IIFL Finance hits 20% upper circuit post December quarter results

Shares of IIFL Finance were locked in upper circuit of 20 per cent at Rs 147 on the BSE in Friday's session after the company reported 47 per cent year-on-year (YoY) jump in its consolidated net profit at Rs 268 crore in the December quarter (Q3FY21), 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, while pre-provision operating profit (PPOP) more than doubled to Rs 615 crore in Q3FY21 as against Rs 271 crore in the corresponding quarter of previous fiscal.

As on Q3FY21, 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 home loans segment constituted 32 per cent, gold loans 29 per cent, business loans 18 per cent and microfinance loans 9 per cent of the total AUM.

Nirmal Jain, Chairman, IIFL Finance, commented on the financial results: “The company’s business model is being transformed by two-pronged strategy- rapidly digitizing/ automating all business processes and forging win-win partnerships with banks. It places us in a unique sweet spot to deliver financial inclusion to masses and a superior return on capital to all the stakeholders."

The counter has seen huge activities with trading volumes jumping nearly 10-fold. A combined 4.95 million equity shares changed hands on the counter so far and there were pending buy orders for 680,000 shares on the NSE and BSE as of 02:35 pm, the exchange data showed.