Q1 2025 Poonawalla Fincorp Ltd Earnings Call Transcript
Key Points
- Poonawalla Fincorp Ltd (BOM:524000) reported a significant year-on-year growth in asset under management (AUM) by 52%, reaching INR26,972 crores.
- The company has maintained a balanced secured to unsecured loan mix of 49% to 51%, indicating a diversified risk profile.
- Net interest income, including fees and other income, increased by 42% year-on-year to INR676 crores, showcasing strong revenue growth.
- The company has a robust capital adequacy ratio of 31.57%, with Tier-1 capital at 30.09%, indicating strong financial health.
- Poonawalla Fincorp Ltd (BOM:524000) has introduced new management team members with extensive experience, which is expected to drive future growth and strategic direction.
- The company's debt-equity ratio increased from 1.9 to 2.1 times quarter-on-quarter, indicating higher leverage.
- Profit after tax decreased by 12% quarter-on-quarter to INR292 crores, mainly due to a one-time tax benefit in the previous quarter.
- The company has identified the need to strengthen its collection and infrastructure framework, indicating potential weaknesses in current processes.
- There is a focus on consolidating existing businesses and reviewing processes, which may slow down immediate growth.
- The STP portfolio, launched in the previous financial year, is unseasoned and requires close monitoring, indicating potential risks.
Ladies and gentlemen, good day, and welcome to Poonawalla Fincorp Limited Q1 FY25 earnings conference call. (Operator Instructions) Please note that this conference is being recorded.
I now hand the conference over to Mr. Hiren Shah, Head of IR, Strategy, and BIU. Thank you, and over to you, sir.
Thank you Steve. A very good day to all of you and welcome to the quarter one FY24-25 earnings call. At the onset, I would like to welcome on board our new managing director and CEO, Mr. Arvind Kapil, who has joined us on June 10, 2024. He has an impressive 25-plus year of experience in banking. Mr. Kapil needs no introduction. He is a stalwart in the financial services industry in India, who brings with him wealth of knowledge and expertise in consumer banking space. He has introduced groundbreaking innovations such as industry-first, 10-second personal loan alongside digital loan against security, digital loan against mutual funds, and digital auto loans.
Mr. Kapil has done his
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