L&T Finance Holdings rose 0.6% to Rs 75.10 at 14:09 IST on BSE after consolidated net profit rose 20.1% to Rs 144.93 crore on 29.43% growth in total income to Rs 1183.06 crore in Q1 June 2013 over Q1 June 2012.
The Q1 result was announced during trading hours today, 23 July 2013.
Meanwhile, the S&P BSE Sensex was up 127.48 points or 0.63% at 20,286.60.
On BSE, 11.09 lakh shares were traded in the counter as against average daily volume of 3.03 lakh shares in the past two weeks.
The stock was volatile. The stock rose as much as 2.94% at the day's high of Rs 76.85 so far during the day. The stock lost as much as 1.27% at the day's low of Rs 73.70 so far during the day.
L&T Finance Holdings (LTFH) attributed the growth in net profit to continued momentum in the retail finance business The reduction in losses in the investment management business and positive contribution from the microfinance business also aided profit growth, the company said.
LTFH's loans and advances surged 31.1% year on year (YoY) to Rs 34337.20 crore as on 30 June 2013. Loans and advances rose 3.1% from Rs 33309.90 crore as on 31 March 2013.
LTFH said that the uncertain macro environment resulted in an increase in gross non-performing assets (NPAs), contributed mainly by the corporate, infrastructure and SME segments. Gross NPAs stood at 2.54% of loan assets as on 30 June 2013, as compared to 2.03% as on 31 March 2013. Net NPAs stood at 1.67% of loan assets as on 30 June 2013, as compared to 1.26% as on 31 March 2013.
LTFH said it continues to follow a conservative provisioning policy with contingent and voluntary provisions of Rs 256.10 crore over and above RBI norms.
With regard to future business outlook, LTFH said that early indications of good monsoons are expected to keep the rural economy buoyant, in turn contributing to growth in disbursements and book. The company said that margins are expected to be stable or witness a marginal improvement due to an expected improvement in the interest environment in the second half of FY 2014. Even as the company continues to be cautious in credit selection and asset monitoring, concerns on asset quality remain, LTFH said. Improvement in the overall business environment is expected to enable stabilization of asset quality, it added.
L&T Finance Holdings is a financial holding company offering a diverse range of financial products and services across the corporate, retail and infrastructure finance sectors, as well as mutual fund products and investment management services, through its direct and indirect wholly-owned subsidiaries.
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