Shares of L&T Finance fell over 4 percent on April 28 after the company released its results for Q4 of the financial year FY25, with rural segment seeing a 11 percent on year fall in disbursement, along with a fall in two-wheeler and housing loans.
L&T Finance on April 25 reported a consolidated net profit of Rs 636 crore for Q4FY25, a 15 percent YoY rise from the year ago period. The NBFC's revenue from operations surged nearly 10 percent YoY to Rs 4,023 crore during the March quarter.
While net profit and revenue grew, the company's retail disbursements fell nearly a percent YoY and 2 percent QoQ to Rs 14,899 crore in Q4FY25. The lender had reported its highest-ever quarterly retail disbursements of Rs 15,170 crore in Q3FY25.
The firm's disbursements in rural business finance segment also saw a 11 percent YoY fall to Rs 5,114 crore during the fourth quarter of FY25. It cited a "risk-calibrated disbursement strategy" as the reason for the fall. Loans for two-wheelers and housing loans meanwhile dropped 26 percent and 7 percent year-on-year respectively. However, its personal finance saw a strong growth of 98 percent YoY during the quarter under review.
Along with the Q4 results, L&T Finance also announced a final dividend of Rs 2.75 per equity share. Notably, this is the highest dividend announced by the company so far.
Speaking on the results, CEO and MD Sudipta Roy said, "In a year marked by considerable headwinds, our performance remained resilient while showcasing our ability to thrive even in a challenging environment. This stability is underpinned by our unwavering commitment to strong asset quality reinforced by a strong focus on collection efficiency across businesses. We believe the financial year 2024-25 marks a significant step in laying the foundation for sustainable and predictable growth going forward."
Despite the fall on April 28, L&T Finance shares have risen over 8 percent in the past one month. The stock has gained nearly 17 percent in the past 6 months. So far in 2025, the shares of the NBFC have surged over 20 percent.
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