IIFL Finance Limited has informed the Exchanges regarding Outcome of the Board Meeting on May 8, 2025
Awaiting price reaction for this filing.
IIFL Finance reported a sharp fall in consolidated net profit for FY25 to Rs. 578.16 crore, down about 71% from Rs. 1,974.22 crore in FY24, primarily due to a one-time exceptional provision of Rs. 586.50 crore on AIF-related security receipts. Total income dipped marginally to Rs. 10,237 crore from Rs. 10,490 crore. Q4 FY25 PAT was Rs. 251.36 crore versus Rs. 430.63 crore in Q4 FY24. Operating margin for the year stood at 27.34% with GNPA at 2.23% and NNPA at 1.05%. Net cash used in operating activities was Rs. 4,781 crore, reflecting heavy loan disbursements. The Board also approved an enabling resolution to raise up to Rs. 10,000 crore via NCDs in FY26, appointed a new secretarial auditor for 5 years, and noted that Chairperson Arun Kumar Purwar will not seek re-appointment.
Shareholders should note the steep profit decline driven by the exceptional AIF provision, weak operating cash flows, and an Emphasis of Matter from auditors on excess MD remuneration (Rs. 9.88 crore) due to inadequate profits — though the audit opinion remains unmodified. The pending Income Tax search outcome and large fundraising plan introduce some near-term uncertainty for the stock.