The shares of Poonawalla Fincorp, a player in the non-banking financial sector backed by the Cyrus Poonawalla Group, posted a dramatic drop on Friday (October 25).

The stock closed at Rs 302.00 apiece, a steep decline of 15.81 per cent.

Earlier in the day, the shares had opened at Rs 359.25, marking a high of Rs 361.40 before plummeting in response to the company's disappointing quarterly financial results. The steepest decline during the day's trade was marked at Rs 297.65, down 16.89 per cent from the previous close of Rs 358.15 apiece.

Share Performance

Financial Highlights - Q2FY25

Consolidated Basis

Poonawalla Fincorp's consolidated financial results for the July to September quarter posted a stark contrast to the previous year.

The total income of the company increased to Rs 996.50 crore, a surge from Rs 745.27 crore in the same quarter last year.

However, the company faced a huge rise in expenses, amounting Rs 1,626.95 crore, in comparison to Rs 437.20 crore year-over-year.

The bottom line took a severe hit, as the company reported a net loss of Rs 471.04 crore, compared to a profit of Rs 860.23 crore in the previous year.

Image used for representational purpose only

Standalone basis

On a standalone basis, the company reported a total income of Rs 996.50 crore, slightly higher than Rs 744.73 crore a year ago.

Yet, the expenses mirrored the consolidated figures, totaling Rs 1,626.95 crore against Rs 437.20 crore from the prior year.

Further, the company recorded a loss of Rs 471.04 crore after tax, a stark contrast to a profit of Rs 1,258.89 crore in the same quarter last year.

Arvind Kapil, Managing Director and CEO, Poonawalla Fincorp, said, “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."

: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.