Poonawalla Fincorp shares hit one-year high as Q3 profit jumps 76%; details here

Poonawalla Fincorp Ltd shares rose sharply in Friday's trade to scale their one-year high level after posting strong set of number during the third quarter of ongoing financial year 2023-24 (Q3 FY24). The stock jumped 5.75 per cent to hit a 52-week high of Rs 519.95.

The counter today saw high trading volume on BSE as around 2.57 lakh shares were seen changing hands. The figure was higher than the two-week average volume of 2.06 lakh shares. Turnover on the counter came at Rs 13.16 crore, commanding a market capitalisation (m-cap) of Rs 38,813.70 crore.

"The company reported a solid set of numbers in Q3. The management, in its commentary, sounded optimistic about new product launches and seamless technology deployment. This largely means that a lot of cost-optimisation is happening in terms of business delivery which could get reflected in the return ratio. So, one can continue to hold on to the stock," Mayuresh Joshi, Head-Equity Research at William O'Neil India, told Business Today TV.

The non-bank lender said it has reported its highest-ever quarterly PAT (profit after tax) of Rs 265.14 crore, up 76.3 per cent year-on-year (YoY) and 15 per cent on a sequential basis.

Also, Poonawalla Fincorp said it has achieved the highest-ever quarterly disbursement of Rs 8,731 crore, up 159 per cent YoY and 12 per cent QoQ. Assets under management (AUM) stood at Rs 21,946 crore, up 58 per cent YoY and 9 per cent QoQ.

Gross NPA (non-performing asset) came at 1.33 per cent, down 36 basis points (bps) YoY and 3 bps QoQ. Net NPA was at 0.70 per cent, reduced 19 bps YoY and 2 bps QoQ.

During the quarter under review, the NBFC's return on assets rose to 5.3 per cent, up 84 bps YoY and 34 bps QoQ.

Separately, the company's Board has declared an interim dividend of Rs 2 per equity share for FY24.

"We continued to showcase exemplary growth in Q3 FY24 with highest-ever quarterly disbursement, profit and strong AUM growth while maintaining a superior asset quality," said Abhay Bhutada, Managing Director, Poonawalla Fincorp.

As of December 2023, promoters held 62.07 per cent stake in the shadow lender.

(Disclaimer: Business Today provides stock market news for informational purposes only and that should not be construed as investment advice. Readers are encouraged to consult a qualified financial advisor before making any investment decisions.)

 

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