L&T Finance has recorded 29% jump in net profit to Rs 685.51 crore in the quarter ended June 2024 (Q1FY2025). The consolidated income from operations increased 11% to Rs 3452.62 crore for the quarter ended June 2024, while other income of the company jumped 28% to Rs 331.99 crore. The total income increased 12% to Rs 3784.61 crore for Q1FY2025.
Interest expenses fell 1% to Rs 1351.41 crore. Operating expenses increased 25% to Rs 937.17 crore, allowing the operating profits to improve 18% at Rs 1496.03 crore. The cost-to-income ratio rose 38.5% in Q1FY2025 from 37.2% in Q1FY2024.
Depreciation declined 4% to Rs 28.44 crore, while provisions rose 5% to Rs 545.32 crore. Profit before tax surged 29% yoy basis at Rs 922.27 crore.
Effective tax rate was steady at 25.7% in Q1FY2025 from 25.7% in Q1FY2024. Net Profit of the company, after share in profit of associates and non-controlling interest, improved 29% to Rs 685.51 crore for Q1FY2025.
The company has exhibited strong growth in retail loan book at 31% yoy to Rs 84444 crore end June 2024 from Rs 64274 crore end June 2023. The Q1FY25 retail loan disbursements surged 33% to Rs 14839 crore. The share of retail loan has increased to 95% end June 2024.
The company has exhibited improvement in the NIM+fees to 11.08% in Q1FY2025 from 9.64% in Q1FY2024, while the margins have declined from 11.25% in Q4FY2024.
The company has continued to show sustained improvement in consolidated asset quality. Gross Stage 3 (GS3) declined to 3.14% from 4.04% in Q1FY24 (reduction of 90 bps YoY) and Net Stage 3 (NS3) to 0.79% from 1.19% in Q1FY24 (reduction of 40 bps YoY). Credit cost at 2.37% remained stable across both QoQ and YoY.
Return on Assets (RoA) stood at 2.68% against 2.13%, up 55 bps YoY. Proactive asset liability management led to stable weighted average cost of borrowing (WACB) at 7.85%.
Commenting on the financial results, Sudipta Roy, Managing Director & CEO, LTF said, “It is with great pleasure that I announce our Q1FY25 results. The results you see for the quarter reflect the success of our 5-pillar strategy. The focus is on enhancing customer acquisition through the creation of a robust funnel and contiguous products, sharpening credit underwriting through the deployment of our proprietary digital credit engine ‘Project Cyclops’, building a futuristic digital architecture to drive innovation, increasing brand visibility through amplified share of voice, and capability building through the recruitment and upskilling of tech talent, which is resulting in robust performance.
In our ongoing efforts to revolutionize the lending space, LTF has been prioritizing customer-centricity and harnessing cutting-edge technology. A significant milestone in this journey was the deployment of ‘Project Cyclops’ during Q1FY25, which enables an in-depth assessment of a customer`s ability to service the loan availed by them. The innovative digital solution has been successfully rolled out in beta across 25 locations through a network of 200 selected dealers, offering Two-wheeler Loans.
Furthermore, from establishing a distinctive Sonic Brand Identity to launching our ‘The Complete Home Loan’ campaign, LTF is steadfast in its business growth journey. I am confident that the focus on customer-centricity, innovation, and technology will continue to propel us forward as we strive for excellence in the lending space.”
Business performance
The Company’s granular and deep pan-India Retail franchise is led by its strong distribution capabilities namely, its geographic presence in around 2 Lakh villages from around 1900 rural meeting centers/branches and over 150 branches across urban centers. This extensive geographic presence is also supported by over 13000 channel relationships built over a decade. The Company also leverages its around 2.4 crore customer database to drive a credible cross-sell and up-sell franchise contributing 36% of the Company’s disbursements in value and 46% in count during Q1FY25.
Rural Business Finance: Q1FY25 disbursements at Rs 5773 crore against Rs 4511 crore, up 28% YoY. Book size at Rs 25887 crore against Rs 19743 crore, up 31% YoY Growth aided by the deepening of the customer acquisition funnel, both horizontally through expansion into newer locations and vertically through increasing the number of customers across existing locations
Farmer Finance: Q1FY25 disbursements at Rs 1903 crore against Rs 1757 crore, up 8% YoY Book size at Rs 14204 crore against Rs 13125 crore, up 8% YoY. Growth aided by steady disbursement while the industry growth remained flat.
Two-wheeler Finance: Q1FY25 disbursements at Rs 2621 crore against Rs 1726 crore, up 52% YoY. Book size at Rs 12025 crore against Rs 9190 crore, up 31% YoY. Growth aided by the activation of new dealership points during the quarter, as well as continued focus on Prime disbursements. Additionally, LTF achieved 100% YoY growth in EV financing and received a strong reception for its offering under the Superbike segment
Personal Loans: Q1FY25 disbursements at Rs 1178 crore against Rs 1162 crore, up 1% YoY. Book size at to Rs 6667 crore against Rs 5995 crore, up 11% YoY. Growth aided by associations with newer DSA channels across various locations.
Housing Loans and Loans Against Property: Q1FY25 disbursements at Rs 2245 crore against Rs 1299 crore, up 73% YoY. Book size at Rs 19961 crore against Rs 14075 crore, up 42% YoY. Growth aided by collaborative launches with prime developers across top locations. Additionally, the launch of LTF`s `The Complete Home Loan` offering across 11 locations drove higher lead generation, thus contributing to improved performance
SME Finance: Q1FY25 disbursements at Rs 978 crore against Rs 607 crore, up 61% YoY. Book size at Rs 4471 crore against Rs 1779 crore, up 151% YoY. Growth aided by focus on building additional channels to diversifying existing sourcing funnel.
Financial Performance FY2024
The consolidated income from operations increased 3% to Rs 12913.93 crore for the year ended March 2024, while other income of the company jumped 55% to Rs 1141.19 crore. The total income increased 6% to Rs 14055.12 crore for FY2024. Interest expenses declined 7% to Rs 5377.19 crore. Operating expenses increased 25% to Rs 3393.10 crore, allowing the operating profits to improve 11% at Rs 5284.83 crore. The cost-to-income ratio was higher at 39.1% in FY2024 from 36.3% in FY2023. Depreciation rose 3% to Rs 114.77 crore, while provisions declined 16% to Rs 2141.03 crore. Profit before tax jumped 42% yoy basis at Rs 3029.03 crore. The exceptional income/expense was nil in FY2024 compared with exceptional expenses of Rs 2687.17 crore in FY2023. Effective tax rate increased was at 23.5% in FY2024. Net Profit of the company, after share in profit of associates and non-controlling interest, improved 43% to Rs 2320.10 crore for FY2024.
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L&T Finance:
Consolidated Results
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Particulars
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2406 (3)
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2306 (3)
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Var %
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2403 (12)
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2303 (12)
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Var %
|
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Income from operations
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3452.62
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3116.49
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11
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12913.93
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12565.11
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3
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Other Income
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331.99
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260.29
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28
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1141.19
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736.59
|
55
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|
Total Income
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3784.61
|
3376.78
|
12
|
14055.12
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13301.70
|
6
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|
Interest Expended
|
1351.41
|
1363.76
|
-1
|
5377.19
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5797.24
|
-7
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|
Operating Expense
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937.17
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748.62
|
25
|
3393.10
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2722.16
|
25
|
|
Operating Profits
|
1496.03
|
1264.40
|
18
|
5284.83
|
4782.30
|
11
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Depreciation /
Amortization
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28.44
|
29.59
|
-4
|
114.77
|
111.24
|
3
|
|
Provisions and
Write-offs
|
545.32
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521.23
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5
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2141.03
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2540.41
|
-16
|
|
Profit before EO
|
922.27
|
713.58
|
29
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3029.03
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2130.65
|
42
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Exceptional Item
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0
|
0
|
-
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0
|
-2687.17
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-
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PBT after EO
|
922.27
|
713.58
|
29
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3029.03
|
-556.52
|
LP
|
|
Tax Expense
|
237.02
|
183.06
|
29
|
711.90
|
172.37
|
313
|
|
Net Profit for the
period
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685.25
|
530.52
|
29
|
2317.13
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-728.89
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LP
|
|
Share in profit/(loss)
of associate company
|
0.00
|
0.00
|
-
|
0.00
|
0.00
|
-
|
|
Profit attributable to
non-controlling interest
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-0.26
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-0.41
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-37
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-2.97
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-86.77
|
-97
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PAT
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685.51
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530.93
|
29
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2320.10
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-642.12
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LP
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PPA
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0.00
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0.00
|
-
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0.00
|
2265.37
|
-
|
|
PAT after PPA
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685.51
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530.93
|
29
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2320.10
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1623.25
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43
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EPS* (Rs)
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11.0
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8.5
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9.3
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7.3
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Adj BV (Rs)
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91.7
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85.3
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91.5
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82.1
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* Annualized on
current equity of Rs 2489.84 crore EO and relevant tax. Face Value: Rs 10,
Figures in Rs crore
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PL: Profit to Loss,
LP: Loss to Profit
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Source: Capitaline
Corporate Database
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