L&T Finance Holdings consolidated net up 28% to Rs 342 crore in Q4

For FY22, its consolidated net profit rose by 10% to Rs 1,070 crore; board has recommended a dividend of Rs 0.50 a share

L&T Finance Holdings Ltd’s consolidated net profit rose 28.1 per cent to Rs 342 crore in the fourth quarter ended March 2022 (Q4FY22) from Rs 267 crore in a year ago quarter (Q4FY21).

For FY22, its consolidated net profit rose by about 10 per cent to Rs 1,070 crore from Rs 971 crore for FY21.

The board has recommended a dividend of Rs 0.50 per share of Rs 10 face value for FY22, the company informed BSE. Its stock closed 0.6 per cent lower at 87.55 per share.

The firm's net interest margin plus fees were flat at 8.17 per cent in Q4FY22 compared to Q4FY21.

Its gross non-performing assets (NPAs) declined to 3.8 per cent at end of March 2022 from 4.97 per cent a year ago. The provision coverage ratio was 48 per cent in Q422, as against 69 per cent a year ago. Net NPAs inched up to 2 per cent from 1.57 per cent in March 2022.

Its holds additional provisions of Rs 1,727 crore (2.1 per cent of standard assets) over and above GS3 provisions and those in the form of Expected Credit Loss on standard assets.

The company intends to scale down the share of wholesale business–-real estate and infrastructure finance--over 18-24 months and increase the retail loan business. The share of the retail portfolio mix rose to 51 per cent in Q4FY22 from 43 per cent in Q4FY21, the company said in a statement.

Dinanath Dubhashi, Managing Director & CEO, L&T Finance Holdings, said the firm's retail disbursements are at an all-time high, owing to sustained focus on business strengths and integration of data analytics in the decision-making process. It is looking to become a retail finance company with over 80 per cent retail book by 2026.

Overall capital adequacy was 22.9 per cent with tier-1 at 19.7 per cent at end of FY22 as against 23.8 per cent with tier I of 18.79 per cent in FY21.