How Poonawalla Fincorp Achieved Record-Breaking Financial Performance In FY24?

Poonawalla Fincorp Limited, a dynamic player in the NBFC realm, recently unveiled its audited financial results for the fiscal year ending March 31, 2024. The numbers spoke volumes about the company’s stellar performance, marked by substantial growth in Assets Under Management (AUM), profitability, and impeccable asset quality.

Breaking Records in Q4FY24

In the final quarter of FY24, Poonawalla Fincorp achieved remarkable milestones. The company recorded its highest-ever quarterly disbursement, totaling ₹9,688 crore, showcasing a notable 52% year-on-year increase and an 11% quarter-on-quarter growth. The AUM soared to ₹25,003 crore, marking a substantial 55% year-on-year surge and a 14% quarter-on-quarter rise.

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Maintaining Superior Asset Quality

One of the hallmarks of Poonawalla Fincorp’s performance is its unwavering commitment to asset quality. The gross Non-Performing Assets (NPA) stood at 1.16%, marking a reduction of 28 basis points year-on-year and 17 basis points quarter-on-quarter. Similarly, the net NPA saw a commendable decrease, reaching 0.59%, down by 19 basis points year-on-year and 11 basis points quarter-on-quarter.

Exceeding Profitability Expectations

The financial year 2023–24 witnessed Poonawalla Fincorp achieving unprecedented levels of profitability. The company reported its highest-ever yearly Profit After Tax (PAT) of ₹1,027 crore, marking an impressive 83% year-on-year surge. Additionally, the quarterly PAT reached a record high of ₹332 crore, reflecting a substantial 25% quarter-on-quarter increase. The Return on Assets (RoA) stood at 5.73%, witnessing an impressive uptick of 73 basis points year-on-year and 42 basis points quarter-on-quarter. The Net Interest Margin (NIM) also saw a positive trajectory, reaching 11.06%, up by 4 basis points quarter-on-quarter.

Efficient Operational Management

Poonawalla Fincorp’s operational efficiency is evident from its Opex to AUM ratio, which stood at 3.99% in Q4FY24. This ratio witnessed a significant reduction of 144 basis points year-on-year and 1 basis point quarter-on-quarter. The Operating Profit (PPOP) for Q4FY24 was reported at ₹409 crore, marking a substantial 93% year-on-year increase and a commendable 17% quarter-on-quarter growth.

Ensuring Financial Stability

The company’s robust financial performance is underscored by its strong capital adequacy and liquidity position. The Capital Adequacy Ratio stood at 33.8%, ensuring compliance with regulatory requirements. Moreover, Poonawalla Fincorp maintained a healthy liquidity buffer of ₹3,932 crore, reinforcing its financial stability.

Abhay Bhutada, MD of Poonawalla Fincorp, expressed his elation and pride in the company’s achievements. He emphasized the significant transformation witnessed by the company in the last three years, attributing it to rigorous execution and strategic differentiation. Under his leadership, Poonawalla Fincorp has emerged as a thought leader in the lending space, consistently outperforming expectations and delivering superior results.

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Poonawalla Fincorp, a part of the Cyrus Poonawalla group, is a non-deposit-taking NBFC registered with the Reserve Bank of India. With a legacy spanning nearly three decades, the company is listed on both the BSE Limited and the National Stock Exchange of India Limited. Embracing the values of Passion, Principles, Purpose, People, and Possibilities, Poonawalla Fincorp operates across 19 states, offering a diverse range of financial products and solutions.

Navigating Through Challenges

Despite the economic headwinds and market uncertainties, Poonawalla Fincorp has demonstrated resilience and agility in its operations. The company’s ability to adapt to changing market dynamics and mitigate risks has been instrumental in sustaining its growth momentum.

Also read: Who is Abhay Bhutada?

Future Outlook

Looking ahead, Poonawalla Fincorp remains committed to its vision of becoming a leading player in the NBFC sector. With a focus on innovation, customer-centricity, and prudent risk management, the company aims to unlock new avenues for growth and create long-term value for its stakeholders.

In conclusion, Poonawalla Fincorp’s exemplary financial performance in FY24 is a testament to its commitment to excellence and innovation. With a focus on maintaining superior asset quality, driving profitability, and ensuring operational efficiency, the company continues to set new benchmarks in the NBFC sector, under the astute leadership of Abhay Bhutada.