Q1 2025 IIFL Finance Ltd Earnings Call Transcript
Key Points
- IIFL Finance Ltd (BOM:532636) has taken full compliance measures in response to the RBI order, ensuring adherence to all directives and guidelines.
- The company has strengthened its management team by hiring new CXO-level executives and enhancing resources at various levels.
- Despite significant challenges, IIFL Finance Ltd (BOM:532636) has maintained robust asset quality, as evidenced by the smooth liquidation of over half of its gold loan assets.
- The company has diversified its focus towards MSME business loans and digital finance, which have shown steady growth.
- IIFL Finance Ltd (BOM:532636) has maintained a positive ALM, with inflows exceeding outflows across all buckets, and has raised significant funds to support growth in other businesses.
- The RBI embargo on gold loans has significantly impacted the company's financial performance, with gold loan AUM falling by more than half.
- Profit after tax before non-controlling interest decreased by 28% YoY and 21% QoQ, reflecting the adverse effects of the RBI order.
- The company's microfinance business has faced elevated provisions and losses due to credit line squeezes and election-related asset quality issues.
- Home loan business experienced a slack quarter, with slower growth rates compared to previous periods.
- The company's overall AUM degrew by around 12% QoQ, indicating challenges in maintaining growth across its core products.
Ladies and gentlemen, good day, and welcome to IIFL Finance Q1 FY25 earnings conference call. (Operator Instructions) Please note that this conference is being recorded.
I now hand the conference over to Mr. Kapish Jain, Chief Financial Officer, IIFL Finance.
Thank you and over to you, sir.
Thank you very much. A very good afternoon, ladies and gentlemen. Thank you very much for taking your time out to our quarter one fiscal '25 earnings call. I have with me in this call, Mr. Nirmal Jain, Founder and MD of IIFL Finance. And we also have Mr. Monu Ratra, ceo of IIFL Housing Finance. We have Mr. Venkatesh, who is the CEO for IIFL Samasta Finance, and the rest of the management team as well.
I now hand over the call to Nirmal to give his opening remarks. And Nirmal over to you.
Thank you, Kapish. Good afternoon to all the participants and good morning to people who
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