L&T Finance Profits Surge 29% in Q1 as Loan Book Jumps 27% and Asset Quality Improves
L&T Finance, a key player among non-bank lenders, reported robust performance for its June quarter. The company announced a significant jump in consolidated net profit, demonstrating strong growth momentum across its lending operations.The city-headquartered entity, promoted by the EPC major L&T, saw its net interest margin and fees climb to 10.47 per cent during the three-month period. This is an increase from the 10.22 per cent recorded in the comparable year-ago quarter.
Financial Highlights and Net Profit Gains
The most notable takeaway from the results was the consolidated net profit, which soared by 29 per cent. L&T Finance reported a net profit of ₹902 crore for the current quarter. This represents a substantial improvement compared to the ₹701 crore recorded in the preceding year-ago period.Loan Book Expansion and Retail Growth
The company's consolidated loan book witnessed impressive expansion, rising by 27 per cent on-year. The total loan book stood at ₹1.29 lakh crore. Furthermore, retail disbursements accelerated sharply, posting a 36 per cent rise during the quarter.A standout growth area was the unsecured personal loans segment. These specific disbursements more than doubled over the three months, reaching a figure of ₹4,380 crore. This indicates heightened consumer confidence and successful penetration in high-growth lending categories.
Asset Quality and Credit Cost Management
L&T Finance demonstrated marked improvement in its asset quality metrics. The stock of Gross Stage 3 assets declined to 2.86 per cent from 3.31 per cent during the previous year's corresponding period.The institution successfully managed credit costs, which improved by a sharper 0.89 per cent. This efficiency gain is attributed to enhancements in collections infrastructure and strategic deployment of artificial intelligence-led tools within their processes.
Shares related to the company closed slightly higher on Friday's market activity. The stock traded at ₹321.05 apiece on the BSE, showing a marginal gain of 0.06 per cent for the day.
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