BQ Blue's special research section collates quality and in-depth equity and economy research reports from across India's top brokerages. These reports offer BloombergQuint's subscribers an opportunity to expand their understanding of companies, sectors and the economy
Motilal Oswal Report
L&T Finance Holdings reported Q1 FY21 Profit after Tax of Rs 1.47 billion. However, excluding the Rs 2.25b one-time gain on the sale of the Wealth Management business to IIFL Wealth Management Ltd. the company reported net loss of Rs 780 million (verses our PAT estimate of Rs 1.8b. While Pre Provision operating profit was 8% above our estimate, elevated provisioning of Rs 11.2b verses our Rs 7b estimate has led to net loss.
The company took additional Rs 5.8 billion Covid-19 provisions in the quarter verses Rs 3.1b in Q4 FY20. As a result, the total contingency provision buffer (over and above Non Performing Asset provisions) stands at Rs 12.4b (i.e.1.4% of standard loans). In addition to 45 basis points of Stage 1 and 2 loan provisions, total standard asset provisions are now 1.8% of standard loans.
Click on the attachment to read the full report:
DISCLAIMER
This report is authored by an external party. BloombergQuint 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 brokerage and do not represent the views of BloombergQuint.
Users have no license to copy, modify, or distribute the content without permission of the Original Owner.
Essential Business Intelligence, Continuous LIVE TV, Sharp Market Insights, Practical Personal Finance Advice and Latest Stories — On NDTV Profit.
