Total income rose 3.28% to ₹3508.91 crores during the period ended September 30
L&T Finance Holdings saw a significant up-take in rural and infrastructure finance, led by a revival in the economy, leading to significant MoM improvement in collections
Mumbai : L&T Finance Holdings Ltd reported a rise of 52.19% in its net profit to Rs.265.12 crores for the period ended September 30, 2020 as against Rs.148.31 crores for the period ended June 30, 2020 despite higher provisioning.
Total income rose 3.28% to ₹3508.91 crores during the period ended September 30, 2020 as compared to ₹3397.53 crores during the period ended June 30, 2020.
L&T Finance made additional provisions of ₹512 Cr for the September quarter to strengthen its balance sheet, even though there is strong on-ground recovery. The company carries Rs. 1,757 Cr of provisions on account of macro prudential provisions, covid-19.
Commenting on the financial results Mr Dinanath Dubhashi, Managing Director & CEO, LTFH, said, "As anticipated, Q2 saw a revival in the rural economy, which we believe will also drive the economic growth of the country for the next few quarters. In Q2, our Rural business witnessed significant growth momentum backed by our market leading position and strong digital and data analytics infrastructure for the lending business. The performance was also boosted by excellent pick up in disbursements in our renewable energy portfolio.
L&T Finance Holdings saw a significant up-take in rural and infrastructure finance, led by a revival in the economy, leading to significant MoM improvement in collections. The company took full advantage of the faster than expected recovery in Rural and Infrastructure segments and is well positioned for the upcoming festive season.
Sharing an outlook for December quarter, Dubhashi further added, "The rural revival led by higher reservoir levels, better water management systems, solid monsoons as well as the farm bill reform, points towards the beginning of an upward swing for companies with robust rural business models."
Shares of L&T Finance Holdings gained 1.98% to close at Rs.64.35 on Thursday on the BSE, while the benchmark index, Sensex lost 0.37% to close at 40558.49 points.
L&T Fiannce Holdings is a market leader in Farm Equipment finance and Infrastructure finance, with a dominant position in Two-Wheeler finance and Micro Loans.