L&T Finance reports net profit of ₹685 Crore in Q1

18 Jul 2024 , 10:41 AM

On Tuesday (July 16), L&T Finance Ltd declared an all-time record net profit of ₹685.3 Crore for the first quarter ending June 30, 2024, up 29% YoY.

In the same quarter, L&T Finance reported a net profit of ₹530.9 Crore, according to a regulatory filing. Revenue from operations climbed by 17.4% to ₹3,784.4 Crore, up from ₹3,223.3 Crore in the previous fiscal year.

Net interest income (NII) increased by 30.8% to ₹2,433 Crore from ₹1,859.5 Crore in the same quarter of FY24. NII is the difference between a bank’s lending revenue and the interest it pays to depositors.

The net interest margin, including fees and other income, improved to 11.08% from 9.64%, up 144 basis points year on year.

L&T Finance had a 33% YoY increase in quarterly retail disbursements to ₹14,839 Crore in Q1 FY25, up from ₹11,193 Crore the previous year. The company’s weighted average cost of borrowing (WACB) remained constant at 7.85% QoQ.

In terms of asset quality, the consolidated gross stage 3 (GS3) ratio improved to 3.14% in Q1 FY25 from 4.04% in Q1 FY24, representing a 90 basis point (bps) reduction YoY. Similarly, the net stage 3 (NS3) ratio fell to 0.79% from 1.19% during the same time, representing a 40 basis point year-over-year increase.

L&T Finance’s consolidated book size increased by 13% YoY to ₹88,717 Crore in Q1 of FY25, up from ₹78,566 Crore. The return on equity (RoE) increased to 11.58%, up 186 basis points from 9.72% during the same period in FY24.

The retail book increased by 31% year-on-year to ₹84,444 Crore, up from ₹64,274 Crore. Credit costs remained steady at 2.37%, both quarterly and year-on-year. Furthermore, return on assets (RoA) improved to 2.68%, up 55 basis points from 2.13% year-on-year.

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