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Informist, Wednesday, Oct. 15, 2025

 

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--L&T Finance Jul-Sept credit cost 2.41% vs 2.59% year ago 
--L&T Finance: SME Finance book INR 74.65 bln as on Sept 30, up 44% on year 
--L&T Finance: Personal loans book INR 108.78 bln as on Sept 30, up 52% YoY 
--L&T Finance: Two-wheeler book INR 130.13 bln as on Sept 30, up 3% on year 
--L&T Finance: Farmer finance book INR 159.43 bln as on Sept 30, up 10% YoY 
--L&T Finance: Rural business book INR 274.60 bln as on Sept 30, up 3% YoY 
--L&T Finance Jul-Sept retail disbursements INR 188.83 bln, up 25% on year 
--L&T Finance: Retail book INR 1.046 tln on Sept 30 vs INR 889.75 bln yr ago 
--L&T Finance: Consol book INR 1.071 tln on Sept 30 vs INR 930.15 bln yr ago 
--L&T Finance provision coverage ratio at 70% as on Sept 30 
--L&T Finance Jul-Sept NIM 8.42% vs 8.24% qtr ago, 8.94% year ago 
--L&T Fin net stage-3 asset quality ratio 1% as on Sept 30 vs 0.96% year ago 
--L&T Fin gross stage-3 asset quality ratio 3.29% on Sept 30 vs 3.19% yr ago 
--L&T Finance Apr-Sept consol revenue INR 85.95 bln vs INR 78.04 bln yr ago 
--L&T Finance Apr-Sept consol PAT INR 14.36 bln vs INR 13.81 bln year ago 
--L&T Finance Jul-Sept consol revenue INR 43.36 bln vs INR 40.19 bln yr ago 
--L&T Finance Jul-Sept consol net profit INR 7.35 bln vs INR 6.96 bln yr ago 
--Analysts saw L&T Finance Jul-Sept consol net profit at INR 7.35 bln 
--L&T Finance Jul-Sept consol net profit INR 7.35 bln
 

 

By Sagar Sen

 

NEW DELHI – Robust interest income helped L&T Finance Ltd. post 5.6% on-year growth in net profit for the September quarter. A slight dip in the impairment of financial instruments also supported the bottom line.

 

The non-banking finance company reported a consolidated net profit of INR 7.35 billion, in line with the Street's estimate. Sequentially, the net profit grew 4.8%. Analysts had said the bottom line would be buoyed by strong loan disbursement across product segments due to robust festival demand.

 

Interest income of the company grew 10.5% on year to INR 40.37 billion, while total income grew 7.8% on year to INR 43.36 billion in the September quarter.

 

At INR 2.89 billion, there was no change in the company's fee and commission income from the corresponding period last year. Finance cost, however, kept pace with the company's interest income and grew 10.7% on-year to INR 16.34 billion. 

 

Expenses on employee benefit and other expenses increased over 8% and almost 13% on year to INR 5.93 billion and INR 4.24 billion, respectively, in Jul-Sept. Impairment on financial instruments, however, fell 8.2% on-year to over 5 billion during the September quarter. Consequently, total expenses were up 8.5% on year at INR 33.5 billion.

 

The consolidated loan book rose 15% on year to INR 1.07 trillion, of which retail loans were at INR 1.05 trillion, up 18% on year and 5% on quarter. It is part of L&T Finance's strategy to move away from wholesale loans, which made up over half of the portfolio at the end of FY20. Now, wholesale loans make up only 2% of the book, with the rest being retail loans.

 

The company saw strong 25% on-year growth in retail disbursements to INR 188.83 billion in Jul-Sept. Sequentially, it was 8% higher. The rural business book was the largest segment for the diversified NBFC, with assets under management at INR 274.60 billion as of Sept. 30, up 3% on year. Disbursements in the segment grew 16% on year to INR 63.16 billion in the reporting quarter. Sequentially, they were up 12%, the lender said.

 

The two-wheeler loan book also grew at a slow pace of 3% on year to INR 130.13 billion as of Sept. 30. Disbursements grew 5% on year to INR 25.12 billion.

 

The farm equipment finance book was the largest secured business portfolio, up 10% on year at INR 159.43 billion. However, disbursements for farm equipment were down 7% on year to INR 16.54 billion. Sequentially, they were down 25%.

 

The book size for personal loans grew 52% on year to INR 108.78 billion as on Sept. 30. Personal loan disbursements more than doubled to INR 29.18 billion on the back of "Big Tech Partnerships", the company said in its investor presentation.

 

Outstanding loans to small and medium enterprises stood at INR 74.65 billion at the end of September, up 56% on year. Disbursements were up 18% on year at INR 14.68 billion.

 

The lender's net interest margin improved to 8.20% in the September quarter from 8.24% the previous quarter. However, the margin shrank sharply from 8.94% recorded in Jul-Sept a year ago. The consolidated credit cost, including macro-prudential provisions, was 2.41% in the September quarter against 2.59% in corresponding period last year and 2.23% a quarter ago.

 

The NBFC's gross stage-3 asset ratio was 3.29% as at September-end, down 2 basis points on quarter. Net stage-III asset ratio stood at 1.00%, against 0.99% as on Jun. 30. The provision coverage ratio was 70% as at September-end, marginally lower than 71% at the end of June quarter.

 

The company's net profit for the first six months of the current financial year was INR 14.36 billion against INR 13.82 billion. Total revenue for Apr-Sept was INR 85.95 billion against INR 78.04 billion a year ago. Total expenses during the period were up 12% at INR 66.63 billion.

 

L&T Finance is among the 10 largest shadow banks in India and has been classified as an NBFC-Upper Layer by the Reserve Bank of India. On Wednesday, shares of L&T Finance ended 3.3% higher at INR 271.55 on the National Stock Exchange. The company declared its earnings after market hours.  End

 

Edited by Ashish Shirke

 

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