Poonawalla Fincorp spurts after strong Q3 numbers

Poonawalla Fincorp surged 5.05% to Rs 305 after the NBFC's consolidated net profit jumped 89.12% to Rs 182.44 crore on 38.86% rise in total income to Rs 716.23 crore in Q3 FY23 over Q3 FY22.

The company's consolidated profit before tax (PBT) soared 86.77% year on year to Rs 243.66 crore in the quarter ended 31 December 2022.

On standalone basis, the NBFC's net profit jumped 87.51% to Rs 150.42 crore on a 31.72% increase in total income to Rs 519.31 crore in Q3 FY23 over Q3 FY22.

Net interest margin (NIM) improved by 94 bps YoY and 33 bps QoQ to 10.7% in Q3 FY23.

Assets Under Management (AUM) for Q3 FY23 increased to Rs 13,929 crore, recording a growth of 28% YoY and 6% QoQ. The company reported its highest ever quarterly disbursements at Rs 3,369 crore, up by 157% YoY and 8% QoQ.

Pre-provision operating profit (PPOP) was at Rs 156 crore, up 23% QoQ during the period under review.

On asset quality front, Gross Stage 3 and Net Stage 3 assets decreased to 1.69% and 0.89% as at 31 December 2022 from 4.05% and 1.97% respectively as of 31 December 2021. The company had healthy Stage 3 provision coverage ratio at 47.77%.

Liquidity buffer stood at Rs 3,168 crore as of 31 December 2022 and Capital adequacy ratio stood at 44%.

CA Abhay Bhutada, Managing Director, said The quarter gone by, witnessed all round performance on the back of relentless execution with highest ever disbursement, PAT and ROA leading us to high growth trajectory. Q3 FY23 also marked the announcement of sale of our housing subsidiary as PFL continues to focus on building a tech-led digital-first financial services company, with leadership position in consumer & MSME financing. As per our long-term guidance on financial metrics, we expect AUM growth of 35-40% with ROA of 4-4.5% as we continue to build a strong retail franchise.

Further, the board of directors has approved raising of funds through issuance of non convertible debt securities on private placement basis for the financial year 2023-24 for an amount up to Rs 4,000 crore.

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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