Shares of Poonawalla Fincorp traded 3% lower on 23 October despite posting a strong quarterly report for the July-September of the current fiscal year.

The company posted a whopping 555.17% year-on-year (YoY) increase in its net profit at Rs 854.61 crore for the quarter under review against Rs 130.44 crore posted in the year-ago quarter.

This massive surge comes after the company, on 26 July 2023, divested its investment in Poonawalla Housing Finance Limited to Perseus SG Pte. Ltd., an entity affiliated with TPG Global LLC. After the said transaction, Poonawalla Housing Finance Limited is no longer a company subsidiary as of the effective date.

The Net interest income of the company increased by 18% YoY to Rs 529.2 crore against the Rs 445.9 crore reported in the same quarter of the previous fiscal year.

The gross non-performing asset was at 1.36% for the quarter under review, which is a decrease from 1.42% reported during the April-June quarter of the same fiscal year. The net non-performing asset was 0.72% against the 0.76% reported in Q1FY24.

Looking at the numbers, the gross non-performing asset amounted to Rs 266 crore for the quarter under review against the Rs 245 crore reported in the previous quarter of the current fiscal year. The net non-performing asset for Q2FY24 stood at Rs 140 crore from the Rs 131 crore reported in the corresponding quarter.