Poonawalla Fincorp Q4 PAT at ₹181 crore led by 37% AUM growth

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Poonawalla Fincorp reported a net profit of Rs 181 crore for the fourth quarter of FY23, up by 103 per cent YoY and 20 per cent QoQ. FY23 profit after tax was 100 per cent higher at Rs.585 crore – the highest ever for an NBFC.

The company’s assets under management grew by 37 per cent year-on-year and 16 per cent quarter-on-quarter to Rs.16,143 crore as of March 31.

It saw its highest ever quarterly payout 6,371 crore in the fourth quarter, up 151 per cent YoY and 89 per cent QoQ. This led to an increase in digital payments, with the share of the direct digital program in payments rising to 81 percent from 66 percent in the previous quarter and 24 percent in the same period a year ago.

Net interest margin (NIM) for the fourth quarter was 11.3%, an improvement of 87 basis points year-over-year and 59 basis points quarter-over-quarter. For fiscal ’23, NIM was 10.7%, an improvement of 89 basis points.

Also read: CRISIL Upgrades Poonawalla Fincorp’s Long-Term Banking and NCD Facility to AAA/Stable

The lender’s gross net income ratio improved to 1.44%, an improvement of 185 basis points year-over-year and 25 basis points quarter-over-quarter. The net NPA rate, at 0.78%, was also 52 basis points better year-over-year and 11 basis points better quarter-over-quarter. Both NPA percentages were the lowest ever for the company.

The company’s capital adequacy ratio was at 39 per cent and the liquidity buffer was at ₹3,001 crore as of 31st March.

In the third quarter of fiscal year ’23, Poonawalla Fincorp has announced the sale of its housing finance subsidiary, Poonawalla Housing Finance, to TPG (Perseus SG Pte. Ltd., an entity of TPG Global, LLC) for Rs 3,900 crore. It added that the company has received shareholder approvals and other approvals and is now awaiting a move forward from the Reserve Bank of India.