Poonawalla Fincorp's consolidated Q1 net profit up 118% to Rs 141 crore

Poonawalla Fincorp Ltd, erstwhile Magma Fincorp, posted 118 per cent year-on-year (YoY) rise in net profit at Rs 141 crore for the first quarter ended June 2022 (Q1FY23) on improvement in net interest margins (NIM).

It had posted a consolidated profit of Rs 64.5 crore in quarter ended June 2021 (Q1FY22) and Rs 119 crore in quarter ended March 2022 (Q4FY22). Its stock closed 3.5 per cent higher at Rs 271.95 per share on BSE.  

Poonawalla Fincorp’s NIMs were up by 155 basis points YoY to 9.5 per cent. Sequentially, however, they were down by seven basis points quarter on quarter (QoQ) over NIM in March 2022. Its cost of borrowing declined to 6.9 per cent in June 2023 from 9.6 per cent a year ago.

The Pune-based finance company said its assets under management (AUM) grew by 22.4 per cent YoY to Rs 17,660 crore and 6.5 per cent QoQ. Its disbursements stood at Rs 3,436 crore in Q1FY23, growing by 98.3 per cent YoY and 3 per cent QoQ.

The asset quality profile showed improvement with gross non-performing assets (GNPAs) moderating to 2.19 per cent in June 2022 from 5.38 per cent a year ago and net NPAs to 0.95 per cent from 2.71 per cent in June 2021. The company has a healthy provision coverage ratio at 57 per cent.