Poonawalla Fincorp shares climbed Monday following a robust third-quarter business update. The non-banking finance company reported a significant 77.5% year-over-year increase in assets under management, reaching approximately ₹55,000 crore. Ample liquidity of ₹6,450 crore and strong NII growth further bolstered investor confidence.
Poonawalla Fincorp Posts Strong Quarterly Growth
Poonawalla Fincorp Ltd. shares saw a notable jump on Monday, adding over 2% after the company revealed substantial third-quarter performance metrics. The non-banking finance company (NBFC) demonstrated impressive expansion, signaling robust financial health and strategic execution.
Asset Under Management Surges
The core of the positive update was the 77.5% year-over-year surge in assets under management (AUM), reaching approximately ₹55,000 crore by the end of December 2024. This growth was further amplified by a 15.3% sequential increase, highlighting strong customer acquisition and loan origination momentum. The company maintained ample liquidity, reporting close to ₹6,450 crore as of December 31, providing a solid foundation for continued lending operations and managing potential market volatilities.
Profitability Metrics Improve
Poonawalla Fincorp's profitability indicators also painted a positive picture. In the second quarter, the company achieved a profit of ₹74.2 crore, a significant turnaround from a ₹471 crore loss in the prior year. Sequentially, profit increased by ₹62.6 crore. Net interest income (NII) recorded a substantial 40.3% rise compared to the same period last year, reaching ₹905 crore. This was complemented by a 17.8% quarter-on-quarter improvement. Profit before provisions grew by 38.5% year-over-year to ₹387 crore, with net interest margins edging up to 8.4% from 8.32% in the previous quarter.
Management Focus on Sustainable Growth
Company statements emphasized a commitment to a "risk first approach" and "robust risk management systems." The focus remains on business expansion aligned with building a long-term, sustainable, and profitable model. This strategy appears to be resonating with investors, as the stock has climbed 56% over the past twelve months, trading at ₹489 on Monday.
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