L&T Finance Holdings Q3 results: Net profit jumps 39% to Rs 454 crore, NII up 23.5%

L&T Finance Holdings' revenue from operations increased 15.5 percent to Rs 3,432 crore in the December quarter of 2022-2023 from Rs 2,971 crore a year ago.(Representational image)

L&T Finance Holdings on January 13 reported a 39 percent jump in consolidated profit at Rs 454 crore for the quarter ended December 31, 2022. The company, promoted by Larsen & Toubro (L&T), had reported a net profit of Rs 326 crore in the year-ago period.

The company's net interest income increased 23.5 percent year-on-year to Rs 1,931.8 crore in the said quarter from Rs 1,564.2 crore in the same quarter last fiscal. Its net interest margin (NIM) plus fees came at 8.80 percent, up 70 basis points (bps) YoY due to changing portfolio mix towards retail. Its Retail NIM plus fees reached 11.38 percent in Q3FY23, up 25 basis points YoY, LTFH said in a regulatory filing.

The company also stated that it recorded its highest-ever quarterly retail disbursements at Rs 11,607 crore, up 53 percent YoY and up 13 percent QoQ (Quarter-on-Quarter). Also, its retail portfolio mix now stands at 64 percent of the total loan book.

Moreover, revenue from operations increased 15.5 percent to Rs 3,432 crore in the December quarter of 2022-2023 from Rs 2,971 crore a year ago.

LTFH also stated that the board has also approved the amalgamation of L&T Finance Limited, L&T Infra Credit Limited and L&T Mutual Fund Trustee Limited, with the Company, by way of merger, subject to the sanction of the National Company Law Tribunal (NCLT) and other regulatory approvals, as may be required.

Commenting on the financial results, Dinanath Dubhashi, Managing Director & CEO, L&T Finance Holdings Ltd, said, “We are progressing well on our journey towards Lakshya 2026 to become a top class, ‘digitally-enabled’, ‘customer-focused’ retail finance company. Our results in Q3FY23 not only highlight our robust business strengths, but also reflect our continued focus on accelerated retailisation, with the retail portfolio mix reaching 64 percent."

"With a view to further strengthen the Fintech franchise, the company continued to emphasise digitisation, data analytics and customer-facing applications, with a clear focus on expanding the existing channels and ecosystems, and creating newer channels," Dubhashi added.

Meanwhile, shares of L&T Finance Holdings closed 1.65 percent higher at Rs 92.45 apiece on BSE on January 13.