At the end of March 2024, its total assets under management (AUM)—which includes gold, real estate, microfinance, etc.—had increased by 22% year over year to Rs 78,960 crore. Image courtesy of Shutterstock
During the fourth quarter of FY24, which ended on March 20,24, IIFL Finance’s net profit on a consolidated basis decreased by 6% year over year (Y-o-Y) to Rs 430.6 crore. This decline was attributed to greater provisions and losses resulting from changes in fair value.
In Q4 of FY23, it reported a consolidated net profit of Rs 457.6 crore.
Net interest income (NII) increased from Rs 872.7 crore to Rs 1,121 crore in Q4 FY24, a 28% YoY increase. Loan losses and provisions increased from Rs 208.3 crore in Q4 FY23 to Rs 235.6 crore in Q4 FY24, a 13% increase. In Q4 FY24, there were losses of Rs 200.4 crore on fair-value changes, compared to a gain of Rs 42 crore in Q4 FY23.
Consolidated net profit for FY24 increased to Rs 1,974.2 crore from Rs 1,607.5 crore in FY23, a 23% increase.
In FY24, NII increased 38% year over year to Rs 4,153.8 crore.
“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,” stated Nirmal Jain, founder and managing director of IIFL Finance, in a statement.
“The company has taken advantage of this opportunity to improve our operations, controls, and compliance,” he continued. We think we have fixed any shortcomings and comply completely with all regulatory obligations.
At the end of March 2024, the assets under management (AUM) of the gold loan company had increased by 13% year over year, but had decreased by 5% quarter over quarter (Q-o-Q) to Rs 23,354 crore. In December 2023, the gold AUM was valued at Rs 24,692 crore.
At the end of March 2024, total assets under management (AUM) including gold, real estate, and microfinance increased by 22% year over year to Rs 78,960 crore.
Subject to shareholder approval, the board has approved a proposal to raise up to Rs 10,000 crore through the private offering of non-convertible debentures.
The percentage of gross non-performing assets (GNPAs) increased by 48 basis points (bps) year over year to 2.3%. As of March 31, 2024, net nonperforming assets increased by 11 basis points to 1.2%.
As of March 31, 2024, the capital adequacy ratio (CAR) was 19.7%, which is more than the minimal regulatory requirement of 15%.