L&T Finance Q3 profit up 42% at Rs 384 crore
By Shilpy Sinha, ET Bureau |
BCCL
Mumbai: L&T Finance Holdings today reported a 42% rise in consolidated net profit at Rs 384 crore for the quarter ended December 31, mainly on account of improvement in asset quality and growth in lending to rural and housing.
During the same quarter a year ago, the company had posted a net profit of Rs 271.
Its rural lending grew 48%, housing finance business grew by 49% and wholesale grew 14% in the quarter. The loan book stands at Rs 75,000 crore, with wholesale business comprising of 56% of the book. Disbursements during the quarter grew 88%.
“This growth was made possible by focusing on the five lines of businesses, improving return on equity to 15.91% and focusing on collection efficiency bythrough the use of digital and data collection analytics,” said Dinanath Dubhashi, Managing
Director & CEO, LTFH. “Directionally the company is moving towards higher RoE.”
Net interest margin and fee income improved to 7% from 6.6. Cost of funds for the company remained at 8.11%.
The company continued to maintain its asset quality along with strengthening its balance sheet by taking accelerated provisions. The company's asset quality improved with the use of collection analytics. Gross non-performing assets stood at 5.49% of loan book compared to 9.01%. The provision coverage ratio is up 49.11% from 20.44% a year ago.
On getting into new lines of businesses, Dubashi said that he will get into the lines of business where they can achieve scale and generate RoE. Over the last 18-24 months, the company has brought down lending to just five segments from 20 earlier. Both the mutual fund and wealth management business have generated profit during the quarter.
Shares of the company fell 1.09% from its previous close to Rs 176.85 on the BSE.
During the same quarter a year ago, the company had posted a net profit of Rs 271.
Its rural lending grew 48%, housing finance business grew by 49% and wholesale grew 14% in the quarter. The loan book stands at Rs 75,000 crore, with wholesale business comprising of 56% of the book. Disbursements during the quarter grew 88%.
“This growth was made possible by focusing on the five lines of businesses, improving return on equity to 15.91% and focusing on collection efficiency bythrough the use of digital and data collection analytics,” said Dinanath Dubhashi, Managing
Director & CEO, LTFH. “Directionally the company is moving towards higher RoE.”
Net interest margin and fee income improved to 7% from 6.6. Cost of funds for the company remained at 8.11%.
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The company continued to maintain its asset quality along with strengthening its balance sheet by taking accelerated provisions. The company's asset quality improved with the use of collection analytics. Gross non-performing assets stood at 5.49% of loan book compared to 9.01%. The provision coverage ratio is up 49.11% from 20.44% a year ago.
On getting into new lines of businesses, Dubashi said that he will get into the lines of business where they can achieve scale and generate RoE. Over the last 18-24 months, the company has brought down lending to just five segments from 20 earlier. Both the mutual fund and wealth management business have generated profit during the quarter.
Shares of the company fell 1.09% from its previous close to Rs 176.85 on the BSE.
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