L&T Finance shares climb 3% post robust Q1 show; net profit jumps 29% YoY

L&T Finance shares soared up to 3 per cent, at Rs 189.85 per share on the BSE in Thursday's intraday deals. The stock price moved upwards after the company reported a stong quarterly earnings in the April-June quarter of fiscal year 2024-25 (Q1FY25)

The company reported a 29 per cent year-on-year (Y-o-Y) increase in consolidated net profit to Rs 686 crore for Q1FY25, aided by strong net interest margins (NIM) and fee income. In the same period last year, its net profit stood at Rs 531 crore.

The lending unit of Larsen and Toubro Ltd also achieved a 23 per cent Y-o-Y growth in consolidated Net Interest Income (NII) to Rs 2,020 crore in Q1FY25, up from Rs 1,644 crore a year ago. The consolidated loan book size expanded by 13 per cent Y-o-Y to Rs 88,717 crore as of June 2024, compared to Rs 78,566 crore a year earlier.

Detailing segment-wise performance, LTF registered a 28 per cent Y-o-Y increase in disbursements in Rural Business Finance, totaling Rs 5,773 crore in Q1FY25. The outstanding book in this segment grew by 31 per cent Y-o-Y to Rs 25,887 crore by the end of June 2024.

Asset quality also improved, with gross non-performing assets (NPAs) declining to 3.14 per cent in Q1FY25 from 4.04 per cent in Q1FY24.

The company attributed its growth to expanding customer acquisition horizontally into new locations and vertically by increasing its customer base in existing locations. 

The company has a total market capitalisation of Rs 46,236.32 crore, according to BSE. The company’s shares are trading at a price to earnings multiple of 36.84 times with an earning per share of Rs 5.

At 09:56 AM, shares of L&T Finance were trading 0.71 per cent higher at Rs 185.55 per share. In comparison, the BSE Sensex was trading 0.11 per cent higher at 80,808 levels.