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L&T Finance Holdings' net profit falls 10% to Rs 223 crore in Q2

The non-banking financial company had posted a net profit of Rs 248 crore in the corresponding period of the previous financial year.

October 20, 2021 / 07:57 PM IST

L&T Finance Holdings (LTFH) on Wednesday reported a 10 per cent decline in its consolidated net profit to Rs 223 crore for the second quarter ended September 2021.

The non-banking financial company had posted a net profit of Rs 248 crore in the corresponding period of the previous financial year.

Its total income during July-September 2021 fell to Rs 3,134.46 crore as against Rs 3,508.91 crore in the year-ago period, LTFH said in a regulatory filing.

Among the market leaders in farm equipment finance, two-wheeler finance and micro loans, LTFH said it witnessed the highest-ever disbursement in rural finance during the reported quarter, while retail disbursements grew 55 per cent quarter-on-quarter.

In the second quarter of FY22, all LTFH businesses witnessed robust disbursement momentum. Rural finance business saw the highest-ever Q2 disbursement at Rs 4,987 crore, a jump of 51 per cent quarter-on-quarter, it said.

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The total disbursements in the quarter stood at Rs 7,339 crore for the focused businesses, it added.

The focussed businesses include rural and retail finance, real estate and infrastructure finance.

"Covid 2.0 as well as skewed monsoon and other macro-economic factors have had an impact on the business environment in Q2."

"Despite this, LTFH’s rural finance business had its best-ever Q2 disbursement and witnessed normalisation in collections and disbursements,” Dinanath Dubhashi, managing director and chief executive officer of L&T Finance Holdings, said.

The company’s gross non-performing assets stood at 5.74 per cent during the quarter, amounting to Rs 4,796 crore.

LTFH said it is poised for medium to long-term growth with debt-to-equity ratio at 4.40 in Q2FY22 and a strengthened balance sheet with a capital adequacy improving to 25.16 per cent.

Shares of LTFH on Wednesday closed at Rs 91.45 apiece on the BSE, down 0.87 per cent from the previous close.
PTI
first published: Oct 20, 2021 07:57 pm

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