Poonawalla Fincorp Q4 results: Net profit rises 67% to Rs 332 crore

FY24 PAT up 146 per cent year-on-year to Rs 1,683 crore; AUM crosses Rs 25,000 crore

Poonawalla Fincorp, a non-deposit taking non-banking financial company (NBFC), reported a 67 per cent year-on-year growth in consolidated net profit to Rs 331.7 crore for the quarter ending March 2024, up from Rs 198.55 crore in the year-ago period. For the full year, the company's reported net profit stood at Rs 1,683 crore, compared to Rs 685 crore in financial year 2023, albeit boosted by exceptional items. After adjusting for the extraordinary items, the profit amounted to Rs 1,027 crore, up 83 per cent from Rs 561 crore in the previous year, according to the lender's investor presentation.

The company had sold its investment in Grihum Housing Finance, formerly known as Poonawalla Housing Finance on July 26, 2023, which boosted its profit in the September 2023 quarter as well as for the full year.

Poonawalla Fincorp's assets under management (AUM) stood at Rs 25,003 crore at the end of March 2024, up 55 per cent over March 2023 and up 14 per cent compared to December 31, 2023. The company's asset quality improved as the gross non-performing asset ratio fell by 28 basis points year-on-year and 17 basis points quarter-on-quarter to 1.16 per cent in the quarter. Likewise, the net NPA ratio reduced by 19 basis points year-on-year and 11 basis points quarter-on-quarter to 0.59 per cent.

“Our rigour and execution excellence has ensured that we have continuously outperformed and given consistent superior performance resulting in achieving significant milestones of AUM crossing Rs 25,000 crore and PAT crossing Rs 1,000 crore,” said Abhay Bhutada, managing director at Poonawalla Fincorp.

The return on assets (RoA) ratio stood at 5.73 per cent, up 73 basis points year-on-year and 42 basis points quarter-on-quarter. The net interest margin (NIM) was at 11.06 per cent, up 4 basis points quarter-on-quarter.

The operating expenditure to AUM ratio was at 3.99 per cent in Q4FY24, down by 144 basis points year-on-year and 1 basis point quarter-on-quarter. Operating Profit (PPOP) was at Rs 409 crore for Q4FY24, up 93 per cent year-on-year and 17 per cent quarter-on-quarter.

Capital Adequacy Ratio (CAR) stood at 33.8 per cent, and the liquidity buffer stood at Rs 3,932 crore.