Shares of this midcap company jumped up to 5 percent in Friday’s trading session after reporting a 79 percent increase in net profits during Q3FY24. The shares have delivered more than 60 percent return to its shareholders in one year.
With a market capitalisation of Rs. 38,222 crores, the shares of Poonawalla Fincorp started Friday’s trading session on a higher note at Rs. 509 compared to its previous close of Rs. 490.40. The shares hit a high of Rs. 519.70, gaining around 5 percent, also recorded as the company’s fresh 52-week high and are currently trading at Rs. 497.10 apiece.
Such a positive movement in the share price was observed after the company announced quarterly results. Looking at the latest financial statement published by the company, the revenue increased marginally by 3 percent from Rs. 739 crores during Q2FY24 to Rs. 762.61 crores in Q3FY24. On a
contrasting note, Profit After Tax (from continuing operations) declined by 69 percent from Rs. 854.61 crores to Rs. 265.14 crores during the same period.
Comparing these metrics on a YoY basis, the revenue zoomed by 53 percent from Rs. 498 crores during Q3FY23 to Rs. 762 crores in Q3FY24. In addition, PAT (from continuing operations) magnified by 79 percent from Rs. 148.24 percent to Rs. 265.14 crores during the same timeframe.
In the October-December quarter, the asset quality of the lender showed an improvement with Gross Non-Performing Assets (NPA) improving by 36 bps and Net NPA easing 19 bps on a yearly basis.
The NBFC has disbursed Rs. 8,731 crores in the reporting quarter, up by 159 percent YoY. Furthermore, the company’s Assets Under Management (AUM) increased by 58 to Rs. 21,946 crores in the reporting quarter.
Along with the announcement of quarterly results, the company also declared interim dividends for its shareholders. The company has declared an interim dividend of Rs. 2 per equity share of the face value of Rs. 2 each for the financial year ending on March 31, 2024, such dividend will be paid on and after February 13, 2024, and also have fixed, January 31, 2024, as the record date to determine entitlement of the members for such interim dividend.
Due to increasing operating revenue and profits on a YoY basis, the profitability metrics of the company improved with the return on equity (RoE) increasing from 6.12 percent during FY 21-22 to 7.70 percent in FY 22-23, and, the return on capital employed (RoCE) zoomed from 5.73 percent to 7.18 percent during the same timeframe. Furthermore, the net profit margin increased from 15.29 percent during FY21-22 to 21.06 percent during FY22-23.
Headquartered in Pune, Poonawalla Fincorp was incorporated in 1978. The company is a non-deposit-taking NBFC registered with RBI. It is engaged in providing consumer and MSME financing, as well as General Insurance Services.
Written By Vaibhav Patil
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