Poonawalla Fincorp Reports Strong Q1 FY25 Growth

On July 20, 2024, Poonawalla Fincorp Limited, a key non-deposit-taking NBFC specialising in consumer and MSME finance, released its unaudited financial results for the quarter ending June 30, 2024. The company showed steady growth in assets under management (AUM) and profitability and maintained high asset quality and strong customer engagement.

Poonawalla Fincorp Limited Q1 FY25 Highlights

Assets

• Assets Under Management (AUM): ₹26,972 crore, up 52% from last year and 8% from the previous quarter.
• AUM Breakdown: 35% MSME finance, 28% personal and consumer finance, 17% loan against property, and 14% pre-owned cars.

Asset Quality

• Gross NPA: 0.67%, down 0.75% from last year and 0.49% from last quarter.
• Net NPA: 0.32%, down 0.44% from last year and 0.27% from last quarter.
• Provision Coverage Ratio: 52.53%.

Profitability

• Operating Profit (PPOP): ₹432 crore, up 47% from last year and 6% from last quarter.
• Profit After Tax (PAT): ₹292 crore, up 46% from last year.
• Return on Assets (ROA): 4.62%.
• Net Interest Income: ₹676 crore, up 42% from last year and 5% from last quarter.

Capital Adequacy and Liquidity

• Capital Adequacy Ratio: 31.57%, with Tier-1 at 30.09%, well above the required 15%.
• Liquidity Buffer: ₹5,192 crore.

Commenting on the results, Mr Arvind Kapil, Managing Director and CEO of Poonawalla Fincorp, said, “Our fundamental guiding philosophy for all businesses will be productivity, predictability, and sustainability. We envisage achieving this through higher investments, mainly in collections, technology, and the launch of new businesses. This will help us build a retail franchise step-by-step, process-by-process, with solid risk management and a mix of the right products.”

About Poonawalla Fincorp Limited

Poonawalla Fincorp is a major non-deposit-taking finance company. It is part of the Cyrus Poonawalla group and registered with the Reserve Bank of India (RBI). It began operations nearly 30 years ago and is listed on the BSE and NSE. It operates across 19 states, manages assets worth ₹26,972 crore as of June 30, 2024, and employs over 2,450 people.

On July 22, 2024, the share price of Poonawalla Fincorp Limited opened at ₹408.95, touching the day’s high of ₹413.00 as of 11:04 AM on the NSE.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.