BackL&T Finance Q4 profit rises 9%
Net profit rose to `186.5 crore in the quarter ended 31 March from `171.43 crore in the year-ago period
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Mumbai: L&T Finance Holdings Ltd, a unit of India’s biggest engineering and construction firm Larsen and Toubro Ltd, said on Wednesday that fourth quarter profit rose 9% from a year ago, driven by a thrust on the retail business and opportunistic lending to high-quality corporations.
Net profit rose to ₹ 186.5 crore in the quarter ended 31 March from ₹ 171.43 crore in the year-ago period. Income from operations increased 25% to ₹ 1,399.6 crore.
L&T Finance’s loan book grew 20% to ₹ 40,080 crore in the quarter from a year ago, but gross bad loans increased to 3.18% of the total on 31 March from 2.93% in the preceding quarter.
The company remained cautious in lending to segments under stress such as construction equipment, commercial vehicles and corporates, while continuing to follow a conservative provision policy, it said in a statement.
Average assets under management increased to ₹ 18,255 crore, an increase of 63% over the year-ago period. The growth in the loan book was boosted by a focus on rural product finance, personal vehicle finance and housing finance segments in the retail business, L&T Finance said.
“While credit costs remain elevated due to the challenging macro environment, containing the stress and building a quality portfolio has been a key focus for the management team," chairman and managing director Y.M.Deosthalee said.
The results were announced after the end of trading in Mumbai.
Shares of L&T Finance Holdings gained 0.51% to ₹ 68.85 on BSE, while the exchange’s benchmark Sensex gained 0.52% to 22,876.54 points.
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