Poonawalla Fincorp Limited , a non-deposit taking systemically important NBFC focusing on consumer and MSME finance, has announced its unaudited financial results for the quarter ending June 30, showcasing strong growth and strategic initiatives.

Strong AUM Growth and Financial Performance

The company reported a robust 53% year-on-year growth in Assets Under Management (AUM), reaching ₹41,273.00 crore. This significant increase was accompanied by a 15.8% quarter-on-quarter growth. The Net Interest Income (NII), including fees and other income, grew by 13.6% YoY to ₹768.00 crore during the quarter.

Key Financial Highlights

Strategic Capital Infusion

In a significant move, the Board of Directors approved raising funds amounting to approximately ₹1,500.00 crore through the issuance of equity shares on a preferential basis to the promoter. This decision is subject to shareholders' approval and underscores the promoter's confidence in the company's long-term growth trajectory.

Expansion of Debt Securities Limit

Poonawalla Fincorp has also increased its debt securities fundraising limit to ₹20,000.00 crore from the previous ₹10,000.00 crore. This enhancement in the limit for raising funds through issuance of Non-Convertible Debt Securities on a private placement basis reflects the company's ambitious growth plans.

New Product Launches and Business Update

The company reported healthy traction in its newly launched businesses:

• Consumer Durable Loan: Live with 3,000+ dealers across ~160 locations
• Gold Loan: 80 branches launched to date across Gujarat, Haryana, Rajasthan, and Maharashtra
• Commercial Vehicle Loan: Commenced business across 27 locations in 10 states
• Education Loan: Onboarded 150+ dedicated sales team along with ~100 partners

The new products' disbursement contributed 11% to total disbursement, indicating successful market penetration.

Management Commentary

Mr. Arvind Kapil, Managing Director and CEO of Poonawalla Fincorp, commented on the results: "With credit cost significantly reducing on an overall basis by 53 bps QoQ, a risk-calibrated AUM increase of 15.8% QoQ, and ~₹1,500 cr capital infusion on preferential basis by the promoter, strengthens the company and supports its growth plans. Poonawalla Fincorp is well-poised for building a risk-first, sustainable, and profitable model."

Future Outlook

With the strong financial performance, strategic capital infusion, and expansion of product offerings, Poonawalla Fincorp appears well-positioned to capitalize on growth opportunities in the consumer and MSME finance sectors. The company's focus on maintaining asset quality while driving growth suggests a balanced approach to expansion in the competitive NBFC landscape.

As the company continues to execute its growth strategy, investors and stakeholders will be watching closely to see how these initiatives translate into sustained financial performance and market share gains in the coming quarters.

Poonawalla Fincorp Limited , a non-deposit taking systemically important NBFC, has announced its financial results for the quarter ended June 30, along with significant strategic moves to bolster its capital base and growth prospects.

Financial Performance

The company reported a profit after tax of Rs 62.60 crore for the quarter, compared to Rs 291.64 crore in the same period last year. Total income increased to Rs 1,314.01 crore from Rs 995.86 crore year-over-year, demonstrating strong revenue growth.

Strategic Capital Infusion

In a significant move, the Board of Directors approved raising funds amounting to approximately Rs 1,499.99 crore through a preferential allotment of equity shares to the promoter, Rising Sun Holdings Private Limited. This decision is subject to shareholders' approval and necessary regulatory clearances.

The company plans to issue 3.31 crore fully paid-up equity shares at Rs 452.51 per share. Post-allotment, the promoter's shareholding is expected to increase from 62.46% to 63.99%, reinforcing their commitment to the company's long-term growth strategy.

Expansion of Debt Issuance Limits

The Board also approved an enhancement in the limits for raising funds through Non-Convertible Debt Securities. The limit has been doubled from Rs 10,000 crore to Rs 20,000 crore, providing additional financial flexibility to support the company's growth plans.

Furthermore, Poonawalla Fincorp has approved increasing its borrowing limits from Rs 50,000 crore to Rs 75,000 crore, subject to shareholder approval.

Business Outlook

The significant increase in debt issuance and borrowing limits, coupled with the substantial capital infusion through preferential allotment, indicates Poonawalla Fincorp's ambitious growth plans. These strategic moves are likely aimed at supporting the company's expansion in various lending segments and strengthening its market position in the competitive NBFC landscape.

As the company continues to evolve and grow, these financial and strategic decisions are expected to play a crucial role in shaping its future trajectory and ability to capitalize on market opportunities.