L&T Finance Holdings Q4 net up 94% to Rs 548 cr on rising interest margins

The net interest margins (NIMs) rose to 5.08% in Q4 Fy19 from 4.64% in Q4Fy18.

L&T Finance Holdings Ltd’s (LTFH) consolidated net profit rose by 94 per cent to Rs 548 crore for fourth quarter ended March 2019 (Q4Fy19) on rise in interest margins.

It has posted a net profit of Rs 282 crore in fourth quarter ended March 2018 9Q4Fy18).

The net interest margins (NIMs) rose to 5.08 per cent in Q4 Fy19 from 4.64 per cent in Q4Fy18.

The finance company’s consolidated net profit for Fy19 rose by 77 per cent at Rs 2,226 crore for FY19 from Rs 1,255 crore in FY18.

The Return on Equity (ROE) for Q4FY19 stood at 16.57 per cent. For FY19, RoE stands at 17.92 per cent as against 15.73per cent in FY18.  This sustained delivery RoE in FY19 was made possible through focus on retailisation, prudent liquidity management, growth in NIMs plus Fee Income, diversification of funding sources, LTFH said in a statement today.

LTFH's assets rose by 17 per cent from Rs 83,793 crore in Fy18 to Rs 98,274 crore in FY19. It focussed on three lending businesses was Rural Finance, Housing Finance and Wholesale Finance.
 

The growth in Rural Finance was contributed by all three businesses – Farm Equipment Finance, Two-Wheeler Finance and Micro Loans. It grew by 50 per cent to Rs 25,577 crore at end of March 2019.

LTFH’s growth in Housing Finance has been primarily contributed by retail home loans. Housing finance portfolio rose by 34 per cent to Rs 25,519 crore.

The wholesale finance business shrunk by one per cent at Rs 47,178 crore.

The finance company has reduced focus on areas --structured finance, supply chain finance and DCM, have been deemphasized.

In its Investment and Wealth Management businesses, Average Assets under Management (AAUM) rose by eight per cent to Rs 70,944 crore in Q4FY19 from Rs 65,932 crore in Q4FY18.