L&T Finance Q1 PAT rises 47% YoY to Rs 261 crore

L&T Finance Holdings reported 47% jump in consolidated net profit to Rs 262 crore in Q1 FY23, buoyed by highest-ever quarterly retail disbursements of Rs 8,938 crore (up 10% QoQ and up 148% YoY).

Retail portfolio mix in Q1 FY23 was at 54%, up from 45% in Q1 FY22 and the retail book has increased by 6% QoQ and 19% YoY.

Wholesale portfolio moderated to Rs 39,800 crore in Q1 FY23 from Rs 45,600 crore in Q1 FY22, down 13% YoY.

Dinanath Dubhashi, Managing Director & CEO, L&T Finance Holdings, said, LTFH's results in Q1 FY23, apart from highlighting our business strengths also reflect our continuing focus on our stated strategy of accelerated retailisation. Retail disbursements are at an all-time high.

We have disbursed at a monthly run rate of approximately Rs 1,300 crore in the rural business loans segment, while hitting new milestones in consumer loans and home loans.

Total income in the first increased marginally to Rs 3,136 crore from Rs 3,116 crore reported in the same period last year. Net interest margin deteriorated slightly to 6.54% in Q1 FY23 from 6.58% in Q4 FY22, but was better than 6.31% recorded in Q1 FY22.

L&T Finance witnessed normalized collection efficiency (CE) in Q1 FY23, across businesses, with retail businesses reporting steady state pre-covid collection volumes. Total lending book as on 31 June 2022 was Rs 88,078 crore.

Gross stage-3 assets amounted to Rs 3,559 crore in Q1 FY23 as against Rs 3,543 crore in Q4 FY22 and Rs 5,796 crore in Q1 FY22.

Gross stage-3 assets ratio was 4.08% in Q1 FY23 as against 4.08% in Q4 FY22 and 6.67% in Q1 FY22.

Net stage-3 assets ratio was 1.87% in Q1 FY23 as against 1.98% in Q4 FY22 and 2.26% in Q1 FY22.

As a prudent measure, L&T Finance continues to carry additional provisions of Rs 1,450 crore corresponding to 1.73% of standard book in addition to GS3 provisions and ECL on standard assets. The company remains confident that current provisions will be sufficient to counter any future stresses related to one-time restructuring (OTR) accounts.

As on 30 June 2022, L&T Finance continues to hold Rs 1,450 crore as macro prudential and additional provisions as against Rs 1,727 crore as of 31 March 2022, which would be available to take care of any further OTR loans rolling forward in Q2 FY23.

Overall capital adequacy ratio was at 23.12% as of 30 June 2022, of which Tier-I capital was at 19.98%.

L&T Finance Holdings is a non-banking financial company (NBFC) that offers a range of financial products and services through its wholly owned subsidiaries.

The scrip advanced 0.55% to currently trade at Rs 72.80 on the BSE.

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