Tough calls deliver big payoff at L&T Finance

Leaner business, focus on return ratios make the company an attractive bet

In an industry where it is tough to trim business verticals, L&T Finance Holdings has set an example of taking bold decisions. Until a year ago, the company was reckoned as an all-in-one financier. From there, it has axed more than half of its verticals, reducing its operations from 22 business verticals to just three major segments. It let go of lending, commercial vehicles, construction equipment, cars, leases, small and medium enterprises, etc.
 
This business re-engineering was done with the objective of improving its return on equity (ROE), and the company has set a target of 20 per cent