| L&T Finance has recorded 2% decline in net profit to
Rs 626.40 crore in the quarter ended December 2024 (Q3FY2025). The consolidated
income from operations increased 15% to Rs 3806.38 crore for the quarter ended
December 2024, while other income of the company jumped 9% to Rs 298.75 crore.
The total income increased 15% to Rs 4105.13 crore for Q3FY2025.
Interest expenses increased 16% to Rs 1569.24 crore.
Operating expenses increased 19% to Rs 1021.59 crore, allowing the operating
profits to improve 11% at Rs 1514.30 crore. The cost-to-income ratio was steady
at 40.3% in Q3FY2025 from 38.6% in Q3FY2024.
Depreciation declined 24% to Rs 36.19 crore, while
provisions fell 27% to Rs 654.21 crore. Profit before tax surged 0% yoy basis
at Rs 823.90 crore.
Effective
tax rate increased to 24.1% in Q3FY2025 from 22.4% in Q3FY2024. Net Profit of
the company, after share in profit of associates and non-controlling interest,
improved -2% to Rs 626.40 crore for Q3FY2025.
Strong Retail Franchise with
a Retail Book of Rs 92224 crore, up 23% over a year ago. Retailisation touched
97% end December 2024. Consolidated book size at Rs 95120 crore against Rs
81780 crore, up 16% YoY.
Q3FY25 Retail Disbursements
at Rs 15210 crore, up 5% over Q3FY2024.
Gross Stage 3 (GS3) stood at 3.23% in Q3FY25 against
3.21% in Q3FY24. Net Stage 3 (NS3) stood at 0.97% in Q3FY25 against 0.81% in
Q3FY24. The provision coverage ratio improved to 71.00% from 75.00% a year ago.
Credit cost before macro
utilization at 2.91% against 2.59% for Q2FY25. An increase in slippages was
witnessed owing to macro challenges in the Rural Business Finance (RBF)
segment.
Proactive asset-liability
management has limited the quarterly Weighted Average Cost of Borrowings (WACB)
increase by 3 bps (QoQ) at 7.83% in Q3FY25
Secured assets growth led by
Farmer Finance at 23% YoY and Home Loans & Loan Against Property at 24% YoY
Net Interest Margin + Fees
& Other Income at 10.33% against 10.93%, down 60 bps YoY
Return on Equity (RoE) stood
at 10.21% against 11.35%, down by 114 bps YoY
Book
value per share of the company stood at Rs 99.93 per share at
end December 2024. Adjusted book value (net of NNPA) per share of the company
stood at Rs 96.30 per share at end December 2024.
Commenting on the financial
results, Sudipta Roy, Managing Director & CEO of LTF said, “Despite certain
macro challenges within the microfinance sector, we have managed the situation
effectively. We are hopeful that the environment will be much better over the
next couple of quarters.
Our investments and efforts
towards building a world class credit underwriting and monitoring
infrastructure continued unabated. Apropos to the same, our next generation
three-dimensional credit underwriting engine ‘Project Cyclops’ was extended to
100% of dealerships in Two-wheeler Finance and was also operationalized for the
Farm Equipment Finance business.
In our pursuit of innovation
within the lending landscape, LTF launched a strategic partnership with Amazon
Pay to develop and offer cutting-edge credit solutions through the platform. We
also extended PhonePe partnership to Personal Loans, delivering a seamless
digital lending experience to our consumers.
Additionally, we have
launched Knowledgeable AI (KAI), an AI-powered chatbot that revolutionizes the
home loan experience. We were also delighted to host RAISE’ 24, India’s premier
AI-themed event in the Banking, Financial Services, and Insurance (BFSI) sector
focused on Al`s real-world applications. As we look ahead, we remain dedicated
to driving innovation and enhancing our offerings to better serve our
customers.”
Business
performance
The Company’s granular and
deep pan-India Retail franchise is led by its strong distribution capabilities
namely, its geographic presence in around 2 lakh villages from around 2028
rural meeting centers/branches and over 185 branches across urban centers. The
Company also leverages its around 2.5 crore customer database to drive a
credible cross-sell and up-sell franchise contributing 32% of the Company’s
disbursements in value and 43% in count during Q3FY25. LTF has 45% Rural assets
and 55% Urban assets.
Rural
Business Finance: Book size at Rs 26231 crore vs. Rs 23110
crore, up 14% YoY. Disbursements at Rs 4599 crore vs. Rs 5476 crore, down 16%
YoY. A risk calibrated disbursement strategy was followed in the business owing
to a challenging macro environment.
Farmer
Finance: Book size at Rs.15075 crore vs. Rs 13845 crore, up 9%
YoY. Disbursements at Rs 2495 crore vs. Rs 2027 crore, up 23% YoY. Growth in
the segment aided by a better than average monsoon and festive season demand.
Two-wheeler
Finance: Book size at Rs 12676 crore vs. Rs 10447 crore, up 21%
YoY. Disbursements at Rs 2414 crore vs. Rs 2540 crore, down 5% YoY. Calibrated
disbursements owing to the strengthening of documentation and credit guardrails
for sourcing of better-quality credit tested customer and shift towards prime
customers.
Personal
Loans: Book size at Rs 7820 crore vs. Rs 6427 crore, up 22% YoY.
Disbursements at Rs 1642 crore vs. Rs 847 crore, up 94% YoY. Growth was aided
by digital partnerships and tapping growth in prime segments
Housing
Loans and Loans Against Property: Book size at Rs 23461 crore
vs. Rs 16654 crore, up 41% YoY. Disbursements at Rs 2475 crore vs. Rs 1998
crore, up 24% YoY. Growth on the back of focus on distribution channels and
partnerships. Maintained a pristine secured portfolio performance
SME
Finance: Book size at Rs 5817 crore vs. Rs 3078 crore, up 89% YoY.
Disbursements at Rs 1249 crore vs. Rs 965 crore, up 29% YoY.
Financial
Performance 9MFY2025
L&T Finance has recorded 14% jump in net profit to Rs
2007.49 crore in the half year ended December 2024 (9MFY2025). The consolidated
income from operations increased 14% to Rs 10913.41 crore for the year ended
March 2023, while other income of the company jumped 27% to Rs 1000.35 crore.
The total income increased 15% to Rs 11913.76 crore for 9MFY2025.
Interest expenses increased 9% to Rs 4396.93 crore.
Operating expenses increased 18% to Rs 2883.27 crore, allowing the operating
profits to improve 19% at Rs 4633.56 crore. The cost-to-income ratio was steady
at 38.4% in 9MFY2025 from 38.5% in 9MFY2024.
Depreciation declined 12% to Rs 97.92 crore, while
provisions fell 26% to Rs 1849.90 crore. Profit before tax surged 15% yoy basis
at Rs 2685.74 crore.
Effective tax rate increased to 25.3% in 9MFY2025 from
24.4% in 9MFY2024. Net Profit of the company, after share in profit of
associates and non-controlling interest, improved 14% to Rs 2007.49 crore for
9MFY2025.
|
L&T Finance:
Consolidated Results
|
|
Particulars
|
2412 (3)
|
2312 (3)
|
Var %
|
2412 (9)
|
2312 (9)
|
Var %
|
2403 (12)
|
2303 (12)
|
Var %
|
|
Income from operations
|
3806.38
|
3306.30
|
15
|
10913.41
|
9591.33
|
14
|
12913.93
|
12565.11
|
3
|
|
Other Income
|
298.75
|
274.96
|
9
|
1000.35
|
786.47
|
27
|
1141.19
|
736.59
|
55
|
|
Total Income
|
4105.13
|
3581.26
|
15
|
11913.76
|
10377.80
|
15
|
14055.12
|
13301.70
|
6
|
|
Interest Expended
|
1569.24
|
1353.43
|
16
|
4396.93
|
4042.10
|
9
|
5377.19
|
5797.24
|
-7
|
|
Operating Expense
|
1021.59
|
860.41
|
19
|
2883.27
|
2440.46
|
18
|
3393.10
|
2722.16
|
25
|
|
Operating Profits
|
1514.30
|
1367.42
|
11
|
4633.56
|
3895.24
|
19
|
5284.83
|
4782.30
|
11
|
|
Depreciation /
Amortization
|
36.19
|
29.19
|
24
|
97.92
|
87.11
|
12
|
114.77
|
111.24
|
3
|
|
Provisions and
Write-offs
|
654.21
|
514.19
|
27
|
1849.90
|
1473.12
|
26
|
2141.03
|
2540.41
|
-16
|
|
Profit before EO
|
823.9
|
824.04
|
0
|
2685.74
|
2335.01
|
15
|
3029.03
|
2130.65
|
42
|
|
Exceptional Item
|
0
|
0
|
-
|
0
|
0
|
-
|
0
|
-2687.17
|
-
|
|
PBT after EO
|
823.90
|
824.04
|
0
|
2685.74
|
2335.01
|
15
|
3029.03
|
-556.52
|
LP
|
|
Tax Expense
|
198.25
|
184.67
|
7
|
678.16
|
570.90
|
19
|
711.90
|
172.37
|
313
|
|
Net Profit for the
period
|
625.65
|
639.37
|
-2
|
2007.58
|
1764.11
|
14
|
2317.13
|
-728.89
|
LP
|
|
Share in profit/(loss)
of associate company
|
0.00
|
0.00
|
-
|
0.00
|
0.00
|
-
|
0.00
|
0.00
|
-
|
|
Profit attributable to
non-controlling interest
|
-0.75
|
-0.81
|
-7
|
0.09
|
-2.11
|
PL
|
-2.97
|
-86.77
|
-97
|
|
PAT
|
626.40
|
640.18
|
-2
|
2007.49
|
1766.22
|
14
|
2320.10
|
-642.12
|
LP
|
|
PPA
|
0.00
|
0.00
|
-
|
0.00
|
0.00
|
-
|
0.00
|
2265.37
|
-
|
|
PAT after PPA
|
626.40
|
640.18
|
-2
|
2007.49
|
1766.22
|
14
|
2320.10
|
1623.25
|
43
|
|
EPS* (Rs)
|
10.0
|
10.3
|
|
10.7
|
9.4
|
|
9.3
|
7.3
|
|
|
Adj BV (Rs)
|
96.2
|
89.3
|
|
96.2
|
89.3
|
|
91.5
|
82.1
|
|
|
* Annualized on
current equity of Rs 2494.27 crore EO and relevant tax. Face Value: Rs 10,
Figures in Rs crore
|
|
PL: Profit to Loss,
LP: Loss to Profit
|
|
Source: Capitaline
Corporate Database
|
|