IIFL Finance Q4 net profit down 41.6% on lower income, higher costs

IIFL Finance's Q4 FY25 net profit fell 41.62 per cent to Rs 251.36 crore as income from operations declined and impairment expenses rose sharply year-on-year

IIFL Finance Ltd’s consolidated net profit declined by 41.62 per cent to Rs 251.36 crore in the quarter ended March 2024 (Q4 FY25), owing to a drop in revenues and a rise in impairment costs.

 

The company had posted a consolidated net profit of Rs 430.63 crore in the same quarter a year ago (Q4 FY24).

 

For the full financial year FY25, consolidated net profit fell sharply to Rs 578.16 crore, compared to Rs 1,974.22 crore in FY24, according to the company’s filing with the BSE. Shares of IIFL Finance closed 2.03 per cent lower at Rs 360.40 on the BSE.

 

 

IIFL Finance and its listed units operate in business segments such as gold loans, housing finance and microfinance.

 

Total income from operations for the reporting quarter (Q4 FY25) dropped to Rs 2,591.25 crore from Rs 2,853.80 crore in Q4 FY24.

 

The company’s expenses towards impairment of financial instruments rose to Rs 348.74 crore in Q4 FY25, up from Rs 235.60 crore in the same quarter last year. Impairment costs reflect losses when the value of an asset falls below its carrying amount on the balance sheet.