Poonawalla Fincorp Q2 profit soars five-fold YoY to Rs 375 crore
The non-bank lender‘s profit after tax rose 405.2% year-on-year in the quarter ended September 30, from ₹74 crore a year earlier. Profit increased 21.8% quarter-on-quarter from ₹308 crore in the preceding quarter.
Net interest income, including fees and other income, climbed 75.6% year-on-year to ₹1,589 crore. Cross-sell income rose to ₹118 crore from ₹68 crore, while servicing income increased to ₹91 crore from ₹37 crore.
Assets under management rose 55% year-on-year to ₹74,008 crore. New products, including prime personal loans, gold loans, education loans, consumer durable loans, commercial vehicle loans and shopkeeper loans, accounted for 28% of second-quarter disbursements. These businesses disbursed more than ₹4,400 crore during the quarter.
Speaking to analysts, MD and CEO Arvind Kapil said growth was being accompanied by margin expansion. He said yields on new disbursements expanded by about 20 basis points in the second quarter, following an increase of about 50 basis points in the preceding quarter. Higher yields on earlier disbursements were also flowing through to the overall portfolio, he said.
Kapil also highlighted the expansion of the commercial vehicle business to more than 1,250 channel partners, the strengthening of education-loan origination through an instant-sanction platform, and the scaling up of the consumer durable network to 20,000 dealers across 360 locations. The company’s gross non-performing asset ratio improved to 1.2% from 1.6% a year earlier. The lender’s capital adequacy ratio stood at 18.7%, while total borrowings were ₹58,865 crore. Its cost of borrowing increased to 7.7% from 7.7% a year earlier.
