IIFL Finance reported a strong 52% quarter-on-quarter growth in profit after tax, reaching ₹418 crores. The growth was driven by the gold finance business, which achieved a record high AUM of ₹34,577 Cr. The company’s consolidated AUM grew by 35% year-on-year to ₹90,122 Cr. Management expects lower loan losses and provisions in the second half of the fiscal year, with overall credit costs projected between 2.8%-3% for the full year.
Financial Performance Highlights
IIFL Finance showcased robust financial results, with profit after tax before non-controlling interest reaching ₹418 crores, a significant increase of 52% quarter-on-quarter. Pre-provision operating profit stood at ₹1,033 crores, up 38% year-on-year and 23% quarter-on-quarter.
Asset Under Management (AUM) Growth
The company’s consolidated AUM experienced substantial growth, reaching ₹90,122 Cr, a 35% year-on-year increase and a 7% quarter-on-quarter rise. This growth was primarily fueled by the gold loan portfolio, which achieved a historical high of ₹34,577 Cr.
Segment Performance
Gold loans and home loans now constitute approximately 74% of the total AUM. Core product businesses, including home, gold, MSME, and micro loans, grew by 37% year-on-year, aggregating to ₹88,477 Cr, representing 98% of the total AUM.
Asset Quality and Credit Costs
Gross NPA showed marginal improvement, standing at around 2.1%, while net NPA is at 1.0%. Both are down by 21 basis points and 11 basis points, respectively, on a quarter-on-quarter basis. The company anticipates lower loan losses and provisions in the second half of the year. Loan losses provision for the full year is expected to be between 2.8%-3%.
Capital Adequacy and Liquidity
IIFL Finance maintains a strong balance sheet, with a computed capital adequacy of 28.2%. Liquidity for the group remained high, exceeding ₹8,000 crores. The net gearing stood at 3.6x, and the provision coverage ratio was 90%.
Strategic Developments
Mr. Girish Kousgi has been appointed as the new MD and CEO of IIFL Home Finance. Fitch has revised the rating outlook for IIFL’s international rating from stable to positive. The assigned loan book comprises around 34% of the overall AUM, standing at ₹18,607 Cr, which recorded a growth of 33% on a Y-o-Y basis and 24% on quarter-on-quarter basis. The co-lending book improved sharply to ₹11,848 Cr, up 40% Y-o-Y.
Source: BSE
