L&T Finance Holdings Q4 net profit dips 31% to Rs 266 crore

L&T Finance Holdings (LTFH) on Thursday reported nearly 31 percent dip in its net profit at Rs 266 crore for the quarter ended March 2021.

The company had posted a net profit of Rs 385 crore in the corresponding quarter of 2019-20.

However, its total income moved up by 4.7 per cent to Rs 3,587 crore in the fourth quarter of 2020-21 as against Rs 3,426 crore a year ago, LTFH said in a regulatory filing.

The non-banking finance company said it had an all-time high quarterly disbursement of Rs 6,026 crore in rural finance in the reported quarter, up by 36 percent from a year ago and 12 percent from the preceding quarter.

LTFH said there was a 33 percent rise in collection in focussed businesses during 2020-21, despite lower collection in the first quarter.

Collection efficiency reached pre-COVID-19 level across businesses, it said.

Dinanath Dubhashi, managing director and CEO of L&T Finance Holdings, said, "With normalcy returning in the latter half, our focused businesses have witnessed continued momentum in disbursements, with increased market share across desired businesses (15 per cent in farm and 11 per cent in two-wheeler finance).”

On bad assets, the company said its gross stage-3 (non-performing assets) were worth Rs 4,504 crore in the fourth quarter of 2020-21, compared with Rs 5,037 crore in the corresponding quarter of 2019-20.

The net stage-3 assets were valued at Rs 1,377 crore as against Rs 2,078 crore.

As a prudent measure, LTFH is carrying additional provisions of Rs 1,033 crore as of March 31, 2021, it added.

Shares of the company on Thursday closed 2.18 percent down at Rs 89.90 apiece on the BSE.