Poonawalla Fincorp Limited, a key player in the NBFC sector, recently unveiled its audited financial results for the fiscal year ending March 31, 2024, showcasing remarkable achievements across various fronts. Led by Abhay Bhutada, the company's Managing Director, Poonawalla Fincorp's performance in FY24 has been nothing short of extraordinary.
Breaking Records in Q4FY24
In the final quarter of FY24, Poonawalla Fincorp reached significant milestones. The company recorded its highest-ever quarterly disbursement, totaling ₹9,688 crore, marking a remarkable 52% year-on-year increase and an 11% quarter-on-quarter growth. The Assets Under Management (AUM) also surged to ₹25,003 crore, showing a substantial 55% year-on-year surge and a 14% quarter-on-quarter rise.
Maintaining Superior Asset Quality
Poonawalla Fincorp's commitment to asset quality remained unwavering. The gross Non-Performing Assets (NPA) stood at 1.16%, indicating a reduction of 28 basis points year-on-year and 17 basis points quarter-on-quarter. Similarly, the net NPA saw a commendable decrease, reaching 0.59%, down by 19 basis points year-on-year and 11 basis points quarter-on-quarter.
Exceeding Profitability Expectations
FY24 witnessed Poonawalla Fincorp achieving unprecedented levels of profitability. The company reported its highest-ever yearly Profit After Tax (PAT) of ₹1,027 crore, reflecting an impressive 83% year-on-year surge. Additionally, the quarterly PAT reached a record high of ₹332 crore, showcasing a substantial 25% quarter-on-quarter increase. The Return on Assets (RoA) witnessed an impressive uptick of 73 basis points year-on-year and 42 basis points quarter-on-quarter, reaching 5.73%. The Net Interest Margin (NIM) also saw a positive trajectory, reaching 11.06%, up by 4 basis points quarter-on-quarter.
Efficient Operational Management
Operational efficiency is a hallmark of Poonawalla Fincorp. The Opex to AUM ratio stood at 3.99% in Q4FY24, witnessing a significant reduction of 144 basis points year-on-year and 1 basis point quarter-on-quarter. The Operating Profit (PPOP) for Q4FY24 was reported at ₹409 crore, marking a substantial 93% year-on-year increase and a commendable 17% quarter-on-quarter growth.
Ensuring Financial Stability
Poonawalla Fincorp maintains a robust financial position. The Capital Adequacy Ratio stood at 33.8%, ensuring compliance with regulatory requirements. Moreover, the company maintained a healthy liquidity buffer of ₹3,932 crore, reinforcing its financial stability.
Abhay Bhutada, Poonawalla Fincorp’s managing director, expressed his pride in the company's achievements. Under his leadership, Poonawalla Fincorp has emerged as a thought leader in the lending space, consistently outperforming expectations and delivering superior results.
Navigating Through Challenges
Despite economic headwinds and market uncertainties, Poonawalla Fincorp has demonstrated resilience and agility in its operations. The company's ability to adapt to changing market dynamics and mitigate risks has been instrumental in sustaining its growth momentum.
Future Outlook
Looking ahead, Poonawalla Fincorp remains committed to its vision of becoming a leading player in the NBFC sector. With a focus on innovation, customer-centricity, and prudent risk management, the company aims to unlock new avenues for growth and create long-term value for its stakeholders.
In conclusion, Poonawalla Fincorp's exemplary financial performance in FY24 underscores its commitment to excellence and innovation. With a focus on maintaining superior asset quality, driving profitability, and ensuring operational efficiency, the company continues to set new benchmarks in the NBFC sector, under the astute leadership of Abhay Bhutada.
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