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L&T Finance Holdings hits record high on stellar Q1 results

So far in 2017, the stock surged 95%, as compared to 26% rise in the S&P BSE Sensex

SI Reporter  |  Mumbai 

Tough calls deliver big payoff at L&T Finance

(LTFH) hit its record high of Rs 170, up 6%, extending its 4% gains on BSE, after reported 49% year-on-year (YoY) growth in consolidated net profit at Rs 309 crore in June quarter (Q1FY18),led by strong earnings momentum in housing and investment management business. The company had a profit of Rs 207 crore in a year ago quarter.

“Assets quality of the company also improved with gross non-performing assets (GNPA) has reduced by 18% - from Rs 4,519 crore to Rs 3,698 crore. With improved provision coverage, NNPA% has seen a sharp reduction from 5.02% in Q4FY17 to 3.31% in Q1FY18,” LTFH said in a release.

Return on Equity (RoE) improved by 385 bps – 13.63% in Q1FY18 as against 9.78% in Q1FY17.

“With increase in profitability supported by a strong balance sheet, I believe that we are now at a juncture, where the strategic roadmap towards a top quartile RoE can be accelerated by “Growing Fearlessly”,” said Dinanath Dubhashi, Managing Director & CEO, LTFH.

Over past five quarters LTFH has shown commendable progress on its well articulated strategy. Cost control, increased sell down and strengthening the digital/analytics capabilities remain the key focus area even as the company aims to achieve top quartile RoE by 2020 or "earlier", according to analysts at Antique Stock Broking.

So far in 2017, the stock has outperformed the market by surging 95%, as compared to 22% rise in the S&P BSE Sensex.

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