IIFL Finance Q3 results: Net profit rises 29% ₹545 crore

livemint.com:

MUMBAI : Non-bank lender IIFL Finance Wednesday reported a 29% growth in net profit to ₹545 crore for the December quarter on higher loan sales and resultant interest income, cushioning the impact of higher regulatory charges. Overall loan growth jumped 34% to ₹77,444 crore, led by its key products like gold and home loans, which grew 35% and 25% to ₹24,692 crore and ₹25,519 crore, respectively. Microfinance grew higher at 54% to ₹12,090 crore, digital loans soared 96% to ₹3,905 crore, and loans against property jumped 27% to ₹7,862 crore, the company said in a statement.

Construction and real estate books stood at ₹2,889 crore. Its total income grew 28% to ₹1,687.5 crore, the company added. The asset quality improved overall, with the gross non-performing assets ratio declining to 1.7 in the reporting period from 2.1% and the net non-performing assets ratio declining to 0.9 from 1.1, said Nirmal Jain, the founder of the company.

Its group chief financial officer Kapish Jain said in spite of healthy growth in our asset under management of 23% since fiscal 2019, we continue to strengthen our capital position with net gearing at a consolidated level touching a five-year low of 3.3x as they meet funding requirements from healthy internal accruals, giving it better margins and asset light business strategy. He said the average borrowing cost for the quarter increased 28 bps to 9.07%, partly due to the higher regulatory charges. Jain said as much as 96% of their loans are retail.

The assigned loan book is currently at ₹18,648 crore. Besides, there are securitised assets of ₹338 crore, and the co-lending book is at ₹11,586 crore. The company had cash and cash equivalents and committed credit lines from banks and institutions