Poonawalla Fincorp's AUM Up 52%; PPoP Grows 47% YoY In Q1FY25

Poonawalla Fincorp's assets under management (AUM) rose by 52 per cent year-on-year (YoY) to Rs 26,972 crore, while its operating profit (PPoP) increased by 47 per cent YoY and 6 per cent quarter-on-quarter (QoQ) to Rs 432 crore in the first quarter of FY25 (Q1FY25).

While declaring its financial results for the quarter that ended 30 June 2024, it added that its UM mix comprises 35 per cent micro, small and medium enterprises (MSME) finance, followed by 28 per cent personal and consumer finance, 17 per cent loan against property and 14 per cent pre-owned car finance.

Talking about the asset quality, it added that gross NPA declined to 0.67 per cent from 1.4 per cent last year and Net NPA reduced to 0.32 per cent from 0.76 per cent last year. The provision coverage ratio stood at a comfortable 52.53 per cent.

Notably, the operating profit (PPOP) increased by 47 per cent year-on-year (YoY) and 6 per cent quarter-on-quarter (QoQ) to Rs 432 crore. The company's profit after tax (PAT) grew by 46 per cent YoY to Rs 292 crore. The return on assets (RoA) stood at 4.62 per cent, and the net interest income (including fees and other income) rose by 42 per cent YoY and 5 per cent QoQ to Rs 676 crore.

Poonawalla Fincorp's capital adequacy ratio stood at 31.57 per cent, with a tier-1 capital ratio of 30.09 per cent, exceeding the regulatory requirement of 15 per cent. Additionally, the company maintained a healthy liquidity buffer of Rs 5,192 crore.

Arvind Kapil, Managing Director and CEO, Poonawalla Fincorp, said, “Our fundamental guiding philosophy for all businesses will be productivity, predictability and sustainability. We envisage achieving it through higher investments mainly in collections, technology and the launch of new businesses.''