Mumbai: Larsen and Toubro Finance Holdings Ltd, a non-banking finance company, said consolidated net profit more than tripled to Rs.294.62 crore from a year earlier boosted by an “improvement in margins” and a one-time profit from the sale of a stake in Federal Bank.
Excluding the Rs.223.42 crore one-time gain, the company’s profit grew 26% and income from operations gained 28.6% to Rs.983.25 crore, the company said on Tuesday.
The company’s asset book grew considerably, with loans and advances up 30.8% for the December quarter to Rs.31,230.5 crore.
Net non-performing assets stood at Rs.469.8 crore, or 1.56% of gross advances on 31 December, compared with Rs.287.1 crore, or 1.25%, at the end of the year-earlier period.
“Owing to a tight liquidity situation and concerns around current account and fiscal deficit, the impact on investment climate would be seen in the coming quarters. With no major changes in the operating environment in the last few quarters, the current stress in the corporate sector may continue for some time. We expect improved margins based on the expectations of a stable or improving interest rate environment,” the company said in a statement.
Shares of L&T Finance Holdings rose 0.125% to Rs.85.05 on BSE while the benchmark Sensex fell 0.56% to 19,990.90 points.