Better asset quality boosts IIFL Q2 net by 28% to Rs 140 cr

Total income of financial services company grew 15% to Rs 1,031.9 cr during reported period

IIFL Holdings, the listed entity of the IIFL group, today reported a 28 per cent increase in consolidated net profit of Rs 140.3 crore for the September quarter on better asset quality and overall growth in revenue.

Total income of the city-based financial services company grew 15 per cent to Rs 1,031.9 crore during the reported period.

Gross NPAs and net NPAs have fallen to 1.4 per cent and 0.5 per cent, respectively, from 1.6 per cent and 0.8 per cent in the previous quarter. Its NPA provisions came down from Rs 219.3 crore to Rs 140.2 crore during the period under review.

The company said its fund-based business grew 18 per cent to Rs 766.2 crore, while financial products distribution arm clipped at 16 per cent to Rs 151.8 crore, capital market activities was flat at Rs 110.8 crore and other income clipped at 82 per cent to Rs 3.1 crore.

Group Chairman Nirmal Jain said the overall the business has been growing at a healthy pace with consolidated net income rising 28 per cent despite a flattish capital market performance.

"In our fund based business, we are aggressively investing to enhance housing finance capacity, which will yield results over the next two-three years," Jain said.

He said, the NBFC business, predominantly retail and secured loans grew to Rs 15,472 crore, up 19 per cent, while the mortgage loan book has increased to 51 per cent of the loan book in Q2 from 48 per cent in Q1. The share of gold loan has fallen to 18 per cent this quarter from 24 per cent in the previous quarter.

However, the capital market income or brokerage business revenue was down by 1 per cent to Rs 110.8 crore an yearly basis, but up 4 per cent sequentially.

The average daily equity total turnover was at Rs 7,007 crore in Q2, down 4 per cent year-on-year (YoY) and 9 per cent quarter-on-quarter (QoQ), while exchange turnover was down 9 per cent YoY and up 2 per cent QoQ, the company said in a statement.