Poonawalla Fincorp Q4 profit up double at Rs 181 cr, AUM grows 37%

Board recommend dividend payment of 100% per share of face value (Rs 2 each)

Poonawalla Fincorp Ltd (PFL)’s net profit more than doubled to Rs 181 crore in the fourth quarter ended March 2023 (Q4 FY23) on improved net interest margin (NIM). It made a profit of Rs 89 crore in Q4 FY22.

Sequentially, profit was up 20 per cent from Rs 150 crore in the third quarter ended December 2022 (Q3 FY23). For FY23, the non-banking finance company posted a net profit of Rs 585 crore in FY23 compared to Rs 293 crore in FY22.

The company’s board recommended a dividend payment of 100 per cent per share of face value (Rs 2 each) for FY23 subject to shareholder’s approval, according to a filing with BSE. Shares of PFL, erstwhile Magma Fincorp, were trading 2.5 per cent lower at Rs 308.5 per share on BSE. Its capital adequacy stood at 39 per cent at the end of March 2023.

NIM was up by 87 basis points year-on-year (YoY) to 11.3 per cent. Sequentially, it was up by 59 basis points quarter-on-quarter (QoQ) over NIM in December 2022. However, the company’s average cost of borrowing rose to 7.9 per cent in March 2023 from 7.5 per cent in March 2022.

The Pune-based company said its assets under management grew by 37 per cent YoY to Rs 16,143 crore and 16 per cent QoQ. Its disbursements stood at Rs 6,371 crore in Q4 FY23, growing by 151 per cent YoY and 89 per cent QoQ.

The asset quality profile showed improvement with gross non-performing assets (GNPAs) moderating to 1.44 per cent in March 2023 from 3.29 per cent a year ago and net NPAs to 0.78 per cent from 1.30 per cent in March 2022. The company has a healthy provision coverage ratio at 46.9 per cent.