POONAWALLA FINCORP LIMITED Poonawalla Fincorp Limited
Investor Presentation Q4FY24
Scalable Business Model | Pure Retail Play | Digital-FirstTech-Led | Customer Centric
Q4FY24 Performance
Excellent Quarter on All Fronts
Differentiated strategy and execution excellence led to all round performance across
business growth, credit quality & profitability
AUM Crosses ₹25,000 crore
Annual PAT crosses ₹1,000 crore
Highest ever Quarterly PAT & Disbursement
Lowest ever GNPA & NNPA
What do we stand for
"Scalable business model with pure retail play strategy"
"Technology led and customer centric approach"
"Business construct to deliver sustainable RoA of 4.0% - 4.5%"
AUM
₹ 25,003 crore
+55% YoY | +14% QoQ
PAT
₹ 332 crore
+84% YoY | +25% QoQ
GNPA
1.16%
-28 bps YoY | -17 bps QoQ
CRAR
33.8%
Disbursement
₹ 9,688 crore
+52% YoY | +11% QoQ
RoA
5.73%
+73 bps YoY | +42 bps QoQ
NNPA
0.59%
-19 bps YoY | -11 bps QoQ
NIM
11.06%
+4 bps QoQ
2
Agenda
1 | |||||
2 | |||||
3 | Strategy Execution | 16 | |||
4 | Business & Financial Highlights | 30 | |||
5 | Digital Transformation | 36 | |||
6 | Board Members; Management Team and Awards & Accolades | 38 | |||
3
Executive Summary
Setting the momentum for expanding growth horizon
Strong Business Momentum Continues in Q4FY24
- Highest ever disbursement of ₹ 9,688 crore
- Consistent increase in disbursement: Up 52% YoY & 11% QoQ
- AUM at ₹ 25,003 crore with a growth of 55% YoY & 14% QoQ
- Secured : Unsecured AUM mix of 49:51
Strengthened Distribution - Omni Channel
- 100% sourcing through organic route
- Presence across all channels - Web, App, WhatsApp, Social media, Contact center, DSA and Branch
- Cross sell and upsell focus
Efficiently Managed Liability Book
- Average CoB for Q4FY24 was 8.17%
- Well diversified borrowing profile spread across various banks, financial institutions and capital market participants
- Long term credit rating of AAA/Stable from both CRISIL & CARE Ratings
4
Executive Summary
Setting the momentum for expanding growth horizon
Robust Asset Quality
- GNPA & NNPA reduced to 1.16% and 0.59% respectively compared to 1.33% & 0.70% in Q3FY24 and as compared to 1.44% & 0.78% in Q4FY23
- Provision Coverage Ratio (PCR %) stood at 49.39%
Rise in Profitability - Q4FY24
- NIM at 11.06%, up 4 bps QoQ
- Opex to AUM ratio further improved to 3.99% in Q4FY24 compared to 5.43% in Q4FY23
- Operating Profit (PPOP) stood at ₹ 409 crore, up 93% YoY and 17% QoQ
- PAT stood at ₹ 332 crore, up 84% YoY and 25% QoQ.
- Return on Assets (RoA) stood at 5.73% during Q4FY24 as compared to 5.31% in Q3FY24 and 5.00% in Q4FY23
End to End Digital Capabilities
- 100% digital journey capability for customers across all products
- Focus on customer advocacy: Robotic interfaces, Straight through processing, Multiple self-service channels
- Advanced data analytics usage - Across sales (Including X sell), underwriting, collections & risk monitoring
5
Agenda
1 | |||||
2 | |||||
3 | Strategy Execution | 16 | |||
4 | Business & Financial Highlights | 30 | |||
5 | Digital Transformation | 36 | |||
6 | Board Members; Management Team and Awards & Accolades | 38 | |||
6
Poonawalla Fincorp's Digital-FirstTech-led Model - Demystified
Low cost of funds and Low Opex enabling Poonawalla Fincorp to target low risk - credit tested
Prime and Super Prime customers thereby resulting in lower credit cost
Low
Cost of
Funds
-
rated
Well capitalized
CRISIL AAA
&
CARE AAA
Low | Low | Low | Higher |
Risk | |||
Credit | |||
Operating Cost | Risk Customers | Adjusted | |
Cost | |||
Return | |||
Truly digital | Data Driven Acquisition | Lower GNPA | Higher ROA | |||||||||||
Productivity focused | Lower NNPA | |||||||||||||
₹ 11 | Prime | ||
crore | GNPA 1.16% | ||
+ | ROA : 5.73% | ||
AUM per | NNPA 0.59% | ||
Super Prime | |||
employee | |||
Poonawalla Fincorp's offering is unique as it combines - User Experience & Agility of Fintech, Cash Flow based
underwriting and practical approach like a NBFC and Low rate along with no hidden charges like a bank
7
Customer's Problem Statement and Persona
An illustration
Rajiv, a 34-year-old businessman from Pune, runs a manufacturing unit since last 8 years from rented premise. He has an annual turnover of ₹ 3 crore, stays in his owned house and pays GST on time. He is tech savvy, uses internet banking, active on social media and uses WhatsApp extensively, for both personal as well as business purpose.
He has grown his business over the years by securing a cash credit facility by mortgaging his residential property with bank. Now, he wants to expand his business further in new product line for which he needs ₹ 23 lakh. He has ₹ 15 lakh from his own sources and for the shortfall amount of ₹ 8 lakh, he is thinking of taking a loan. His CIBIL score is 783 and his expectation is as follows:
- ₹ 8 lakh of loan amount in form of a term loan
- Collateral free, as he has no additional collateral available (house is already mortgaged to bank)
- Quick approval basis cash flow, willing to provide all documents in digital mode including PDF banking
- Convenience through a completely digital mode without visiting the branch
- Low interest rate along with zero prepayment and no hidden charges (most critical aspect for any borrower)
He explored multiple options and is amazed that no lender meets all his requirements until his friend Sanjeev, who recommended Poonawalla Fincorp, based on his own superior experience with Poonawalla Fincorp.
8
Customer Dilemma - Where is my lender of choice ?
Parameters
Loan Amount
Flexibility
Collateral Free
Quick Turnaround
Time
100% Digital
Process
Low Interest rate
- No hidden charges
Flexible Tenure & Min. Documents
Zero Prepayment
Charges
Traditional Bank
No
No
No
No
Yes
No
Yes
Traditional NBFC
Yes
Yes
No
No
No
No
No
Large NBFC with Digital Capability
Yes
Yes
Yes
No
No
Yes
No
Fintech NBFC
No
Yes
Yes
Yes
No
Yes
No
Poonawalla
Fincorp
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Customer needs a combo of Fintech, NBFC and Bank, hence a big opportunity for Poonawalla Fincorp | |
Poonawalla Fincorp is uniquely positioned to further disrupt the disrupted and help customers with lender of their choice | 9 |
What Differentiates Us?
- AAA Rated
• | Well Capitalized | Entrepreneur | ||
• | Excellent portfolio quality | at top | ||
• | Strong well diversified book | |||
Strong | Digital Native | |||
Fundamentals | ||||
• Led by Abhay Bhutada, a serial |
entrepreneur at the top |
• Built a pool of next level leaders and a |
culture of innovation and entrepreneurial |
mindset |
• Born in Digital Age |
- Execution based on strong signals for strategic & operational aspects as well as products & processes.
- Focus on risk to ensure right customer onboarding
- Return optimization through active portfolio management
- Unique choice of rejection model driven by competitive interest rate offering
Our | ||
Differentiators | ||
Understand | ||
Consumer & | True to | |
Market | Strategy | |
Trends | ||
Risk First &
Superior
Return
Approach
• With a Digital DNA ensuring agility, |
adaptability & flexibility |
• Well defined strategy with laser sharp |
segmental focus - Consumer & MSME |
• Relentless execution excellence |
reflected in consistent quarter on quarter |
performance since acquisition. |
10
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Disclaimer
Poonawalla Fincorp Ltd. published this content on 29 April 2024 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 29 April 2024 11:48:05 UTC.
