L&T Finance Holdings Q1 net profit rises 71% to Rs 5.38 billion

L& T Finance Holdings on Friday said its net profit grew 71 per cent to Rs 5.38 billion for the quarter ended June 2018 (Q1), compared to Rs 3.14 billion a year ago. The finance arm of Larsen & Toubro has prepared financial statement for Q1 according to the new accounting rules Indian Accounting Standards, which came into effect from April 1, 2018.

Its loan book comprising rural, housing and wholesale segment grew 27 per cent to Rs 853.80 billion at the end of June 2018.

In line with the new accounting norms, LTFH’s legacy Infrastructure stressed asset portfolio now carries provisions of Rs 30 billion, against total portfolio of Rs 50 billion. Of the Rs 30 billion, the finance company was already carrying nearly Rs 12 billion of provisions as of March 31, 2018, under the old accounting rules. The remaining Rs 18 billion has been made in the first quarter of the current financial year.