Poonawalla Fincorp Ltd. shares saw a notable jump on Monday, adding over 2% after the company revealed substantial third-quarter performance metrics. According to the exchange filing, the non-banking finance company demonstrated impressive expansion, signaling robust financial health and strategic execution. The stock was trading 1.8% higher at ₹489 during Monday's session, reflecting positive market sentiment towards the company's performance.
The core of the positive update was the 77.5% year-over-year surge in assets under management (AUM), reaching approximately ₹55,000 crore by the end of December 2024. This growth was further amplified by a 15.3% sequential increase, highlighting strong customer acquisition and loan origination momentum. As reported by Poonawalla Fincorp, the company continues to maintain ample liquidity of approximately ₹6,450 crore as on December 31, providing a solid foundation for continued lending operations and managing potential market volatilities.
In its exchange filing, Poonawalla Fincorp emphasized its commitment to risk management and sustainable business practices. The company stated that it "stands by its risk first approach, robust risk management systems and a diversified asset base." According to the filing, the company's focus remains on "business expansion in line with building a long-term sustainable profitable model" as it continues to scale operations. This strategic approach appears to be resonating with investors and driving the company's consistent growth trajectory.
In the second quarter, the NBFC reported a profit of ₹74.2 crore compared to a loss of ₹471 crore in the previous year, marking a significant turnaround. The company also showed sequential improvement with an increase of ₹62.6 crore quarter-on-quarter. Its net interest income (NII) of ₹905 crore was up 40.3% from the year-ago period and 17.8% from the previous quarter, indicating strong operational performance and improved lending margins.
Poonawalla Fincorp's profit before provisions increased 38.5% from the previous year and 19.1% sequentially to ₹387 crore. The company's net interest margin of 8.4% increased from the previous quarter's 8.32%, showing improved profitability metrics and efficient cost management. The stock has delivered impressive returns, gaining 56% over the last 12 months, reflecting strong investor confidence in the company's growth trajectory and sustainable business model.
