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L&T Finance Holdings on Friday reported a 51% drop in consolidated net profit at 291 crore crore during the third quarter ended 31 December, 2020. The company's net profit stood at 591.47 crore during the same period in the previous fiscal.

The net interest margin and fees stood at 7.9% for the quarter ended December 31, as against 7.29% in the same period a year ago. Its total lending book grew by one per cent to 1,00,099 crore in the third quarter, as against 99,453 crore in the same period a year ago.

The non-banking financial company's total income during the quarter under review declined to 3,622.16 crore from 3,735.79 crore in the year-ago quarter. Average assets under management (AUM) declined to 68,976 crore from 71,587 crore in the corresponding quarter a year ago, the company said in a statement.

During the quarter, the company posted highest quarterly disbursements since Q1 FY20, up by 51% quarter-on-quarter. Farm Equipment disbursements rose by 43% quarter-on-quarter at 1,554 crore in Q3 FY21 versus 1,089 crore in Q2 FY21. Two-wheeler disbursements were up 50% at 1,652 crore compared to 1,102 crore in September quarter of the current fiscal.

“Within the focused lending book, the rural finance book grew by four per cent on an annual basis, aided by growth in farm equipment finance book by 18 per cent, and the two-wheeler finance book by nine per cent. The home loan segment grew by three per cent year on year," L&T Finance said in a statement on Friday.

"Post Covid, the rural economy has performed better than urban and this trend is reflected in our disbursements, which are almost at pre-Covid levels. The festive season uptick and a steady recovery in collection volumes also underline our rural performance," L&T Finance Holdings MD Dinanath Dubhashi said.

"Our strong performance in infra disbursements should be seen alongside the sell-down volumes, which have increased on a YoY (year-on-year) basis," Dubhashi added.

L&T Finance Holdings is an arm of engineering firm Larsen & Toubro.

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