IIFL Holdings on Wednesday achieved a 23 per cent year-on-year growth in consolidated profit after tax (PAT pre-minority) at Rs 1,252.90 crore for the financial year 2018-19, backed by a strong growth across finance and wealth business. The financial services company had posted consolidated PAT of Rs 1,017.8 crore during the financial year 2017-18.
Consolidated income was up 16 per cent at Rs 4,305 crore as compared to Rs 3,696.70 crore in the previous fiscal, said IIFL Holdings in a filing to the Bombay Stock Exchange.
During January-March quarter, the Mumbai-headquartered firm reported 30 per cent jump in the consolidated profit at Rs 373 crore as against Rs 286.10 crore in the same quarter last year.
The consolidated income during March quarter was up 32 per cent to Rs 1,275.70 crore from Rs 964.60 crore in Q4FY18.
Loan assets under management in the NBFC (non-banking financial company) business grew 29 per cent to Rs 34,904 crore, helped by small-ticket home loans, Gold loans, SME loans and microfinance loans. Wealth assets rose 28 per cent y-o-y to Rs 1.69 lakh crore in March quarter.
Speaking on the financial results, Nirmal Jain, Chairman, IIFL Holdings said, in FY19, they have strengthened their position in all their core businesses. This year, with reorganisation of the group, three businesses namely Finance, Wealth and Securities will get listed independently. The finance business has grown strongly with improved margins despite sector headwinds, leveraging strong retail franchise and technology edge.
Wealth business has been the front runner of the industry with its decisive move towards advisory model. Securities business prospects are linked to capital market activities and have strong fundamentals, he added.
On the asset front, the gross non-performing assets (NPAs) ratio – bad loans as a percentage of gross advances – stood at 1.9 per cent, while net NPA was at 0.6 per cent as on March 31, 2109. Provision coverage on NPAs stands at 139 per cent including standard asset coverage.
The company has completed the reorganisation of IIFL Group into three listed entities -IIFL Finance, IIFL Wealth and IIFL Securities, which has become effective from May 13, 2019. “IIFL Wealth and IIFL Securities have been demerged and the record date will be announced soon. IIFL Holdings would be renamed to IIFL Finance, it added.
Shares of IIFL Holdings were trading at Rs 431.75 apiece, down 0.78 per cent, against previous closing level of Rs 435.15 on the Bombay Stock Exchange.
