L&T Finance Ltd. (LTF), a leading NBFC in India, announced its financial results for Q3FY25 and the nine months ending December 31, 2024, showcasing robust growth across key parameters.
Highlights for Q3FY25:
- Consolidated PAT: ₹626 crore, reflecting a 2% YoY decline.
- Retail Book: ₹92,224 crore, up 23% YoY, driven by a 97% retailisation.
- Retail Disbursements: ₹15,210 crore, up 5% YoY, marking strong festive season activity.
- Asset Quality:
- Gross Stage 3 (GS3) stood at 3.23%, slightly higher than 3.21% in Q3FY24.
- Net Stage 3 (NS3) at 0.97%, up from 0.81% in Q3FY24.
- Net Interest Margin + Fees: 10.33%, marginally down from 10.93% YoY.
- Consolidated Book Size: ₹95,120 crore, a 16% YoY increase.
- Return on Equity (RoE): 10.21%, improving by 114 basis points YoY.
Strategic Developments:
- Digital Transformation: The PLANET App crossed 1.5 crore downloads as of Q3FY25, enhancing customer experience through seamless digital lending.
- AI Integration: The Knowledgeable AI (KAI) platform, an AI-powered virtual home loan advisor, was launched to simplify customer interactions.
- Partnerships:
- Collaboration with Amazon Pay to expand consumer lending options.
- Extended PhonePe partnerships for broader digital lending penetration.
- Project Cyclops: Fully operationalised in Two-wheeler and Farm Equipment Finance, leveraging advanced credit underwriting.
Management Commentary:
Sudipta Roy, MD & CEO of LTF, highlighted the company’s resilience amidst macroeconomic challenges in the microfinance sector. “We have effectively managed the situation and are optimistic about improved conditions in the coming quarters,” he said.
The robust performance was attributed to strategic investments in credit underwriting and monitoring infrastructure, coupled with innovative partnerships and a strong focus on retailisation.
Outlook:
L&T Finance remains committed to leveraging digital tools and strategic collaborations to enhance customer offerings and drive sustained growth. The focus on asset quality and cost management positions the company for continued success in the evolving financial landscape.
