29 Jul , 2022 By : Kanchan Joshi
Poonawalla Fincorp reported a 118% rise in consolidated net profit at Rs141 crore in the April-June quarter on strong loan disbursements and improved margins. The income rose to Rs572 crore in the reporting quarter from Rs483 crore in the year-ago period, Poonawalla Fincorp, which completed a year of merger with Magma Fincorp.
From hovering Rs28 apiece level in July 2020, the multibagger stock has skyrocketed more than 850% the the 2 years period to currently trade at Rs268 apiece on the BSE. Poonawalla Fincorp is a financial services arm of the Poonawalla Group.
Poonawalla Fincorp Ltd (PFL) reported AUM of Rs176.6 bn, up 22.4% year-on-year (YoY) and 6.5% sequentially. The share of discontinued products declined to 13% of assets under management (AUM) vs 44% in 1QFY22 and 18% in 4QFY22. Organic disbursements were strong at up 7.1x YoY and 25% QoQ while total disbursements grew by 98% from the year-ago quarter and 3% from the previous quarter.
“PFL’s strong capital adequacy buffer (46% ) and advantage of low CoB provides it an edge to achieve its FY2025 vision of tripling its AUM," said brokerage Nirmal Bang which has buy rating on Poonawalla Fincorp shares with a target price of Rs314 apiece.
The company consolidated its leadership position in Pre-owned Cars and Loans to Professional segments. Asset quality on new business segments remained better than management expectations, with 30 book at <0>
Non-banking finance company (NBFC) Magma Fincorp Ltd (Magma) in July had announced that it has changed its name to Poonawalla Fincorp Limited effective 22 July, 2021, following the acquisition of controlling stake by Adar Poonawalla-led Rising Sun Holdings Private Limited.
After merging the larger Magma Fincorp last year, the company had written of over Rs700 crore of legacy dud loans, its managing director Abhay Bhutada told PTI, adding bad loans from Magma assets have all been provided for or written off.
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