L&T Finance Q1 PAT climbs 29% YoY to Rs 686 crore

L&T Finance reported 29.11% increase in consolidated net profit to Rs 685.51 crore on 12.08% rise in total income to Rs 3,784.61 crore in Q1 FY25 over Q1 FY24.

Profit before tax climbed 29.25% to Rs 922.27 crore in first quarter of FY25 from Rs 713.58 crore recorded in the corresponding quarter previous year.

Net interest income improved 23% year on year (YoY) to Rs 2,020 crore in the quarter ended 31 March 2024. Net interest margin plus fees & other income in Q1 FY25 was 11.08% as against 9.64% in Q1 FY24.

The companys the retail book witnessed a strong growth of 31% YoY to Rs 84,444 crore while disbursements grew by 33% YoY to Rs 14,839 crore.

 

Rural group loans & micro finance quarterly disbursements grew 28% to Rs 5,773 crore in Q1 FY25. As for the book, it saw a growth of 31% and stood at Rs 25,887 crore as against Rs 19,743 crore in Q1 FY24. Growth aided by the deepening of the customer acquisition funnel, both horizontally through expansion into newer locations and vertically through increasing the number of customers across existing locations, stated L&T Finance.

Farmer finance disbursements during Q1 FY25 stood at Rs 1,903 crore, up 8% YoY. The book size grew 8% YoY and stood at Rs 14,204 crore as against Rs 13,125 crore in Q1 FY24. Growth aided by steady disbursement while the industry growth remained flat, stated by the company.

Two-Wheeler finance disbursements stood at Rs 2,621 crore, registering a growth of 52% YoY while the book size grew 31% YoY at Rs 12,025 crore in Q1 FY25. Growth aided by the activation of new dealership points during the quarter, as well as continued focus on Prime disbursements. Additionally, LTF achieved 100% YoY growth in EV financing and received a strong reception for its offering under the Superbike segment, said the firm.

Personal loans witnessed disbursements to the tune of Rs 1,178 crore in Q1 FY25 as against Rs 1,162 crore in Q1 FY24. During the quarter, the book size grew by 11% YoY to Rs 6,667 crore, aided by associations with newer DSA channels across various locations.

During the quarter, Home loans and loans against property (LAP) disbursements witnessed growth of 73% YoY to Rs 2,245 crore in June 2024 quarter. As for the book size, it saw a growth of 42% YoY in Q1 FY25 to Rs 19,961 crore.

SME Finance disbursements stood at Rs 978 crore, up by 61% YoY with book size of Rs 4,471 crore, a jump of 151% YoY during the quarter, aided by focus on building additional channels to diversifying existing sourcing funnel.

Sudipta Roy, managing director and chief executive officer, said, The focus is on enhancing customer acquisition through the creation of a robust funnel and contiguous products, sharpening credit underwriting through the deployment of our proprietary digital credit engine Project Cyclops, building a futuristic digital architecture to drive innovation, increasing brand visibility through amplified share of voice, and capability building through the recruitment and upskilling of tech talent, which is resulting in robust performance.

In our ongoing efforts to revolutionize the lending space, LTF has been prioritizing customer-centricity and harnessing cutting-edge technology. A significant milestone in this journey was the deployment of Project Cyclops during Q1 FY25, which enables an in-depth assessment of a customer's ability to service the loan availed by them. The innovative digital solution has been successfully rolled out in beta across 25 locations through a network of 200 selected dealers, offering Two-wheeler Loans.

Furthermore, from establishing a distinctive Sonic Brand Identity to launching our The Complete Home Loan campaign, LTF is steadfast in its business growth journey. I am confident that the focus on customer-centricity, innovation, and technology will continue to propel us forward as we strive for excellence in the lending space.

L&T Finance offers financing for two-wheelers, consumer goods, homes, farm equipment, women entrepreneurs, rural groups, real estate, and infrastructure. It provides financing for small and medium enterprises through term loans and overdraft facilities.

The scrip fell 0.83% to end at Rs 184.25 on Tuesday, 16 July 2024. The market is closed today on account of Moharram.

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