Finance company IIFL Finance announced Q1FY25 results: Company reported net profit after tax of Rs 338 crore (before non-controlling interest) down 28% YoY. Profit before tax (PBT) for the quarter was Rs 436 crore down 29% YoY. Among core products, home loans and loan against property AUM grew by 23%. Microfinance grew by 17% while digital loans grew by 59% YoY. gold loans de-grew by 33% YoY. Overall loan AUM grew by 2% YoY to Rs 69,610 crore. The company’s annualized ROE and ROA for Q1FY25 stood at 10.3% and 2.3% respectively. Pre-provision operating profit stood at Rs.647 crore. for the quarter down 18% YoY. Average borrowing costs for the quarter decreased 2 bps YoY and 2 bps QoQ to 9.11%. 98% of our loans are retail in nature and 66% of our retail loans (excluding gold loans which are not classified as PSL loans but are still zero risk weights for the banks on a net exposure basis) are PSL compliant. The assigned loan book, is currently at Rs 14,609 crore. Besides the co-lending book is at Rs 9,532 crore. GNPA stood at 2.2% up by 40 bps YoY and NNPA stood at 1.1% up 4 bps YoY, as at June 30, 2024. With implementation of Expected Credit Loss under Ind AS, provision coverage on NPAs stands at 128%. Total CRAR stood at 27.8% as at June 30, 2024, as against minimum regulatory requirement of 15% supported by the capital raised during the quarter. The total presence of branches stood at 4,774 as at the end of Q1FY25 compared to 4,801 branches last quarter, spanning the length and breadth of the country. Nirmal Jain, Managing Director, IIFL Finance, commented on the results: “The recent RBI embargo on gold loans has impacted our financial performance during the quarter. However, we have diligently followed all RBI guidelines and are committed to full compliance. We have taken significant steps to strengthen our system, process management, and compliance risk and audit teams. Our gold loan assets, being short tenure products, have demonstrated resilience under this trial by fire. Over a million customers have successfully closed their accounts and retrieved their jewellery, and we have repaid banks over Rs 13,500 crore from asset liquidation, without any issues, showcasing the robustness of our asset quality and operations." Kapish Jain, President & Group Chief Financial Officer, IIFL Finance, commented on the results: “Our financial performance for current quarter is hugely impacted by the ongoing embargo on our gold loan business with AUM in the gold business dropping by near 37% QoQ. During this period both the material subsidiaries have reported healthy performance both in terms of growth and profitability.” Result PDF