Jul 24, 2013, 08.34 AM | Source: Moneycontrol.com

L&T Finance Holding Q1 net rises 20%, gross NPAs up 28%

L&T Finance Holdings on Tuesday reported rose 20 percent year-on-year rise in its first quarter (April-June) consolidated net profit at Rs 145 crore driven by retail credit expansions and spike in other income.

Moneycontrol Bureau

L&T Finance Holdings  on Tuesday reported rose 20 percent year-on-year rise in its first quarter (April-June) consolidated net profit at Rs 145 crore driven by retail credit expansions and spike in other income.

Other income soared nearly four-fold to Rs 13 crore as against Rs 4 crore a year back. Retail and corporate finance loans expanded 24 percent y-o-y to Rs 18,650 crore while disbursements grew 26 percent y-o-y to Rs 4,305 crore.

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Infrastructure Finance loan disbursements surged 132 percent y-o-y to Rs 1,348 crore while credit expansion ramped up more than 36 percent to Rs 15,167 crore.

However, the escalation in loans came at the cost of credit quality. The gross non-performing assets (NPAs) increased by 28 percent y-o-y to Rs 846 crore in absolute terms. 

"The uncertain macro environment resulted in an increase in gross NPA, contributed mainly by the corporate, infrastructure and SME segments. The GNPA  includes Rs 94.2 crore  (net of write off) in FamilyCredit Limited (FCL)," the non-banking finance company said in a release.

The consolidated net interest income (NII) or the difference between interest earned and paid out, rose by 29 percent to Rs 469.4 crore in June quarter from Rs 364.2 crore reported in a year ago period.

During the quarter, the NBFC got Rs 36 crore during the quarter on account of deferred tax.

"Deferred Tax gain (net) of Rs. 35.57 crore has been recognized in accordance with AS 22 (Accounting for Taxes on Income). It is recognised on timing differences between taxable income  and accounting income that originate in one period and is capable of reversal in one or more subsequent periods. It is in the normal course of business, and we also had a similar gain in Q4FY13," a company spokesperson clarified to moneycontrol.com.

Promoter Larsen & Toubro, which holds 82.54 percent stake, will sell one percent stake in the company for complying minimum public shareholding norms. L&T Finance Holdings had applied to the Reserve Bank of India for a new banking licence. 
L&T Finance Holdings shares were little changed at Rs 74.65 at the end of Tuesday's trading on NSE.



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