IIFL Finance Ltd’s net profit on a consolidated basis fell by six per cent year-on-year (Y-o-Y) to Rs 430.6 crore in the fourth quarter ended March 2024 (Q4FY24) due to higher provisions and losses from fair value changes. It had posted a consolidated net profit of Rs 457.6 crore in Q4FY23.

Its net interest income (NII) rose by 28 per cent Y-o-Y to Rs 1,121 crore in Q4FY24 from Rs 872.7 crore a year ago. Loan losses and provisions grew by 13 per cent to Rs 235.6 crore in Q4FY24 from Rs 208.3 crore in Q4FY23. The losses on fair value changes were Rs 200.4 crore in Q4FY24 as against a gain of Rs 42 crore in Q4FY23.

For FY24, its consolidated net profit rose by 23 per cent to Rs 1,974.2 crore from Rs 1,607.5 crore in FY23. Its NII rose by 38 per cent Y-o-Y to Rs 4,153.8 crore in FY24.

Nirmal Jain, founder and managing director of IIFL Finance, said in a statement, “The regulatory action imposing an embargo on fresh gold loans has significantly impacted our business in the last quarter and continues to do so in the current quarter.”

The assets under management (AUM) of the gold loan business rose 13 per cent Y-o-Y but declined by five per cent quarter-on-quarter (Q-o-Q) to Rs 23,354 crore at the end of March 2024. The gold AUM was Rs 24,692 crore at the end of December 2023.

Its total AUM, comprising gold, housing, micro-finance, etc., grew by 22 per cent Y-o-Y to Rs 78,960 crore at the end of March 2024.

The board has approved a proposal to raise up to Rs 10,000 crore through a private placement of non-convertible debentures, subject to shareholders’ approval.

Its gross non-performing assets (GNPAs) stood at 2.3 per cent, up by 48 basis points Y-o-Y, and net NPAs stood at 1.2 per cent, up 11 basis points Y-o-Y, as of March 31, 2024.

The capital adequacy ratio (CAR) stood at 19.7 per cent as of March 31, 2024, against the minimum regulatory requirement of 15 per cent.

First Published: Jun 16 2024 | 6:45 PM IST