Poonawalla Fincorp's Stellar FY24 Performance: Key Strategies And Milestones

 Poonawalla Fincorp Limited, a leading player in the NBFC sector, recently announced its audited financial results for the fiscal year ending March 31, 2024. The company's exceptional performance is reflected in its impressive growth in Assets Under Management (AUM), profitability, and asset quality.

Abhay Bhutada


Breaking Records in Q4FY24

In the final quarter of FY24, Poonawalla Fincorp achieved significant milestones, setting new records. The company reported its highest-ever quarterly disbursement of ₹9,688 crore, which is a 52% increase compared to the previous year and an 11% rise quarter-on-quarter. This surge propelled the AUM to ₹25,003 crore, marking a 55% year-on-year increase and a 14% quarter-on-quarter growth.

Also read: Unveiling Abhay Bhutada: A Leader’s Inspiring Odyssey In Finance

Commitment to Superior Asset Quality

A key highlight of Poonawalla Fincorp’s performance is its dedication to maintaining superior asset quality. The gross Non-Performing Assets (NPA) were reduced to 1.16%, a decrease of 28 basis points year-on-year and 17 basis points quarter-on-quarter. Similarly, net NPA dropped to 0.59%, down by 19 basis points year-on-year and 11 basis points quarter-on-quarter. This consistent reduction showcases the company's effective risk management strategies.

Surpassing Profitability Expectations

The financial year 2023–24 saw Poonawalla Fincorp achieve unprecedented levels of profitability. The company reported its highest-ever yearly Profit After Tax (PAT) of ₹1,027 crore, an impressive 83% increase from the previous year. Additionally, the quarterly PAT reached a record high of ₹332 crore, reflecting a 25% quarter-on-quarter increase. The Return on Assets (RoA) stood at 5.73%, up by 73 basis points year-on-year and 42 basis points quarter-on-quarter. The Net Interest Margin (NIM) also improved, reaching 11.06%, a positive increase of 4 basis points quarter-on-quarter.

Also read: Abhay Bhutada: Driving Digital Transformation in NBFC Sector

Efficient Operational Management

Poonawalla Fincorp’s operational efficiency is evident from its Opex to AUM ratio, which stood at 3.99% in Q4FY24. This ratio saw a significant reduction of 144 basis points year-on-year and 1 basis point quarter-on-quarter. The Operating Profit (PPOP) for Q4FY24 was reported at ₹409 crore, a remarkable 93% year-on-year increase and a commendable 17% quarter-on-quarter growth.

Ensuring Financial Stability

The company’s robust financial performance is further underscored by its strong capital adequacy and liquidity position. The Capital Adequacy Ratio stood at 33.8%, ensuring compliance with regulatory requirements. Additionally, Poonawalla Fincorp maintained a healthy liquidity buffer of ₹3,932 crore, reinforcing its financial stability.

Leadership and Vision

Abhay Bhutada MD


Abhay Bhutada, MD of Poonawalla Fincorp, expressed his elation and pride in the company’s achievements. He emphasized the significant transformation witnessed by the company over the past three years, attributing this success to rigorous execution and strategic differentiation. Under his leadership, Poonawalla Fincorp has emerged as a thought leader in the lending space, consistently outperforming expectations and delivering superior results.

Navigating Through Challenges

Despite economic headwinds and market uncertainties, Poonawalla Fincorp has demonstrated resilience and agility in its operations. The company’s ability to adapt to changing market dynamics and mitigate risks has been instrumental in sustaining its growth momentum.

Also read: Meet Abhay Bhutada: The Winner Of Lokmat Maharashtrian Of The Year 2024

Future Outlook

Looking ahead, Poonawalla Fincorp remains committed to its vision of becoming a leading player in the NBFC sector. With a focus on innovation, customer-centricity, and prudent risk management, the company aims to unlock new avenues for growth and create long-term value for its stakeholders. The leadership under Abhay Bhutada continues to drive the company towards greater heights, setting new benchmarks in the industry.

Poonawalla Fincorp, a part of the Cyrus Poonawalla group, is a non-deposit-taking NBFC registered with the Reserve Bank of India. With a legacy spanning nearly three decades, the company is listed on both the BSE Limited and the National Stock Exchange of India Limited. Embracing the values of Passion, Principles, Purpose, People, and Possibilities, Poonawalla Fincorp operates across 19 states, offering a diverse range of financial products and solutions.

In essence, Poonawalla Fincorp’s remarkable financial performance in FY24 is a testament to its commitment to excellence and innovation. The company's focus on maintaining superior asset quality, driving profitability, and ensuring operational efficiency continues to set new benchmarks in the NBFC sector, under the astute leadership of Abhay Bhutada.

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