Poonawalla Fincorp Ltd - Q2FY23 Business Update

Poonawalla Fincorp Limited has announced the business / operational update for the quarter ended 30th September 2022 i.e., Q2FY23.

Disbursement: At consolidated level, total disbursement for Q2FY23 stood at approximately ₹ 3,720 crores, up 44% YoY and 8% QoQ, with organic disbursement contributing to ~97% of total disbursement in Q2FY23 compared to 80% in Q1FY23. During Q2FY23, total disbursement was entirely organic, up ~31% QoQ at approximately ₹ 3,110 crores on standalone basis as compared to Q1FY23 organic disbursement of ₹ 2,379 crores. The Company's total disbursement in Q1FY23 was ₹ 2,901 crores on standalone basis.

Assets Under Management (AUM): Consolidated AUM grew by 21% YoY and 5% QoQ to approximately ₹ 18,550 crores as on 30th September 2022, despite sharp reduction in the discontinued loan book. Discontinued on-book stood at approximately ₹ 1,300 crore as on 30th September 2022. The AUM for its subsidiary, Poonawalla Housing Finance Limited (PHFL), stood at approximately ₹ 5,600 crores as on 30th September 2022.

Asset quality: Pursuant to RBI circular dated 12th November 2021, the Company aligned Stage 3 classification with revised NPA definition, during Q2FY23. The aligned GNPA and NNPA on consolidated basis are expected to be below 1.6% and 0.9% respectively as on 30th September 2022. The Company would strive to maintain the NNPA below 1% in line with its Management Vision 2025.

Liquidity: The Company continues to have ample liquidity of approximately ₹ 4,730 crores as on 30th September 2022.

Upgrade in Credit Rating: Care Ratings Limited upgraded the long-term rating of the Company and its subsidiary, PHFL to 'CARE AAA (Triple A), Stable'. This rating is applicable for bank loan facilities, non-convertible debentures, market linked debentures and subordinated debt.

Management Commentary: We continued strong growth momentum during Q2FY23 supported by significant improvement in organic disbursement across all products, with share of Direct, Digital and Partnerships (DDP) rising to ~47% in Q2FY23 compared to 34% in Q1FY23. We achieved our highest ever quarterly and monthly disbursement during Q2FY23 and September'2022 respectively. September'2022 monthly organic run rate of approximately ₹ 1290 crores creates a strong growth trajectory for H2FY23. Rating upgrade by Care Ratings to the highest rating 'CARE AAA; Stable' is indicative of the company's strong parentage, proficient management team, robust fundamentals, and growth potential; which shall further strengthen our liability franchise and support the growth journey.

The above information is provisional and subject to review by the statutory auditors of the Company.

Source : Equity Bulls

Keywords

PoonawallaFincorp Q2FY23 BusinessUpdate OperationalUpdate Disbursement AUM AssetQuality Liquidity