Poonawalla Fincorp quarterly results
Poonawalla Fincorp recorded its highest-ever quarterly profit of ₹332 crore in Q4 FY24, marking an 84 percent increase year-on-year and a 25 percent rise quarter-on-quarter. For the full fiscal year FY24, the profit after tax stood at ₹1,027 crore, reflecting an 83 percent surge compared to the previous year. The non-banking financial company (NBFC) witnessed remarkable disbursements totaling ₹9,688 crore during the quarter, marking a 52 percent increase year-on-year and an 11 percent increase quarter-on-quarter. As of March 2024, the assets under management (AUM) reached ₹25,003 crore, showing a 55 percent year-on-year growth and a 14 percent quarter-on-quarter growth.
In terms of loan composition, MSME loans, both secured and unsecured, constituted 37 percent of the total loans, while personal and consumer loans accounted for 23 percent, LAP for 16 percent, and pre-owned car loans for 15 percent as of the end of FY24. Secured loans comprised 49 percent of the total loans, with unsecured AUM making up the remaining 51 percent, as indicated in the investor presentation. The Net Interest Margin (NIM) stood at 11.06 percent, marking a sequential increase of 4 basis points.
During FY24, Poonawalla Fincorp achieved significant milestones, with AUM crossing ₹25,000 crore and PAT surpassing ₹1,000 crore. MD and CEO Abhay Bhutada highlighted that the company’s differentiated strategy was reflected in all business metrics.
The gross NPA ratio improved by 28 basis points year-on-year and 17 basis points quarter-on-quarter to 1.16 percent by the end of FY24. Similarly, the net NPA ratio stood at 0.59 percent, marking a 19 basis points improvement year-on-year and an 11 basis points improvement quarter-on-quarter. The Capital Adequacy Ratio reached 33.8 percent as of March 31, with a liquidity buffer of ₹3,932 crore.
Looking ahead, the NBFC anticipates maintaining AUM growth between 35-40 percent, profit growth between 30-35 percent, gross NPA ratio between 1.3-1.8 percent, net NPA ratio between 0.5-0.9 percent, and return on assets (RoA) between 4.0-4.5 percent over the long term.
