Poonawalla Fincorp rises after strong Q1 performance

Poonawalla Fincorp gained 1.53% to Rs 276.10 after the NBFC's consolidated net profit jumped 118.3% to Rs 140.92 crore on 18.7% rise in total income to Rs 578.70 crore in Q1 FY22 over Q1 FY21.

On a consolidated basis, profit before tax (PBT) surged 125.4% year on year to Rs 182.61 crore in the quarter ended 30 June 2022.

Net interest margin (NIM) improved by 155 bps YoY to 9.5% in Q1 FY23.

Assets Under Management (AUM) for Q1 FY23 increased to Rs 17,660 crore, recording a growth of 22.4% YoY and 6.5% QoQ. Disbursements stood at Rs 3,436 crore, growing by 98.3% YoY and 3% QoQ.

On asset quality front, Gross Stage 3 and Net Stage 3 assets decreased to 2.19% and 0.95% as at 30 June 2022 from 5.38% and 2.71% respectively as of 30 June 2021. The company had healthy Stage 3 provision coverage ratio at 57%.

The company continued to maintain a strong liquidity position with surplus of Rs 4,654 crore. The repricing of all eligible term loans and new borrowing at competitive rates resulted in further bringing down the average cost of borrowing to 6.9% in Q1 FY23 from 7.4% in Q4 FY22.

The company and its subsidiary PHFL continues to have long-term rating of 'AA+ / Stable' by CRISIL and CARE.

CA Abhay Bhutada, managing director of Poonawalla Fincorp said, "We have had a great start to this financial year. Our execution excellence has ensured that this quarter (Q1 FY23) has been better than last quarter (Q4 FY22). Strong disbursements, on the back of excellent organic disbursement growth, is a validation of our business model. We have worked across the functions to get a multiplier effect on efforts, further leading to 'strengthening of our strengths' and 'weakening of our weaknesses'. The distribution is diversified, the processes are digitized, the credit underwriting stands strengthened along with best-in-class collection and risk management practices.

With ticks on all the right boxes, we are now truly into the growth phase as per our 'Consolidate, Grow and Lead' strategy. We will continue our rigor on execution, investment in people, building technology and a strong retail consumer franchise. We are well on course to deliver an exceptional performance."

Poonawalla Fincorp is a Cyrus Poonawalla group promoted non-deposit taking systemically important non-banking finance company (ND-SI-NBFC), registered with the Reserve Bank of India (RBI).

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