L&T Finance reports 17% growth in net profit in Q2 of FY25
Leading retail focused non-bank lender L&T Finance has reported a 17 percent growth in consolidated net profit at Rs 696 crore in the September quarter driven by a robust retail loan segment which saw 28 percent growth to Rs 88,975 crore. The bottom line was also buoyed by better collections.
In a statement Friday, the company said its loan book grew by 18 percent at Rs 88,975 crore, reaching its highest since the first quarter of the fiscal that ended in March 2020.
Retail disbursements for the second quarter rose 13 percent to Rs 15,092 crore. The bottomline was boosted by better collections which rose to 99.4 percent improving at asset quality with gross bad accounts inching down to 3.19 percent from 3.27 percent but net bad loans rose marginally to 0.96 percent from 0.82 percent a year ago.
Yet the company managed to maintain stable credit cost at 2.59 percent. It said proactive asset-liability management resulted in the weighted average borrowing cost coming down 5 bps to 7.80 percent.
The key profitability metric net interest margin remained stable at 10.86 percent. Total asset book rose 18 percent to Rs 93,015 crore from Rs 78,734 crore.
Commenting on the results, the chief executive Sudipta Roy attributed the numbers to proactive portfolio management and persistent collection strategies.
Looking ahead, he expects the sectoral challenges to persist for the next two quarters and apropos to that they may dynamically recalibrate business objectives by prioritizing positive credit outcome over assets under management growth.