On October 20, 2023: Poonawalla Fincorp (BSE, NSE: POONAWALLA) announced its Q2 2023-24 financial results, portraying the fact that the company has witnessed an “excellent quarter on all fronts”. In Q2, Poonawalla Fincorp had the highest-ever quarterly PAT, the highest-ever quarterly disbursement, and the lowest NNPA and GNPA.
Table of Content
Featured Highlights
For Poonawalla Fincorp, Q2 was an optimal performance quarter, featuring the key highlights listed below:
- With an expanding growth horizon, the company reported robust business momentum with the highest disbursement of ₹7,807 crore and growth across every product line. Additionally, a consistent rise in disbursement was seen and it was up 11% QoQ and up 151% YoY. Also, the company has recorded AUM of ₹20,215 crore along with growth of 14% QoQ and 54% YoY.
- With a strengthened distribution system in its Direct Digital Programme, the company has launched a mobile app to facilitate the disbursement of loans. The DDP contribution in terms of disbursements stood at 81% in Q2, compared to just 54% in Q2 of the last fiscal year.
- Another positive aspect of Q2 was the company’s efficiently managed liability book. The average COB in Q2 was reduced to 7.98%, down by 6 bps QoQ. Q2 was marked by a well-diversified borrowing spread over a variety of banks, capital market players, and financial institutions. Apart from this, the icing on the cake for the company was the assigned CRISIL and CARE long-term credit rating of AAA/Stable.
- With expansion at the crux of this quarter, Q2 saw GNPA and NNPA coming down to 1.36%, and 0.72%, respectively.
- Taking the company’s growth even further, NIM was at 11.42%, a rise of 106 bps YoY and 2 bps QoQ.
- The Operating Expenses were at ₹194 crore, down 8% YoY.
- The Operating Profit was at ₹336 crore, a rise of 14% QoQ and 167% YoY.
- The PAT was up at ₹230 crore, an increase of 15% QoQ and 77% YoY.
Additional Read: Q2 Results Dashboard
Digitisation at the Forefront
In Q2, the company saw a significant rise in the use of digitisation for operations and functionality. Across all services and products, the company boasts 100% digital processes. The focus of the company is on customer advocacy using the power of technology. With advancements in the usage of data analytics, the company has used technology in all the spheres of its operations, especially connected to its customers, right from sales and collections to risk monitoring and user-friendly platforms.
Also Read: Poonawalla Fincorp Share Price
The Digital Journey Ahead
In its press release, the company has clearly stated that it aspires to engage digital networks in all aspects of its functioning. Toward this aim, the Fintech is moving ahead full-steam having completed a large part of this concept in Q2. The company hopes to launch EMI cards, co-branded credit cards, and some other digital offerings where loans are concerned in the upcoming quarters.
Enhancing the Company, Investing in Humans
With a view to boosting its employee base, Poonawalla Fincorp has made strides to build the correct work culture to facilitate growth. Its enhanced ESOP coverage now includes middle management to encourage a positive work ethic and ensure profitable results from its workforce. The company has also invested in a Functional and Behavioural Training Programme for the benefit of its workforce.
What the Company Won
The company’s Q2 may be a gift enough for the company, but in terms of actual awards, the company has won key accolades in several forums:
- Poonawalla Fincorp has won the “Risk Management Team of the Year” award at the UBS Forum’s CRO Summit and Leadership Awards of 2023.
- The company has won the “Best Customer Experience” award at the Quantic India Excellence Awards (2023).
- Poonawalla Fincorp has been recognised as the Economic Times Future Ready organisation 2023-24.
Financial Results (Profit and Loss)
| Metrics ₹ Crore | Q2 FY2022-23 | Q1 FY2023-24 | Q2 FY2023-24 | YoY % | QoQ % |
| Total Income | 481 | 712 | 745 | 55% | 5% |
| Interest Expenses | 144 | 235 | 216 | 50% | -8% |
| Operating Expenses | 211 | 183 | 194 | -8% | 6% |
| Operating Profit | 126 | 294 | 336 | 167% | 14% |
| Profit After Tax (PAT) | 130 | 200 | 230 | 77% | 15% |
| Profit After Tax (including exceptional items) | 130 | 200 | 1,259 | – | – |
About Poonawalla Fincorp
Poonawalla Fincorp Limited is a Cyrus S. Poonawalla Group NBFC (Non-Banking Finance Company) that has a focus on MSME and consumer financing. The company offers a diversified suite of products to address the growing financing requirements of customers as well as enterprises. The company has built its reputation on the legacy and trust that the Poonawalla Group stands for, ensuring the best-in-class services and solutions for customers. Motivated by principles reflecting transparency, the company retains its vast customer base through values of trust and integrity.
With an in-depth investment in innovation and technology and innovation at its core, the company strives to create limitless possibilities for its customers. After a major financial infusion of investment by Rising Sun, a company owned by Adar Poonawalla, the previously known Magma Fincorp changed to Poonawalla Fincorp in 2021. The company primarily engages in providing financial services and products in the way of business and professional loans, medical loans, personal loans, housing loans, and other kinds of loans to meet clients’ needs.
Source:
https://poonawallafincorp.com/investor-financials.php
