L&T Finance Holdings (LTFH) Friday reported an increase of 2 per cent in consolidated net profit at Rs 549 crore for the quarter ended June 30, 2019.
The company's net profit during April-June quarter of 2018-19 stood at Rs 538 crore.
Total income during the latest June quarter rose to Rs 3,689.50 crore from Rs 3,170.42 crore in the year-ago period, LTFH said in a release.
The diversified non-banking financial company (NBFC) said while April-June was a tough quarter for the sector, LTFH with its advantage of strong parentage, robust balance sheet and significant business strengths, was able to deliver results on key parameters.
The company said it maintains a positive asset liability gaps in all buckets up to one year and maintained liquidity of Rs 13,133 crore (including Rs 4,855 crore in form of cash FDs and other liquid instruments).
Further, the company is already in compliance with key features of draft liquidity risk management framework for NBFCs and core investment companies (CICs) issued by RBI, it added.
On IL&FS issue, the company said,"as per the latest resolution plan submitted by IL&FS management, 5 out of 6 SPVs amounting to Rs 1,696 crore out of Rs 1,816 crore will now be 'green'. Consequently, interest income of Rs 84 crore that was deferred in Q4FY'19 is now being recognised."
As part of the resolution efforts of IL&FS, the group companies have been classified into three categories, mainly based on their financial capacity of meeting repayment obligations -- green, amber and red.
Further, with respect to exposure to a specific housing finance firm, the company said considering the recent developments, LTFH has taken conservative and commercially prudent view to mark down 50 per cent (Rs 284 crore) of the total exposure (including principal and accrued interest).
"With IL&FS being primarily resolved and adequate provisions made for the exposure to the housing finance company, LTFH believes that both these issues are behind us. Profits for Q1FY'20 have been arrived at after considering onetime adjustment for these two matters," the release said.
Stock of LTFH closed 5.72 per cent down at Rs 110.50 on BSE.
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