IIFL Finance (IIFL) Q4 23/24 earnings summary

Executive summary

• FY24 consolidated profit after tax before minority interest was INR 1,974 crore, up 23% YoY, slightly below earlier guidance of INR 2,000 crore.

• Q4 profit after tax before non-controlling interest was INR 431 crore, down 6% YoY and 21% QoQ, impacted by RBI embargo on gold loan disbursements and compliance issues.

• Loan AUM grew 22% YoY to INR 78,960 crore in FY24, with strong growth in home, gold, and microfinance segments.

• Asset quality remained stable with gross NPA at 2.3% and net NPA at 1.2% as of March 2024.

• The company completed all RBI-mandated rectifications and concluded a special audit, ensuring compliance and transparency.

Financial highlights

• Pre-provision operating profit for Q4 was INR 990 crore, up 30% YoY and 3% QoQ.

• Consolidated AUM grew 22% YoY and 2% QoQ to INR 78,960 crore.

• Interest income grew 29% YoY to INR 8,037 crore in FY24; net interest income up 38% to INR 4,154 crore.

• Gross GNPA rose to 2.3%, net NNPA at 1.2%, both above guidance due to gold loan NPA spike.

• Operating cost for Q4 was INR 769 crore; fair value loss of INR 200 crore (non-recurring) from AIF and SR markdowns.

Outlook and guidance

• No growth guidance for FY25 due to ongoing RBI embargo; focus is on compliance, risk management, and internal controls.

• Home finance expected to see normalized or improved disbursements as macro environment remains positive.

• Liquidity position remains strong with INR 6,559 crore in free cash and undrawn lines.

• Projected cash flows over the next three years are expected to meet all financial obligations.