Indian diversified financial services company IIFL Finance Ltd has reported 37 per cent year-on-year and 10 per cent quarter-on-quarter growth in net profit at Rs 292 crore. The profit for the first half of the fiscal year rose 128 per cent YoY at Rs 557 crore, the company said in a statement to the stock exchanges.
The net interest income for the quarter stood at Rs 598.2 crore vs Rs 562.9 crore during the same period last year.
Loan AUM (assets under management) grew to Rs 44,249 crore, recording a growth of 8 per cent YoY and 3 per cent QoQ. The growth was driven by sustained growth in the home loan and gold loan businesses, the company said.
As per IIFL, liquidity comfort as of September 30 was at an all-time high of Rs 6,379 crore. This, it said, is adequate to meet not only all near-term liabilities but also fund its growth momentum.
"94 per cent of our loans are retail and 69% of our retail loans (excluding gold loans which are not classified as PSL loans) are PSL compliant. The assigned loan book, currently at Rs 11,388 crore, is 26% of AUM," a company statement said.
The company added a total of 4,000 employees in H1 FY22, including 2,700 in Q2 FY22 itself. It started 230 new branches in Q2 and made an aggressive investment in technology and branding.
Notwithstanding large investment in growth, which caused a spike in operating costs, IIFL's RoE (return on equity) remained above 20 per cent and ROA (return on asset) above 2.5 per cent. The operating cost grew 23 per cent QoQ with the ongoing expansion plans.
Nirmal Jain, Chairman, IIFL Finance Ltd, said the company has made an aggressive bet on growth, with an almost 15 per cent net increase in manpower strength in the last quarter itself. "Besides, we have accelerated investment in technology and branding. Our co-lending proposition is getting a very positive response from banks. Our strategy of focusing on small-ticket retail loan assets with extensive use of digital technology and partnering with banks for co-lending, is vindicated by robust profit growth."
The gross NPAs as of Q2 stood at 2.3 per cent and NNPA (net non-performing assets) stood at 1.1 per cent. The total presence of branches grew to 2,914 at the end of the quarter from 2,682 branches as at the previous quarter.
The IIFL stock is trading at Rs 320.65, which has increased Rs 15.25 or 4.99 per cent, as compared to the previous session close of Rs 305.40 on the NSE.
Also read: Agri-tech platform DeHaat raises $115 mn in Series D funding
Also read: Maruti Suzuki Q2 results: Net profit plummets 65% to Rs 475.3 cr, net sales up 9%