Poonawalla Fincorp's logs Q4 consolidated net profit of Rs 119 cr

Poonawalla Fincorp Ltd (PFL) made a consolidated net profit of Rs 119 crore in the fourth quarter ended March 2022 (Q4Fy22) by improving its net interest margin and credit costs. It had made a consolidated loss of Rs 648 crore in Q4Fy21.

The non-banking finance company posted a consolidated net profit of Rs 375 crore in Fy22 as against loss of Rs 559 crore in Fy21.

The company’s board recommended a dividend payment of 20 per cent for Fy22 subject to shareholder’s approval, according to filing with BSE. The share of PFL, erstwhile Magma Fincorp Ltd, closed 5.9 per cent lower at Rs 216.5 per share.

The Pune-based company’s net interest margins (NIM), on consolidated basis, improved to 9.5 per cent for Q4Fy22, 33 up basis points over NIM in Q4Fy21. The consolidated assets under management (AUM) expanded by 16.5 per cent Year on Year basis to Rs 16,579 crore at the end of March 2022. It disbursed loans worth Rs 3,336 crore in Q4Fy22, up from Rs 1,426 crore in Q4Fy21. The AUM of its housing finance subsidiary Poonawalla Housing Finance Ltd (PHFL) rose by 27.2 per cent to Rs 5,060 crore.

Its credit costs came down sharply to just Rs three crore in Q4Fy22 from Rs 1,053 crore in Q4Fy21. Gross non-performing assets (NPAs) declined to 2.7 per cent in March 2022 from 3.7 per cent in March 2021. The net NPAs were down to 1.1 per cent from 1.2 per cent a year ago.

Abhay Bhutada, managing director of PFL, said the company’s housing finance subsidiary proposes to raise growth capital (of up to Rs 1,000 crore) in Fy23 for its network expansion and to support AUM growth. Its AUM is projected to grow to over Rs 10,000 crore by Fy25.  

There will also be value unlocking in the housing finance subsidiary with Initial Public Offering in future, Bhutada said.