Poonawalla Fincorp Q4 Review - Operating Profit Inline; Earnings Beat Due To Lower Tax Rate: Motilal Oswal

"NDTV Profit’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 NDTV Profit’s subscribers an opportunity to expand their understanding of companies, sectors and the economy..Motilal Oswal Report.Poonawalla Fincorp Ltd.’s Q4 FY24 net interest income grew 48% YoY to ~Rs 5.6 billion (inline), while its pre-provision operating profit surged 103% YoY to ~Rs 4.1 billion (in line). Poonawalla Fincorp’s Q4 FY24 profit after tax jumped 84% YoY/25% QoQ to ~Rs 3.3 billion (9% beat), while its FY24 normalized PAT grew 75% YoY to ~Rs 10.3 billion. Opex rose 12% YoY to ~Rs 2.3 billion (~9% above estimate), with the cost/income ratio being broadly stable QoQ at ~36% (previous year: ~51%). Provisions stood at Rs 240 million (versus estimated credit costs of ~Rs 180 million). Poonawalla Fincorp is committed to boosting productivity through digitization and is preparing for growth by introducing new products such as co-branded credit cards (to be launched in the next two-three weeks). Poonawalla Fincorp has laid down a robust foundation for sustainable profitability through initiatives that will lead to lower operating costs (as a % of AUM), higher business volumes, and robust asset quality. We model a ~37%/39% CAGR for AUM/PAT over FY24-FY26 and expect Poonawalla Fincorp to deliver an return on asset/return on equity of ~4.9%/~19.4% in FY26. Reiterate Buy with a target price of Rs 570 (premised on four times FY26E book value per share)..Click on the attachment to read the full report:.Poonawalla Fincorp Q4 Results: Profit Rises 84% .DISCLAIMERThis report is authored by an external party. NDTV Profit 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 NDTV Profit..Users have no license to copy, modify, or distribute the content without permission of the Original Owner."

Poonawalla Fincorp Q4 Review - Operating Profit Inline; Earnings Beat Due To Lower Tax Rate: Motilal Oswal

Net interest margin expands ~5 basis point QoQ; strong AUM growth of ~55% YoY

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Poonawalla Fincorp Q4 Review - Operating Profit Inline; Earnings Beat Due To Lower Tax Rate: Motilal Oswal

Net interest margin expands ~5 basis point QoQ; strong AUM growth of ~55% YoY

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