L&T Finance Holdings Ltd (LTFH) reported a 102.6% jump in its consolidated net profit on Wednesday at Rs 530.93 crore for the first quarter of FY24. The consolidated net profit of the company was reported at Rs 262 crore last year.
The revenue from operations of the company saw a rise of 7.86% to Rs 3,223.3 crore in June of FY24 from Rs 2,988.4 crore in Q1 of FY23.
“We have achieved retailization of 82% in Q1 FY24 itself, much ahead of the Lakshya 2026 goal of greater than 80% retailization. In fact, we have been able to achieve most of our Lakshya 2026 goals almost three years in advance,” said Dinanath Dubhashi, managing director and chief executive, L&T Finance Holdings Ltd.
“This achievement is attributed to the twin strategy of strongly growing the retail asset book on one side and ensuring a sharp reduction in the wholesale book on the other, while maintaining best in class asset quality,” he added.
The net income of company increased 5.7% year-on-year basis to Rs 3,116.5 crore in the April-June quarter from Rs 2,946.6 crore it projected in the same quarter a year ago. The net interest margin (NIM) plus fees came at 11.71%, up by 14 basis points. Company’s credit cost came at 2.78% in Q1 FY24, down by 5.03% a year ago.
The company showed improvement in retail asset quality with gross stage 3 (GS3) at 3.21% and net stage (NS3) at 0.70%, with provision coverage ratio of 79% in the first quarter of FY24, as per the press release.
“The company will continue to develop digital finance delivery as a customer value proposition, thereby touching every part of the customer ecosystem through our digital offerings,” said Dubhashi.
The company also stated that it recorded strong quarterly retail disbursements at $11,193 crore in Q1 FY24, up 25% y-o-Y. Also, its retail portfolio mix now stands at 82% of the total loan book, compared with 54% in Q1 FY23, and the retail book stood at 764,274 crore, up 34% y-o-y.
L&T Finance Holdings reported its capital adequacy ratio at 25.75% in Q1 of FY24 and has sufficient liquidity buffers in the place, it added it the press release.
“The wholesale book saw an accelerated and steep reduction of 65% y-o-y or a reduction of °25,992 crore y-o-y, while registering a reduction of £5,548 crore in FY24 itself. This is in line with the Lakshya strategy of strongly growing the retail book while sharply reducing wholesale,” the company said.
The stocks of LTFH ended 2.42% higher at Rs 133.50 per share on the NSE on Wednesday.
