 "L&T Finance Holdings hits record high on stellar Q1 results")
L&T Finance Holdings (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.
“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.
One subscription. Two world-class reads.
Already subscribed? Log in
Subscribe to read the full story →*Subscribe to Business Standard digital and get complimentary access to The New York Times
Smart Quarterly
₹900
3 Months
₹300/Month
SAVE 25%
Smart Essential
₹2,700
1 Year
₹225/Month
SAVE 46%
*Complimentary New York Times access for the 2nd year will be given after 12 months
Super Saver
₹3,900
2 Years
₹162/Month
Subscribe
Renews automatically, cancel anytime
Here’s what’s included in our digital subscription plans
Exclusive premium stories online
Over 30 premium stories daily, handpicked by our editors
Complimentary Access to The New York Times
News, Games, Cooking, Audio, Wirecutter & The Athletic
Business Standard Epaper
Digital replica of our daily newspaper — with options to read, save, and share
Curated Newsletters
Insights on markets, finance, politics, tech, and more delivered to your inbox
Market Analysis & Investment Insights
In-depth market analysis & insights with access to The Smart Investor
Archives
Repository of articles and publications dating back to 1997
Ad-free Reading
Uninterrupted reading experience with no advertisements
Seamless Access Across All Devices
Access Business Standard across devices — mobile, tablet, or PC, via web or app
SAVE 25%