Poonawalla Fincorp net up 102% at Rs 180.7 cr

Mumbai: Poonawalla Fincorp has reported a net profit of Rs 180.7 crore for the quarter ended March 2023, an increase of 102% over Rs 81.1 crore in the corresponding quarter last year.

Interest income was up 46% at Rs 577 crore, while financing costs rose 57% to Rs 173 crore. The company’s loan book stood at Rs 15,229 crore at the end of the quarter, up 42% from Rs 10,678 crore a year earlier.

In its meeting on Monday, the company board recommended a dividend of Rs 2 per share (100% of face value) for FY23, subject to shareholders’ approval.

Announcing the results, Abhay Bhutada, MD & CEO, said that the company has built a fintech model at scale while maintaining asset quality. “Our ability to innovate, understand future trends, deliver at pace, and build a strong digital eco-system, has made us a lender of choice. With an efficient cost of borrowing, lower operating cost, controlled credit cost and a branch-lite tech-led model, we are well poised to deliver a sustainable and exceptional performance,” he said.

Poonawalla Fincorp is a Cyrus Poonawalla group-promoted non-deposit-taking systemically important non-banking finance company (ND-SI-NBFC). Earlier known as Magma Fincorp, the Poonawalla group, the new promoters, renamed the company after its acquisition in 2021.

As per the business update provided by the company, the total assets under management increased by 16% quarter on quarter and 37% year on year to Rs 16,120 crore as on March 31, 2023. The total disbursements registered a year-on-year growth of 109% (aggregate of around Rs 15,750 crores for fiscal 2023). The company has also focused on a direct digital origination strategy, contributing to around 81% of disbursements in Q4FY23 (as compared to 24% in Q4FY22).