Poonawalla Fincorp Q3 Results Review - Steady Performance; Sequential NIM Expansion Of 30 Bps: Motilal Oswal
The healthy operational performance was driven by ~33 bps QoQ expansion in margins and provision write-backs of ~Rs 450 million.
BQ Prime’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer BQ Prime’s subscribers an opportunity to expand their understanding of companies, sectors and the economy.
Motilal Oswal Report
Poonawalla Fincorp Ltd.’s Q3 FY23 standalone profit after tax grew 88% YoY to ~Rs 1.5 billion (inline). The healthy operational performance was driven by ~33 bps QoQ expansion in margins and provision write-backs of ~Rs 450 million.
Nine months-FY23 profit after tax grew ~98% YoY to ~Rs 4 billion.
Q3 FY23 net interest income grew 24% YoY to Rs 3 billion, while pre-provision operating profit grew 36% YoY to Rs 1.56 billion (inline). The company is focused on improving productivity, supported by digitisation and is reasonably confident of scaling up its businesses without incurring additional manpower expenses.
Poonawalla Fincorp has laid down a robust foundation for sustainable profitability through initiatives that will lead to lower operating costs (as a % of assets under management), higher business volumes and robust asset quality.
We model a standalone AUM/profit after tax compound annual growth rate of ~40%/51%, respectively, over FY23- FY25E and expect Poonawalla Fincorp to deliver a return on asset/return on equity of 4.8%/12%, respectively, in FY25.
Click on the attachment to read the full report:
This report is authored by an external party. BQ Prime does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of BQ Prime.
Users have no license to copy, modify, or distribute the content without permission of the Original Owner.