Street cheers L&T Finance's clean-up act; net interest income up 51%

Net interest income up 51 per cent, net profit rises 71 per cent in first quarter

Shares of L&T Finance on Monday recovered the entire 10 per cent it had lost in the past six months, on Monday following strong June 2018 quarter (Q1) results announced late-Friday. Yet, analysts see further upside as its balance sheet clean-up will support earnings growth.

No doubt, the company put up a stellar show with its assets under management (AUM; loan book) and net interest income (NII) growing by 24 per cent and 51 per cent, year-on-year, respectively. This coupled with a 13 per cent fall in credit costs, saw net profit surge 71 per cent year-on-year in Q1.