Poonawalla Fincorp surges 20% post March quarter results

In Q4, AUM grew 16.5 per cent year-on-year and 8.9 per cent quarter-on-quarter at Rs 16,579 crore.

Shares of Poonawall Fincorp (formerly known as Magma Fincorp) surged 20 per cent to Rs 259.80 on the BSE in Friday’s trade after the company reported consolidated profit after tax (PAT) of Rs 119 crore, on the back of strong operational performance in March quarter (Q4FY22). A Cyrus Poonawalla group promoted non-banking finance company posted loss of Rs 648 crore in Q4FY21.

The company’s asset under management (AUM) grew 16.5 per cent year-on-year (YoY) and 8.9 per cent quarter-on-quarter (QoQ) at Rs 16,579 crore. Housing subsidiary Poonawalla Housing Finance Limited (PHFL) crossed the Rs 5,000 crore AUM mark in March 2022. Besides that, net interest margin (NIM) improved 33 bps YoY and 77 bps QoQ at 9.5 per cent.

"Collections continued to remain buoyant with collections efficiency of 108.4 per cent in March 2022. Consequent to healthy collections in Q4FY22, gross stage 3 and net stage 3 assets decreased from 3.5 per cent and 1.8 per cent respectively as at December 2021 to 2.7 per cent and 1.1 per ent respectively as at March 2022," the company said.

Meanwhile, the company’s board accorded an in-principal approval to raise funds in PHFL not exceeding Rs 1,000 crore with stake dilution of less than 15 per cent in one or more tranches via preferential issue during the financial year 2022-23.

"Given the deep unserved potential of the affordable housing segment, favourable demographics and supportive government policies, the company proposes to raise growth capital for network expansion and to support AUM growth,” the company added.

At 02:45 pm; the stock traded 16 per cent higher at Rs 252, as compared to 0.25 per cent rise in the S&P BSE Sensex. The trading volumes on the counter jumped over three-fold as 18.76 million shares changed hands on the NSE and BSE. Earlier, the stock had hit a 52-week high of Rs 343.75 on April 13, 2021.