L&T Finance Q1 results: Consolidated net up 29% on healthy margins, fees

L&T Finance Ltd (LTF) posted a 29 per cent year-on-year (YoY) growth in consolidated net profit at Rs 686 crore in the first quarter ended June 2024 (Q1FY25), on the back of healthy net interest margins (NIM) and fees. Its net profit was Rs 531 crore in Q1FY24.

LTF, the lending unit of engineering conglomerate Larsen and Toubro Ltd, posted a 23 per cent YoY growth in consolidated Net Interest Income (NII) at Rs 2,020 crore in Q1FY25, up from Rs 1,644 crore a year ago.

Its NIM plus fees and other income improved by 144 basis points to 11.08 per cent in Q1FY25 from 9.64 per cent in Q1FY24, LTF said in a statement.

The consolidated loan book size grew by 13 per cent YoY to Rs 88,717 crore at the end of June 2024 from Rs 78,566 crore a year ago.

Elaborating on segment-wise performance, the company said the disbursement in Rural Business Finance was Rs 5,773 crore in Q1FY25, up 28 per cent YoY. The outstanding book saw 31 per cent YoY growth at Rs 25,887 crore at the end of June 2024.

The growth was aided by the deepening of the customer acquisition funnel, both horizontally through expansion into newer locations and vertically through increasing the number of customers across existing locations, it added.

In the farmer finance business, the disbursements were up 8.0 per cent YoY to Rs 1,903 crore in Q1FY25. The outstanding book also grew by 8 per cent to Rs 14,204 crore in Q1FY25 from Rs 13,125 crore a year ago. The growth was aided by steady disbursement while the industry growth remained flat, LTF said.

In the housing finance and Loans Against Property (LAP) segment, the disbursements were up 73 per cent to Rs 2,245 crore in Q1FY25 from Rs 1,299 crore in Q1FY24. The outstanding loan book grew 42 per cent to Rs 19,961 crore.

Its asset quality improved with gross non-performing assets (NPAs) decreasing to 3.14 per cent in Q1FY25 from 4.04 per cent in Q1FY24.