IIFL Finance Ltd Share Price – NSE  / BSE

Finance, Small Cap

Net profit of IIFL Finance declined 32.28% to Rs 288.06 crore in the quarter ended June 2024 as against Rs 425.40 crore during the previous quarter ended June 2023. Sales rose 13.56% to Rs 2613.40 crore in the quarter ended June 2024 as against Rs 2301.36 crore during the previous quarter ended June 2023.

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IIFL Finance will hold a meeting of the Board of Directors of the Company on 6 August 2024.

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IIFL Finance has allotted 1,87,883 equity shares to the employee(s) on exercise of stock options under the Employee Stock Option Scheme(s) of the Company.

Upon allotment, the equity base of the Company stands increased from 42,40,03,088 to 42,41,90,97.

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On March 4, the RBI directed IIFL Finance to cease disbursing gold loans immediately due to various supervisory concerns, including significant deviations in assaying and certifying the purity of gold.

However, total income jumped 28.39% year on year to Rs 2922.12 crore in the quarter ended 31 March 2024.

Profit before tax in Q4 FY24 was at Rs 553.69 crore, down 6.79% from Rs 594.03 crore in Q4 FY23.

The company said that loan growth in core products was robust. During the quarter, gold loans and home loans AUM grew by 13% and 26% YoY respectively. Microfinance grew by 34% while digital loans and loan against property grew by 71% and 29% YoY respectively. Overall core loan portfolio grew by 22% YoY.

The company’s annualized return on equity and return on assets for Q4 FY24 stood at 14.6% and 2.9% respectively.

Pre-provision operating profit stood at Rs 990 crore for the quarter, registering a growth of 30% YoY. Average borrowing costs for the quarter increased 20 bps YoY and 6 bps QoQ to 9.13%.

IIFL Finance said that 98% of the firm’s loans are retail in nature and 67% of its retail loans (excluding gold loans which are not classified as PSL loans but are still zero risk weights for the banks on a net exposure basis) are PSL compliant.

The assigned loan book, is currently at Rs 16,488 crore. Besides, there are securitized assets of Rs 274 crore besides the co-lending book is at Rs 11,639 crore, it added.

The firm stated that the total presence of branches stood at 4,801 as at the end of Q4 FY24 as compared to 4,681 branches last quarter, spanning the length and breadth of the country.

On full year basis, the company’s consolidated net profit rose 17.55% to Rs 1,763.54 crore on 24.19% increase in total income to Rs 10,490.47 crore in FY24 over FY23.

GNPA stood at 2.3% up by 48 bps YoY and NNPA stood at 1.2% up 11 bps YoY, as at 31 March 2024. With implementation of expected credit loss under Ind AS, provision coverage on NPAs stands at 106%.

Total CRAR stood at 19.7% as at 31 March 2024, as against minimum regulatory requirement of 15%.

Cash and cash equivalents and committed credit lines from banks and institutions of Rs 6,559 crore were available as on 31 March 2024.

Meanwhile, the board has approved a proposal to raise up to Rs 10,000 crore through private placement of non-convertible debentures, subject to shareholders approval.

Nirmal Jain, Founder, IIFL Finance, said, “The regulatory action imposing an embargo on fresh gold loans has significantly impacted our business in the last quarter and continues to do so in the current quarter. We have used this opportunity to enhance our compliance, controls, and operations. We believe that we have fully complied with all regulatory requirements and addressed any deficiencies. The special audit has been completed, and we now await the RBI’s review and expect positive action soon. The business environment remains healthy, and we are optimistic about the outlook for all our other business segments.”

Kapish Jain, president & group chief financial officer at IIFL Finance,stated, “With the conclusion of the on ground special audit done at the behest of the RBI and in depth implementation of all the observations highlighted by RBI in inspection report, we firmly believe that we are far better placed today in working & building ourselves for the next phase of controlled and quality growth once the embargo on the gold lending business gets lifted.”

IIFL Finance, a leading retail-focused NBFC in India, offers loans and mortgages through its subsidiaries. With a wide range of products and a vast customer base, they operate across India through branches and digital channels.

Shares of IIFL Finance declined 0.91% to end at Rs 467.90 on Friday, 14 June 2024. The stock market is closed today on account of Bakri-Id.

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