IIFL sees 33% jump in profits to Rs158 crore in Q1
Mumbai: Financial services firm IIFL Holdings on Friday reported a 33% rise in net profit to Rs.158.1 crore for the quarter ended 30 June, on account of robust growth in NBFC and wealth businesses.
The company’s net profit had stood at Rs.118.9 crore during April-June period of previous fiscal. IIFL’s income rose 13.5% to Rs.1,030.5 crore on year-on-year basis.
“Our NBFC and wealth businesses have delivered robust growth. We continue to re-balance our loan portfolio with focus on retail home loans and SME financing,” IIFL Holdings chairman Nirmal Jain said in a statement.
“Wealth business franchise has further strengthened with steadfast focus on customer centric solutions. Capital Market volumes were a bit subdued in the first quarter but outlook for rest of year looks promising,” he added.
NBFC operations reported a 22% surge in net profit to Rs.89 crore during the first quarter of the current fiscal over the same period year-ago. With presence in two major cities, IIFL wealth business rose by 41% to Rs.52.7 crore, for the period under review. The company said CDC Group, the UK’s government-owned Development Finance Institution, would be investing around Rs.1,000 crore in India Infoline Finance Ltd (IIFL Finance).
“CDC’s investment will help IIFL Group in expanding the financing business and address the capital needs of under-served segments through diversified offerings,” the company said.
The investment is by way of Compulsorily Convertible Preference Shares (CCPS), which on conversion will result in 15.45% equity stake for CDC on a fully diluted basis.
IIFL Holdings is engaged in the business of financing, asset and wealth management, capital markets, financial products distribution, investment banking, institutional equities, and project financing and advisory services through its various subsidiaries.