IIFL Finance Q2FY24 results: Consolidated net profit up 32% to Rs 526 cr

IIFL Finance Ltd, a non-banking finance company (NBFC), reported a 32 per cent year-on-year growth in its consolidated net profit, amounting to Rs 526 crore for the second quarter ending September 2023. The company's consolidated net interest income (NII), a key revenue source, increased by 38 per cent to Rs 1,001 crore compared to Rs 724 crore in the same period last financial year, according to a statement released today.

The company's non-fund based income, including fees and commissions, rose by 24 per cent year-on-year to Rs 598 crore in the reporting quarter. Shares of IIFL Finance closed 2.77 per cent lower at Rs 647 each on the Bombay Stock Exchange (BSE).

In its portfolio, which includes home loans, gold loans, microfinance, and digital finance, the company saw a 32 per cent growth in assets under management (AUM) to Rs 73,066 crore as of the end of September 2023. Specifically, home loans increased by 22 per cent to Rs 24,009 crore, gold loans by 33 per cent to Rs 23,690 crore, and microfinance by 67 per cent to Rs 11,307 crore. Meanwhile, digital loans and loans against property surged by 77 per cent and 21 per cent year-on-year, respectively.

As of September 30, 2023, the company's gross non-performing assets (NPA) ratio was 1.8 per cent, a decrease of 58 basis points year-on-year. The net NPA ratio stood at 1.0 per cent, down 20 basis points over the same period.

The total Capital Adequacy Ratio (CAR) was reported to be 20.5 per cent, well above the minimum regulatory requirement of 15 per cent.