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IIFL Finance gains as Q2 PAT jumps 36% YoY

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Capital Market
Last Updated : Oct 27 2022 | 9:50 AM IST

IIFL Finance advanced 3.52% to Rs 374.70 after the company reported a 36.2% jump in consolidated net profit to Rs 397.07 crore on a 19.7% rise in total income to Rs 2,051.44 crore in Q2 FY23 over Q2 FY22.

Profit before tax in Q2 FY23 rose 42.5% to Rs 529.44 crore as compared to Rs 371.54 posted in Q2 FY22.

IIFL Finance had loan assets under management (AUM) of Rs 55,302 crore as at 30 September 2022, with the home loans segment constituting 36%, gold loans 32%, business loans 14% and microfinance loans 12% of the total AUM.

The company's annualized ROE and ROA for Q2 FY23 stood at 20.4% and 3.4% respectively. Core pre- provision operating profit stood at Rs 685 crore for the quarter up 23% YoY. Average borrowing costs for the quarter declined 3 bps QoQ and 29 bps YoY to 8.4%.

GNPA stood at 2.4% down from 2.6% QoQ and NNPA stood at 1.2% down from 1.5% QoQ, as of 30 September 2022. With implementation of expected credit loss under Ind AS, provision coverage on NPAs stands at 147%.

Total capital adequacy ratio stood at 21.7% as on 30 September 2022, as against minimum regulatory requirement of 15%.

Cash and cash equivalents and committed credit lines from banks and institutions of Rs 8,191 crore were available as on 30 September 2022.

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Nirmal Jain, managing director of IIFL Finance, remarked on the financial results: We are pleased to report another quarter of healthy growth. All our core businesses have delivered robust operating performance. The government and central bank continue their effort to drive financial inclusion, providing a very conducive environment for growth to companies like ours. Our branch networkand online presence reach out primarily to individuals and entities not easily accessible to banks. We complement banks and partner with them for sourcing and servicing of retail and priority sector credit. We endeavour to be the most efficient player in our space by using technology and scale.

IIFL Finance is a retail focused diversified NBFC that is engaged in the business of loans and mortgages along with its subsidiaries - IIFL Home Finance and Samasta Microfinance. The company offers a wide spectrum of products such as home loan, gold loan, business loan, microfinance, capital market finance and developer & construction finance to its vast customer base.

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First Published: Oct 27 2022 | 9:29 AM IST

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