Poonawalla Fincorp’s Roadmap to Triple AAA Ratings and 84% Profit Growth

Poonawalla Fincorp, under the dynamic leadership of Abhay Bhutada, has undergone a significant transformation in the non-banking financial company (NBFC) sector, achieving remarkable milestones over the past three years. This transformation has propelled the company to emerge as a leader in the lending space, demonstrating unprecedented growth in assets under management (AUM) and profitability. The focus of this presentation is to delve into the strategic roadmap that led to Poonawalla Fincorp’s achievement of Triple AAA ratings and an impressive 84% profit growth.

1. Poonawalla Fincorp’s
Roadmap to Triple AAA
Ratings and 84% Profit
Growth

2. Introduction

Poonawalla Fincorp, under the dynamic leadership of Abhay Bhutada, has
undergone a significant transformation in the non-banking financial
company (NBFC) sector, achieving remarkable milestones over the past
three years. This transformation has propelled the company to emerge as a
leader in the lending space, demonstrating unprecedented growth in assets
under management (AUM) and profitability. The focus of this presentation is
to delve into the strategic roadmap that led to Poonawalla Fincorp’s
achievement of Triple AAA ratings and an impressive 84% profit growth.

3. Strategic Transformation Under Visionary
Leadership
Abhay Bhutada's visionary leadership initiated a strategic transformation
following the acquisition of Poonawalla Fincorp in 2021. The management
outlined Vision 2025, targeting significant reductions in non-performing
assets (NPAs) and substantial growth in AUM and profitability. The company
surpassed its targets, achieving a Gross NPA below 1% and a Net NPA
below 0.5% by May 2024, setting the stage for its remarkable growth.

5. Key Pillars of Transformation
Three key pillars drove Poonawalla Fincorp's transformation. Firstly, the
adoption of a customer-centric business model, with a focus on consumer
and MSME finance, enabled the company to tap into high-growth areas and
diversify its revenue stream. Secondly, robust risk management and
governance practices ensured high asset quality, with stringent credit
underwriting standards and transparent governance frameworks enhancing
investor confidence. Lastly, investment in advanced technology improved
collection efficiency, reducing defaults and contributing to profitability.

6. Financial Performance and
Milestones
Poonawalla Fincorp's financial performance reflects its strategic initiatives,
with its AUM surpassing Rs. 25,000 crore and profit after tax (PAT)
exceeding Rs. 1,000 crore in FY2024. These achievements were
accompanied by an improvement in asset quality, with Gross NPA below 1%
and Net NPA below 0.5%, underscoring the effectiveness of the company's
strategic direction.

7. Factors Driving Financial Success
The company's diversified portfolio across consumer and MSME finance
sectors mitigated risks and capitalized on various growth opportunities.
Additionally, investment in technology and innovation streamlined
operations, improved customer experience, and reduced costs.
Operational efficiency further bolstered financial performance, with lean
management principles contributing to faster turnaround times and
higher customer satisfaction.

8. Achieving Triple AAA Ratings
Poonawalla Fincorp's achievement of Triple AAA ratings is attributed to its
strong financial health, excellent asset quality, and robust risk management
framework. The company's strong capital base, superior asset quality, and
consistent profitability played crucial roles in securing these ratings,
reflecting its ability to meet financial obligations and navigate market
challenges.

9. Future Outlook and Vision 2025
Poonawalla Fincorp remains committed to its Vision 2025, with strategic
priorities including expanding product offerings, embracing digital
transformation, geographical expansion, and ensuring sustainable
growth through responsible lending practices. These initiatives aim to
drive innovation, enhance customer experience, and solidify the
company's position as a leading player in the financial sector.

10. Concluding Remarks
In conclusion, Poonawalla Fincorp's journey to achieving Triple AAA
ratings and 84% profit growth is a testament to its strategic vision,
strong leadership, and commitment to excellence. The company's focus
on innovation, operational efficiency, and customer-centricity has driven
its success and positioned it as a leader in the NBFC sector. With a clear
roadmap and unwavering commitment to excellence, Poonawalla
Fincorp is well-equipped to deliver sustained value to its stakeholders
and navigate future challenges.

12. Thank you