Performance Highlights (Consolidated)
- Assets Under Management (AUM) for FY22 increased to Rs 16,579 Cr, recording a growth of 17% over FY21 while disbursements stood at Rs 9,494 Cr, growing by 158% over FY21.
- Housing subsidiary Poonawalla Housing Finance Limited (PHFL) crossed the Rs 5000 Cr AUM mark in Mar’22.
- NIM increased by 65 bps YoY to 8.9%.
- Consolidated PBT for FY22 stood at Rs 492 Cr against a loss of Rs 749 Cr in FY21. PAT for FY22 stood at Rs 375 Cr.
- Collections continued to remain buoyant with collections efficiency of 108.4% in Mar’22.
Asset Quality (Consolidated)
Consequent to healthy collections in Q4FY22, Gross Stage 3 and Net Stage 3 assets decreased from 3.5% and 1.8% respectively as at Dec’21 to 2.7% and 1.1% respectively as at Mar’22. The Company has healthy provision coverage ratios across all three stages. Standard asset provision coverage ratio as of Mar’22 stands at 2.7%; Stage 3 provision coverage ratio stands at 58.9%.
Liquidity and Cost of Borrowings (Consolidated)
The Company continues to maintain a strong liquidity position with surplus of Rs 3890 Cr. The repricing of all eligible term loans and new borrowing at competitive rates resulted in further bringing down the average cost of borrowing to 7.4% in Q4FY22, with overall reduction of 209 bps YoY. The company and its subsidiary PHFL continues to have long-term rating of ‘AA+ / Stable’ by CRISIL and CARE.
Business Update (Consolidated)
The Company continued its product focus on consumer and small business segments. The business gained momentum in Q4 of FY22, resulting in the company entering leadership board in the Pre-Owned Cars and Loan to Professionals segment. The consumer lending was strengthened further, and the company entered the digital consumption space through partnership. The Direct, Digital and Partnership (DDP) model of origination accelerated further, registering 43.7% QoQ growth. The focus on capability building continued with deep investments in technology and people.
The Board has recommended a dividend payment of 20% subject to shareholders approval.
Capital raise for PHFL
The Board has accorded an in-principal approval to raise funds in Poonawalla Housing Finance Limited with raise not exceeding Rs 1,000 crore with stake dilution of less than 15% in one or more tranches by way of preferential issue during the Financial Year 2022-23.
Commenting on Poonawalla Fincorp’s performance, CA Abhay Bhutada, Managing Director, Poonawalla Fincorp said, “We are excited to enter the new financial year with momentum by our side. FY22 has been a year of consolidation for us, and we made considerable progress in line with our Consolidate, Grow and Lead strategy. We are well poised to grow as the execution excellence of consolidation phase propels us now into the growth orbit. As we grow the focus will continue to be on building a sustainable business on pillars of technology and digital first approach, customer centricity, risk management and the alternate distribution channels of Digital, Direct and Partnerships.”
Announcing the capital raise for PHFL, CA Abhay Bhutada, Managing Director, Poonawalla Fincorp said, “PHFL has grown at CAGR of ~29% over last 4 years and the disbursement growth for this fiscal has been ~57% over last year. Given the deep unserved potential of the affordable housing segment, favourable demographics and supportive government policies, the Company proposes to raise growth capital for its network expansion and to support AUM growth. We expect to double our book over the next 3 years and carve out our own niche and realize full potential.”