L&T Finance Q2 Results: Profit Rises 46% On The Back Of Rural, Microfinance Loans

L&T Finance Holding Ltd.'s profit rose 46% year-on-year for the second quarter of fiscal 2024.

Consolidated net profit increased 46.42% year-on-year to Rs 595.11 crore for the quarter ended September, as compared with Rs 406.43 crore in the same period last year.

Total income of the lender also rose 6.89% to Rs 3,482.07 crore, as against Rs 3,257.36 crore in the corresponding quarter last year.

Other income for the lender increased to Rs 268.23 crore, as compared with last year's Rs 119.26 crore.

The company reported highest quarterly retail disbursements at Rs 13,499 crore, which were up 32% YoY.

The net interest margin rose 2.41 percentage points basis points on a yearly basis to 10.84%.

Credit cost also rose 4 basis points over the same period to 2.58%.

The retail portfolio mix stands at 88% of the total loan book, which is ahead of the company's Lakshay 2026 goal of achieving 80% retailisation. The retail book size increased by 33% year-on-year to Rs 69,417 crore.

Wholesale book saw reduction of 76% YoY, and currently stands at Rs 9,318 crore. This translated to a reduction of Rs 28,704 crore year-on-year.

In terms of retail asset quality, Gross Stage 3 assets stood at 3.05%, while Net Stage 3 assets were at 0.67%, with a provision coverage ratio of 79%.

Rural group and microfinance were the frontrunners across segments, registering a growth of 30% year-on-year at Rs 5,740 crore in quarterly disbursements. The growth was largely due to increased contribution from southern states. The segment loan book saw a growth of 37% YoY, and stood at Rs 21,672 crore.

Farm equipment finance disbursements grew by 18% YoY in the quarter ended September at Rs 1,534 crore. The new tractor business noted a growth of 15% YoY.

Kisan Suvidha app contributed to a quarter of the disbursements in this segment. The book size for the segment grew by 13% YoY at Rs 13,351 crore.

Two-wheeler finance book grew by 18% YoY to Rs 9,518 crore, with disbursements rising by 6% at Rs 1,817 crore.

Personal loan book disbursements rose sequentially by 13% at Rs 1,308 crore and the book size grew by Rs 6,481 crore.

Home loans disbursements grew by 34% year-on-year to Rs 1,356 crore, while loan against property disbursements tripled since Q2 FY23 to Rs 378 crore. The book size grew at 34% and 14%, respectively, since last year.

SME loans increased fourfold at Rs 872 crore, as compared with Rs 201 crore for the same quarter last year. The book size for this segment is at Rs 2,413 crore.

(Corrects an earlier version which had stated standalone figures)