IIFL Finance Q1 Results Review - Accelerated Rundown In Gold Loan; Other Segments Also Slowed: Motilal Oswal

Motilal Oswal Report

IIFL Finance Ltd.'s net interest income grew 10% YoY but declined ~13% QoQ to ~Rs 14.4 billion (in line) in Q1 FY25. The loss due to the unwinding of prior assignments was ~Rs 1.6 billion. Other income loss stood at Rs 43 million (previous year: +Rs 1.3 billion).

Opex grew 18% YoY to Rs 7.5 billion (in line), with the cost-to-income ratio of 52% (previous year: 44%). Pre provision operating profit declined ~15% YoY to Rs 6.9 billion (15% miss).

PAT (post-NCI) declined 32% YoY/23% QoQ to ~Rs 2.9 billion (34% miss). Return on asset/return on equity stood at 2.3%/10.3%, with IIFL’s (standalone) CRAR at ~28% (T1: ~22%).

During the quarter, IIFL raised ~Rs 29 billion through term loans, bonds, and refinance. Additionally, ~Rs 18 billion was raised through direct assignment.

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