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L&T Finance Q4 results: PAT up 11% at Rs 554 cr, retail book grows 31%

The company reports strong retail franchise with a retail book size of Rs 80,037 crore


Illustration: Ajay Mohanty

Barkha Mathur New Delhi

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Non-banking financial company (NBFC), L&T Finance, on Saturday, reported a 11 per cent rise in its consolidated net profit to Rs 554 crore in the fourth quarter of the financial year 2023-24 (Q4FY24).

Sequentially, the net profit declined from Rs 640 crore in the third quarter ended December 2023 due to one-time prudential provision of Rs 175 crore for Securities Receipts (SR) portfolio in Q4Fy24, Sachinn Joshi, Chief Financial Officer, L&T Finance said.

As for full financial year FY24, net profit rose by 43 per cent to Rs 2,320 crore, the company said in a stock exchange filing.

Retail Disbursements of the company in Q4FY24 rose 33 per cent on-year to Rs 15,044 crore, as compared to Rs 11,282 crore in a year ago period.

Non-bank lender has completed the retalisation of 94 per cent in January-March quarter as compared to original target of below 80 per  cent.

Retail Book grew 31 per cent on-year versus targeted Compound Annual Growth Rate (CAGR) growth rate of 25 per cent.
In the January-March quarter, interest income of the company stood at Rs 3,322 60 crore.

Net Interest Income (NII) of the company on a consolidated basis grew by 14 per cent year-on-year (Y-o-Y) to Rs 1,909 crore in Q4 FY24 as against Rs 1,679 crore in the quarter ended March 2023 (Q4 FY23). Its NIMs plus Fees improved to 11.25 per cent in Q4 FY24 from 9.21 per cent in Q4 FY23.

Net Interest Margin plus Fees and Other Income was at 11.25 per cent, as compared to 9.21 per cent in a year ago period, which was up 204 basis points on-year.

Its credit costs rose to 2.39 per cent from 2.24 per cent a year ago.

Q4FY24 Consolidated Asset Quality with Gross Stage 3 (GS3) at 3.15 per cent and Net Stage 3 (NS3) at 0.79 per cent as against the targeted GS3 of <3 per cent and NS3 of <1 per cent, respectively.

Highest quarterly retail disbursements in Q4FY24 at Rs 15,044 crore, up 33 per cent on-year and up 4 per cent sequentially quarter-on-quarter (Q-o-Q). Highest annual retail disbursements at Rs 54,267 crore, up 29 per cent on-year.

Commenting on the financial results, Sudipta Roy, managing director and CEO, L&T Finance said, “In the second year of our Lakshya 2026 strategic plan, we are happy to report a retailisation of 94 per cent surpassing our goals well ahead of schedule. Our Net Profit for FY24 saw a healthy 43 per cent Y-o-Y growth to Rs 2,320 crore, driven by a 31 per cent Y-o-Y increase in our retail book and a 29 per cent Y-o-Y rise in disbursements. This is the highest ever yearly PAT the company has delivered during its lifetime. Despite the challenging interest rate environment, our borrowing cost remained stable and our portfolio credit metrics continued its improvement journey."

He further added, "Looking ahead, our focus remains on exceeding the 95 per cent retailisation target while maintaining a robust book growth of more than 25 per cent. Our commitment to operational excellence, customer centricity, strong governance and risk management, coupled with a digital first approach, will sustain our growth momentum towards building a value creating, customer-focused technology first financial services powerhouse.”

Its stock had closed 2.38 per cent lower at Rs 163.75 per share on Friday on BSE.

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First Published: Apr 27 2024 | 9:35 PM IST

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