Poonawalla Fincorp Q3 PAT soars 643% YoY to Rs 96 cr

2 Feb 2022 , 12:38 PM

On a consolidated basis, profit before tax (PBT) surged 651.50% year-on-year to Rs 130.46 crore in Q3 December 2021, driven largely by reduction in interest cost and recovery led credit costs.

Net interest margin (NIM) increased by 25 bps YoY to 8.8% in Q3 FY22, driven largely by reduction in interest expenses.

The companys finance costs declined 32.71% year-on-year to Rs 181.45 crore in Q3 FY22. Net Credit Cost stood at 0.05% for Q3 FY22, down 473 bps YoY and down 91 bps QoQ.

Assets Under Management was flat at Rs 15,228 crore in Q3 FY22. Collections continued to remain buoyant above 99% in December 2021.

Consequent to healthy collections in Q3FY22, Gross Stage 3 and Net Stage 3 assets decreased from 4.1% and 2.0% respectively as at Sep21 to 3.5% and 1.8% respectively as at Dec21 on a consolidated basis. The company has one of the best provision coverage ratios across all three stages. Standard asset coverage ratio as at Dec21 stands at 3.3%; Stage 3 asset coverage ratio stands at 50.1%.

The company continues to maintain a strong liquidity position with over Rs 3,200 crore of surplus liquidity, and additional term loan sanctions in hand of Rs 1,490 crore. The repricing of all eligible term loans has been competed in Q3FY22, with overall reduction of over 160 bps. New loan sanctions received at sub 6.5%.

The company was assigned a long-term rating of AA+ / Stable by CRISIL. The short-term rating was retained at the highest level of A1+

The company said it continued its product focus on consumer and small businesses. During the quarter, the company entered into multiple co-lending/fintech partnerships along with adding small-ticket LAP and medical equipment loan products.

Meanwhile the companys board approved raising funds through issuance of non-convertible debt securities on private placement basis for the financial year 2022-2023 for an amount up to Rs 4000 crore.

Poonawalla Fincorp is a Cyrus Poonawalla group promoted non-deposit taking systemically important non-banking finance company (ND-SI-NBFC), registered with the Reserve Bank of India (RBI).

Shares of Poonawalla Fincorp were up 0.64% at Rs 283.65 on the BSE.

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