This sharp spike in revenues was on account of solid yoy growth in the rural finance portfolio. However, the other fund-based businesses like housing finance and infrastructure finance saw lower revenues yoy on the back of lower interest rates. COVID 2.0 also had an impact on QoQ.
L&T Finance Holdings Ltd is currently trading at Rs90.40 down by Rs4.45 or 4.69% from its previous closing of Rs94.85 on the BSE. The scrip opened at Rs92.60 and has touched a high and low of Rs93.80 and Rs89.95 respectively.
The net profit for the Jun-21 quarter increased by 19.92% to Rs177.85cr despite the lower revenues. This was largely on account of a near four-fold spike in EBITDA on the infrastructure business, which resulted in a sharp spike in net profits. However, sequential EBITDA was lower across all key verticals.
Commenting on the financial results Mr. Dinanath Dubhashi, Managing Director & CEO, L&T Finance Holdings, said, “Despite severe impact of Covid 2.0, the learnings from Covid 1.0 held us in good stead in managing short-term challenges and helped maximise positive impact on business metrics. During FY21, LTFH was able to successfully navigate extremely tough conditions and emerge stronger. Our Q1FY22 performance reflects the fact that the Company has built a sustainable business model, one which will enable it to grow in the medium to long-term while dealing with any short-term challenges (including impact of Covid 2.0).”