Tag: L&T Finance Holdings

L&T Finance Holdings’ Q2 net profit down 15.5%

Banking & Finance

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L&T Finance Holdings reported a 15.5 per cent drop in its consolidated net profit for the second quarter of the fiscal.

Its net profit stood at ₹224.03 crore for the quarter-ended September 30, 2021 as against ₹265.12 crore in the same period last fiscal. However, on a sequential basis, it posted a 26.5 per cent jump from its net profit of ₹177.02 crore in the June 2021 quarter.

Its total revenue from operations increased by 10.5 per cent to ₹3,051.82 crore in the second quarter of the fiscal from ₹3,408.1 crore a year ago. However, other income declined by 18 per cent on a year-on-year basis to ₹82.64 crore in the July to September 2021 quarter.

“In the second quarter of the fiscal, all L&T Finance Holdings businesses witnessed robust disbursement momentum,” it said in a statement on Wednesday.

Rural finance

Its rural finance business saw the highest ever second quarter disbursement at ₹4,987 crore, up 51 per cent quarter-on-quarter. The total disbursements in the quarter stood at ₹7,339 crore for the focused businesses.

“Disbursement momentum will continue to further pick-up, backed by the company’s established ability to scale up product offerings in retail by harnessing our digital and analytics strengths. LTFH is well provisioned for any short-term Covid 2.0 led disruptions,” said Dinanath Dubhashi, Managing Director and CEO, L&T Finance Holdings.

However, its total lending book fell by 12 per cent to ₹86,936 crore in the second quarter of the fiscal as against ₹98,823 crore a year ago.

It is carrying additional provisions and one-time restructuring provisions of ₹1,747 crore or 2.22 per cent of the standard book in the second quarter of the fiscal.

The Gross Stage 3 assets in absolute terms stood at ₹4,796 crore in the second quarter of the fiscal, as against ₹4,881 crore in the first quarter and ₹4,921 crore in the second quarter of 2020-21.

In percentage terms, the GS3 and NS3 assets of the company stood at 5.74 per cent and 2.81 per cent respectively with PCR on Stage 3 assets at 52 per cent.

The company said collections have normalised across businesses in the second quarter of the fiscal led by smart data analytics, concerted field efforts and gradual unlocking of the economy

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Profit rises by 20% to Rs 178 crore, BFSI News, ET BFSI

Personal Finance

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New Delhi: L&T Finance Holdings on Friday reported 20 per cent rise in net profit at Rs 178 crore for June quarter 2021-22, mainly driven by rural demand for farm equipment. The non-banking financial company had registered Rs 148 crore profit in the year-ago period.

LTFH said COVID-related partial lockdowns in April and May had an impact on few businesses during the quarter under review.

However, with gradual unlock of the economy from June, the disbursements bounced back led by faster pick-up in economic activity across farm equipment finance, two-wheeler finance, consumer loans and infrastructure finance.

Due to slower industry pick-up, the micro loans, housing and real estate business saw moderate uptick in collections and disbursements, it said.

Farm equipment finance witnessed 130 per cent growth at Rs 1,357 crore as against Rs 590 crore in the year-ago period.

Infrastructure finance showed robust disbursement momentum post unlock and continued sell-down with Rs 1,480 crore disbursed in the quarter.

The business continues to see robust performance backed by higher sell-down volumes and refinancing, it added.

The company’s gross non-performing assets (NPAs) rose a tad to 5.75 per cent during the quarter as against 5.24 per cent in the year- ago period. Net NPAs or bad loans rose to 2.07 per cent from 1.71 per cent.

From 2018-19, LTFH started building macro-prudential provisions for any unanticipated future events which held the company in good stead.

Continuing this focus, as a prudent measure LTFH created additional provisions of Rs 369 crore in the quarter under review. With this, it is carrying total additional provisions of Rs 1,403 crore (1.75 per cent of standard book), it said.

These provisions are over and above the expected credit losses on NPA and standard asset provisions.

“Despite severe impact of COVID 2.0, the learnings from COVID 1.0 held us in good stead in managing short-term challenges and helped maximise positive impact on business metrics.

“Our Q1FY22 performance reflects the fact that the company has built a sustainable business model, one which will enable it to grow in the medium to long-term while dealing with any short-term challenges (including impact of COVID 2.0),” LTFH Managing Director & CEO Dinanath Dubhashi said.



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L&T Finance Holdings Q4 net profit down 31%

Banking & Finance

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L&T Finance Holdings reported a 30.9 per cent decline in its consolidated net profit to ₹266.85 crore in the fourth quarter of the fiscal year as against ₹386.15 crore in the same period in the previous fiscal. For the full fiscal 2020-21, its consolidated net profit fell 42.9 per cent to ₹970.94 crore as compared to ₹1,700.17 crore in 2019-20.

For the quarter ended March 31, 2021, its profit before exceptional items and tax was much higher at ₹718.24 crore as against ₹455.94 crore. Its total revenue from operations increased by 1.8 per cent to ₹3,415.16 crore in the fourth quarter of 2020-21, from ₹3,353.7 crore a year ago.

“Highest quarterly net interest margin (NIM) and fees in 2020-21 reached 8.17 per cent in the fourth quarter led by a strong growth in rural. In 2020-21, NIMs and fee was at 6.95 per cent,” L&T Finance said in a statement on Thursday. It maintains a strong capital adequacy of 23.8 per cent. In the fourth quarter, it had raised about ₹3,000 crore through a rights issue.

“As a prudent measure, LTFH is carrying additional provisions of ₹1,033 crore (1.2 per cent of standard book) as of the fourth quarter 2020-21,” it further said.

Its total lending book however, dropped by four per cent to ₹94,013 crore in the fourth quarter of the fiscal versus ₹98,384 crore a year ago.

Dinanath Dubhashi, Managing Director and CEO, 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).”

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L&T Finance Holdings sheds nearly 5 per cent

Banking & Finance

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L&T Finance Holdings lost nearly 5 per cent during the morning trade on Monday after reporting a 51 per cent drop in its consolidated net profit for the third quarter this fiscal.

At 10:15 am, the shares of the company were trading at ₹100.00 on the BSE, down ₹5.10 or 4.85 per cent. L&T Finance Holdings opened at ₹102.90 as against previous close of ₹105.10. It hit an intraday high of ₹103.55 and an intraday low of ₹98.65.

On the NSE, the company’s shares were trading at ₹100.05, down ₹5.20 or 4.94 per cent. The company on Friday reported 51 per cent drop in its consolidated net profit at ₹290.66 crore from a year ago.

It had a net profit of ₹591.03 crore in the same period a year ago, and ₹265.12 crore in the second quarter this fiscal.

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