L&T Finance Q3 result: PAT down 2% to Rs 626 cr on rise in impairment costs

Its Net Interest Margin + Fees & Other Income stood at 10.33 per cent for Q3Fy25 down from 10.93 per cent in Q3Fy24, according to Analysts presentation

L&T Finance Ltd’s consolidated net profit declined by 2 per cent year-on-year (Y-o-Y) to Rs 626 crore for the quarter ended December 2024 (Q3FY25), reflecting pressure on net interest margins (NIMs) and a rise in impairment costs.

 

The company's net interest margin, along with fees and other income, stood at 10.33 per cent for Q3FY25, down from 10.93 per cent in Q3FY24, according to its analysts' presentation.

 

Commenting on the results, Sudipta Roy, managing director and chief executive officer of L&T Finance, said, “Despite certain macro challenges within the microfinance sector, we have managed the situation effectively. We are hopeful that the environment will be much better over the next couple of quarters.”  ALSO READ: HDFC Bank Q3 Preview: Analysts estimate weak profit growth; NIM, NPA eyed

 

The company’s consolidated loan book grew by 16 per cent Y-o-Y to Rs 95,120 crore from Rs 81,780 crore a year ago. Within this, the retail loan book expanded by 23 per cent Y-o-Y to Rs 92,224 crore.

 

Impairment on financial instruments more than doubled to Rs 729 crore in Q3FY25, compared to Rs 336.65 crore in Q3FY24.

 

To manage the challenging business environment in rural group loans (RGL) and the microfinance business (MFI), the company utilised Rs 100 crore from its macro-prudential provision corpus of Rs 975 crore, which was created during FY21 and FY22 in response to the Covid-19 pandemic.

 

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