Poonawalla Fincorp Ltd.'s second-quarter profit rose over nine times on the sale of its subsidiary.
The company's standalone net profit for the second quarter rose 867% year-on-year to Rs 1,258.89 crore as compared with Rs 130.17 crore last year. The company also noted a 54.98% rise year-on-year in its total income to Rs 744.73 crore from Rs 480.53 crore.
Excluding the impact of the subsidiary, the company reported a profit of Rs 230 crore, which is up 77% on the year.
The company sold its investment in Poonawalla Housing Finance on July 26 to Perseus SG Pte., an entity affiliated with TPG Global LLC. The resultant gain from this transaction amounted to Rs 2,713.65 crore, net of expenses. This contributed largely to the exceptional gains of Rs 1,221.20 crore in the second quarter.
The company also created a one-time provision of Rs 1,298.31 crore on discontinued/legacy portfolio.
The NFBC reported the highest quarterly disbursement of Rs 7,807 crore, which was up over 2.5 times as compared with the previous year.
The lender's assets under management rose to Rs 20,215 crore, up 54% over the corresponding quarter last year. This is the first time the lender crossed the 20,000 AUM mark.
Net interest margin was flat, increasing 2 basis points sequentially to 11.42%.
Gross non-performing assets for the quarter stood at 1.36%, down 6 basis points year-on-year from 1.77%.
Net NPA also saw a downtick of 4 basis points year-on-year to 0.72%.
Operating expenses were down 8% over the past year at Rs 194 crore.
Average cost of borrowing rose by 82 basis points to 7.98% from 7.16% in the same quarter last year. Sequentially, this metric reduced by 6 basis points.
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