L&T Finance shares plunge 8% post Q4 earnings; results breakdown here

Shares of L&T Finance Ltd. plunged over 8 per cent in Monday's intraday trade, even after it reported a 15 per cent rise in consolidated net profit in the final quarter of the financial year 2024-25. 

 

L&T Finance stock fell as much as 8.55 per cent during the day to ₹158.2 per share, the worst intraday session since April 7 this year. The stock pared losses to trade 2.64 per cent lower at ₹168 apiece, compared to a 1.22 per cent advance in Nifty50 as of 12:43 PM. 

 

The company's scrip extended its decline to day three on Monday. Before the crash in the stock today, it recovered by about 30 per cent from its lows of ₹139 per share, earlier this month. The stock has risen 22 per cent this year, compared to a 2.8 per cent advance in the benchmark Nifty50. L&T Finance has a total market capitalisation of ₹41,414.81 crore. 

 

 

L&T Finance Q4FY25 results

 

The non-bank lender reported a 15 per cent rise in consolidated net profit to ₹636 crore for the January-March quarter of 2024-25. The company had earned a net profit of ₹554 crore in the corresponding quarter of the previous financial year.

 

During the quarter, the NBFC's total income increased to ₹4,027 crore from ₹3,676 crore a year ago. Interest income grew to ₹3,750 crore during the period under review, from ₹3,323 crore in the corresponding quarter a year ago. Retail disbursements rose to Rs 14,899 crore as compared to Rs 15,044 crore in the last quarter of the previous year.

 

 

L&T Finance foray into gold loans 

 

The lender intends to enter the gold loan segment and has signed a business transfer agreement with Paul Merchants Finance Private Limited for the proposed acquisition of their gold loan business undertaking through a slump sale on a going-concern basis, subject to the fulfilment of customary closing conditions.

 

The company stated that the acquisition aligns with its strategy to expand its secured, high-yielding loan portfolio. It is expected to accelerate the scaling of its gold loan business by approximately 36 months, offering a high-quality, profitable gold loan franchise with an attractive return on assets profile at a favourable valuation.