Poonawalla Fincorp (POONAWALLA) Q1 24/25 earnings summary

Executive summary

• New MD & CEO, Arvind Kapil, appointed in June 2024, brings over 25 years of banking experience to drive long-term growth and transformation.

• Achieved 52% year-over-year AUM growth to ₹26,972 crore in Q1FY25, with consistent expansion across product lines and strong profitability.

• Consolidated total income for the quarter ended 30 June 2024 was ₹995.86 crore, up from ₹693.48 crore year-over-year.

• Profit after tax reached ₹292 crore, up 46% year-on-year but down sequentially due to a prior one-time tax benefit.

• Strategic focus on building a sustainable, productive business model with investments in technology, collections, and new business lines.

Financial highlights

• AUM reached ₹26,972 crore, up 52% year-on-year and 8% quarter-on-quarter.

• Net interest income at ₹676 crore, up 42% year-on-year; pre-provisioning operating profit at ₹432 crore, up 47% year-on-year.

• Gross NPA improved to 0.67%, net NPA at 0.32%; ROA at 4.62% and CAR at 31.57%.

• Total borrowings reached ₹17,121 crore as of June 30, 2024, with 70% on variable rates.

• Earnings per share (basic) for continuing operations stood at ₹3.79, up from ₹2.60 year-over-year.

Outlook and guidance

• Targeting AUM growth of 30%-35% in FY25 and 35%-40% CAGR over the next five years, aiming for 5-6x AUM growth in 5-6 years.

• Plans to launch new products and expand the phygital model, with a focus on AI-led digital strategy and customer engagement.

• Focus on consolidating existing businesses in the next two quarters, with new business launches and investments front-loaded.

• Reaffirmed plan to sell shareholding in Jaguar Advisory Services Private Limited, pending regulatory approvals.