L&T Finance Holdings Q4 net up 15% at Rs 237 crore

Growth has been led by healthy disbursements in areas like operational projects in renewable energy, roads and retail products

L&T Finance Holdings posted a 15 per cent increase in its consolidated net profit for the March 2016 quarter at Rs 237 crore. It had posted a net profit of Rs 206 crore in the January-March 2015 quarter.

The company's total income rose to Rs 2,011 crore in the quarter under review from Rs 1,671 crore a year ago.

Its net profit for FY16 rose 16 per cent to Rs 857 crore from Rs 855 crore in FY15. Total income grew to Rs 7,471 crore in FY16 from Rs 6,337 crore in the previous year. The board recommended dividend of Rs 0.80 per equity share (of Rs 10 face value) for 2015-16. The company's share closed five per cent higher at Rs 75 apiece on the BSE on Monday.

Growth in profits has been a result of consistent and steady improvement in key operating parameters. The stabilisation in the overall asset quality in the lending business and positive contribution by the asset management business also added to the bottom line, the company stated.

Y M Deosthalee, chairman and managing director of L&T Finance Holdings, said growth in loans and advances was healthy. He noted that profits rose despite the slower-than-expected pick-up in the overall economy and significant cash-flow pressures in the rural markets.

Loans and advances grew 22 per cent to Rs 57,831 crore at the end of March 2016 from Rs 47,232 crore in FY15. This was despite the company moderating its growth in farm equipment business due to challenging environment.  The growth was led by healthy disbursements in focus areas such as operational projects in renewable energy, roads and retail products.