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Poonawalla Fincorp reports highest-ever PAT of ₹181 crore in Q4, declares 100% dividend

The Pune-based company doubled its yearly profits also and reported ₹585 crore net profit for the fiscal year 2022-23

Poonawalla Fincorp witnessed massive improvements in non-performing assets (NPAs)Premium
Poonawalla Fincorp witnessed massive improvements in non-performing assets (NPAs)

Non-Banking Finance Company Poonawalla Fincorp on Wednesday reported its highest-ever quarterly profits of 181 crore during Q4 ending March 2023. The quarterly profits for the company jumped by 103% driven by higher loan sales and better asset quality. The Pune-based company doubled its yearly profits also and reported 585 crore net profit for the fiscal year 2022-23.

During Q4, the company recorded the highest-ever loan disbursals of 6,371 crore, which was a jump of 151%, while for the fiscal year 2022-23, the loan disbursals grew 37% and reached 16,143 crore.

Poonawalla Fincorp witnessed massive improvements in non-performing assets (NPAs) with gross NPA coming down by 185 basis points to 1.44% during the quarter and net NPA dropping by 52 bps to 0.78%. The NBFC informed that it focused more on consumer and MSME finance during the year.

The company recommended a dividend of 2 per share, which is 100% of the face value.

In the current quarter, there was a significant increase in digital payments, rising from 24% in the previous quarter to 81%. Additionally, the net interest margin improved by 87 basis points to reach 11.3% in Q4, and for the entire year, it improved by 89 basis points, reaching 10.7%.

Furthermore, the company's profits were positively impacted by a decrease in operating expenses, which fell by 4% to 196 crore.

The rating agency CRISIL also upgraded the ratings of Poonawalla Fincorp to “CRISIL AAA (triple A)/ Stable". The rating action is driven by the increased strategic importance of PFL to the Cyrus Poonawalla Group.

“The rating upgrade testaments our business model and relentless focus on executing the stated strategy to build a strong foundation for a long-term sustainable leadership position in the industry. The upgrade would help further strengthen our liability franchise, optimize borrowing cost, and accelerate our growth journey."

(With inputs from PTI)

 

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Devesh Kumar
I cover politics, geo-politics, economy, and technology and have keen interest in understanding and analyzing the complex issues that shape our world. I am committed to delivering well-researched, balanced, and thought-provoking stories that provides insights into the key trends and developments.
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Published: 26 Apr 2023, 08:41 PM IST
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