L&T Finance Holdings Q3 Results Review - RoA Expands Further As Retail Mix Improves: Motilal Oswal

NDTV Profit’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer NDTV Profit’s subscribers an opportunity to expand their understanding of companies, sectors and the economy..Motilal Oswal Report.L&T Finance Holdings Ltd. reported profit after tax of Rs 6.4 billion (inline) in Q3 FY24. Pre-provision operating profit grew ~7% YoY to Rs 13.4 billion (in line), while credit costs of ~Rs 5.1 billion translated into annualised credit costs of 2.5% (versus 2.6% in Q2 FY24 and 2.7% in Q3 FY24). In 9M FY24, PAT grew ~58% YoY to Rs 17.7 billion. L&T Finance Holdings' consolidated return on assset/return on equity rose 10 bp/55 bp QoQ to ~2.5%/~11.4% in Q3 FY24. Retail RoA also improved ~10 bp QoQ to ~3.4%.Retail loans grew ~8% QoQ/31% YoY, propelled by healthy growth in mciro finance institution, home loans and two-wheeler. Personal loans exhibited a temporary blip in growth momentum but should resume the growth trajectory from Q4 FY24 onward. Mr. Sudipta Roy (excluding ICICI Bank Ltd.) has succeeded Mr. Dinanath Dubhashi as MD and CEO. Mr. Roy will look to leverage his extensive experience to further strengthen the franchise. We expect that the retail mix will improve to ~94-95% by March 2024 from 91% as of Dec-23. Considering the accelerated rundown in the wholesale book, we model consolidated loan growth of 18% and PAT compound annual growth rate of 34% over FY23- FY26E, with consolidated return on asset/return on equity of 2.7%/~15% in FY26E..Click on the attachment to read the full report:.Spandana Sphoorty Shares Slump Nearly 10% After Q3 Profit Misses Estimates.DISCLAIMERThis report is authored by an external party. NDTV Profit does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of NDTV Profit..Users have no license to copy, modify, or distribute the content without permission of the Original Owner.

L&T Finance Holdings Q3 Results Review - RoA Expands Further As Retail Mix Improves: Motilal Oswal

Expect retail mix at ~95% by March 2024; RoA guidance of 2.8-3.0% by FY26

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