Poonawalla Fincorp share price rises over 3% after strong Q1 results
Poonawalla Fincorp share price rose over 3% on Tuesday after the non-banking finance company (NBFC) reported its Q1 results. The stock gained as much as 3.21% to ₹380.05 apiece on the BSE. The Pune-based company posted a 62% rise in net profit at ₹200 crore in the June quarter, as compared to ₹124 crore in the year-ago period.
This was the company’s highest ever quarterly profit. The company’s total income in Q1FY24 jumped to ₹712 crore from ₹429 crore, YoY. Poonawalla Fincorp is a financial services arm of the Adar Poonawalla-led Poonawalla Group. The company’s interest income rose to ₹656 crore from ₹386 crore in the year-ago quarter.
Net Interest Margin (NIM) for Q1FY24 was at 11.4%, an improvement of 108 bps YoY and 12 bps QoQ. Also Read: Tata Steel share price gains over 1% after Q1 results meets estimates; here’s what brokerages have to say Asset quality at the end of June 2023 quarter improved marginally on a sequential basis. Its Gross non-performing assets (NPA) in Q1FY24 were at 1.42% of gross advances, down 2 bps QoQ.
Net NPA also fell 2 bps QoQ to 0.76%. The capital adequacy ratio of the increased to 36% at the end of June 2023. Poonawalla Fincorp recorded highest ever quarterly disbursements at ₹7,063 crore, up 143% YoY and 11% QoQ. Its Assets Under Management (AUM) at ₹17,776 crore were up 41% YoY and 10% QoQ.
Analysts believe consumer and small business finance, the segments targeted by Poonawalla Fincorp, have a huge market opportunity. Also Read: ITC share price continues to fall for second day after hotel business demerger Brokerage firm Motilal Oswal Financial Services believes that the company has levers to maintain NIMs of 10% over FY24-FY25E. “We model benign credit costs of 0.7% in FY24. Strong
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