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Highlights
- The presented financial data is Consolidated to provide a comprehensive overview of the company performance.
- Sales over the Year and quarter: The company experienced a substantial growth of 13.36 % in the past year, decrease in net sales/revenue by -8.42 %.
- Income over the Year and quarter: There has been decline in other income over the past year which is -81.63 %, Marginal decrease of -82.52% in other income during this quarter.
- Profit over the Year and quarter: Challenges in sustaining profitability for IIFL Finance Limited. Profit dropped by -28.49 % Year to Year, IIFL Finance Limited’s profitability dropped by -21.47 % Quarter to Quarter.
- EPS over the Year and quarter: EPS declined by -35.24 % Year to Year. EPS decreased by -26.05 % in previous quarter. Analysis needed for shareholder value.
| Metrics | Previous Year | Previous Quarter | Current Quarter | Quarter to Quarter Difference | Year to Year Difference |
|---|---|---|---|---|---|
| Sales | Rs. 2305.473 Cr | Rs. 2853.572 Cr | Rs. 2613.403 Cr | -8.42 % | + 13.36 % |
| Expenses | Rs. 822.28 Cr | Rs. 1243.52 Cr | Rs. 1109.25 Cr | -10.8 % | + 34.9 % |
| Operating Profit | Rs. 1483.19 Cr | Rs. 1610.05 Cr | Rs. 1504.15 Cr | -6.58 % | + 1.41 % |
| OPM % | 64.33 % | 56.42 % | 57.56 % | + 1.14 % | -6.77 % |
| Other Income | Rs. 65.231 Cr | Rs. 68.545 Cr | Rs. 11.985 Cr | -82.52 % | -81.63 % |
| Interest | Rs. 887.84 Cr | Rs. 1074.41 Cr | Rs. 1033.96 Cr | -3.76 % | + 16.46 % |
| Depreciation | Rs. 42.22 Cr | Rs. 50.5 Cr | Rs. 46.02 Cr | -8.87 % | + 9 % |
| Profit before tax | Rs. 618.36 Cr | Rs. 553.69 Cr | Rs. 436.16 Cr | -21.23 % | -29.47 % |
| Tax % | 23.53 % | 22.23 % | 22.47 % | + 0.24 % | -1.06 % |
| Net Profit | Rs. 472.86 Cr | Rs. 430.63 Cr | Rs. 338.16 Cr | -21.47 % | -28.49 % |
| EPS in Rs | Rs. 11.11 | Rs. 9.68 | Rs. 6.96 | -28.1 % | -37.35 % |
Today, we’re looking at IIFL Finance Limited’s financial performance for the Q1(Jun 2024).Starting with the top line, the company reported a robust year-over-year sales growth of 13.36 %. However, it did see a marginal slip of -8.42 % from the previous quarter. Expenses decreased slightly by -10.8 % quarter-on-quarter, aligning with the annual rise of 34.9 %. Operating profit, while up 1.41 % compared to last year, faced a quarter-on-quarter dip of -6.58 %, signaling a short-term contraction in margins.
The Operating Profit Margin (OPM) % contradicts this narrative, showing weakness on an annual basis with a decrease of -6.77 %, but an expansion of 1.14 % sequentially. Other income fell by -82.52 % compared to the last quarter, despite an annual decline of -81.63 %. Interest expenses dropped significantly by -3.76 % from the previous quarter, yet the year-over-year increase remains at a moderate 16.46 %. Depreciation costs fell by -8.87 % quarter-on-quarter, whereas on an annual scale, they saw an increase of 9 %. Profit before tax declined annually by -29.47 % but saw a reduction from the preceding quarter by -21.23 %.
Tax expenses as a percentage of profits decreased slightly by -1.06 % compared to last year, with a more notable quarter-on-quarter increase of 0.24 %. Net profit fell by -28.49 % year-on-year but witnessed a -21.47 % contraction from the last quarter. And finally, Earnings Per Share (EPS) displayed an annual downturn of -37.35 % but a quarterly fall of -28.1 %. In summary, IIFL Finance Limited’s annual performance indicates steady growth, although the quarter-on-quarter figures suggest some areas may require strategic attention.
| Metrics | Previous Year | Previous Quarter | Current Quarter | Quarter to Quarter Difference | Year to Year Difference |
|---|---|---|---|---|---|
| Sales | Rs. 2305.473 Cr | Rs. 2853.572 Cr | Rs. 2613.403 Cr | -8.42 % | + 13.36 % |
| Expenses | Rs. 822.28 Cr | Rs. 1243.52 Cr | Rs. 1109.25 Cr | -10.8 % | + 34.9 % |
| Operating Profit | Rs. 1483.19 Cr | Rs. 1610.05 Cr | Rs. 1504.15 Cr | -6.58 % | + 1.41 % |
| Net Profit | Rs. 472.86 Cr | Rs. 430.63 Cr | Rs. 338.16 Cr | -21.47 % | -28.49 % |
| EPS in Rs | Rs. 11.11 | Rs. 9.68 | Rs. 6.96 | -28.1 % | -37.35 % |
In reviewing IIFL Finance Limited’s 2024(Q1) financial snapshot, key trends emerge, shedding light on the company’s performance.Sales saw a robust 13.36 % year-on-year growth, although there was a slight dip of -8.42 % from the previous quarter. Expenses rose by 34.9 % compared to the previous year, with a decrease of -10.8 % quarter-on-quarter. Operating Profit surged by 1.41 % annually, and saw a -6.58 % decrease from the last quarter.
Net Profit showed yearly decrease of -28.49 %, and experienced a -21.47 % decrease from the previous quarter. Earnings Per Share (EPS) fell by -37.35 % annually, however dipped by -28.1 % compared to the last quarter. In essence, while IIFL Finance Limited faces strong annual decline indicators, short-term fluctuations suggest the need for agile strategies to navigate market dynamics effectively. That’s all for now in the financial sector.
24
3-Year Profit
9
5-Year Profit
19
10-Year Profit
443
Current Price
18,791
Market Cap
For the company identified by BSE code 532636, the financial performance highlights a solid five-year profit of 9 percents. This figure escalates to 24 percents over the three-year period, pointing to positive momentum in its earnings. Despite these encouraging trends, the trailing twelve-month (TTM) figures uncover an alarming profit loss of -46 percents. This decline, coupled with the fact that the company recorded zero sales across all periods examined, raises red flags about the sustainability of its business model and its ability to generate consistent revenue. Furthermore, the stock price fluctuations during this period further reflect the company's uncertain position. The stock started at 26 percents but has since plummeted to -27 percents recently, painting a picture of rapid decline. Over a longer ten-year horizon, the stock price stood at 19 percents, further underscoring the long-term challenges the company faces in maintaining investor confidence and market value.
With a market capitalization of ₹18,791 crore, the company’s stock is currently trading at ₹443, having fluctuated within a range of ₹654 / 304 over the years. The stock's P/E ratio of 12.4 reflects a relatively high valuation compared to its earnings, which could suggest strong future growth expectations or heightened investor demand. The company’s book value is ₹285, representing the total value of its assets on a per-share basis, while the dividend yield of 0.91% offers a modest return to shareholders. ROCE, at 11.8%, highlights the company's efficient use of capital in generating profits, while ROE at 17.8% underscores its ability to generate returns for shareholders. The debt-to-equity ratio of 3.31 is very low, indicating conservative financial management and minimal reliance on borrowed funds. Despite this, the company shows a negative net cash flow of ₹-1,162 crore, which could point to cash management challenges or recent heavy investments. The Piotroski score of 3.00 suggests moderate financial strength, while the Graham Number, pegged at ₹388, offers a rough estimate of the stock's intrinsic value. The Price-to-Book (P/B) ratio of 1.56 signals that the stock is trading at a premium, which might reflect investor confidence in the company's growth trajectory.
