L&T Finance Holdings Q2 net rises 17% to Rs 181.63 cr

L&T Finance Holdings today reported a 16.63% increase in consolidated net profit for the quarter ended September 30 at Rs 181.63 crore on the back of improved operating performance.

The company had reported a net profit of Rs 155.72 crore a year ago.

Its total income for the July-September quarter grew 26% to Rs 1,551.80 crore from Rs 1,232.09 crore in the same period last fiscal.

"The profit growth was supported by strong operating performance on net interest margins and operating cost ratios," the company said in a release.

During the quarter, the company's loans and advances increased to Rs 42,760 crore as compared to Rs 35,459 crore a year-ago.

"This growth has been enabled by healthy disbursements in the B2C segments of the retail business like microfinance, rural products finance, personal vehicle finance and housing finance while retaining the focus on operational assets in the wholesale business," it said.

The investment management business witnessed the average assets under management (AAUM) growing by 37% on a y-o-y basis to Rs 20,673 crore, while the average equity assets rose by 42% to Rs 6,644 crore on the back of NFOs/positive net sales as well as market performance.

"We continue to see healthy asset accretion on the back of robust disbursements to operating projects in the wholesale business and B2C products in the retail business. Increasing margins in the retail business are a reflection of the shift in product mix towards high yield assets, while sustained focus on collections has led to stabilisation in asset quality," Chairman and Managing Director Y M Deosthalee said.