Poonawalla Fincorp stock crashes nearly 17% after NBFC posts ₹470.83 crore Q2 loss | Stock Market News
Source: Live Mint
Shares of Poonawalla Fincorp, the Cyrus Poonawalla Group-promoted non-banking financial company (NBFC), crashed on Friday after the firm posted a net loss in the September quarter of the financial year 2024-25.
Poonawalla Fincorp shares tanked 16.89 per cent to ₹297.65, compared to ₹358.15 at the previous market close. The company released its financial results for the July to September quarter during market hours.
The Poonawalla Fincorp stock was performing lower after opening at ₹359.25. Shares reached the day’s high at ₹361.40 and fell sharply after the company released its second-quarter results. The shares closed above the day’s low on Friday.
Poonawalla Fincorp Q2 results
Poonawalla Fincorp recorded a ₹470.83 crore net loss for the September quarter in the financial year 2024-25, according to its exchange filing on October 25. The non-banking lender clocked ₹860.50 crore net profit in the same quarter the previous year.
The NBFC’s interest income increased 31.87 per cent to ₹910.74 crore in the second quarter, compared to ₹690.61 in the same period the previous year. The Net Interest Income (NII) increased 17.68 per cent to ₹559 crore in the second quarter, compared to ₹475 crore year-on-year, according to the company’s statement.
The non-banking lender’s gross non-performing assets (NPA) increased 143 basis points (bps) to 2.10 per cent in the July to September quarter, up from 0.67 per cent in the first quarter of the financial year 2024-25.
“The quarter will mark a very positive turning point for the company. We have made provisioning for the STPL book with a clear intent for better risk management and financial resilience. We are strengthening our balance sheet for a long-term strategy,” said Arvind Kapil, managing director and chief executive officer of Poonawalla Fincorp, in the statement.
“With the management depth that is already on board, we are confident that we will take the existing 4 products to a total of 10 products. I believe this will transform Poonawalla Fincorp within the first 4-6 quarters both in terms of diversity of customer segments, distribution, recalibration of overall risk, substantial lift in AUM and a foundation for recalibration of profit in the third year,” he said.
Ongoing investments in technology, distribution and people impacted pre-provision operating profit during the quarter, the company said in its investor presentation on Friday.
