IIFL Finance Q4FY22 and Year Ended result : AUM up 15% YoY, NNPA at 1.8% and Profit grew 29% YoY

GNPA stood at 3.2% and NNPA stood at 1.8%, as at March 31, 2022.

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IIFL Finance Limited (erstwhile IIFL Holdings Limited, hitherto referred to as IIFL) (NSE: IIFL, BSE: 532636) is one of the leading players in the financial services space in India. Together with its subsidiaries – IIFL Home Finance Limited and Samasta Microfinance Limited, it provides a diverse range of loans and mortgages.

These include home loans, gold loans, business loans including loans against property and medium & small enterprise financing, micro finance, developer & construction finance and capital market finance; catering to both retail and corporate clients.

The company has a nationwide presence with a thriving network of 3,119 branches across 500+ cities, and the company has posted its Q4FY22 and year ended financial results today, the details are as below :

(I) Audited Consolidated Financial Results for Quarter Ended (YoY comparison):

The company has reported, a consolidated Total Income of ₹1,917.65 crore in the quarter ended on March 31, 2022 as against ₹1,648.75 crore in the corresponding quarter ended last year on Mar 31, 2021, increased by 16.31%.

The company has posted a consolidated Net Profit of ₹320.93 crore in the quarter ended on March 31, 2022 as against ₹247.63 crore in the corresponding quarter ended in last year on Mar 31, 2021. The PAT surges up by 29.60%.

The status of the EPS of the company stood at ₹8.41 as on March 31, 2022 compared to the previous quarter ended on Mar 31, 2021 which was ₹6.53, up by 28.79%.

₹*Mar 31, 2022 (Q4FY22)Dec 31, 21 (Q3FY22)Mar 31, 21 (Q4)
Total Income1,917.651843.581,648.75
Total Expenses1498.031449.281328.16
PBT /(Loss)419.62394.30320.59
Total Tax /(credit)98.6684.4272.76
PAT /(Loss) [to the owners]320.93309.70247.63
*figures are in Crores

(II) Audited Consolidated Financial Result details for the Year Ended :

The company has reported, a consolidated Total Income of ₹7,006.28 crore in the financial year ended on March 31, 2022 as against ₹5,989.69 crore for the financial year ended on Mar 31, 2021, increased by 16.97%.

The company has posted a consolidated Net Profit of ₹1,187.89 crore in the financial year ended on March 31, 2022 as against ₹760.12 crore for the financial year ended on March 31, 2021. The PAT surges up by 56.28%.

The status of the EPS of the company stood at ₹31.14 as on March 31, 2022 compared to the previous year ended on March 31, 2021 which was ₹20.04, up by 55.39%.

₹*Mar 31, 2022 (FY22)Mar 31, 2021 (FY21)
Total Income7,006.285,989.69
Total Expenses5470.304984.91
PBT /(Loss)1535.981004.78
Total Tax /(credit)347.73243.97
PAT /(Loss)1,187.89760.12
*figures are in Crores

(III) Key Highlights about the Performance :

  • Strong loan asset growth of 15% y-o-y to 51,210 Cr, despite Covid interruptions during the year, was contributed by core products of home loan, gold loan and microfinance loan.
  • Liquidity (free cash, equivalent and undrawn lines) at Rs 9,499 Cr, is adequate to meet near term obligations as well as planned growth in loan book.
  • Digital initiative gained impressive traction with DIY loan disbursement doubling QoQ for MSME loans to Rs 265 Cr and 100% of home loan processing becoming paperless.
  • RoE stood at 20.6% p.a for FY22, despite huge investment in expansion, driven by improved productivity of operating and financial assets.
  • Loan AUM ₹51,210 Cr in Q4FY22 as against ₹44,688 Cr in Q4FY21. The growth of 15% YoY. The AUM in Q3FY22 stood at ₹46,780 Cr, a change of 9% QOQ.

Financial performance review :

  • IIFL Finance had loan assets under management (loan AUM) of Rs 51,210 Cr as at March 31, 2022, with the home loans segment constituting 35%, gold loans 32%, business loans 15% and microfinance loans 12% of the total AUM.
  • The company’s annualized ROE and ROA for Q4FY22 stood at 21.1% and 2.9% respectively. Core pre-provision operating profit stood at Rs. 670.0 Cr. during the quarter. Average borrowing costs for the quarter declined 14 bps q-o-q and 28 bps y-o-y to 8.6%.
  • 94% of the loans are retail in nature and 69% of the retail loans (excluding gold loans which are not classified as PSL loans) are PSL compliant. The assigned loan book, currently at Rs 14,298 Cr, is 28% of AUM. Besides, there are securitized assets of Rs 2,397 Cr. Apart from securitization and assignment, we have colending book of Rs 2,845 Cr. There exists significant opportunity for further assignment, securitization and colending, given our granular and retail book.
  • Asset Quality : GNPA stood at 3.2% and NNPA stood at 1.8%, as at March 31, 2022. This includes the impact of RBI notification dated 12th November, 2021. With implementation of Expected Credit Loss under Ind AS, provision coverage on NPAs stands at 123%.
  • Capital Adequacy Ratio : Total CAR stood at 23.9% including Tier I capital of 16.0% as at March 31, 2022, as against minimum regulatory requirement of 15% and 10% respectively
  • The total presence of branches stood at 3,296 as at the end of quarter, spanning the length and breadth of the country.

Shares of IIFL Finance Ltd was last traded in BSE at ₹369.00 as compared to the previous close of ₹388.70. The total number of shares traded during the day was 314473 in over 6971 trades.

The stock last hit in BSE,

  • Intraday High of ₹ 376.05
  • Intraday low of ₹ 358.45