IKF Finance Q3 FY25 Results Analysis

13 March 2025

• Financial Performance (Q3 FY25 vs Q3 FY24): The company delivered a strong financial performance in Q3 FY25, with total revenue increasing by 52.6% year-on-year (YoY) to ₹169.6 Cr from ₹111.1 Cr in Q3 FY24. This growth reflects strong business momentum driven by higher interest income and improved fee-based revenue. Profit Before Tax (PBT) surged 50.7% YoY, reaching ₹37.6 Cr compared to ₹24.9 Cr in Q3 FY24, highlighting better cost management and operational efficiency. Similarly, Profit After Tax (PAT) grew by 50.8% to ₹28.1 Cr from ₹18.6 Cr in the same period last year, reinforcing the company’s consistent profitability. Earnings Per Share (EPS) rose to ₹4.00, marking a 44.4% YoY increase from ₹2.77 in Q3 FY24, reflecting strong shareholder value creation.
• Operational Metrics (Q3 FY25 vs Q3 FY24): The company showcased strong operational efficiency, with net worth increasing 13.1% YoY to ₹962.1 Cr, up from ₹850.9 Cr in Q3 FY24, driven by higher earnings retention and improved capital efficiency. Net profit margin remained steady at 16.6% in Q3 FY25, slightly lower than 16.8% in Q3 FY24, indicating effective cost management amid business expansion. Meanwhile, capital adequacy declined to 23.13% from 30.46% in Q3 FY24, reflecting a shift in the company’s capital structure while maintaining a solid financial position.
• Strategic Developments: The company continues to focus on strengthening its financial position and operational efficiencies. With provision coverage ratio improving to 24.28%, risk management remains a key focus area. The company also enhanced its portfolio quality, with Gross Stage-3 assets reducing to 2.11% from 2.32% YoY, reflecting improved asset quality. With sustained revenue growth and strong risk management, monitoring upcoming results will provide better insights into future expansion and profitability