L&T Finance Holdings Q2 earnings: Consolidated net profit rises 46% to Rs 595.1 crore

L&T-Finance-Holdings

L&T Finance Holdings on October 20 reported a 46.42 percent rise in its net profit to Rs 595.11 crore in the second quarter of the current financial year.

On a sequential basis, net profit rises 12.01 percent.

The consolidated net profit of L&T Finance Holdings stood at Rs 530.93 crore in the April-June quarter of the current financial year.

On a standalone basis, the net profit of the company fell to Rs 29.79 crore in the July-September quarter, as against Rs 326.18 crore in a similar period last year.

Retail net profit of the non-banking finance company rose 86 percent on-year to Rs 606 crore in the reporting quarter on the back of strong Net Interest Margins (NIMs) plus Fees and reduction in credit cost, release said.

Currently, retail portfolio mix of L&T Finance Holdings stood at 88 percent in second quarter of current financial year, compared with 58 percent in the similar period last year, and 82 percent in Q1FY24.

"During the quarter, LTFH not only reached a retail portfolio mix of 88 percent, but also achieved the highest ever quarterly Retail disbursements of Rs. 13,499 crore, registering a growth of 32 percent year-on-year," said Dinanath Dubhashi, Managing Director & CEO, L&T Finance Holdings Ltd.

He further added that this achievement is attributed to the twin strategy of strongly growing the retail asset book on one side and ensuring a sharp reduction in the wholesale book on the other, while maintaining best-in-class asset quality.

The Retail book size in July-September quarter was up 33 percent on-year to Rs 69,417 crore, as compared to Rs 52,040 crore in Q2FY23.

Disbursement

On the disbursement front, the company saw a growth of 32 percent on-year to Rs 13,499 crore, as compared to Rs 10,238 crore in Q2FY23.

Rural Group Loans & Micro Finance registered a growth of 30 percent to Rs 5,740 crore in the reporting quarter, and Farm Equipment Finance disbursements during Q2FY24 saw a on-year growth of 18 percent at Rs 1,534 crore, as against Rs 1,304 crore in Q2FY23.

Home Loans and Loans Against Property (LAP) disbursements showed sustained growth momentum in Q2FY24 with Home Loan disbursements witnessing a on-year growth of 34 percent to Rs 1,356 crore, as compared to Rs 1,013 crore in Q2FY23 while LAP disbursements registering disbursement of Rs 378 crore against Rs 104 crore in Q2FY23, release said.

SME Loans also registered robust growth with Q2FY24 disbursements at Rs 872 crore, as against Rs 201 crore in Q2FY23.

Asset quality

The asset quality of the company improved in the reporting quarter with gross stage 3 asset ratio at 3.05 percent and net stage 3 at 0.67 percent.

The provision coverage ratio of the company in reporting quarter stood at 79 percent, as per release.