Poonawalla Fincorp (POONAWALLA) Q3 24/25 earnings summary

Executive summary

• Management expresses high confidence in business momentum, focusing on scalable lending across secured, unsecured, and digital segments, supported by a fully onboarded senior leadership team.

• Achieved 41% year-over-year AUM growth to ₹30,984 Cr, with a balanced secured/unsecured mix of 54:46.

• Net Interest Income rose 22% YoY to ₹672 Cr, and PPOP increased 7% YoY to ₹373 Cr.

• PAT for Q3FY25 was ₹19 Cr, rebounding from a one-time loss in Q2FY25 due to exceptional provisioning.

• Consolidated revenue from operations for Q3 FY25 was ₹1,057.03 crore, up from ₹762.61 crore in Q3 FY24.

Financial highlights

• Assets under management (AUM) reached ₹30,984 Cr, up 41% YoY and 9% QoQ as of December 31, 2024.

• Net interest income for Q3 FY25 was ₹672 Cr, up 22% YoY.

• Pre-provisioning operating profit (PPOP) was ₹373 Cr, up 34% QoQ and 7% YoY.

• Gross NPA reduced by 25 bps QoQ to 1.85%; net NPA at 0.81%; provisioning coverage ratio at 56.79%.

• Total write-offs for the quarter were ₹676 Cr, with ₹520 Cr related to the old book and ₹200 Cr provisioned for STPL.

Outlook and guidance

• AUM growth guidance remains at 30%-35% for the current financial year and 30%-40% thereafter, with expectations to exceed guidance.

• Aspires for 5-6x AUM growth over the next five years, focusing on sustainable, predictable, and productive business expansion.

• Management expects ROA to reach around 3.5% by FY2027, with new businesses targeting ROAs of 3%-4.5%.

• Credit costs are expected to decline sequentially, with sufficient provisions already made for legacy portfolios.

• The Board reaffirmed the plan to sell its shareholding in Jaguar Advisory Services Private Limited, subject to regulatory approvals.