Poonawalla Fincorp share price gains 3% on strong Q3 business update

Poonawalla Fincorp share price gained nearly 3% in early trade on Thursday after the company reported a strong business update for the third quarter of FY24.

In a BSE filing, Poonawalla Fincorp said its total disbursements during Q3FY24 were highest ever at approximately ₹8,730 crore. The total disbursements jumped by a robust 159% from ₹3,369 crore in the same quarter last fiscal year. 

It was up 12% compared to disbursements of ₹7,807 crore in Q2FY24.

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The company’s Assets Under Management (AUM) grew by 57% YoY and 8% QoQ to approximately ₹21,850 crore as on December 31, 2023. 

On the asset quality front, Gross non-performing assets (GNPA) and net NPA (NNPA) are expected to improve further. 

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“As guided, we would strive to maintain the NNPA below 1% in line with the Management Vision 2025,” Poonawalla Fincorp said.

Further, the company said it continues to have ample liquidity of approximately ₹2,875 crore as on December 31, 2023. 

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In the quarter ended September 2023, Poonawalla Fincorp reported a consolidated net profit of ₹854.61 crore, registering a growth of 555% YoY, on the back of a large one-time gain. 

The company’s revenue from operations was at ₹738.65, while its net interest income (NII) jumped to ₹475.1 crore from ₹274.12 crore in the same quarter last year.

Poonawalla Fincorp shares have risen over 16% in the past three months, while the stock is up more than 47% in one year.

At 10:15 am, Poonawalla Fincorp shares were trading 1.85% higher at ₹438.75 apiece on the BSE.

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