L&T Finance Holdings Q3 results: Net profit up 41% at Rs 640 crore

L&T Finance Holdings Ltd’s (LTFH) consolidated net profit rose by 41 per cent year-on-year to Rs 640 crore in the third quarter ended December 2023 (Q3 FY24), on the back of robust business performance and strong net interest margins (NIMs) and fees. It had posted a net profit of Rs 453 crore in Q3 FY23.

Its Net Interest Income (NII) on a consolidated basis grew by 8 per cent Y-o-Y to Rs 1,833 crore in Q3 FY24 as against Rs 1,693 crore in the quarter ended December 2022 (Q3 FY23). Its NIMs plus Fees improved to 10.93 per cent in Q3 FY24 from 8.80 per cent in Q3 FY23. Its stock closed 4.34 per cent lower at Rs 159.75 per share on the Bombay Stock Exchange (BSE).

Sachinn Joshi, Chief Financial Officer, LTFH, said the company is guiding for higher NIMs plus fees in the range of 11.25-11.50 per cent on the back of better yield on the retail credit. The retail loan book grew by 31 per cent Y-o-Y to Rs 74,759 crore at the end of December 2023 from Rs 57,000 crore in Q3 FY23. The company would work to maintain over 25 per cent Y-o-Y growth in the retail loan book.

The share of retail advances in the total book stands at 91 per cent, which is higher than the 80 per cent target, as envisaged for 2026. Now the company has revised the target for the retail book's share to 95 per cent, Joshi added.

Its credit costs declined to 2.52 per cent from 2.67 per cent a year ago.