Amidst the fast-paced world of finance, Poonawalla Fincorp has emerged as a beacon of exemplary financial performance, marking a remarkable journey of growth and resilience in FY24. Led by the visionary leadership of Mr. Abhay Bhutada, the Managing Director, the company has achieved record-breaking milestones across various key parameters, solidifying its position as a leader in the NBFC space.
A Record-Breaking Quarter
In the fourth quarter of FY24, Poonawalla Fincorp achieved its highest ever quarterly disbursement, surpassing expectations with a staggering figure of ₹9,688 crore. This remarkable feat represents a substantial 52% year-on-year growth and an impressive 11% quarter-on-quarter increase.
A Steady Rise in Assets
The company's Assets Under Management (AUM) witnessed an exceptional growth trajectory, reaching ₹25,003 crore by the end of FY24. This signifies a notable 55% year-on-year surge and a commendable 14% quarter-on-quarter rise, reflecting the trust and confidence of consumers and MSMEs in Poonawalla Fincorp's offerings.
Maintaining Superior Asset Quality
Poonawalla Fincorp has consistently prioritized asset quality, evident from its Gross NPA (Non-Performing Assets) standing at 1.16%, showcasing a reduction of 28 basis points year-on-year and 17 basis points quarter-on-quarter. Similarly, the Net NPA has seen a decline, standing at 0.59%, with reductions of 19 basis points year-on-year and 11 basis points quarter-on-quarter.
Achieving Unprecedented Profitability
The company's profitability metrics have soared to new heights, with the highest ever yearly Profit After Tax (PAT) recorded at ₹1027 crore in FY24, marking an impressive 83% year-on-year surge. Furthermore, the quarterly PAT also reached an all-time high of ₹332 crore, reflecting a substantial 25% quarter-on-quarter increase.
Strengthening Financial Ratios
Poonawalla Fincorp has demonstrated robust financial ratios, with Return on Assets (RoA) reaching 5.73%, exhibiting a significant improvement of 73 basis points year-on-year and 42 basis points quarter-on-quarter. Moreover, the Net Interest Margin (NIM) stood at 11.06%, marking a notable increase of 4 basis points quarter-on-quarter.
Efficiency in Operations
The company's operational efficiency is commendable, as indicated by the Opex to AUM ratio, which stood at 3.99% in Q4FY24, showcasing a reduction of 144 basis points year-on-year and 1 basis point quarter-on-quarter. Additionally, the Operating Profit (PPOP) witnessed substantial growth, reaching ₹409 crore for Q4FY24, marking a remarkable 93% year-on-year increase and a significant 17% quarter-on-quarter rise.
Ensuring Capital Adequacy and Liquidity
Poonawalla Fincorp maintains robust capital adequacy and liquidity positions, with a Capital Adequacy Ratio of 33.8% and a Liquidity buffer of ₹3,932 crore, ensuring resilience and stability even in challenging market conditions.
Also read: Who is Abhay Bhutada?
A Testament to Leadership and Innovation
Under the astute leadership of Abhay Bhutada, Poonawalla Fincorp has transcended boundaries, transforming challenges into opportunities and setting new industry standards. Mr. Bhutada's strategic vision and unwavering commitment to excellence have been instrumental in driving the company's success, inspiring employees to embrace innovation and deliver exceptional results.
A Commitment to Stakeholders
Poonawalla Fincorp's success story is not just about numbers; it's about creating value for all stakeholders. Whether it's providing tailored financial solutions to customers, generating sustainable returns for investors, or fostering a culture of inclusivity and growth for employees, the company remains steadfast in its commitment to creating meaningful impact across the board.
Looking Ahead
As Poonawalla Fincorp embarks on the next phase of its journey, the focus remains on harnessing innovation, leveraging technology, and expanding reach to unlock new growth opportunities. With a solid foundation built on trust, integrity, and customer-centricity, the company is poised to navigate through evolving market dynamics and emerge stronger than ever before.
Conclusion
In conclusion, Poonawalla Fincorp's exceptional performance in FY24 is a testament to its resilience, agility, and commitment to excellence. With a relentless pursuit of innovation and a customer-first approach, the company continues to redefine industry benchmarks, setting new standards of success in the NBFC sector. As Mr. Abhay Bhutada leads the way with vision and determination, Poonawalla Fincorp is well-positioned to chart new territories and shape the future of finance, one milestone at a time.
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