L&T Finance Holdings gains after strong Q3 numbers

L&T Finance Holdings rose 3.09% to Rs 71.65 at 9:17 IST on BSE after consolidated profit after tax jumped 65.56% to Rs 181.60 crore on 23.19% growth in total income to Rs 1611.52 crore in Q3 December 2014 over Q3 December 2013.

The Q3 result was announced after trading hours yesterday, 21 January 2014.

Meanwhile, the S&P BSE Sensex was up 109.16 points or 0.38% at 28,998.02.

On BSE, so far 31,000 shares were trading on the counter as against average daily volume of 6.10 lakh shares ni the past one quarter.

The stock hit a high of Rs 71.90 and a low of Rs 71.20 so far during the day.

L&T Finance Holdings (LTFH)'S loans & advances as on 31 December 2014 grew by 20% year on year (y-o-y) to Rs 45225 crore as compared to Rs 37820 crore as on 31 December 2013. The growth in loans & advances was aided by strong disbursement growth of 32% on a y-o-y basis across B2C products i.e. tractors, two wheelers, housing and microfinance in the retail business and operational projects in renewables, roads and non-infrastructure segments in the wholesale business.

On absolute basis, gross non-performing assets (NPA) edged up to Rs 1326.58 crore as on 31 December 2014, from Rs 1228.22 crore as on 30 September 2014 and Rs 1067.16 crore as on 31 December 2013. Gross NPA stood at 3.01% as a percentage of gross advances as on 31 December 2014, higher than 2.96% as on 30 September 2014. Net NPA stood at 1.98% as a percentage of gross advances as on 31 December 2014, lower than 2% as on 30 September 2014.

LTFH said that the company continued to make additional provisions in Q3 December 2014, increasing the provision coverage to 35% at the consolidated level. In line with the conservative provisioning policy, the company carries about Rs 190 crore of provisions in excess of RBI norms, LTFH said.

The investment management business continued to see accretion of equity assets on the back of both market movement and improved gross and net sales, LTFH said.

LTFH said that the focus of the management in the near term will remain on strengthening the balance sheet and be prepared to effectively take advantage of the upcoming growth cycle. After a significant asset accretion in the wholesale business in Q3 December 2014, the management expects a slight moderation in the company's asset growth in Q4 March 2015 on the back of sell down of certain underwritten projects. LTFH expects to achieve a healthy asset growth of around 20% for this financial year.

LTFH is a financial holding company offering a diverse range of financial products and services across the corporate, retail and infrastructure finance sectors, as well as mutual fund products and investment management services, through its wholly-owned subsidiaries.

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