Shares of IIFL Finance were locked in 10 per cent upper circuit at Rs 222.50, also its 52-week high, on the BSE on Tuesday. The stock has zoomed 82 per cent in the past eight trading days after reporting a strong set of numbers in the October-December quarter (Q3FY21).
Till 11:14 am, a combined 1.13 million shares had changed hands and there were pending buy orders for around 85,000 shares on the NSE and BSE. In comparison, the S&P BSE Sensex was up 0.71 per cent at 51,712 points.
For Q3F21, IIFL Finance had reported 47 per cent year-on-year (YoY) jump in its consolidated net profit at Rs 268 crore, driven by loan growth, higher net interest margin and lower cost to income ratio. The company engaged in financial services business had posted a profit of Rs 183 crore in the year-ago quarter.
Net interest income of the company grew 57 per cent YoY to Rs 573 crore. The pre-provision operating profit (PPOP) during the quarter was more-than-doubled at Rs 615 crore from Rs 271 crore in previous year quarter. The company recorded its highest ever PPOP during the quarter, driven by mainly volume growth and reduction in cost of funds. Average borrowing costs for the quarter decreased by 10 bps quarter on quarter (QoQ) to 9.0 per cent.
Assets quality improved in Q3FY21, with gross non-performing assets (NPA) stood at 1.61 per cent against 1.81 per cent in Q3FY20. Net NPA was unchanged at 0.77 per cent, IIFL Finance said in its performance review.
“Not considering Supreme Court deferment order, proforma GNPA was 2.87 per cent and NNPA was 1.46 per cent. Excluding discontinued business of Healthcare Equipment Finance (HCF), the GNPA stands at 1.4 per cent and NNPA at 0.7 per cent,” the company said.
IIFL Finance had loan assets under management (AUM) of Rs 42,264 crore as of Q3FY21, up 3 per cent sequentially and 17 per cent YoY, driven primarily by core products -- micro & small business loans, gold loans and affordable home loans. The management said it is excited about the opportunities arising from V shaped recovery in the economy with low credit penetration.