IIFL Finance's Q2 financial results show significant decline, 'Sell' call from MarketsMOJO

IIFL Finance, a midcap finance company, recently declared its financial results for the quarter ending September 2024. According to the data released on October 23, 2024, the company's financial performance has been negative, with a score of -13, a significant drop from -6 in the last three months.

One of the major factors contributing to this decline is the Profit Before Tax (PBT) less Other Income, which has fallen by 29.40% year on year to Rs 442.14 crore. The company's operating cash flow has also been consistently decreasing over the last three years, with the latest figure at Rs -5,848.00 crore. This indicates a decline in the company's cash revenues from business operations.

Moreover, the Dividend Payout Ratio (DPR) has also been on a downward trend, with the latest figure at 8.65%. This means that the company is distributing a lower proportion of its profits as dividends to its shareholders. Additionally, the Operating Profit (PBDIT) for the quarter has been the lowest in the last five quarters at Rs 1,467.07 crore, indicating a negative trend in the near term.

The Profit After Tax (PAT) for the quarter has also seen a decline of 9.6% year on year, with the latest figure at Rs 428.83 crore. This reflects a negative trend in the company's near term profitability. The Earnings per Share (EPS) for the quarter has also been the lowest in the last five quarters at Rs -3.72, indicating a decline in the company's profitability and lower earnings for shareholders.

Based on these financial results, MarketsMOJO has given a 'Sell' call for IIFL Finance's stock. The company's financial performance for the quarter ending September 2024 has been disappointing, with negative trends in key financial indicators. Investors should carefully consider these factors before making any investment decisions.