L&T Finance vaults on strong Q4 outcome

L&T Finance Holdings declared Q4 and year ended 31 March 2013 results during market hours today, 25 April 2013.

Meanwhile, the BSE Sensex was up 165.90 points or 0.83% at 19,338.31.

On BSE, 17.82 lakh shares were traded in the counter as against average daily volume of 5.08 lakh shares in the past one quarter.

The stock hit a high of Rs 82.60 and low of Rs 78.75 so far during the day. The stock had hit a record high of Rs 97.35 on 19 December 2012. The stock had hit a 52-week low of Rs 40.35 on 15 May 2012.

The stock had outperformed the market over the past one month till 23 April 2013, rising 11.14% compared with the Sensex's 2.37% rise. The scrip, however, underperformed the market in past one quarter, falling 8.11% as against Sensex's 4.23% fall.

The large-cap company has equity capital of Rs 1716.76 crore. Face value per share is Rs 10.

L&T Finance Holdings consolidated net profit rose 60.6% to Rs 730.5 crore on 32.73% growth in income from operations to Rs 3956.75 crore in the year ended 31 March 2013 over the year ended 31 March 2012.

L&T Finance Holdings said that exceptional items during the year represent gains of Rs 237.92 crore on account of sale of investment in Federal Bank and expenditure of Rs 19.93 crore incurred towards acquisition of L&T Fund Management (formerly: FIL Fund Management) and L&T Housing Finance (formerly: Indo Pacific Housing Finance).

L&T Finance Holdings said loans & advances as on 31 March 2013 grew by 29.8% year on year to Rs 33309.1 crore and by 6.6% as compared to Rs 31230.5 crore as on 31 December 2012.

Gross non performing assets (NPA) stood at 2.03% of loan assets as on 31 March 2013 as compared to 2.39% as on 31 December 2012. Net NPAs stood at 1.26% of loan assets as on 31 March 2013 as compared to 1.56% as on 31 December 2012.

Net NPA stood at 1.26% as a percentage of gross advances as on 31 March 2013 as against 1.17 % as on 31 March 2012 and 1.56% as on 31 December 2012.

During the Q4 March 2013, the company made additional provisions of Rs 13.9 crore against loan assets of Micro-finance portfolio in Andhra Pradesh covering the entire outstanding portfolio.

In terms of outlook, L&T Finance Holdings said that credible and stable signs of improvement in the business environment are yet to show up. We expect that the various policy initiatives being undertaken by the government to revive the capex cycle will yield positive results by the second half of the FY14 fiscal, the company added. This is expected to result in better growth in disbursements enabling book growth. Margins are expected to be stable or witness a marginal improvement due to the likely improvement in the interest environment. Asset quality continues to be under stress and may show improvement in the second half of FY14, it added

L&T Finance Holdings said that focus on project loans and longer tenure term loans enabled robust growth in loan assets despite slower growth in disbursements. The disbursement growth on a yearly basis is a reflection of the general slowdown in the economy, absence of new capex cycle and stretched working capital cycles.

L&T Finance Holdings said that it continues to follow a cautious approach to credit selection and consequently disbursements in corporate, auto and construction equipment segments have been impacted. For the year, while the disbursements in construction equipment and commercial vehicle segments witnessed a de-growth of 31.4% and 40.3% respectively, the rural products finance and infrastructure financing for the transportation sector showed healthy growth, the company said.

L&T Finance Holdings 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 direct and indirect wholly-owned subsidiaries.

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