L&T Finance Q1 Results: Profit Up 29%, Total Income Rises

L&T Finance Ltd.'s net profit rose in the first quarter of fiscal 2025, according to an exchange filing on Tuesday.

The company's consolidated net profit increased 29% year-on-year to Rs 685 crore for the quarter-ended June. This is the highest ever profit reported by the company. Analysts polled by Bloomberg estimated a profit of Rs 677 crore.

The profit growth was supported by higher fee income during the quarter. Fee income for the non-bank lender rose by nearly seven times to Rs 291 crore, on a year-on-year basis. Sequentially, fee income fell 16%.

According to a statement released by the company, its consolidated loan book rose 13% year-on-year to Rs 88,717 crore as of June 30. Retail loans, which now occupy 95% of the loan book stood at Rs 84,444 crore.

Within retail loans, the rural business finance book stood at Rs 25,887 crore as of June 30, up 31% year-on-year. The farmer finance book stood at Rs 14,204 crore, two-wheeler financing at Rs 12,025 crore, personal loans at Rs 6,667 crore, housing loans at Rs 19,961 crore and small and medium enterprise financing book at Rs 4,471 crore.

During the first quarter, L&T Finance implemented its 'Project Cyclops' initiative which allows the lender to have an in-depth assessment of a customer's ability to service the loan availed by them. The credit engine has been rolled out in beta stage across 25 locations through 200 dealers offering two-wheeler finance.

The lender's asset quality remained flat sequentially with gross stage 3 assets at 3.14% at the end of the first quarter. Net stage 3 assets too remained flat at 0.79%.