Earnings Review
Poonawalla Fincorp Jan-Mar PAT slump as expenses double
This story was originally published at 19:17 IST on 25 April 2025
Register to read our real-time news.Informist, Friday, Apr. 25, 2025
Please click here to read all liners published on this story
--Poonawalla Fincorp AUM at INR 356.31 bln as on Mar 31, up 43% on year
--Poonawalla Fincorp provision coverage ratio 54.47% as on Mar 31
--Poonawalla Fincorp gross NPA ratio 1.84% as on Mar 31
--Poonawalla Fincorp net NPA ratio 0.85% as on Mar 31
--Poonawalla Fincorp FY25 consol revenue INR 41.90 bln vs INR 31.09 bln
--Poonawalla Fincorp FY25 consol net loss INR 983.4 mln vs INR 16.83 bln PAT
--Poonawalla Fincorp Jan-Mar consol revenue INR 11.66 bln vs INR 9.15 bln
--Poonawalla Fincorp Jan-Mar consol PAT INR 623.3 mln vs INR 3.32 bln yr ago
--Analysts saw Poonawalla Fincorp Jan-Mar consol net profit INR 1.45 bln
--Poonawalla Fincorp Jan-Mar consol net profit INR 623.3 mln
By Kshipra Petkar
MUMBAI – Poonawalla Fincorp Ltd.'s consolidated net profit slumped in the March quarter as expenses doubled from a year ago. The net profit of the non-banking finance company fell 81.2% on year to INR 623.3 million in Jan-Mar, way below the analysts' estimate of INR 1.45 billion. However, the net profit was up more than three times on a sequential basis.
The total expenses of the lender rose 103.8% on year and 6% on quarter to INR 10.93 billion in the latest quarter. Within expenses, impairment on financial instruments surged more than six times to INR 1.58 billion during the quarter. Other expenses, including finance costs, employee benefit expenses and other expenses, also jumped on year. Finance costs rose 63.1% on year, while employee benefit expenses and other expenses increased 48.1% and 90.0% on year, respectively, in Jan-Mar.
On the other hand, the consolidated revenue of the company rose only 27.5% on year to INR 11.66 billion in the Jan-Mar quarter. On a sequential basis, the revenue was up 10.3%.
For the financial year ended March, the company reported a consolidated net loss of INR 983.4 million as compared to a net profit of INR 16.83 billion a year ago. The revenue in FY25 rose to INR 41.90 billion from INR 31.09 billion.
The assets under management of the company were at INR 356.31 billion as on Mar. 31, up 43% on year. According to the investor presentation, the secured to unsecured book mix was 57:43. The secured book mix increased by 254 basis points on quarter, the company said. The net interest income of the company rose 12% on year to INR 7.15 billion in Jan-Mar, despite the higher secured mix.
The cost of borrowing remained almost flat at 8.07% in the reporting quarter, compared with 8.06% a quarter ago, despite an increase in the share of long-term borrowing. Liquidity of the company was at INR 46.86 billion in the form of cash, cash equivalents and undrawn bank lines as of Mar. 31.
The asset quality was stable in the reporting quarter. Gross non-performing asset ratio was at 1.84% as on Mar. 31, a tad lower than 1.85% a quarter ago. The provision coverage ratio of the company was at 54.47% as on Mar 31.
On Friday, Poonawalla Fincorp shares ended at INR 380.40 on the National Stock Exchange, down 4.0% from the previous close. The company announced the results after market hours. End
Edited by Saji George Titus
For users of real-time market data terminals, Informist news is available exclusively on the NSE Cogencis WorkStation.
Cogencis news is now Informist news. This follows the acquisition of Cogencis Information Services Ltd by NSE Data & Analytics Ltd, a 100% subsidiary of the National Stock Exchange of India Ltd. As a part of the transaction, the news department of Cogencis has been sold to Informist Media Pvt Ltd.
Informist Media Tel +91 (22) 6985-4000
Send comments to feedback@informistmedia.com
© Informist Media Pvt. Ltd. 2025. All rights reserved.
To read more please subscribe
Share this Story:
