L&T Finance Holdings on July 19 reported a 103 percent rise in net profit to Rs 531 crore in the first quarter of the current financial year.
In the similar period last year, the net profit was Rs 262 crore.
On sequential basis, net profit rose around 6 percent.
Retail net profit of the non-banking finance company rose 176 percent on-year to Rs 533 crore on the back of steady net interest margins
plus fees and reduction in credit cost, according to the press release.
Currently, retail portfolio mix of L&T Finance Holdings stood at 82 percent in first quarter of current financial year, compared with 54 percent in the similar period last year, and 75 percent in Q4FY23.
"We will sustain our growth momentum and continue to work towards creating a customer-focused and sustainable Fintech@Scale," said Managing Director and CEO Dinanath Dubhashi.
The company "will continue to develop digital finance delivery as a customer value proposition thereby touching every part of the customer ecosystem through our digital offerings," he added.
The retail book size as at the end of the June stood at Rs 64,274 crore, up 34 percent in Q1FY24 from Rs 47,794 crore in Q1FY23.
Disbursements
On the disbursement front, the company has increased its retail disbursement by 25 percent on-year to Rs 11,193 crore in the April-June quarter.
Rural Group Loans & Micro Finance rose 18 percent on-year in June quarter to Rs 4,511 crore. While, Farm Equipment Finance disbursements saw 15 percent on-year growth to Rs. 1,757 crore.
Similarly, consumer loans continued to scale up while protecting portfolio quality with Rs 1,162 crore disbursements in Q1FY24 compared with Rs 1,010 crore in Q1FY23.
Asset quality
The asset quality of the company improved in the reporting quarter with gross stage 3 assets ratio stood at 3.21 percent and net stage 3 at 0.70 percent.
The provision coverage ratio of the finance company was at 79 percent, according to the release.
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