IIFL Finance announced its first-quarter results for FY24, the company on Thursday announced through an exchange filing.
IIFL Finance Q1FY24 profit after tax1 at ₹473 crore, up 43 percent y-o-y
For the quarter ended June 30, 2023, the Company reported net profit after tax of ₹ 473 crore (before non-controlling interest) up 43 percent y-o-y.
Profit before tax (PBT) for the quarter was ₹618 up 43 percent y-o-y. Loan growth in core products was robust – Gold loans and Home loans AUM grew by 29 percent and 23 percent y-o-y respectively. Micro finance grew by 63 percent while Digital loans and Loan against property grew by 54 percent and 19 percent y-o-y respectively. Overall core loan portfolio grew by 31 percent y-o-y.
“The financial year has begun well and economic activity is showing robust growth. We plan to focus on productivity improvement and sharpening our digital edge in the current year. Banks and NBFCs have been witnessing very high employee churn in the front level staff. We plan innovative long term reward and retention schemes to fortify out competitive edge of superior talent," said Nirmal Jain, Founder, IIFL Finance Ltd.
Financial performance review
The company’s annualized ROE and ROA for Q1FY24 stood at 19.1 percent and 3.6 percent respectively. Pre-provision operating profit stood at ₹ 787 crore. for the quarter up 20 percent y-o-y. Average borrowing costs for the quarter increased 44 bps y-o-y and 15 bps q-o-q to 9.1 percent. 96 percent of our loans are retail in nature and 67 percent of our retail loans (excluding gold loans which are not classified as PSL loans) are PSL compliant.
The assigned loan book, is currently at ₹17,700 crore. Besides, there are securitized assets of ₹808 crore. Besides the co-lending book is at ₹8,963 crore. GNPA stood at 1.8 percent down by 73 bps y-o-y and NNPA stood at 1.1 percent down 42 bps y-o-y, as at June 30, 2023. With implementation of Expected Credit Loss under Ind AS, provision coverage on NPAs stands at 159 percent. Total CRAR stood at 20.6 percent as at June 30, 2023, as against minimum regulatory requirement of 15 percent.
The total presence of branches stood at 4,412 as at the end of quarter, spanning the length and breadth of the country.
Business segment review
Home Loans: At the end of the quarter, retail home loan assets grew by 23 percent y-o-y and 5 percent q-o-q to ₹22,838 crore. The primary focus in this segment is on affordable and non-metro housing loans. Over 73,000 customers were benefitted with a subsidy of more than ₹1,750 crore under the Pradhan Mantri Awas Yojana – Credit Linked Subsidy Scheme.
Gold Loans: As of June 30, 2023 the gold loan AUM grew to ₹ 22,142 crore, showing a strong growth of 29 percent y-o-y and 7 percent q-o-q. Gold loans are provided through our widespread presence in 1,474 towns/cities across 22 states and 4 Union Territories to salaried, self-employed and MSME customer segments.
Microfinance: The microfinance loan AUM stood at ₹ 10,255 crore, up 63 percent y-o-y and 5 percent q-o-q, as at June 30, 2023. The microreofinance customer base stood at 24.1 lakh custome₹
Loan against property: Loan against property AUM grew by 19 percent y-o-y and 2 percent q-o-q to ₹ 6,836 as at June 30, 2023.
Digital loans: Digital loans AUM grew by 54 percent y-o-y to ₹ 2,899 as at June 30, 2023.
Construction and Real Estate: Construction and real estate AUM stood at ₹ 2,732 crore, as at June 30, 2023.
