A customer counts Indian rupee notes at a store in the Dadar wholesale flower market in Mumbai, India. (Photographer: Dhiraj Singh/Bloomberg)

IIFL Holdings Expects Growth To Return In The Fourth Quarter

IIFL Holdings Ltd. expects growth to return in the ongoing quarter after it reduced its exposure to liabilities in the December-ended quarter, according to its Chief Financial Officer Prabodh Agrawal.

IIFL deliberately slowed down in the third quarter as the company’s entire focus was on the liability side, Agrawal told BloombergQuint, adding that the financial services company was looking to reduce its share in short-term borrowings and commercial paper. “The share in commercial paper declined from 24 percent of our total borrowings in end-September to about 12 percent in end-December.”

All businesses were going through “challenging times” in the third quarter as the company was transitioning customers to a new platform with a competitive fee structure, Agarwal said. “This had put one-time pressure on the yields.”

He, however, expects things to change in the ongoing quarter. "Going forward in the fourth quarter, again the growth will come back,” he said, adding that IIFL’s focus in the quarter would be more on home and gold loans, and loans for micro-finance companies and small and medium-sized enterprises.

Q3 Results Highlights (YoY)

  • Revenue down 2 percent to Rs 989.6 crore.
  • Net Profit dropped 13 percent to Rs 165.3 crore
  • Loan assets under management rose 33 percent to Rs 36,400 crore
  • Wealth assets up 25 percent at Rs 1.61 lakh crore

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