Monday, August 8, 2022

Poonawalla Fincorp Maintains Profitability, Growth And Asset Quality In Q1, FY’23

Poonawalla Fincorp Limited (PFL), a non-deposit taking, systemically important NBFC focusing on consumer and MSME finance, recently announced a 118% year-on-year (YoY) rise in net profit in Q1, FY2023 at Rs. 141 crore, due to improvement in Net Interest Margins (NIM) by 155 basis points YoY to 9.5%. The non-bank lender’s Assets Under Management (AUM) grew by 22.4% YoY to Rs 17,660 crore and 6.5% QoQ. Disbursements under the company’s Direct, Digital and Partnership model (DPP) have almost doubled from 17.5% in Q4 FY22 to 34.1% of the total disbursement in the current quarter.

Commencing with two or three products, PFL today offers a diverse product range which includes personal loans, pre-owned car finance, loans against property, professional loans, small business loans, loans for medical equipment, and the newly launched loans for machinery and supply chain finance products. Furthermore, PFL will launch EMI cards, credit cards, consumer finance, and merchant cash advances over a 12-18 month period.

The product focus on pure retail segments of consumer and MSME finance continued. The Company further consolidated its leadership in the pre-owned car finance and loan to professionals segment. Also, the quarterly disbursements across product lines of Business Loans, Personal Loans, Loan to Professionals, Pre-Owned Cars and Loan Against Property were the highest in Q1FY23. This, coupled with consistent increase in lending via the Direct, Digital and Partnership (DDP) model of origination, has further strengthened and diversified the company’s distribution.

Poonawalla Housing Finance Limited (PHFL), the 100% subsidiary of PFL, crossed the AUM milestone of INR 5,000 cr., clocking 30.5% y-o-y growth to stand at an AUM of INR 5,282 cr. this quarter.

Both Poonawalla Fincorp and Poonawalla Housing Finance continue to have long-term rating of ‘AA+ / Stable’ by CRISIL and CARE.

The company’s vision is to be amongst the Top 3 NBFCs in consumer and MSME lending with a risk-calibrated accelerated growth and triple its FY21 AUM by 2025. The company will continue with its rigor on execution, investment in people, building technology and a strong retail consumer franchise, and is well on course to deliver an exceptional performance in this financial year.

About Poonawalla Fincorp

Poonawalla Fincorp Limited (Formerly known as Magma Fincorp Limited) is a Cyrus Poonawalla group promoted non-deposit taking systemically important non-banking finance company (ND-SI-NBFC), registered with the Reserve Bank of India (RBI). The Company started operations nearly three decades back and is listed on the Bombay Stock Exchange (BSE) and the National Stock Exchange in India (NSE). Consequent to the capital raise of Rs 3,456 Crore in May’21, the Company is now part of the Cyrus Poonawalla Group with majority stake owned by Rising Sun Holdings Private Limited, a company owned and controlled by Mr. Adar Poonawalla.

The Company’s new identity “P” stands for Passion, Principles, Purpose, People and Possibilities. Poonawalla Fincorp Limited (“PFL”) has a widespread coverage with 231 branches across 21 States. The Company along with its subsidiary has AUM of Rs 17,660 crore and employs more than 5,000 people. Its financial services offerings include pre-owned car finance, personal loans, loan to professionals, business loans, SME LAP, supply chain finance, medical equipment, consumption loans and affordable home loans.

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