT of Rs 585 cr in FY23; Board declares 100% divided

Poonawalla Fincorp Limited

Poonawalla Fincorp Limited’s Board of Directors, a non-deposit-taking systemically important NBFC specialising in consumer and MSME credit, today published its audited financial results for the quarter and year ended March 31, 2023.

In Q4FY23 (Standalone), the lending institution recorded a surge in assets with its highest-ever quarterly disbursements, contributing to an increase of 151 per cent YoY and 89 per cent QoQ at Rs. 6,371 crore. The Assets Under Management (AUM) increased by 37 per cent YoY and 16 per cent QoQ, reaching Rs. 16,143 crore. The Digital Direct Program (DDP) contributed to 81 per cent of disbursements in Q4FY23, showing an improvement from 66 per cent in Q3FY23 and 24 per cent in Q4FY22.

They also reported an improvement in asset quality. Gross NPA reduced by 185 basis points YoY and 25 basis points QoQ, while net NPA reduced by 52 basis points YoY and 11 basis points QoQ.

In terms of profitability, Poonawalla Fincorp recorded its highest-ever PAT (profit after tax) at Rs. 181 crore for Q4FY23, which was an increase of 103 per cent YoY and 20 per cent QoQ. The Return on Assets (RoA) also reached its highest-ever at 5 per cent for Q4FY23, up 178 basis points YoY and 53 basis points QoQ, with NIM at 11.3 per cent for the same period, an improvement of 87 basis points YoY and 59 basis points QoQ. Operating expenses for Q4FY23 were at Rs. 196 crore, down 4 per cent QoQ, while the operating profit (PPOP) was at Rs. 212 crore, up 84 per cent YoY and 36 per cent QoQ.

The Board has also recommended a dividend of Rs. 2 per share (100 per cent of face value) for FY23, subject to shareholders’ approval. The Capital Adequacy Ratio stood at 39 per cent as of March 31, 2023, and the liquidity buffer was at Rs. 3,001 crore as of the same date.

Commenting on Poonawalla Fincorp’s performance, CA Abhay Bhutada, Managing Director, said “FY23 has been a year of exemplary performance across business growth, credit quality and profitability. Our strong fundamentals and execution are reflected in our credit rating upgrade to AAA by both CRISIL and CARE. We have led the way in building a real Fintech model at scale, with asset quality which is best-in-class, along with superior profitability. Our ability to innovate, understand future trends, deliver at pace, and build a strong digital eco-system, has made us a lender of choice. With an efficient cost of borrowing, lower operating cost, controlled credit cost and a branch-lite tech-led model, we are well poised to deliver a sustainable and exceptional performance.”

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