IIFL FINANCE LIMITED Performance review | Bloomberg: IIFL IN | |
Quarter ended June 30, 2022 (Q1FY23) | ||
IIFL Finance Limited | July 27, 2022 |
Financial Performance Q1FY23
- Highlights
- Results
- Financial trends
- Asset Quality
- Liquidity
Business Segment Overview
Corporate, Strategy and Others
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Q1FY23 Performance snapshot
Q1FY23 PAT 330 Crore (up 24% yoy); RoE at 20.5%
Profit growth
PPOP1 at 674 Cr; up 32% yoy
Profit after tax at 330 Cr.; up 24% yoy TCI2 at 332 Cr.; up 33% yoy
1. Pre-provision operating profit
2. Total comprehensive Income
Loan growth
Loan AUM at 52,761 Cr; up 22% yoy Core Loan AUM 49,667 Cr; up 26% yoy Non-Core Loan AUM 3,094 Cr; down 15% yoy
Core loan products are Gold, Home, Business & Microfinance loans. Non core loan products are CRE (Construction & Real Estate) and Capital Market
Asset quality
GNPA1 at 2.6%; down from 3.2% in FY22 NNPA2 at 1.5%; down from 1.8% in FY22 PCR3 at 137%; up from 123% in FY22
1GNPA- Gross NPA. 2NNPA-Net NPA
3Provision Coverage Ratio
Balance sheet
Gearing (Net Debt to Equity) at 4.4
CRAR1 at 22.8%; a shade lower 23.9% FY22
Free cash & liquid assets 5,520 Cr.
1Capital adequacy ratio
Net debt equity is calculated after reducing free cash/ liquid asset and deemed debt as per Ind AS accounting from the gross debt
Return ratios
RoE1 at 20.5%; up from 19.7% yoy RoA2 stable at 2.9%; up from 2.6% yoy
1Return on Equity
2Return on Asset
Per Share | |
EPS1 at | 8.7; up from 8.5 in Q4FY22 |
BVPS2 at | 174.2; up from 165.3 in Q4FY22 |
.
1Earnings per share
2Book value per share
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Q1FY23 Key highlights
Profit Growth & ROE
Loan asset growth
Interest margin
Operating cost
Asset quality
Liquidity & gearing
Pre provision operating profit grew by a healthy 32%, but with higher provisions, PAT growth was 24%. Total Comprehensive Income (TCI) was up 33%.
RoE for the quarter, annualized was 20.5%.
Q1 of the financial year is seasonally slack for some core products, but robust growth in gold loan and home loan, drove core products loan assets by 26% yoy. In line with our strategy, non- core portfolio has shrunk by 15% yoy.
Net interest margin remained at healthy level a little above 7.5%. The income from assigned and securitized assets also remain at similar levels. For most of our products, we are in a position to pass on interest rate hikes to the customers.
Operating cost rise is due to commissioning of 200 new branches, addition of 2000 manpower and annual salary hike, during the quarter. We expect cost to income to plateau for next 2 quarters and then start declining.
Gross NPA came down to 2.6%. Higher-than-expected provision was for loans coming out of restructuring time, specially micro-finance loans. With restructured time over for almost all loans, the provision is likely to begin tapering in 2-3 quarters
Liquidity (free cash, equivalent and undrawn lines) at ₹5,520 Cr, is adequate to meet near term obligations as well as planned growth in loan book. Net gearing was at a comfortable 4.4x and capital adequacy was at a safe 22.8%.
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Q1FY23 Results (Consolidated)
Net profit up 24% yoy, income up 44% yoy
Cr | Q1FY23 | Q1FY22 | Y-o-Y | Q4FY22 | Q-o-Q |
Interest income | 1,451.3 | 1,245.0 | 17% | 1,423.4 | 2% |
Interest expense | (776.0) | (700.9) | 11% | (773.2) | 0% |
Net interest income | 675.3 | 544.1 | 24% | 650.2 | 4% |
Non-fund based income | 513.7 | 280.4 | 83% | 488.3 | 5% |
Total income | 1,189.0 | 824.5 | 44% | 1,138.4 | 4% |
Operating expense | (515.0) | (315.2) | 63% | (468.5) | 10% |
Pre provision operating profit | 674.0 | 509.3 | 32% | 670.0 | 1% |
Loan losses & provision | (248.7) | (165.0) | 51% | (256.4) | (3%) |
Core Profit before tax | 425.3 | 344.3 | 24% | 413.6 | 3% |
Net Gain/(Loss) on Fair Value Changes | 8.6 | 6.2 | 38% | 6.0 | 44% |
Profit before tax | 433.9 | 350.5 | 24% | 419.6 | 3% |
Profit after tax | 329.7 | 265.8 | 24% | 321.0 | 3% |
Total Comprehensive Income(TCI) | 331.6 | 249.7 | 33% | 338.2 | (2%) |
Book value per share ( ) | 174.2 | 145.6 | 165.3 | ||
Earnings per share ( not annualized) | 8.7 | 7.0 | 8.5 | ||
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IIFL Finance Ltd. published this content on 28 July 2022 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 28 July 2022 00:47:03 UTC.
