IIFL Finance surged 8.32% to Rs 509.15 after the company's consolidated net profit rose 22.2% to Rs 378.30 crore on 16.3% increase in total income to Rs 2144.56 crore in Q3 December 2022 over Q3 December 2021.
On a consolidated basis, profit before tax (PBT) jumped 40.8% year-on-year to Rs 555.15 crore in Q3 December 2022.Net interest income (NII) jumped 27% year-on-year and 6% quarter-on-quarter to Rs 809.1 crore in Q3 December 2022.
IIFL Finance had loan assets under management (loan AUM) of Rs 57,941 crore as at 31 December 2022, with the Home Loans segment constituting 35%, Gold Loans 32%, Loan Against Property 11%, Digital Loans 3% and Microfinance Loans 14% of the total AUM.
Gold loans and Home loans AUM grew by 25% and 24% y-o-y respectively. Microfinance grew by 55% while Loan against property and Digital loans grew by 14% and 3% y-o-y respectively. Overall core loan portfolio grew by 26% y-o-y and non-core (primarily construction & real estate finance) portfolio shrunk by 7%.
The company's annualized ROE and ROA for Q3FY23 stood at 17.9% and 3.4% respectively. Core pre-provision operating profit stood at Rs 773 crore for the quarter, up 12% q-o-q and 26% y-o-y. Average borrowing costs for the quarter increased 16 bps q-o-q and 10 bps y-o-y to 8.8%.
The company said that 95% of its loans are retail in nature and 67% of its retail loans (excluding gold loans which are not classified as PSL loans) are Priority Sector Lending (PSL) compliant. The assigned loan book, currently at Rs 15,939 crore. Besides, there are securitized assets of Rs 1,049 crore. Apart from securitization and assignment, co-lending book is at Rs 5,716 crore.
Gross Non-Performing Assets (GNPA) stood at 2.1% down from 2.4% q-o-q and Net Non-Performing Assets Ratio (NNPA) stood at 1.1% down from 1.2% q-o-q, as at 31 December 2022. With implementation of Expected Credit Loss under Ind AS, provision coverage on NPAs stands at 164%.
Total CRAR stood at 21.5% as at 31 December 2022, as against minimum regulatory requirement of 15%.
Nirmal Jain, managing director, IIFL Finance, remarked on the financial results: "We are delighted to present our financial results delivering consistent and healthy growth. Our strategy remains focused on digital technologies complemented by our branch network, to deliver credit to under- banked customers across the country. Regardless of the turbulent global economic and geo-political environment, Indian economy is in a sweet spot, witnessing rapid growth. This makes prospects for our retail lending business very encouraging."
The company declared an interim dividend of Rs 4 per share.
Cash and cash equivalents and committed credit lines from banks and institutions of Rs 8,562 crore were available as on 31 December 2022. During the quarter, the company raised Rs 4,390 crore through term loans, bonds and refinance. Additionally, Rs 3,715 crore was raised through direct assignment of loans.
IIFL Finance is one of the leading retail focused diversified NBFC in India, engaged in the business of loans and mortgages along with its subsidiaries - IIFL Home Finance and IIFL Samasta Finance. IIFL Finance, through its subsidiaries, 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 8 million+ customers. Its total presence of branches stood at 3,965 as at the end of December 2022 quarter.
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