Poonawalla Fincorp's consolidated net profit jumps by 118% to Rs141 crore

28 Jul 2022 , 08:04 AM

For the first quarter that ended in June 2022 (Q1FY23), Poonawalla Fincorp Ltd, formerly known as Magma Fincorp, reported an increase in net profit of 180% year over year (YoY) to Rs141 crore (NIM).

It reported a combined profit of Rs64.5 crores for the quarter ended June 2021 (Q1FY22) and Rs119 crores for the quarter ending March 2022. (Q4FY22). Its stock increased 3.5% to settle at Rs271.95 a share on the BSE.

The NIMs of Poonawalla Fincorp increased by 155 basis points year over year to 9.5%. Sequentially, however, they were lower than NIM in March 2022 by seven basis points from quarter to quarter (QoQ). Its borrowing costs decreased from 9.6% in June 2022 to 6.9% in June 2023.

The financial firm with headquarters in Pune said that its assets under management (AUM) increased by 6.5% quarterly and 22.4% year over year to reach Rs 17,660 crore. Its payments totaled Rs3,436 crore in Q1FY23, increasing by 98.3% YoY and 3% QoQ.

The asset quality profile improved, with net non-performing assets (NPAs) falling from 2.71 % in June 2021 to 0.95 % in June 2022, and gross non-performing assets (GNPAs) decreasing from 5.38 % to 2.19 % in June 2021. At 57%, the company’s provision coverage ratio is strong.