L&T Finance Q2FY25 results: Consolidated net up 17% at Rs 696 crore

Warns on persisting headwinds; may calibrate growth; credit costs rise

L&T Finance Ltd (LTF) posted a 17 per cent year-on-year (Y-o-Y) growth in consolidated net profit to Rs 696 crore in the second quarter ended September 2024 (Q2FY25), on the back of healthy net interest margins (NIM) plus fees. Its consolidated net profit was Rs 595 crore in Q2FY24.
 
Sequentially, its net profit rose minimally over Rs 686 crore in the quarter ended June 2024 (Q1FY25).
 
Its NIM plus fees inched up marginally by two basis points to 10.86 per cent in Q2FY25 from 10.84 per cent in Q2FY24. However, they declined by 22 basis points from 11.08 per cent in Q1FY25, according to LTF's analyst presentation filed with the stock exchange BSE. Its stock closed 0.27 per cent higher at Rs 166.65 on BSE on Friday.

 

Reflecting signs of building stress, its credit costs rose to 2.59 per cent in Q2FY25 from 2.58 per cent a year ago. Sequentially, they rose by 22 basis points from 2.37 per cent in Q1FY25.
 
Gross non-performing assets (NPAs) declined to 3.19 per cent in Q2FY25 from 3.27 per cent in Q2FY24. However, net NPAs rose to 0.96 per cent in Q2FY25 from 0.82 per cent a year ago.
 
The consolidated loan book grew by 18 per cent Y-o-Y to Rs 93,015 crore at the end of September 2024 from Rs 78,734 crore a year ago.
 

Sudipta Roy, managing director and chief executive, LTF, said in a statement that the company has been able to demonstrate sustainable growth and profits through proactive portfolio management and persistent collection strategies. The second quarter of the current financial year has been challenging on account of multiple sectoral headwinds and a volatile macro environment.
 
“Looking ahead, we expect that the sectoral challenges may persist for the next two quarters, and, in response, we may dynamically recalibrate our business objectives in the coming quarters, prioritising positive credit outcomes over assets under management growth,” he added.