L&T Finance Holdings today reported over 25% growth in consolidated net profit to Rs 120.7 crore for the quarter ended June 2012, driven by healthy 37% growth in advances.
L&T Finance Holdings is the financial services arm of the engineering and construction major Larsen & Toubro (L&T).
"A healthy 37% growth in assets to Rs 26,184.34 crore from Rs 19,103.20 crore a year ago saw our consolidated net profit growing 25.34% to Rs 120.67 crore, reflecting stable net interest margin," the only listed arm of the L&T Group said in a statement.
During the same quarter in the previous fiscal, the company had reported a net income of Rs 96.28 crore.
Advances grew by 37.06% to Rs 26,184.34 crore as on June 30 compared to Rs 19,103.20 crore a year ago.
During the quarter, the gross non-performing assets marginally dipped to 1.63 percent at Rs 416.37 crore of loan assets against 2.26 percent a year ago or Rs 419.55 crore (excluding micro finance).
The company made a provision of Rs 37.41 crore against non-performing loans, including Rs 14.42 crore for the Andhra micro-finance portfolio against Rs 19.93 crore year-on-year, the company said.
There was also an additional provision of Rs 16.83 crore in L&T Infra on account difficult macro environment.
The increase in gross NPA was primarily as a result of stress in the economic environment.
L&T Finance (including L&T FinCorp), despite a substantial growth in the loan book, maintained its gross NPA at similar levels as last year. In addition to provision for NPAs, L&T Infra carries additional provision of Rs 37.46 crore as a measure of caution, it said.
