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Informist, Friday, Apr. 25, 2025

By Kshipra Petkar

MUMBAI – L&T Finance Co. Ltd. has reported a consolidated net profit of INR 6.36 billion for the quarter ended March, up 14.86% on year, which is in line with analysts estimates. For the financial year ended March, the consolidated net profit was at INR 26.44 billion, higher than 23.20 billion reported a year ago.

The consolidated revenue of the company was up 9.6% at 40.23 billion in the quarter ended March. On a sequential basis, the revenue was down nearly 2%. Other income of the company also fell 22.5% on year and 43.05% on quarter to INR 43.0 million. The total income increased by nearly 10% to INR 40.3 billion. However, it fell nearly 2% on quarter.

Expenses of the company rose 8% on year to INR 32.22 billion, but fell by 2% on quarter in Jan-Mar. Within expenses finance costs, impairement on financial instruments and employee benefits, rose on year. Other expenses and net loss on derecognition of financial instruments under amortised cost category fell on a year-on-year basis. 

On a consolidated basis, the retail book grew 19% on year to INR 977.62 billion as on Mar 31. For the financial year ended March, the retail disbursements increased by 11% on year to INR 600.40 billion. For the quarter ended March, retail disbursements were INR 148.99 billion, lower as compared to INR 150.44 billion in the previous year. In Jan-Mar, credit cost stood at 2.54% as compared to 2.49% a quarter ago .

Within the retail book, rural business finance book grew 6% on year to INR 263.20 billion. In Jan-Mar, the disbursements fell 11% on year to INR 51.14 billion. Farmer finance book grew 10% on year to INR 152.19 billion. "Double digit growth showcased by the segment aided by a better than average monsoon and improving rural liquidity," the company said in a press release. 

Personal loan book grew 34% on year to INR 86.48 billion. Housing loans and loan against property book was up 35% on year to INR 249.3 billion, and the small and microfinance enterprise book was up 67% on year to INR 65.24 billion.

The company has also forayed into gold loan business and has entered into a business transfer agreement with Paul Merchants Finance Pvt. Ltd. for the acquisition of their gold loan businesss. "The acquisition is in line with our strategy to enhance secured high yielding book. It cuts time-to-scale gold loan business by 36 months, providing a high quality, profitable attractive RoA profile gold loan franchise at an attractive consideration. Integration plan and governance framework put in place to achieve a targeted closing date within Q2FY26 (Jul-Sept)," the company said in the release.

In terms of asset quality, the gross stage 3 ratio stood at 3.29% as on Mar. 31 higher as compared to 3.23% as on Dec. 31, while the net stage 3 asset ratio stood at 0.97% as on Mar. 31 compared to 0.97% a quarter ago.

The board has recommended a final dividend of INR 2.75 per share. On the National Stock Exchange, the shares of the company closed at INR 172.99, down 3.6% over Thursday.  End

Edited by Vandana Hingorani

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