Analyst Concall
L&T Fin says aiming to bring down credit cost to around 2%
This story was originally published at 13:14 IST on 16 October 2025
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--L&T Finance: Aim to bring down credit cost to around 2%
--CONTEXT:L&T Finance mgmt's comments in post-earnings concall with analysts
By Sagar Sen and Srijita Bose
NEW DELHI – L&T Finance Ltd. is aiming to bring down the credit cost closer to 2.0% from the 2.41% in the September quarter, the management of the non-banking finance company said Thursday in a post-earnings conference call with analysts. "As an organisation we aim for a 2% credit cost trajectory...over the medium term, the numbers will tend towards that," the company's management said.
The consolidated credit cost was 2.59% in Jul-Sept last year and 2.23% a quarter ago. The company has maintained an average credit cost of 2.57% over the past 15 quarters, according to the company's investor presentation.
Robust interest income helped L&T Finance post 5.6% on-year growth in net profit to INR 7.35 billion for the September quarter, in line with the Street's estimate. Sequentially, the net profit grew 4.8%.
The company's management believes the recent goods and services tax rate cuts will boost demand. "The GST 2.0 reforms are expected to boost further private consumption and domestic demand. Revival in the discretionary spending of households in both rural and urban areas is already reflecting in higher festive sales volumes and consumer sentiments and should support credit expansion in the quarter ahead," the management said.
On Sept. 3, the GST Council overhauled the indirect tax regime as part of next-generation reforms by collapsing the four-slab GST structure of 5%, 12%, 18%, and 28% to a two-slab structure of 5% and 18%. The Council also introduced a new GST rate of 40% on sin and luxury goods.
In the September quarter, 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.
The company said it is expanding its presence in Uttar Pradesh, Maharashtra and other states. "With overall improvement in credit risk environment in the country, our customer acquisition velocity moved northwards across all lines of business in Q2 (Jul-Sept) and we expect this positive trajectory to continue over the rest of the year," the management said.
At 1240 IST, shares of L&T Finance were down 1% at INR 269 on the National Stock Exchange. End
IST, or Indian Standard Time, is five-and-a-half hours ahead of GMT
Edited by Tanima Banerjee
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