Poonawalla Fincorp shares broke into the green territory in afternoon trade after the company managed to double its Q4 net profit to Rs 180.37 crore. Net profit stood at Rs 89.8 1 in the year-ago period.
Revenue from operations for the quarter jumped 50 percent YoY to Rs 576.73 crore.
In an exchange filing, the company said that gross non performing assets (NPA) reduced 25 basis points sequentially to 1.44 percent. Net NPA reduced 11 basis point from last quarter to 0.78 percent.
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“With an efficient cost of borrowing, lower operating cost, controlled credit cost and a branch-lite tech-led model, we are well poised to deliver a sustainable and exceptional performance,” CA Abhay Bhutada, managing director of the company said.
The NBFC's net interest margin for Q4 FY23 came in at 11.3 percent, an improvement of 87 basis points YoY and 59 basis points sequentially. Return on Assets (RoA) for Q4 was highest-ever at 5 percent.
Earlier this month, Poonawalla Fincorp had reported its highest-ever disbursements of around Rs 6370 crore in Q4, a jump of 151 percent YoY. Assets under management grew 37 percent to Rs 16,143 crore, despite the sharp reduction in discontinued loan book.
On April 24, CRISIL upgraded rating on the company to 'AAA/Stable' from 'CRISIL AA+/Stable'. The rating was driven by increased strategic importance of Poonwalla Fincorp (PFL) to the Cyrus Poonawalla Group.
"This is in line with the group's focus on domestic consumption as a key theme in their growth philosophy. Post the divestment of Poonawalla Housing Finance, PFL will play a key role through which this strategy will be implemented," CRISIL said.