Poonawalla Fincorp Reports Impressive Q4 Results with 103% YoY Jump in PAT

  • For Q4FY23, Poonawalla Fincorp reports a 103% YoY increase in PAT to Rs 181 crore.
  • For Q4FY23, interest income increased by 53% YoY to Rs 552 crore.
  • For FY23, the Board advises a dividend of Rs 2 per share.
  • The company’s highest-ever reported RoA for Q4FY23 is 5%.
CompanyPoonawalla Fincorp 🏦
Q4 Profit After TaxJumped 103% YoY to Rs 181 crore πŸ’°
DividendRs 2 per share recommended for FY23 πŸ’Έ
Interest IncomeGrew 53% YoY to Rs 552 crore πŸ’Ή
Net Interest Margin (NIM)Q4FY23: 11.3% (↑87bps YoY); FY23: 10.7% (↑89bps YoY) πŸ“ˆ
Return on Assets (RoA)Q4FY23: 5% (↑178bps YoY); FY23: 4.4% (↑172bps YoY) πŸ“ˆ
DisbursementsQ4FY23: Rs 6,371 crore (↑151% YoY, ↑89% QoQ) πŸ’°
Assets Under Management (AUM)Rs 16,143 crore (↑37% YoY, ↑16% QoQ) πŸ’Ό
Capital Adequacy Ratio39% as of March 31 πŸ’Ή
Liquidity BufferRs 3,001 crore in Q4 FY23 πŸ’°
Credit RatingUpgraded to AAA by both CRISIL and CARE πŸ‘
Source: Poonawalla Fincorp Financials

As of March 31, 2023, quarterly disbursements were Rs 6,371 crore, up 151% year over year and 89% quarter over quarter. Assets under management were Rs 16,143 crore, up 37% year over year and 16% quarter over quarter.

Poonawalla Fincorp, based in Pune, has reported a strong fourth-quarter performance, with a 103% YoY increase in profit after tax (PAT) to Rs 181 crore. The business’s net profit for the same quarter a year ago was Rs 89 crore. The company’s growth in interest income, which increased 53% YoY to Rs 552 crore for Q4FY23 versus Rs 361 crore for Q4FY22, was largely responsible for the impressive results.

In Q4FY23, the net interest margin (NIM) increased by 87 bps year over year to 11.3%. NIM increased by 89 basis points year over year to 10.7% for FY23. Additionally, the business reported the highest return on assets (RoA) ever for Q4FY23 at 5%, up 178 bps year over year. RoA for FY23 was 4.4%, up 172 bps year over year.

The quarterly disbursements of Poonawalla Fincorp were Rs 6,371 crore, up 151% year over year and 89% quarter over quarter. Assets Under Management (AUM) increased by 37% YoY and 16% QoQ to Rs 16,143 crore. The company had a strong financial position as of March 31, 2023, as evidenced by the capital adequacy ratio, which was 39%.

The Poonawalla Fincorp board has recommended a dividend of Rs 2 per share (100% of face value) for FY23, subject to approval by shareholders. The company had a Rs 3,001 crore liquidity reserve as of Q4FY23.

According to MD CA Abhay Bhutada, who commented on the company’s outstanding performance, “FY23 has been a year of exemplary performance across business growth, credit quality, and profitability. Both CRISIL and CARE have upgraded our credit rating to AAA, which is a result of our solid fundamentals and execution.

He continued, “We have pioneered the development of a real fintech model at scale, with best-in-class asset quality and superior profitability. Because of our capacity for innovation, awareness of emerging trends, quick turn-around times, and development of a strong digital eco-system, we are a lender of choice.