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Informist, Friday, Oct. 25, 2024

 

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--Poonawalla Fincorp Jul-Sept consol net loss INR 4.71 bln 
--Analysts saw Poonawalla Fincorp Jul-Sept consol net profit INR 2.96 bln 
--Poonawalla Fin Jul-Sept consol net loss INR 4.71 bln vs INR 8.55 bln PAT 
--Poonawalla Fincorp Jul-Sept consol revenue INR 9.89 bln vs INR 7.39 bln 
--Poonawalla Fin Apr-Sept consol net loss INR 1.79 bln vs INR 10.55 bln PAT
--Poonawalla Fincorp Apr-Sept consol revenue INR 19.66 bln vs INR 14.31 bln 
--Poonawalla Fin Jul-Sept provisions INR 9.10 bln vs INR 281 mln year ago 
--Poonawalla Fincorp: Made INR 6.7-bln personal loan book provision Jul-Sept 
--Poonawalla Fincorp AUM at INR 283.96 bln as on Sept 30, up 40% on yr 
--Poonawalla Fincorp Jul-Sept NII INR 6.45 bln, up 22% on yr 
--Poonawalla Fincorp provision coverage ratio at 84.47% as on Sept 30 
--Poonawalla Fincorp net NPA ratio at 0.33% as on Sept 30 vs 0.32% qtr ago 
--Poonawalla Fincorp gross NPA ratio at 2.10% as on Sept 30 vs 0.67% qtr ago 
--Poonawalla Fincorp Jul-Sept, Apr-Sept consolidated earnings detailed table 
--Poonawalla Fincorp: 400 gold loan branches to be launched by FY26 

 

By Sourabh Kumar

 

NEW DELHI – While estimates suggested a fall in net profit, Poonawalla Fincorp surprised the market with a consolidated net loss of INR 4.71 billion for the quarter ended Sept. After recording a loss in the latest quarter, the company's shares closed down 17.2% at INR 297.05 on the National Stock Exchange Friday. Brokerages had estimated the company to clock a net profit of INR 2.96 billion. 

 

The non-bank lender made provisions of INR 9.10 billion in Jul-Sept, significantly higher than INR 281 million last year, which led to a loss in the quarter.

 

The company said it had a one-time provisioning of INR 6.66 billion in Jul-Sept in its small ticket personal loans book. The provision coverage ratio of the company jumped to 84.47% as of Sept. 30 from 52.53% a quarter ago.

 

The total income of the company was up 33.7% on year at INR 9.97 billion in Jul-Sept, with the company's total expenses rising by a whopping 272.1% on year to INR 16.27 billion, driven higher primarily by provisions. Poonawalla Fincorp's consolidated revenue in Jul-Sept rose to INR 9.89 billion, up 33.9% on year. 

 

The company's assets under management were up 40% on year at INR 283.96 billion. Sequentially, it was up just 5%.

 

Provisions made in the reporting quarter were the primary reason for incurring a loss. The pre-provision operating profit of Poonawalla Fincorp was INR 2.79 billion in Jul-Sept, which was still below analysts' expectations of INR 2.96 billion net profit. It fell 17% on year, and 35% sequentially.

 

The net non-performing asset ratio of the company was flat on quarter, but fell 39 basis points on year to 0.33% as of Sept. 30. The gross NPA ratio, on the other hand, was up 74 bps on year to 2.10% as on Sept. 30. Sequentially, the gross NPA rose 143 bps "on account of higher slippages in STPL (small ticket personal loans) portfolio" the company said.

 

"We have made provisioning for the STPL (small ticket personal loans) book with a clear intent for better risk management and financial resilience," a press release said, quoting Arvind Kapil, managing director and chief executive officer, Poonawalla Fincorp. "We are strengthening our balance sheet for a long-term strategy. With the management depth that is already on board, we are confident that we will take the existing 4 products to a total of 10 products. I believe this will transform Poonawalla Fincorp within the first 4-6 quarters both in terms of diversity of customer segments, distribution, recalibration of overall risk, substantial lift in AUM and a foundation for recalibration of profit in the third year." 

 

The company reported a net interest income of INR 6.45 billion in Jul-Sept, up 22%, which was above analysts' expectation of INR 6.07 billion. The financier's total income was 33.7% higher at INR 9.97 billion in the September quarter.

 

For Apr-Sept, the company was in the black with INR 1.79 billion, against a profit of INR 10.55 billion a year ago. Its consolidated revenue grew 37.4% to INR 19.66 billion in the first half of the fiscal year.

 

Going ahead, Poonawalla Fincorp aims to deepen its gold loan portfolio. The company has set a target of launching 400 gold loan branches by 2025-26 (Apr-Mar).  End

 

Edited by Vidhi Verma

 

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