L&T Finance’s Consolidated Net Profit Up 17% YoY In Q2FY25

Witnessing a healthy improvement in its profits in the recently concluded quarter, L&T Finance (LTF), a Non-Banking Financial Company (NBFC) has reported consolidated profit after tax (Pat or net profit) of Rs 696 crore in the second quarter of the current financial year (Q2FY25). The net profit has witnessed a year-on-year (YoY) growth of 17 per cent from Rs 595 crore during the same period a year ago.

As per the financial results, the NBFC has maintained Net Interest Margins (NIMs) and Fees stable at 10.86 per cent. The Return on Equity (RoE) stood at 11.65 per cent as compared to 10.81 per cent, up 84 basis points (bps) on a YoY basis.

“Our Company has been able to demonstrate sustainable growth and profits through proactive portfolio management and persistent collection strategies. The second quarter of the current financial year has been challenging on account of multiple sectoral headwinds and a volatile macro environment. Looking ahead, we expect that the sectoral challenges may persist for the next two quarters and apropos to the same, we may dynamically recalibrate our business objectives in the coming quarters,” stated Sudipta Roy, Managing Director and Chief Executive Officer (CEO), LTF.

The consolidated loan book grew by 18 per cent YoY, reaching its highest since the first quarter of the fiscal ended 31 March 2020. Retail disbursements for the second quarter ended 30 September 2024 stood at Rs 15,092 Crore, reflecting a 12 per cent YoY increase.

The Return on Assets (RoA) improved to 2.60 per cent, up from 2.42 per cent, representing an increase of 18 basis points (bps) YoY. The credit cost remained stable at 2.59 per cent YoY. The Consolidated book size of the NBFC is at Rs 93,015 Crore as compared to. Rs 78,734 Crore, up 18 per cent YoY.