Apr 26, 2012, 08.34 PM IST | Source: CNBC-TV18

Had good year despite economic challenges: L&T Fin

Despite challenging economic environment, L&T Finance Holdings witnessed good business, chairman and managing director M Deosthalee said.

M Deosthalee , CMD, L&T Finance Holdings

Despite challenging economic environment, L&T Finance Holdings witnessed good business, chairman and managing director M Deosthalee said. 

The company posted 44.4% jump in consolidated net profit at Rs 140.67 crore for the quarter ended March 31, 2012, on strong growth in loans. It had a net profit of Rs 97.35 crore in the same quarter in the previous fiscal.

Healthy growth in profit was supported by strong improvement in overall loan book, improvement in Net Interest Margins and higher operating efficiencies, it said.

“Last year 11-12 was a difficult year. Rising interest rate environment, liquidity problems were there. Slowdown in industrial capital expenditure, less infrastructure spend was seen. Many companies witnessed difficult financial times. But, our numbers are very encouraging, 25,000 crore of asset book was witnessed,” he elaborated.

Advances grew by 39.80% to Rs 25,016 crore as on March 31, 2012 as compared to Rs 17,895 crore at the end of 2010-11. For the entire fiscal ended March, 2012, the company's net profit grew by 16.2% at Rs 454.80 crore, compared to Rs 391.17 crore in the corresponding fiscal.

This growth is after factoring the impact of lower margins, losses in microfinance and higher provisions against infrastructure loans, it said. In states other than Andhra Pradesh, the company continued with its cautious approach. The repayment pattern continued to be healthy. The aggregate loan portfolio outside Andhra Pradesh amounted to Rs 132.21 crore, it said.

Meanwhile, N Sivaraman, whole time director and executive vice president of the company added that asset growth of the company continues to be robust.

In Andhra Pradesh, the financial firm did not disburse any fresh loans towards microfinance while marginal collections continued, it said.

It has made a further provision of Rs 75 crore during the current year (including an additional provision of Rs 25 crore in the current quarter) taking the cumulative provision to Rs 134.67 crore.

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