Poonawalla Fincorp : Investor Presentation Q1 FY 24

Poonawalla Fincorp Limited

Investor Presentation Q1FY24

Scalable Business Model | Pure Retail Play | Digital-FirstTech-Led | Customer Centric

Agenda - PFL Standalone

	1		Overview & Executive Summary	2
	2		Strategy Execution	6
	3		Our Fintech Play	20
	4		Business & Financial Highlights	27
	5		Digital Transformation Journey So Far & Way Forward	34
	6		Board Members and Awards & Accolades	40

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Q1FY24 Performance - PFL Standalone

Excellent Quarter on All Fronts

Differentiated strategy and execution excellence led to all round performance across

business growth, credit quality & profitability

Highest ever quarterly disbursement

Highest ever quarterly PAT

Lowest 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

₹ 17,776 crore

+41% YoY | +10% QoQ

PAT

₹ 200 crore

+62% YoY | +11% QoQ

GNPA*

1.42%

-126 bps YoY | -2 bps QoQ

CRAR

36%

Disbursement

₹ 7,063 crore

+143% YoY | +11% QoQ

NIM

11.4%

+108 bps YoY | +12 bps QoQ

NNPA*

0.76%

-35 bps YoY | -2 bps QoQ

RoA

4.8%

*The reduction in GNPA / NNPA is despite the alignment with revised NPA definition as per RBI circular | Comparison of aligned GNPA / NNPA Sep-22 onwards drawn from GS3 / NS3 of previous periods	3

Executive Summary - PFL Standalone

Setting the momentum for expanding growth horizon

Strong Business Momentum Continues in Q1FY24

• Highest ever disbursement (entirely organic) of ₹ 7,063 crore with growth across all product lines
• Consistent increase in disbursement: Up 143% YoY & 11% QoQ
• AUM at ₹ 17,776 crore with a growth of 41% YoY & 10% QoQ despite reduction in discontinued legacy book | Focused AUM grew 66% YoY & 13% QoQ

Strengthened Distribution - Direct Digital Program (DDP)

• DDP contribution in disbursements increased to 86% in Q1FY24 as compared to 81% in Q4FY23, 66% in Q3FY23 and 54% in Q2FY23
• All the products covered under DDP model

Efficiently Managed Liability Book

• Average CoB contained at 8.0% in Q1FY24 against 7.9% in Q4FY23
• Well diversified borrowing profile spread across various banks, financial institutions and capital market participants
• Long term credit rating of AAA/Stable from both CRISIL and CARE Ratings

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Executive Summary - PFL Standalone

Setting the momentum for expanding growth horizon

Robust Asset Quality

• GNPA* & NNPA* reduced to 1.42% and 0.76% respectively compared to 1.44% & 0.78% in Q4FY23 and as compared to 2.68% & 1.11% in Q1FY23
• Stage 3 PCR stood at 46.4% as on June 30, 2023

Rise in Profitability - Q1FY24

• NIM at 11.4%, up 108 bps YoY and 12 bps QoQ
• Operating Expenses stood at ₹ 183 crore, down 4% YoY and 7% QoQ, resulting in improvement of Opex to AUM ratio from 5.43% in Q4FY23 to 4.38% in Q1FY24
• Operating Profit (PPOP) stood at ₹ 294 crore, up 148% YoY and 39% QoQ
• PAT stood at ₹ 200 crore, up 62% YoY and 11% QoQ
• Return on Assets stood at 4.8% during Q1FY24 as compared to 4.1% in Q1FY23

End to End Digital Capabilities

• 100% digital journey capability for customers across all products
• Focus on customer/partner advocacy: Robotic interfaces, Straight through processing, Multiple self-service channels
• Advanced data analytics usage - Across sales (Including X sell), underwriting, collections & risk monitoring

*The reduction in GNPA / NNPA is despite the alignment with revised NPA definition as per RBI circular | Comparison of aligned GNPA / NNPA Sep-22 onwards drawn from GS3 / NS3 of previous periods

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