L&T Finance Q2 net profit rises 17% to Rs 696 crore

 L&T Finance Ltd, a non-banking finance company (NBFC) for the second quarter ended September 30, 2024 reported net profit of ₹696 crore as compared with Rs. 595 crore in the year ago period, up 17%.

It maintained Net Interest Margins (NIMs) plus fees stable at 10.86%

The company’s consolidated book size at ₹93,015 crore as compared with ₹78,734 crore in the same period last year grew 18%.

Return on Assets (RoA) improved to 2.60%, up from 2.42%, representing an increase of 18 basis points (bps) Year on Year (YoY) and Return on Equity (RoE) stood at 11.65% as compared with 10.81%, up 84 bps YoY. 

Retail disbursements for quarter stood at Rs. 15,092 crore, reflecting a 12% YoY increase. Consolidated loan book grew by 18% YoY, reaching its highest since the first quarter of the fiscal ended March 31, 2020, the company said in a filing. 

The company’s retail portfolio grew 28% to ₹88,975 crore.

Sudipta Roy, Managing Director & CEO, L&T Finance said, “Our company has been able to demonstrate sustainable growth and profits through proactive portfolio management and persistent collection strategies. The second quarter of the current financial year has been challenging on account of multiple sectoral headwinds and a volatile macro environment.”

“Looking ahead, we expect that the sectoral challenges may persist for the next two quarters and apropos to the same, we may dynamically recalibrate our business objectives in the coming quarters, prioritizing positive credit outcome over assets under management growth.”

Published - October 18, 2024 08:20 pm IST