L&T Finance, a non-banking lender based in Mumbai, reported a consolidated profit after tax of Rs 696 crore for the quarter ending September 30, 2024, marking a 17% increase from Rs 595 crore in the same period last year. The company’s overall assets grew by 18%, with a 12% rise in disbursements in its retail focus area.
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The retail portfolio experienced significant growth, increasing by 28%, amounting to Rs 88,795 crore. The net interest margins remained stable at 10.86%, reflecting the company’s consistent performance in its financial operations.
Sudipta Roy, the managing director and CEO, acknowledged the challenges faced in the second quarter due to sectoral headwinds and a volatile macroeconomic environment. He indicated that these challenges could continue for the next two quarters, prompting a reassessment of business objectives, with a greater emphasis on ensuring positive credit outcomes rather than merely growing assets under management.
Despite the prevailing difficulties, Roy expressed optimism about the company’s strategic direction. He emphasized that L&T Finance would continue to focus on its transformation agenda and detailed execution plans.
On the asset quality front, the gross stage 3 assets ratio improved to 3.19%, down from 3.27% a year earlier, while credit costs remained stable at 2.59%. The company also successfully reduced its cost of funds by 0.05% to 7.8% through effective asset-liability management.
