Poonawalla Fincorp reports record quarterly PAT in Q1FY24 financial results

The board of directors of Poonawalla Fincorp Limited, a non-deposit taking systemically important NBFC focusing on consumer and MSME finance, has revealed its unaudited financial results for the quarter ending June 30, 2023.

In Q1FY24, the company reported its highest-ever quarterly Profit After Tax (PAT) of Rs 200 crore, marking a YoY increase of 62% and an 11% rise QoQ. The Return on Assets (RoA) for the first quarter reached 4.8%, up by 67 bps YoY. Net Interest Margin (NIM) saw an improvement of 108 bps YoY and 12 bps QoQ, reaching 11.4% for Q1FY24. Operating expenses dropped to Rs 183 crore, reducing 4% YoY and 7% QoQ. The Operating Profit (PPOP) for the quarter amounted to Rs 294 crore, witnessing a YoY rise of 148% and a QoQ increase of 39%.

As of June 30, 2023, Poonawalla Fincorp’s Capital Adequacy Ratio remained at 36%, with a liquidity buffer of Rs 4,020 crore. Quarterly disbursements achieved their highest-ever level at Rs 7,063 crore, up by 143% YoY and 11% QoQ. Assets Under Management (AUM) reached Rs 17,776 crore, up by 41% YoY and 10% QoQ. The contribution of the Direct Digital Program (DDP) in disbursements increased to 86% in Q1FY24, from 81% in Q4FY23.

Regarding asset quality, the Gross NPA reduced to 1.42%, a decrease of 126 bps YoY and 2 bps QoQ. The Net NPA also saw a reduction, settling at 0.76%, down by 35 bps YoY and 2 bps QoQ.

Poonawalla Fincorp Managing Director, CA Abhay Bhutada, shared his thoughts on the company’s Q1FY24 performance, stating, “We have taken the FY23 momentum ahead with a fantastic start to FY24. The business growth has been strong, complemented with best-in-class asset quality and superior profitability. Our Fintech model, with the focus on increasing productivity and improving efficiency, has led to a further reduction in operating expenses.”