IIFL Finance hit an upper circuit of 5% at Rs 266 after the company reported a consolidated net profit of Rs 247.62 crore in Q4 FY21, steeply higher than net profit of Rs 58.74 crore in Q4 FY20.
Total income increased by 22.8% to Rs 1648.62 crore in Q4 FY21 over Q4 FY20. Profit before tax in Q4 FY21 jumped to Rs 320.58 crore from Rs 14.57 crore in Q4 FY20.
IIFL Finance had loan assets under management (AUM) of Rs 44,688 crore as at 31 March 2021, with the home loans segment constituting 32%, gold loans 29%, business loans 17% and microfinance loans 11% of the total AUM.
The company's annualized ROE and ROA for Q4FY21 stood at 20.7% and 2.8% respectively. The company recorded its pre-provision operating profit of Rs. 650 crore during the quarter, driven by mainly volume growth and reduction in cost of funds. Average borrowing costs for the quarter decreased by 13 bps quarter-on-quarter (QoQ) to 8.8%.
Impairment on financial instruments declined 76.4% to Rs 68.82 crore in the fourth quarter from Rs 291.47 crore made in the same period last year.
GNPA stood at 2.1 % and NNPA stood at 1.0%, as at 31 March 2021. With implementation of expected credit loss under Ind AS, provision coverage on NPAs would be 186% excluding standard asset coverage.
Total CAR stood at 25.4% including Tier I capital of 17.5% as at 31 March 2021, as against statutory requirement of 15% and 10% respectively. Capital Adequacy Ratios (CAR) improved as company raised Rs 670 crore by sub debt.
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Cash and cash equivalents and committed credit lines from banks and institutions of Rs 5,275 crore were available as on 31 March 2021.
The NBFC reported 51.1% rise in consolidated net profit to Rs 760.81 crore on 21.6% increase in total income to Rs 5989.39 crore in the year ended 31 March 2021 over the year ended 31 March 2020.
Nirmal Jain, chairman, IIFL Finance, said: "During these difficult times of COVID-19 pandemic, we are indeed proud of our people who braved all the challenges to ensure unremitting service to the customers and help the company deliver stellar performance. We are leaving no stone unturned to ensure safety of our people and contribute to help Covid affected people. While continuing to invest in people and technology from long term perspective, we remain cautious about short term fallout of the second wave of Covid."
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 a vast customer base of over 6 million customers.
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