L&T Finance posts loss of 51%, consolidated net profit stands at Rs 287.75 crore

L&T Finance Holdings, arm of engineering firm Larsen & Toubro reported loss of 51%, consolidated net profit stood at Rs 287.75 crore during the third quarter ended December 31, 2020 as compared to last years 591.47 crore during the same period.

The net interest margin and fees stood at 7.9% for the quarter ended December 31, as against 7.29% in the same period a year ago. Its total lending book grew by 1% to 1,00,099 crore in the third quarter, as against 99,453 crore in the same period a year ago. As reported by MInt

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L&T Finance Holdings is a Non Banking Financial Company (NBFC) who’s total income during the quarter under review declined to Rs 3,622.16 crore from Rs 3,735.79 crore and the average assets under management (AUM) declined to Rs 68,976 crore from Rs 71,587 crore in the corresponding quarter a year ago, the company said in a statement.

“Within the focused lending book, the rural finance book grew by 4% on an annual basis, aided by growth in farm equipment finance book by 18 per cent, and the two-wheeler finance book by 9%. The home loan segment grew by 3% year on year,” L&T Finance said in a statement on Friday.

L&T Finance Holdings MD Dinanath Dubhashi said, “Post Covid, the rural economy has performed better than urban and this trend is reflected in our disbursements, which are almost at pre-COVID-19 levels. The festive season uptick and a steady recovery in collection volumes also underline our rural performance.”

“Our strong performance in infra disbursements should be seen alongside the sell-down volumes, which have increased on a YoY (year-on-year) basis,” Dubhashi further added.