Poonawalla Fin in good books

Poonawalla Fincorp is doing very well morning, basking in the glory of its Q4FY23 earnings. The stock, which had closed yesterday at Rs.307.80, opened today morning at Rs.310 and went up to an intraday high at Rs.327.70, not too far from its 52-week high of Rs.338.

The company ended the quarter with its highest ever disbursement (entirely organic) of Rs.6,371 crore with new products scaling up well, up 151% YoY & 89% QoQ. Its AUM currently stands at Rs.16,143 crore, growth of 37% YoY & 16% QoQ despite reduction in discontinued legacy book.

The market is more gung-ho about its asset quality - GNPA & NNPA reduced to 1.44% and 0.78% respectively compared to 1.69% & 0.89% in Q3FY23 and as compared to 3.29% & 1.30% in Q4FY22.

In terms of profitability, NIM was at 11.3%, up 87 bps YoY and 59 bps QoQ. Operating Profit stood at Rs. 212 crore, up 84% YoY and 36% QoQ. PAT was at Rs.181 crore, up 103% YoY and 20% QoQ. The company had its highest ever RoA at 5% v/s 4.5% in Q3FY23 & 3.2% in Q4FY22.

The company declared a dividend of 100%.

Giving its long term guidance, the company expects a 30-35% growth in profit, GNPA to hover between 1.3-1.8% and NNPA at 0.5 -0.9%. Its expects AUM growth of 35-40% and RoA at 4-4.5%.