L&T Finance Holdings net profit jumps 102.6% in Q1
₹530.93 crore for the first quarter of FY24, from ₹262 crore a year ago, on the back of steady growth in net interest margins. The company’s revenue from operations increased 7.86% to ₹3,223.3 crore in the June quarter of FY24, from ₹2,988.4 crore in Q1 FY23. “We have achieved retailization of 82% in Q1 FY24 itself, much ahead of the Lakshya 2026 goal of greater than 80% retailization.
In fact, we have been able to achieve most of our Lakshya 2026 goals almost three years in advance," said Dinanath Dubhashi, managing director and chief executive, L&T Finance Holdings Ltd. “This achievement is attributed to the twin strategy of strongly growing the retail asset book on one side and ensuring a sharp reduction in the wholesale book on the other, while maintaining best in class asset quality," Dubhashi added. The company's net interest income increased 5.76% year-on-year to ₹3,116.5 crore in the April-June quarter from ₹2,946.6 crore in the same quarter last fiscal.
Its net interest margin (NIM) plus fees came at 11.71% , up 14 basis points (bps) y-o-y. Its credit cost came at 2.78% in Q1 FY24, down from 5.03% a year ago. LTFH reported improved retail asset quality with gross stage 3 (GS3) at 3.21% and net stage (NS3) at 0.70%, with provision coverage ratio of 79% in the first quarter of FY24, according to its press release.
“The company will continue to develop digital finance delivery as a customer value proposition, thereby touching every part of the customer ecosystem through our digital offerings," said Dubhashi. The company also stated that it recorded strong quarterly retail disbursements at ₹11,193 crore in Q1 FY24, up 25% y-o-y. Also, its retail portfolio mix now stands at 82% of the total loan book, compared with
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