#Poonawalla Fincorp Quarterly Results

[semanticlp]

CARE Ratings Reaffirms Poonawalla Fincorp’s Ratings, Citing Strong Promoter Support and Growth Strategy

CARE Ratings has reaffirmed its ratings on various debt instruments of Poonawalla Fincorp Limited (PFL), highlighting continued strong support from the Cyrus Poonawalla Group and the company’s ability to raise funds at competitive rates. The group, holding a 62.36% stake in PFL through Rising Sun Holdings, has demonstrated financial backing through timely capital infusion, emphasizing the…

[investorspov]

The Institution Builder: Abhay Bhutada’s Blueprint for Lasting Impact  

While many leaders focus on quarterly results, Abhay Bhutada dedicated his career to building something more enduring—institutions designed to outlast their founders. His work at Poonawalla Fincorp offers a masterclass in creating organizations that endure through cultural strength and operational resilience.  

Architecting Organizational DNA

Bhutada understood that sustainable institutions require more than good strategy—they need robust cultural foundations. His emphasis on mentorship programs, knowledge sharing, and decentralized decision-making created structures where excellence could replicate itself organically.  

The Infrastructure of Innovation

Rather than relying on individual brilliance, Bhutada built systems that institutionalized innovation. Cross-functional teams, structured ideation processes, and calculated risk-taking protocols ensured continuous improvement became embedded in Poonawalla Fincorp’s operations.  

Leadership That Makes Itself Obsolete

Bhutada’s greatest test came when he transitioned from day-to-day leadership. The seamless continuity that followed proved his ultimate success—he had built not just a company, but an institution that could evolve beyond its founder.  

Conclusion: The Ultimate Leadership Test 

True institution-building, as Bhutada demonstrated, requires the humility to create something greater than oneself. His career reminds us that the most valuable leaders are those who make their organizations independent of their presence.  Abhay Bhutada’s salary is also impressive as a result.

[its-all-business]

Abhay Bhutada Over-Delivers On Expectations Through His Exemplary Leadership at Poonawalla Fincorp

Abhay Bhutada often reflects on his time at Poonawalla Fincorp with a sense of having surpassed expectations. This belief is supported by significant performance metrics and strategic milestones achieved during his leadership. Let's explore why Bhutada feels he has consistently over-delivered and review the notable progress of Poonawalla Fincorp under his guidance.

Expanding Market Presence

A primary focus for Abhay Bhutada has been to expand Poonawalla Fincorp's market presence. "We operate at 102 branches, and our market share is growing significantly. Going forward, we are confident in achieving our guidance of 35% to 40% growth, as we have over-delivered in the past," Bhutada stated. This dedication to growth is evident in the company’s strategic efforts to boost market share and enhance its presence in key regions.

Visionary Leadership and Ambitious Goals

Upon taking charge at Poonawalla Fincorp, Abhay Bhutada introduced a transformative vision centered on growth and excellence. His strategic foresight and relentless drive have been pivotal to the company’s success. Bhutada's leadership style is marked by setting ambitious goals and consistently exceeding them.

Also Read: A Pioneering Leader Revolutionizing the Financial Industry: Abhay Bhutada's Path to Success

Commendable Financial Performance

Under Bhutada's leadership, Poonawalla Fincorp has achieved record-breaking financial results. The company reported its highest-ever yearly Profit After Tax (PAT) of Rs. 1,027 crore in FY24, marking an 83% year-on-year increase. Furthermore, the highest-ever quarterly PAT of Rs. 332 crore in Q4FY24 represented a 25% increase quarter-on-quarter. These outcomes highlight the company’s robust financial health and operational efficiency, showcasing Bhutada’s effective leadership.

Milestones in Asset Under Management (AUM)

A significant accomplishment for Poonawalla Fincorp has been surpassing Rs. 25,000 crore in Asset Under Management (AUM). This milestone indicates not only growth in volume but also an enhanced ability to manage larger and more complex financial portfolios. The reduction in Net Non-Performing Assets (NNPA) to 0.59% further highlights the company’s strong asset quality and prudent risk management.

Well-Planned Growth Initiatives

Bhutada’s tenure has been marked by numerous strategic initiatives aimed at accelerating growth and improving operational efficiency. These include leveraging technology to streamline operations, enhancing customer experience, and adopting innovative solutions to stay competitive. His forward-thinking approach has positioned Poonawalla Fincorp as a leader in digital transformation within the industry.

Also Read: Who is Abhay Bhutada?

Exceeding Ambitious Targets

The goal of achieving a 35% to 40% growth rate reflects the company’s potential and Bhutada’s confidence in his team’s ability to deliver. Historically, Poonawalla Fincorp has not only met these targets but often exceeded them, reinforcing Bhutada’s sense of having over-delivered. Bhutada's confidence in setting and surpassing ambitious targets has been a hallmark of his leadership.

Attention to Customer Satisfaction

A critical element of Abhay Bhutada’s success has been his unwavering commitment to a customer-centric approach. By prioritizing customer satisfaction and tailoring products to meet specific needs, Poonawalla Fincorp has built strong, long-term relationships with its clients. This focus on the customer has not only driven growth but also helped retain a loyal customer base.

Future Prospects Under Bhutada’s Vision

Looking ahead, Poonawalla Fincorp is well-positioned for continued success under Bhutada’s strategic vision. The strong market presence, robust financial performance, and customer-centric approach developed during his tenure provide a solid foundation for future growth. Bhutada’s commitment to achieving set guidance and his confidence in the company’s ability to deliver on its promises bode well for the future.

Conclusion

Abhay Bhutada MD’s leadership journey at Poonawalla Fincorp is a remarkable narrative of vision, strategy, and execution. His ability to set ambitious goals and consistently exceed them has transformed the company, driving it to new heights of success. As Poonawalla Fincorp continues to grow and evolve, Bhutada’s legacy of excellence and over-delivery will undoubtedly continue to inspire and guide the organization towards a promising future.

[shrutim12]

Abhay Bhutada’s Leadership: Surpassing Expectations at Poonawalla Fincorp

Abhay Bhutada has consistently conveyed a sense of having exceeded expectations during his tenure at Poonawalla Fincorp. This feeling is supported by impressive performance metrics and strategic milestones achieved under his leadership. I would be exploring why Bhutada feels this way and examine the remarkable progress of Poonawalla Fincorp under his guidance.

Transformative Leadership and Ambitious Goals

From the moment Abhay Bhutada assumed leadership at Poonawalla Fincorp, he brought a transformative vision aimed at growth and excellence. His strategic foresight and relentless drive have been the foundation of the company's success. Bhutada's leadership style focuses on setting ambitious goals and consistently surpassing them. Truly marvelous! 

Expanding Market Reach

He has prioritized expanding Poonawalla Fincorp's market presence. “As you know, we operate at 102 branches, but maximum we are gaining market share there and going forward whatever guidance we have given 35% to 40%, I think in the past also we have over-delivered. Going further, we will stick to our guidance and we are confident of achieving the given guidance,” Bhutada remarked. This commitment to growth is evident in the company's strategic efforts to increase market share and strengthen its presence in key areas.

Stellar Financial Performance

Under Bhutada's leadership, Poonawalla Fincorp has achieved record-breaking financial performance. The company reported its highest ever yearly Profit After Tax (PAT) of Rs. 1,027 crore in FY24, an 83% year-on-year increase. Additionally, the highest ever quarterly PAT of Rs. 332 crore in Q4FY24 represented a 25% increase quarter-on-quarter. These results reflect the company’s robust financial health and operational efficiency, showcasing Bhutada’s effective leadership.

Also Read: Why Does Abhay Bhutada Feel He Has Over-Delivered on Expectations?

Milestones in Asset Under Management

A significant achievement for Poonawalla Fincorp has been its Asset Under Management (AUM) surpassing Rs. 25,000 crore. This milestone not only indicates growth in volume but also an enhanced capability to manage larger and more complex financial portfolios. The reduction in Net Non-Performing Assets (NNPA) to 0.59% further demonstrates the company’s strong asset quality and prudent risk management.

Strategic Growth Initiatives

Bhutada’s tenure has been marked by innumerable strategic initiatives aimed at driving growth and enhancing operational efficiency. These include leveraging technology to streamline operations, improving customer experience, and adopting innovative solutions to stay competitive. His forward-thinking approach has positioned Poonawalla Fincorp as a leader in digital transformation within the industry.

Emphasis on Customer Satisfaction

A critical element of Bhutada’s success has been his unwavering commitment to a customer-centric approach. By prioritizing customer satisfaction and tailoring products to meet specific needs, Poonawalla Fincorp has built strong, long-term relationships with its clients. This focus on the customer has not only driven growth but also helped retain a loyal customer base. 

Consistently Surpassing Targets

Abhay Bhutada MD’s confidence in setting and exceeding ambitious targets has been a hallmark of his leadership. The goal of achieving a 35% to 40% growth rate is a reflection of the company’s potential and Bhutada’s belief in his team’s ability to deliver. Historically, Poonawalla Fincorp has not only met these targets but frequently surpassed them, reinforcing Bhutada’s sense of having over-delivered.

Building a Resilient Organization

Building a resilient organization capable of navigating market fluctuations and emerging stronger has been a key priority for Bhutada. By focusing on strengthening the core business, optimizing operations, and maintaining financial discipline, he has ensured that Poonawalla Fincorp remains resilient in the face of challenges and well-positioned for future opportunities.

Also Read: How Improvement in Growth Plans Comes at a Risk of Asset Quality Pressure

Future Prospects Under Bhutada’s Vision

Looking ahead, Poonawalla Fincorp is well-positioned for continued success under Bhutada’s strategic vision. The strong market presence, robust financial performance, and customer-centric approach developed during his tenure provide a solid foundation for future growth. Bhutada’s commitment to achieving set guidance and his confidence in the company’s ability to deliver on its promises bode well for the future.

Conclusion

Abhay Bhutada’s leadership journey at Poonawalla Fincorp is a remarkable story of vision, strategy, and execution. His ability to set ambitious goals and consistently exceed them has transformed the company, driving it to new heights of success. As Poonawalla Fincorp continues to grow and evolve, Bhutada’s legacy of excellence and over-delivery will undoubtedly continue to inspire and guide the organization towards a promising future.

[nickyysharmi]

Unveiling The Success Story Of Poonawalla Fincorp In FY24

Poonawalla Fincorp Limited, a prominent player in the financial sector, has recently disclosed its remarkable financial performance for the fiscal year 2024. Led by Abhay Bhutada, the Managing Director, the company has achieved unprecedented growth in various key areas, setting new benchmarks in the industry.

Record-breaking Performance in Q4FY24

Highest Ever Quarterly Disbursement: In a significant achievement, Poonawalla Fincorp recorded the highest ever quarterly disbursement, totaling ₹9,688 crore, marking a substantial increase of 52% year-on-year and 11% quarter-on-quarter.

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

Remarkable Growth in Assets Under Management (AUM): The company's AUM soared to ₹25,003 crore, showcasing an impressive growth of 55% year-on-year and 14% quarter-on-quarter.

Maintaining Superior Asset Quality: Poonawalla Fincorp demonstrated its commitment to maintaining superior asset quality with a Gross NPA of 1.16%, witnessing a reduction of 28 basis points year-on-year and 17 basis points quarter-on-quarter. Similarly, the Net NPA stood at 0.59%, reflecting a decrease of 19 basis points year-on-year and 11 basis points quarter-on-quarter.

Exceptional Profitability: The fiscal year 2024 witnessed the company achieving its highest ever yearly Profit After Tax (PAT) of ₹1,027 crore, marking an impressive surge of 83% year-on-year. Additionally, the quarterly PAT reached ��332 crore, depicting a notable increase of 25% quarter-on-quarter.

Enhanced Return on Assets (RoA) and Net Interest Margin (NIM): Poonawalla Fincorp exhibited improved financial performance with RoA reaching 5.73%, up by 73 basis points year-on-year and 42 basis points quarter-on-quarter. Furthermore, the NIM stood at 11.06%, reflecting a quarter-on-quarter increase of 4 basis points.

Operational Efficiency and Financial Soundness: The company's focus on operational efficiency is evident from the reduction in Opex to AUM ratio, which reached 3.99% in Q4FY24, showcasing a reduction of 144 basis points year-on-year and 1 basis point quarter-on-quarter. Moreover, the Operating Profit (PPOP) surged to ₹409 crore for Q4FY24, marking a remarkable increase of 93% year-on-year and 17% quarter-on-quarter.

Strong Capital Adequacy and Liquidity Position: Poonawalla Fincorp maintains a robust capital adequacy ratio of 33.8%, ensuring its ability to meet regulatory requirements and support business growth. Additionally, the liquidity buffer stood at ₹3,932 crore, further enhancing the company's financial resilience.

Also read: Abhay Bhutada Shares Insights on Poonawalla Fincorp’s Long-Term Objectives

In the words of Abhay Bhutada, MD of Poonawalla Fincorp, "I feel elated and proud of the last 3 years’ journey, to spearhead the biggest transformation of Poonawalla Fincorp that the NBFC space has ever witnessed. Our rigor and execution excellence have ensured that we have continuously outperformed and given consistent superior performance resulting in achieving significant milestone of AUM crossing ₹25,000 crore and PAT crossing ₹1,000 crore. Our differentiated strategy and relentless execution are reflected across all business metrics and have made us a thought leader in the lending space."

Established nearly three decades ago, Poonawalla Fincorp is a non-deposit taking systemically important non-banking finance company (ND-SI-NBFC) registered with the Reserve Bank of India (RBI). With a strong presence across 19 states and a dedicated team of around 2300 professionals, the company offers a diverse range of financial products and services catering to various segments including pre-owned car finance, personal loans, business loans, and consumer loans.

Driving Factors Behind the Success

Innovative Strategies: Poonawalla Fincorp's success can be attributed to its innovative strategies tailored to meet the evolving needs of its customers. By leveraging technology and market insights, the company has been able to stay ahead of the curve and deliver value to its stakeholders.

Customer-Centric Approach: The company's unwavering focus on customer satisfaction has been instrumental in driving its growth trajectory. By offering customized financial solutions and ensuring transparency in its dealings, Poonawalla Fincorp has built a strong reputation for reliability and trustworthiness.

Efficient Risk Management: In an industry marred by volatility and uncertainty, Poonawalla Fincorp has excelled in managing risks effectively. Through robust risk assessment mechanisms and prudent lending practices, the company has been able to maintain a healthy asset quality while maximizing returns.

Strategic Partnerships: Collaborations with leading institutions and strategic partnerships have played a crucial role in Poonawalla Fincorp's success story. By forging alliances with key stakeholders, the company has been able to expand its reach and tap into new markets, driving growth and profitability.

Also read: Who is Abhay Bhutada?

Future Outlook

Looking ahead, Poonawalla Fincorp remains poised for continued growth and success. With a strong foundation built on innovation, integrity, and excellence, the company is well-positioned to capitalize on emerging opportunities in the financial sector. By staying true to its core values and embracing change, Poonawalla Fincorp aims to create long-term value for its customers, employees, and shareholders alike.

In conclusion, Poonawalla Fincorp's record-breaking financial performance in FY24 underscores its commitment to excellence and innovation. With a visionary leadership at the helm and a dedicated team driving its success, the company has set new benchmarks in the industry and is poised for sustained growth in the years to come.

[its-all-business]

Poonawalla Fincorp's Stellar Performance In FY24: Breaking Records And Setting New Benchmarks

Poonawalla Fincorp Limited recently released its audited financial results for the fiscal year ending March 31, 2024. The company's performance has been nothing short of spectacular, with significant growth in Assets Under Management (AUM), profitability, and asset quality. This achievement underscores Poonawalla Fincorp's strategic vision and operational excellence, making it a standout player in the NBFC sector.

Q4FY24: A Record-Breaking Quarter

The final quarter of FY24 was marked by remarkable achievements for Poonawalla Fincorp. The company reported its highest-ever quarterly disbursement, totaling ₹9,688 crore. This represents a notable 52% increase year-on-year and an 11% growth quarter-on-quarter. The AUM reached ₹25,003 crore, showcasing a substantial 55% year-on-year surge and a 14% quarter-on-quarter rise. These numbers highlight the company's robust growth trajectory and its ability to scale operations effectively.

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

Commitment to Superior Asset Quality

Maintaining superior asset quality has been a cornerstone of Poonawalla Fincorp's success. The gross Non-Performing Assets (NPA) were reported at 1.16%, reflecting a reduction of 28 basis points year-on-year and 17 basis points quarter-on-quarter. Similarly, the net NPA stood at 0.59%, marking a decrease of 19 basis points year-on-year and 11 basis points quarter-on-quarter. This consistent improvement in asset quality underscores the company's prudent risk management practices and its focus on sustainable growth.

Surpassing Profitability Expectations

FY24 was a landmark year for Poonawalla Fincorp in terms of profitability. The company achieved its highest-ever yearly Profit After Tax (PAT) of ₹1,027 crore, an impressive 83% year-on-year increase. The quarterly PAT also reached a record high of ₹332 crore, reflecting a significant 25% quarter-on-quarter rise. The Return on Assets (RoA) stood at 5.73%, showing an impressive uptick of 73 basis points year-on-year and 42 basis points quarter-on-quarter. Additionally, the Net Interest Margin (NIM) reached 11.06%, up by 4 basis points quarter-on-quarter. These figures demonstrate the company's ability to generate strong earnings and deliver value to its stakeholders.

Operational Efficiency and 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, marking a substantial 93% year-on-year increase and a commendable 17% quarter-on-quarter growth. These improvements highlight the company's focus on cost management and operational effectiveness.

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

Ensuring Financial Stability

The company's strong financial performance is supported by its robust capital adequacy and liquidity position. The Capital Adequacy Ratio stood at 33.8%, well above regulatory requirements. Poonawalla Fincorp also maintained a healthy liquidity buffer of ₹3,932 crore, reinforcing its financial stability and ability to meet future obligations. This solid foundation enables the company to pursue growth opportunities while maintaining financial resilience.

Abhay Bhutada, MD of Poonawalla Fincorp, expressed his pride in the company's achievements. He highlighted the significant transformation the company has undergone over the past three years, attributing the success to rigorous execution and strategic differentiation. Under his leadership, Poonawalla Fincorp has emerged as a thought leader in the lending space, consistently exceeding expectations and delivering outstanding results.

Navigating Market Challenges

Despite economic headwinds and market uncertainties, Poonawalla Fincorp has demonstrated remarkable resilience and agility. The company's ability to adapt to changing market dynamics and mitigate risks has been crucial in sustaining its growth momentum. This resilience is a testament to the company's strategic foresight and robust operational framework.

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

Future Outlook

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

Poonawalla Fincorp, part of the Cyrus Poonawalla group, is a non-deposit-taking NBFC registered with the Reserve Bank of India. With nearly three decades of legacy, the company operates across 19 states, offering a diverse range of financial products and solutions. Its core values of Passion, Principles, Purpose, People, and Possibilities drive its mission to provide innovative financial solutions and contribute to the economic development of India.

In summary, Poonawalla Fincorp's exemplary financial performance in FY24 is a testament to its commitment to excellence and innovation. By maintaining superior asset quality, driving profitability, and ensuring operational efficiency, the company continues to set new standards in the NBFC sector, proving that strategic vision and effective execution can lead to record-breaking success.

[nickyysharmi]

Abhay Bhutada's Impact On The NBFC Sector

In the fast-paced world of finance, where numbers dance to the tune of strategy and execution, one name shines brightly in the Non-banking  Financial Companies (NBFCs) sector - Mr. Abhay Bhutada. As the Managing Director of Poonawalla Fincorp, his leadership has steered the company towards unprecedented growth, setting new benchmarks and redefining success in the industry.

Poonawalla Fincorp's Milestones

Under Mr. Bhutada's guidance, Poonawalla Fincorp has achieved remarkable milestones, showcasing robust financial performance across various parameters. In the latest audited financial results for the quarter and year ending March 31, 2024, the company has once again demonstrated its prowess in the NBFC domain.

Also Read: Who is Abhay Bhutada?

Highest Ever Quarterly Disbursement

Poonawalla Fincorp achieved the highest ever quarterly disbursement of ₹9,688 crore, marking a significant increase of 52% year-on-year (YoY) and 11% quarter-on-quarter (QoQ). This achievement underscores the company's commitment to expanding its reach and providing financial assistance to a broader spectrum of consumers and MSMEs.

Impressive Asset Growth

The company's Assets Under Management (AUM) stood at ₹25,003 crore, reflecting a remarkable growth of 55% YoY and 14% QoQ. Such exponential growth in AUM signifies Poonawalla Fincorp's ability to attract and manage a diverse portfolio of assets efficiently.

Superior Asset Quality

Poonawalla Fincorp has maintained superior asset quality, with Gross Non-Performing Assets (NPA) at 1.16%, demonstrating a reduction of 28 basis points (bps) YoY and 17 bps QoQ. Similarly, Net NPA stood at 0.59%, showcasing a reduction of 19 bps YoY and 11 bps QoQ. These figures reflect the company's stringent risk management practices and commitment to maintaining a healthy loan book.

Also Read: Unveiling the Top Chartered Accountants in India and Their Staggering Net Worth

Stellar Profitability

The company reported its highest-ever yearly Profit After Tax (PAT) of ₹1,027 crore in FY24, marking an impressive jump of 83% YoY. Additionally, the quarterly PAT stood at ₹332 crore, representing a substantial increase of 25% QoQ. Such stellar profitability metrics highlight Poonawalla Fincorp's ability to generate consistent returns for its stakeholders amidst a dynamic economic landscape.

Strong Capital Adequacy and Liquidity

Poonawalla Fincorp maintains robust capital adequacy, with a Capital Adequacy Ratio of 33.8%, ensuring resilience and stability in its operations. Furthermore, the company boasts a liquidity buffer of ₹3,932 crore, underscoring its ability to meet short-term obligations and seize strategic opportunities in the market.

Abhay Bhutada's Vision

Mr. Abhay Bhutada, the driving force behind Poonawalla Fincorp's success, expressed his elation and pride in the company's transformative journey over the past three years. He attributes this success to the relentless pursuit of excellence, differentiated strategies, and unwavering execution by the entire team.

In his own words, "Our rigor and execution excellence have ensured that we continuously outperform and deliver consistent superior performance. Our differentiated strategy and relentless execution have made us a thought leader in the lending space."

As we navigate the intricate landscape of the NBFC sector, Mr. Abhay Bhutada's leadership exemplifies innovation, resilience, and a steadfast commitment to excellence. Under his guidance, Poonawalla Fincorp continues to set new benchmarks, driving unprecedented growth, and redefining success in the industry.

Mr. Bhutada's vision and strategic acumen serve as a guiding light, inspiring the entire NBFC sector to embrace innovation, adaptability, and a relentless pursuit of excellence.

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

Embracing the Future

Looking ahead, Poonawalla Fincorp remains poised to embrace the future with confidence and agility. With Abhay Bhutada, MD of the company, they are well-positioned to navigate through challenges, capitalize on opportunities, and continue its journey of transformative growth. As the NBFC sector evolves, Poonawalla Fincorp stands as a beacon of innovation and resilience, driving positive change and creating lasting value for its stakeholders.

[nickyysharmi]

Abhay Bhutada Stays True To His Promise Of Maintaining NIM Above 10%: Key Highlights From The Q3 FY2024 Results

Poonawalla Fincorp Ltd is shining bright thanks to its MD, Abhay Bhutada. The latest results for the third quarter of the financial year 2023-2024 show a big 76.3 percent increase in the company's profit to Rs 265.14 crore. Anand Rathi's report agrees, saying the net profit jumped by 76 percent, reaching Rs 2,651 million, thanks to strong growth in the money they manage. This success makes Poonawalla Fincorp stand out as a top player in finance, thanks to smart leadership and planning.

Abhay had promised to keep the Net Interest Margin (NIM) above 10%, and he delivered big time. In Q3, the NIM was an impressive 11.02 percent. This means the company earned more money from interest on loans, showing they know how to handle finances well.

Also Read: What Is The Net Interest Margin?

A big reason for Poonawalla Fincorp's success is the interest income, which reached Rs 714.41 crore in the last quarter. That's a lot more than the Rs 460.48 crore they made a year ago and even higher than the Rs 690.07 crore from the quarter before. Managing money smartly and giving out loans strategically played a big role in this success.

Abhay Bhutada, Poonawalla Fincorp’s managing director, in a release, said "We continued to showcase exemplary growth in Q3FY24 with highest ever quarterly disbursement and profit and strong AUM growth while maintaining a superior asset quality." In simple terms, they lent out more money to rake in bigger profits and kept their finances strong.

Now, let's talk about assets. Poonawalla Fincorp did a great job in making sure their assets were of high quality. In the October-December quarter, the bad loans, known as Gross Non-Performing Assets (NPA), decreased by 36 basis points compared to a year ago. That's good news because it shows the company is careful about who they lend money to.

Also Read: Improving Net Interest Margin: Strategies for Financial Institutions

The Gross NPA was 1.33 percent in the last quarter, down from 1.69 percent a year ago. Similarly, the Net NPA, another measure of bad loans, went down to 0.70 percent from 0.89 percent a year ago. All this means Poonawalla Fincorp was great at managing risk and keeping its loans healthy.

Poonawalla Fincorp also did exceptionally well in lending money and managing what they already have. They handed out a whopping Rs 8,731 crore in the last quarter, which is a huge 159 percent increase from the previous year and a 12 percent jump from the last three months.

Their Assets Under Management (AUM), which is all the money they manage, grew to Rs 21,946 crore. That's a 58 percent increase from a year ago and a solid 9 percent jump from the last quarter. 

Also Read: 6 Leaders At The Helm Of India's Top Financial Institutions

The Way Forward

Looking ahead, Poonawalla Fincorp plans to raise Rs 4,000 crore by issuing something called Non-Convertible Debentures. It's a smart move to fuel their growth in the coming financial year. This shows they have plans to keep growing and staying strong in the market. The good news is reflected in the stock market too. Poonawalla Fincorp's shares went up by 1.42 percent to Rs 490.40 each on January 18.

Poonawalla Fincorp's success in Q3 is not just about making more money; it's about an MD sticking to his word and leading the company to new heights. The fantastic financial results, smart risk management, and growth strategies make Poonawalla Fincorp a standout player in the financial world.