Poonawalla Fincorp consolidated net profit up at Rs 96 crore in Q3

Interest margins improve, credit costs down; asset growth flat

Poonawalla Fincorp Ltd’s (PFL) consolidated net profit rose sharply to Rs 96 crore for the third quarter ended December 2021 (Q3Fy22) from Rs 13 crore in Q3Fy21 on improvement in interest margins and dip in credit costs.

PFL, formerly Magma Fincorp, had posted a net profit of Rs 96 crore in the second quarter ended September 2021 (Q2Fy22), according to investor presentation.

The share of finance firm close flat at Rs 281.8 per share on BSE.

Net Interest Margins (NIM) stood at 8.8 per cent in Q3 Fy22, up from 8.5 per cent in December 2020. However, sequentially NIM declined from 9.1 per cent in Q2Fy22.

Its credit costs declined sharply to just Rs two crore from Rs 182 crore in Q3Fy21 and Rs 35 crore in Q2Fy22.

The gross non-performing assets (GNPAs) declined to 3.5 per cent in December 2021 from 6.9 per cent a year ago and 4.1 per cent in September 2021. The net NPAs were also down 1.8 per cent from 4.5 per cent in December 2020 and 2.0 per cent in September 2021.

The finance company’s assets under management (AUMs) were flat at Rs 15,228 crore at end of December 2021 as against Rs 15,006 crore in December 2020 and sequentially Rs 15,275 crore in September 2021.

The capital adequacy ratio stood at 54.2 per cent at end of December 2021.