More Stories

Informist, Thursday, May 8, 2025

 

Please click here to read all liners published on this story

--IIFL Finance Jan-Mar consol PAT INR 2.08 billion vs INR 3.73 billion year ago 
--IIFL Finance Jan-Mar consol revenue INR 25.91 billion vs INR 28.54 billion year ago 
--IIFL Finance FY25 consol PAT INR 3.79 billion vs INR 17.64 billion year ago 
--IIFL Finance FY25 consol revenue INR 102.11 billion vs INR 102.50 billion year ago 

 

By Sachi Pandey

 

MUMBAI – IIFL Finance Ltd. reported a sharp drop in its consolidated net profit for the March quarter due to lower interest income and higher provisions for bad loans. The company's net profit fell 44% on year to INR 2.08 billion in Jan-Mar from INR 3.73 billion a year ago. This marks the second straight quarter of an on-year decline in its profit, though the company had recovered from a net loss in the Jul-Sept quarter.

 

Interest income of the non-banking financier fell to INR 24.83 billion in the reporting quarter from INR 27.20 billion a year ago. Fee and commission income also dropped to INR 1.01 billion from INR 1.34 billion, pulling down total revenue from operations by 9% on year to INR 25.91 billion in Jan-Mar.

 

Other income slumped 95% to INR 31 million from INR 683 million a year ago, which further weighed on the company's total income, dragging it down to INR 25.94 billion from INR 29.22 billion a year earlier.

 

Total expenditure for the quarter stood at INR 22.85 billion, slightly lower than INR 23.68 billion a year ago. Finance costs rose to INR 11.69 billion from INR 10.63 billion in the year-ago quarter and INR 9.96 billion in the previous quarter. 

 

Provisions for impairment on financial instruments surged 48% on year to INR 3.49 billion. On a sequential basis, however, impairment expenses were lower than INR 4.91 billion in the December quarter.

 

IIFL Finance's loan assets under management rose 10% on quarter to INR 783.41 billion, but were down 1% on year. Gold loan assets under management jumped 40% on quarter to INR 210.22 billion but fell 10% on year.

 

The micro, small, medium enterprises loan book grew 18% on year and 2% on quarter to INR 141.85 billion in Jan-Mar. However, the microfinance loan book fell 25% on year and 5% on quarter to INR 98.59 billion, "impacted by sector trends", the company said in a press release. Loan disbursals rose 12% on quarter to INR 197 billion as of Mar. 31.

 

On the asset quality front, the company's gross non-performing asset ratio improved by 19 basis points on quarter to 2.2%, while the net non-performing asset ratio was at 1%, unchanged from the previous quarter. The consolidated capital adequacy ratio stood at 29%.

 

IIFL Finance said it has strengthened its compliance systems in line with the Reserve Bank of India's rules for large non-banking financial companies. Steps taken include setting up board committees for audit, risk, and governance, starting stress tests every quarter, and appointing a chief compliance officer. The company is also automating compliance checks across its more than 4,900 branches to track issues faster and act quickly, it said in the release. 

 

"We remain firmly committed to ensuring that our governance is anchored in rigorous risk monitoring, transparent disclosures, and a zero-tolerance approach to non-compliance - striving not just to meet but to stay ahead of evolving regulatory standards," Managing Director Nirmal Jain said, according to the release.

 

In March last year, the Reserve Bank of India had barred IIFL Finance from giving new gold loans, citing "supervisory concerns." After the ban, rating agencies placed the company on rating watch with negative or developing outlook. However, in September, the central bank lifted the restrictions imposed on IIFL Finance's gold loan portfolios. Even Fitch Ratings removed the company from 'Rating Watch Negative' in November, although it affirmed its 'B+' rating with a stable outlook. 

 

For the full financial year ended March, IIFL Finance's consolidated net profit fell 79% on year to INR 3.79 billion. Consolidated revenue was INR 102.11 billion compared to INR 102.50 billion in FY24.

 

On Thursday, shares of IIFL Finance closed 1.9% lower at INR 360.80 on the National Stock Exchange.  End

 

Edited by Tanima Banerjee

 

For users of real-time market data terminals, Informist news is available exclusively on the NSE Cogencis WorkStation.

 

Cogencis news is now Informist news. This follows the acquisition of Cogencis Information Services Ltd by NSE Data & Analytics Ltd, a 100% subsidiary of the National Stock Exchange of India Ltd. As a part of the transaction, the news department of Cogencis has been sold to Informist Media Pvt Ltd.

 

Informist Media Tel +91 (22) 6985-4000 

Send comments to feedback@informistmedia.com

 

© Informist Media Pvt. Ltd. 2025. All rights reserved.