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L&T Finance Holdings Ltd.

BSE: 533519 Sector: Financials
NSE: L&TFH ISIN Code: INE498L01015
BSE 00:00 | 18 Oct 85.35 -0.20
(-0.23%)
OPEN

86.70

HIGH

86.70

LOW

83.80

NSE 00:00 | 18 Oct 85.40 -0.20
(-0.23%)
OPEN

86.00

HIGH

86.50

LOW

83.75

OPEN 86.70
PREVIOUS CLOSE 85.55
VOLUME 1963540
52-Week high 159.20
52-Week low 78.60
P/E 75.53
Mkt Cap.(Rs cr) 17,074
Buy Price 85.35
Buy Qty 15.00
Sell Price 85.35
Sell Qty 35.00
OPEN 86.70
CLOSE 85.55
VOLUME 1963540
52-Week high 159.20
52-Week low 78.60
P/E 75.53
Mkt Cap.(Rs cr) 17,074
Buy Price 85.35
Buy Qty 15.00
Sell Price 85.35
Sell Qty 35.00

L&T Finance Holdings Ltd. (L&TFH) - Chairman Speech

Company chairman speech

Dear Shareholder

Macroeconomic Overview

India has re-established its position as the fastest growing nation on earth. Thegrowth of 6.6% in FY18 was achieved by overwhelming the effects of demonetization inNovember 2017 and transitory challenges of a new tax (GST) system. The economy recoveredsignificantly in the second half of FY18 thanks to the buoyancy in agriculture andincreased government spending on public administration and construction projects (esp.roads).

FY19 remains sensitive to higher crude oil prices and tighter financial conditions.With the base level of US $ 2.5 trillion and a consensus growth expectation of ~7.5% withan upward trajectory the economy is well poised to touch the 5 trillion levels in 2025.

FY2018 in Perspective

The year FY18 was the second year of successful execution of a strategy aimed at takingReturn on Equity (RoE) from below 10% to sustainable top quartile level in the industry.This strategy is successfully executed through a combination of clear management intentan efficient and well-oiled execution engine and an evolving result-oriented culture.

For FY18 disbursements went up by 68% whereas focused loan book grew by 28% from Rs63978 cr. on March 31 2017 to Rs 82114 cr. on March 31 2018.

The Average AUM of the Mutual fund business went up from Rs 39300 cr. in FY17 to Rs65932 cr. in FY18. For the Wealth management business Average AUS increased from Rs13623 cr. in FY17 to Rs 18347 cr. in FY18. This remarkable growth helped turn our assetmanagement businesses.

Our asset quality improved substantially with Gross NPAs at 4.80% on March 31 2018 vs7.11% on March 31 2017. Remarkably Net NPAs showed a marked improvement YOY from 5.02%to 2.34%. Conservative provisioning policy and a sharp and relentless focus on collectionson due dates led to these outcomes. We are hawkishly monitoring this aspect of yourCompany's activities.

The Company's investments in digital and data analytics have started yielding results.Our TAT improved substantially which resulted in increase in market share across products.The investments also resulted in substantial productivity gains causing cost to incomeratio reduction from 26% in FY17 to 23% in FY18.

RoE increased to 15.03% for FY18 from 12.31% in previous year. This RoE is deliveredafter raising Rs 3000 cr. through Preferential allotment to our parent and QIP. I wouldalso like to thank Larsen and Toubro Ltd and all investors for showing their support tous.

Clear focus on strategy

Our strategy of achieving top quartile RoE through the three pronged strategy of RightBusinesses Right Structure and Right People remains relevant and robust even after twoyears. Excellent growth in focused businesses excellent fee income stream strict costcontrol and improvement in asset quality with accelerated provisioning is leading to anexcellent and sustainable trajectory of RoE improvement.

We will continue to improve our competitive position in each of our businesses furthersimplify our systems processes & structures and continue to attract nurture andretain the right talent to implement this roadmap.

Our future will continue to be guided by these simple percepts. We are in it for thelong haul.

Our massive investments in a strong digital and data analytics roadmap capturing everyaspect of the customer journey are targeted to help us achieve seamless customeron-boarding efficiency and productivity gains. Data intelligence will be used to unlockevery part of RoE tree. Our commitment is to build a Company which delivers sustainableRoE for years through a culture of "Results" not "Reasons".

I take this opportunity to thank all the shareholders for continued faith in us. I alsothank my colleagues on the Board for their valuable contribution and all the employees fortheir unflinching efforts towards building this institution.

Shailesh Haribhakti