Q2 2025 Poonawalla Fincorp Ltd Earnings Call Transcript
Key Points
- Poonawalla Fincorp Ltd (BOM:524000) reported a 40% year-on-year growth in assets under management, reaching 28,396 crores.
- The company is expanding its product portfolio from four to ten products, including new offerings like gold loans and education loans, to enhance competitiveness and customer reach.
- Poonawalla Fincorp Ltd plans to open 400 new branches in tier two and tier three locations over the next year, significantly expanding its physical footprint.
- The company has made significant leadership hires, with 95% of envisioned leadership positions filled, strengthening its management team.
- Poonawalla Fincorp Ltd is investing in advanced analytics and AI-driven credit decisioning to improve risk management and customer engagement.
- The company incurred a one-time operating expense of 71 crores and additional provisioning of 666 crores for the STPL book, impacting profitability.
- There is a need for significant investment, approximately 50 crores per quarter over the next six quarters, to support new business initiatives and technological advancements.
- The STPL book required recalibration, with disbursements reduced to 20% of previous levels, indicating challenges in managing this segment.
- Despite growth in other segments, the STPL book's issues led to an increase in gross NPAs to 2.1%, affecting overall asset quality.
- The company faces challenges in maintaining a balanced secured to unsecured loan mix, with unsecured loans still comprising a significant portion of the portfolio.
Ladies and gentlemen, good day. And welcome to the Poonawalla Fincorp Limited Q2 FY24, 25. earnings conference call.
We have with us today on the call, Mr. Arvind Kapil, Managing Director and Chief Executive Officer; Mr. Sunil Samdani, Executive Director and other segment management officials.
(Operator Instructions)
Please note that this conference is being recorded.
I now hand the conference over to Mr. Arvind Kapil, Managing Director and Chief Executive Officer of Poonawalla Fincorp Limited. Thank you and over to you.
Thank you. A very good evening to all of you and welcome to our Q2 earning call.
Wish all of you and your loved ones a happy and prosperous festival season ahead.
I now spend around 4.5 months as an MD and CEO of Poonawalla Fincorp. And I've got a chance to fully detail out the operating strategies of the organization.
I will therefore begin by updating you on the details and progress made since
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