IIFL FINANCE LIMITED Press Release
For immediate publication
Mumbai, India
July 29, 2015
IIFL Consolidated Q1FY16 Profit after Tax* at Rs. 118.9 Cr, up 22% y-o-y;
Income at Rs. 963.9 Cr, up 22% y-o-y
For the quarter ended June 30, 2015, consolidated income stood at Rs. 963.9 Cr, up
22% year-on-year (y-o-y) and Profit after Tax (PAT) at Rs. 118.9 Cr, up 22% y-o-y
On a y-o-y basis, the quarter ended June 30, 2015, witnessed sustained growth in financial products distribution, mortgages and commercial vehicle financing; but a decline in gold loan book and flattish capital market revenue
Summary consolidated financials
Rs. Crores | Quarter ended Jun 30, 2015 | Quarter ended Jun 30, 2014 | Y-o-Y | Quarter ended Mar 31, 2015 | Q-o-Q |
Income | 963.9 | 791.2 | 22% | 1056.7 | (9)% |
Profit Before Tax | 187.7 | 144.5 | 30% | 226.3 | (17)% |
Profit After Tax* | 118.9 | 97.4 | 22% | 142.2 | (16)% |
Segmental Breakup - Revenue
Rs. Crores | Quarter ended Jun 30, 2015 | Quarter ended Jun 30, 2014 | Y-o-Y | Quarter ended Mar 31, 2015 | Q-o-Q |
Fund Based Activities | 729.1 | 583.1 | 25% | 711.0 | 3% |
Financial Products Distribution | 126.0 | 99.2 | 27% | 208.7 | (40)% |
Capital Market Activities | 106.0 | 107.3 | (1)% | 129.7 | (17)% |
Others | 2.8 | 1.6 | 75% | 7.3 | (62)% |
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Total | 963.9 | 791.2 | 22% | 1,056.7 | (9)% |
#Formerly India Infoline Limited
*Pre-minority interest
Segmental Breakup - Profit before Tax (PBT)
Rs. Crores | Quarter ended Jun 30, 2015 | Quarter ended Jun 30, 2014 | Y-o-Y | Quarter ended Mar 31, 2015 | Q-o-Q |
Fund Based Activities | 127.6 | 99.5 | 28% | 125.2 | 2% |
Financial Products Distribution | 22.2 | 9.6 | 131% | 49.8 | (55)% |
Capital Market Activities | 37.7 | 35.0 | 7% | 48.3 | (22)% |
Others | 0.2 | 0.4 | (50)% | 3.0 | (93)% |
Total | 187.7 | 144.5 | 30% | 226.3 | (17)% |
Mr Nirmal Jain, Chairman, IIFL, commented on the financial results, "Our Consumer Finance and Wealth Management businesses are treading in line with the long term strategic direction. Capital market activities do witness volatility across quarters but underlying bias is positive. On the whole, outlook for business is optimistic."
Fund based activities
In Q1FY16, our income from this segment was Rs. 729.1 Cr, up 25% y-o-y and up 3% q-o-q, while, PBT was Rs. 127.6 Cr, up 28% y-o-y and up 2% q-o-q.
Our loan book is predominantly retail and entirely secured with adequate collaterals. The loan portfolio stood at Rs. 14,679 Cr as on June 30, 2015 which registered a growth of 18%
y-o-y. The portfolio comprises home loan, loan secured against property, gold, securities, commercial vehicle finance, medical equipment finance and SME loans. The overall loan book has remained at similar level as that of previous quarter as contraction in gold loan book is made up by expansion of mortgages and commercial vehicle financing.
Asset quality: We continue to maintain high quality of assets. This is evident in low levels of NPAs. Our Gross NPAs and Net NPAs stood at 1.62% and 0.81% respectively as on
June 30, 2015 (as per 150 day NPA recognition norm) versus 1.27% and 0.54% in the
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previous quarter (as per 180 day NPA recognition norm). The increase in NPA level is primarily due to change in the NPA recognition norms. Against gross NPA of Rs. 238.2 Cr we have non standard asset provision of Rs. 119.5 Cr. Besides this, we have a provision of Rs. 62.7 Cr, for standard assets, as per statutory requirement. Total provision coverage
(including standard asset provision) as a % of Gross NPA was 76.5%.
Stable margins: NIM and Spread was 6.9% and 6.7% respectively for the quarter
Capital adequacy: 17.7% including Tier I capital of 10.9%
Financial products distribution
During the quarter, our income from this segment was Rs. 126.0 Cr, up 27% y-o-y and down 40% q-o-q, while PBT was Rs. 22.2 Cr, up 131% y-o-y and down 55% q-o-q. Wealth management demonstrated steady growth with total assets under advice, distribution and
management were Rs. 75,521 Cr, up 12% y-o-y. The business has seasonal variation and
revenue has historically been lower in the first quarter of a financial year.
Capital market income was Rs. 106.0 Cr in Q1FY16, marginally down 1% y-o-y and 17% down q-o-q. The average daily equities turnover was at Rs. 7,707 Cr in Q1FY16 up 27% y- o-y. The income has remained flattish despite improvement in market turnover.
Fairfax Open Offer
During the quarter ended June 30, 2015, reputed global investor, Fairfax Group, Canada which already owns 8.97% stake in the Company has made a public announcement on July 14, 2015 of open offer for acquiring additional 26% stake in the Company under SEBI takeover regulations. Fairfax is one of globally renowned investor and their confidence in the company's business model and management reinforces its credibility with all stakeholders. The promoters do not propose to offer any shares in the open offer and their
stake will therefore not be diluted because of this offer.
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Best Domestic Private Bank in India - Overall by
Asiamoney Private Banking Poll, 2015
Best Domestic Private Bank in India >$25 million by Asiamoney Private Banking Poll, 2015
IIFL has supported building of a swimming pool at The Institution of Higher Learning - IIM Ahmedabad. The pool was inaugurated by group Chairman, Mr. Nirmal Jain, also an alumnus of IIM Ahmedabad on June 18, 2015.
IIFL supported building of a Hostel for Nursing College for Under Privileged Girls in Goa. The building is now under construction and inauguration would be done on Nov 1.
Building of Check Dams: Two Check Dams were built in May under IIFL Village Adoption and Holistic Development Project. These dams were built in Umbervaingan and Sadakpada in Jawhar. These dams would support the rural economy by additionally generating agri-based income.
IIFL is supporting re-construction of schools ravaged due to floods in J&K. IIFL is also supporting building of pediatric ward in hospitals in Srinagar.
In its quest to preserve heritage and culture, IIFL supported Bhagvata Mela & Ancient Temple Theatre Festival known as the Melattur Mela.
Mukteshwar Marathon is held every year to support rural schools in the Himalayas.
Nine employees from Delhi Branch participated in the Marathon and got the
Institutional Participation Award. Marathon was held on May 2, 2015.
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In accordance with regulatory requirements, during the quarter ended June 30, 2015, the Company divested 75% shareholding in its erstwhile wholly owned subsidiary i.e., India Infoline Insurance Brokers Limited and accordingly the same is reflected in the consolidated financial results for the quarter ended June 30, 2015.
About IIFL
IIFL Holdings Ltd (NSE: IIFL, BSE: IIFL) is one of the leading players in the Indian financial services space. IIFL is engaged in the business of financing, asset and wealth management, capital markets and financial products distribution, investment banking, institutional equities and realty services through its various subsidiaries. IIFL Holdings
with a consolidated net-worth of Rs. 2,647 crores and has a global presence with offices in
London, New York, Houston, Geneva, Hong Kong, Dubai, Singapore and Mauritius. IIFL has presence in close to 2,500 business locations in India spread over 850+ towns and cities. We have a strong customer base of over 2.9 million customers and 13,000+ employees as of financial year ended June 30, 2015.
'Best Private Bank for Research and Asset Allocation' by Euromoney Private Banking Survey, 2015. IIFL Group bagged 'Best HR Strategy in Line With Business' and 'Best Use of Technology for Recruiting' at Global Talent Acquisition & 9TH RASBIC Awards 2014-
2015 organized by World HRD Congress. IIFL received India's Most Promising Brand
2013-14 award at WCRC Global India Excellence Summit in London. IIFL Wealth was awarded 'Best Wealth Management House - India' at The Asset Triple A Investment Awards, for four consecutive years from 2011 to 2014. IIFL Wealth has also won the Best private bank for innovation in technology - Asia 2014 organized by Euromoney.
IIFL/ India Infoline refer to IIFL Holdings Ltd and its group companies.
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This document may contain certain forward looking statements based on management expectations. Actual results may vary significantly from these forward looking statements. This document does not constitute an offer to buy or sell IIFL products, services or securities. The press release, results and presentation for analysts/press for the quarter ended June 30,
2015, is available under the 'Investor Relations' section on our website
www.indiainfoline.com.
For further details please contact: IIFL Holdings Ltd
Sourav Mishra
Mobile: 7303092527
e-mail: sourav.mishra@indiainfoline.com
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