IIFL profit rises bouyed by income from financing arm

Net profit more than doubled for IIFL over the financial year, rising from Rs.132.0 crore in FY12 to Rs.272.2 crore in FY13, with more money coming in from financing than broking.  

The income from the financing segment was up over 66%

for FY13 over FY12, rising from Rs.1090.45 crore to Rs.1816.69 crore, according to a company release on Saturday.

Meanwhile, equities, broking and related income rose little over 1% in the same period, from Rs.545.76 crore to Rs.552.53 crore as commodity volumes rose.  

The financing subsidiary is a key area of focus according to Nirmal Jain, Chairman, IIFL.

“….Over the years, the business model has been de-risked and is no longer dependent on cyclical capital markets. The financing business, the key driver of steady and sustainable growth, is on strong foundation, as evident in asset quality and diversified product mix,”he said in a press release.

The net profit for IIFL was at Rs.80.98 crore for the March quarter, up 10.7% over the previous quarter on the back of higher financing income.

Figure are for net profit after tax and minority interest.

The income for the financing and investment segment was up from Rs.469.6 crore in the December quarter to Rs.480.9 crore in March, according to company financials. Equities, broking and related income was up from Rs.143.45 crore to Rs.150.06 crore.