IIFL Finance reports 37% rise in second quarter profit at Rs 291.6 cr

IIFL Finance on Wednesday reported a 37 per cent rise in net profit at Rs 291.60 crore in the second quarter ended September.

The company had posted a net profit of Rs 212.70 crore in the same quarter of the previous fiscal.

Total income during the July-September period rose 11 per cent to Rs 969.30 crore as against Rs 874.50 crore in the corresponding period of FY21, IIFL Finance said in a release.

The company's asset under management (AUM) during the reported quarter grew 8 per cent at Rs 44,249 crore from Rs 40,843 crore a year ago, it said.

Home loans constituted 35 per cent, gold loans 31 per cent, business loans 16 per cent and microfinance loans 10 per cent of the total AUM.

During the latest September quarter, disbursements were back to pre-COVID levels with heightened economic activity, the company said.

The non-banking finance company said it has made an aggressive bet on growth, with an almost 15 per cent net increase in manpower strength in the last quarter.

"Besides, we have accelerated investment in technology and branding. Our co-lending proposition is getting very positive response from banks.

"Our strategy of focusing on small ticket retail loan assets with extensive use of digital technology and partnering with banks for co-lending, is vindicated by robust profit growth," IIFL Finance Chairman Nirmal Jain said.

On the asset front, gross Non-Performing Assets (NPAs) stood at 2.3 per cent and net NPAs at 1.1 per cent as on September 30, 2021.

With the implementation of Expected Credit Loss (ECL) under Ind AS, provision coverage on NPAs stands at 175 per cent, IIFL Finance said.

Stock of the company closed at Rs 321.85 apiece on BSE, up 4.99 per cent over previous close.