IIFL Holdings Limited posted results for the financial year ended March 31, 2016. The consolidated income stood at Rs. 3,995.4 crore, up 12% year-on-year (y-o-y) with Profit after Tax (PAT) at Rs.511.2 Cr, up 14% yoy.
Nirmal Jain, Chairman, IIFL Holdings Ltd., commented on the financial results, “We achieved a healthy 14% y-o-y growth in full year FY16 net profits, with ROE of 18.7% and ROA of 2.4%. Our NBFC and Wealth businesses delivered robust growth, while Capital Market activities declined due to adverse market conditions. In our NBFC, we continue to re-balance our portfolio towards superior asset quality by growing retail mortgages, CV and SME loans. This is expected to enhance our risk adjusted returns over the next one-two years.”
Q4FY16 PAT was at Rs.95.0 cr, up 18% yoy, while full year FY16 PAT was Rs.338.7 Cr, up 12% yoy. NBFC’s ROE for FY16 stood at 16.9% and ROA was 1.8%.
Loan book, predominantly retail, showed a steady increase of 21% y-o-y to Rs.17,770 Crore with total Assets under Management (AuM) at Rs.19,514 Cr, up 21% y-o-y for the year ended March 31, 2016. This growth was driven by retail mortgage, commercial vehicle (CV) and medical equipment loans. The share of retail mortgages in the overall loan book has been rising steadily. Retail mortgage loans, at Rs.7,241 Cr, constitute 41% of the loan book and registered 89% y-o-y growth. Commercial vehicle loans increased 93% y-o-y to Rs.1,694 Crore. On the other hand, there was a decline in loan book of large mortgages and gold and capital market related loans grew in single digits. This is part of a conscious strategy to de-risk our loan book and make it more retail focused.
Asset quality: Gross NPAs and Net NPA ratios have fallen to 1.44% and 0.54% respectively as on March 31, 2016 versus 1.56% and 0.61% in the previous quarter. Against gross NPA of Rs.255.4 Cr, specific provisions stand at Rs.159.1 crore. Besides this, provision of Rs.70.1 Crore has been made for standard assets as per statutory requirements. Total provision coverage (including standard asset provision) stands at 89.7% of Gross NPAs. NIM for the quarter stood at 6.2%.
Capital adequacy: Total CAR of 17.7% including Tier I capital of 11.7%.
Q4FY16 PAT was Rs.46.2 Cr, up 28% y-o-y, while full year FY16 PAT was Rs.169.4 Cr, up 52% y-o-y. Total assets under advice, distribution and management grew 12% y-o-y Rs.79,413 crore.
IIFL Wealth is the fastest growing Wealth Management Company in India with presence across 22 major countries and Indian cities.
Capital market activities
Capital market income was Rs.134.2 Cr in Q4FY16, up 3% y-o-y. The average daily equity market turnover was at Rs.7,152 cr, down by 10% y-o-y versus 6% y-o-y fall in the exchange turnover.
IIFL Markets continues to be the highest rated mobile trading app on Android and IOS. Since February 2015, the app has seen over 500,000 downloads and over 13,500 users on Google Play Store have accorded it a rating of 4.4 out of 5, best amongst the peer group.
During the quarter, IIFL’s investment banking division closed 3 transactions including Rs. 649.6 Cr IPO of HealthCare Global Enterprises, Rs.410.2 Cr IPO of Precision Camshafts and Rs. 291.8 Cr pre-IPO placement of Ujjivan Financial Services. During FY16, the team has completed 10 transactions and expanded the product range outside conventional ECM products.
Strategic investment by General Atlantic
The acquisition of equity stake by General Atlantic (GA), a leading global growth equity firm, in IIFL Wealth Management Ltd has been fully completed. GA has invested the following amounts:
Rs.904 Cr through a combination of fresh equity shares and exercise of warrants
Rs.159 Cr worth equity shares from IIFL Wealth employees in a secondary transaction
Current shareholding pattern : IIFL Holdings - 60.8%, GA - 24.4%, Employees -14.8%
Post conversion of all ESOPs, on fully diluted basis, the shareholding pattern will be as follows: IIFL Holdings 53.9%, GA 21.6% and IIFL Wealth employees 24.5%.
IIFL Wealth Finance Ltd
IIFL Wealth Finance, a wholly-owned NBFC subsidiary of IIFL Wealth, commenced operations in February 2016 with equity share capital of Rs.900 Cr. IIFL Wealth Finance will focus on capital market related lending to its HNI clientele.
Awards and Accolades received during the quarter
‘India's Most Trusted Financial Service Brand (Non-Bank)’ by the Brand Trust Report India Study 2016. This is an intensive survey covering 20,000 brands across the country.
Winner at Euromoney Private Banking and Wealth Management Survey, 2016 in the following categories:
The Best Private Banking Services Overall, India
The Best Family Office Services, India
The Best Research and Asset Allocation Advice, India
Winner at World Quality Congress: Stars of the Industry in the category of ‘Best Customer Service in Financial sector’.
‘Most accurate predictor of Sensex closing levels in 2015’ by Bloomberg Poll.
Dr. Sarika Kulkarni, CEO of IIFL Foundation, was presented with the prestigious ‘100 Most Impactful CSR Leaders Award (Global Listing)’at World CSR Day.
Corporate Social Responsibility – Activities undertaken during Q4FY16
Sustainable livelihood – IIFL’s activities in Jawhar, the cluster of three adopted villages in Palghar district of Maharashtra, are as follows:
Installed 100 library kits in 100 class rooms in 22 schools in the adopted villages of Jawhar. Over 5000 children will directly benefit from the initiative.
Started on a mission of making the adopted villages in Jawhar open defecation free. About 100 toilets would be installed in 32 hamlets over the next two months. These toilets had to be specially customised as there are no sewage lines and water is limited.
Check dams built in adopted village of Jawhar, Maharashtra have resulted in year round availability of water supporting agri-based activities, additional income generation opportunities through horticulture and reduced migration.
IIFL Foundation supported an eye camp at Barsana where over 10,000 people checked their eyes and over 2000 free eye surgeries were performed.
Economic empowerment of women:
Donated Braille machines to all-girls blind school.