IIFL Finance (IIFL) Q4 23/24 earnings summary

Executive summary

• Q4 FY24 profit after tax declined 6% YoY due to the RBI embargo on gold loan disbursements, but full-year post-tax profit grew 23% YoY to INR 1,974 crore, slightly below guidance.

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

• The RBI embargo on gold loans, imposed in March, led to a significant reduction in the gold loan book and impacted overall growth and profitability.

• The company completed all RBI-mandated rectifications, concluded a special audit, and implemented stricter compliance, audit, and board supervision measures.

• Board approved audited financial results for FY24 with unmodified audit opinions and enabled fund raising via NCDs up to ₹10,000 crore.

Financial highlights

• Consolidated revenue from operations for FY24 was ₹10,249.43 crore, up from ₹8,447.30 crore in FY23.

• Q4 FY24 profit after tax before non-controlling interest was INR 431 crore, down 6% YoY and 21% QoQ.

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

• Basic EPS for FY24 was INR 46.3, up 17% YoY.

• Net profit after tax for FY24 stood at INR 1,974.22 crore, compared to INR 1,607.55 crore in FY23.

Outlook and guidance

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

• 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.

• Gold loan NPAs expected to normalize over the next two quarters.

• Microfinance growth will remain slow for 1-2 quarters as compliance is strengthened.