IIFL Finance Q4 results: Profit down 6% to Rs 430.6 cr on higher provisions

For FY24, its consolidated net profit rose by 23 per cent to Rs 1,974.2 crore from Rs 1,607.5 crore in FY23. Its NII rose by 38 per cent Y-o-Y to Rs 4,153.8 crore in FY24

IIFL Finance's net profit on a consolidated basis fell by 6 per cent year-on-year (Y-o-Y) to Rs 430.6 crore during the fourth quarter ended March 2024 (Q4 FY24) on account of higher provisions and losses due to fair-value changes.

It had posted a consolidated net profit of Rs 457.6 crore in Q4 FY23.

Net interest income (NII) rose by 28 per cent Y-o-Y to Rs 1,121 crore in Q4 FY24 from Rs 872.7 crore a year ago. Loan losses and provisions grew by 13 per cent to Rs 235.6 crore in Q4 FY24 from Rs 208.3 crore in Q4 FY23. The losses on fair-value changes were Rs 200.4 crore in Q4 FY24 against a gain of Rs 42 crore in Q4 FY23.

As for FY24, consolidated net profit rose by 23 per cent to Rs 1,974.2 crore from Rs 1,607.5 crore in FY23.

NII rose by 38 per cent Y-o-Y to Rs 4,153.8 crore in FY24.

 

Nirmal Jain, founder and managing director, IIFL Finance, in a statement, 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.”

He added, “The company has used this opportunity to enhance our compliance, controls, and operations. We believe we have fully complied with all regulatory requirements and addressed deficiencies.”

The assets under management (AUM) of the gold loan business rose 13 per cent Y-o-Y but declined by 5 per cent quarter-on-quarter (Q-o-Q) to Rs 23,354 crore at the end of March 2024. The gold AUM was at Rs 24,692 crore in December 2023.

Total AUM comprising gold, housing and microfinance, among others, grew 22 per cent Y-o-Y to Rs 78,960 crore at the end of March 2024.

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.  

Gross non-performing assets (GNPAs) stood at 2.3 per cent, up 48 basis points (bps) Y-o-Y. Net NPAs were at 1.2 per cent, up 11 bps, as on March 31, 2024.

Capital adequacy ratio (CAR) stood at 19.7 per cent as on March 31, 2024, against the minimum regulatory requirement of 15 per cent.