L&T Finance Holding Q2 Results: PAT Up 46%, Posts Highest-Ever Quarterly Retail Disbursements To Rs 13,499 Cr

L&T Finance Holdings registered double-digit growth in its top-line and bottom-line front during the quarter ending September 30, 2023. Its net profit on a consolidated basis stood at Rs 595 crore, rising by 46% YoY, while net interest income stood at Rs 1,729 crore up by 11% YoY.

On the financial performance, Dinanath Dubhashi, Managing Director & CEO, of L&T Finance Holdings Ltd. said, "After having achieved most of our Lakshya 2026 goals, it gives me immense pleasure to announce that we have continued the trajectory of metamorphosizing into a top-notch Retail Finance Company."

He added, "During the quarter, LTFH not only reached a retail portfolio mix of 88% but also achieved the highest ever quarterly Retail disbursements of Rs. 13,499 crore, registering a growth of 32% YoY. This achievement is attributed to the twin strategy of strongly growing the retail asset book on one side and ensuring a sharp reduction in the wholesale book on the other while maintaining best-in-class asset quality."

Here are the other key highlights of the quarter:

- Achieved highest ever quarterly Retail disbursements at Rs 13,499 crore, up 32% YoY driven by a robust business model, strong growth across all retail segments coupled with top-notch digital and data analytics.

- Retail portfolio mix now stands at 88% of the total loan book; continued to outperform the Lakshya 2026 goal of achieving greater than 80% Realisation.

- Continued with the accelerated reduction in the Wholesale book with a steep reduction of 76% YoY, which translates to a reduction of Rs. 28,740 crore in line with Lakshya 2026 strategy of gaining momentum towards becoming a top-notch, retail finance company.

- PLANET app crossed 60 lakh downloads; powering up with digital technology towards becoming a Fintech@Scale.

- Obtained NCLT approvals for the proposed merger of entities; a step closer to creating a single lending entity.

- Credit Cost down by 10% YoY at Rs. 517 crore in Q2FY24 vs. Rs. 575 crore in Q2FY23.

- Strong Balance Sheet with a Capital Adequacy Ratio of 25.16% (Tier 1: 22.99%) in Q2FY24 and adequate liquidity buffers in place.

- Rated 'AAA' by CRISIL, ICRA, CARE and India Ratings.

LTFH is amongst the leading financial institutions offering Rural Group Loans and microfinance, Farm Equipment Loans, Two-Wheeler Loans, Personal Loans, Home Loans and loan Against Property as well as SME Loans. With a sustainable business model, data analytics-led collection and disbursements, a customer-centric approach and a sharp focus on asset quality, the Company remains committed to building a stable and sustainable organisation for all its stakeholders.

Going forward, Dubhashi said, "We will continue to focus on sustainably delivering Lakshya goals through a concentrated focus on 5 key pillars, namely enhanced customer acquisition, sharpening credit underwriting, implementing futuristic digital architecture, heightened brand visibility and capability building."

At LTFH, he added, "We strongly believe that the Retail segment holds promising opportunities, and we will continue to grow and ride this growth by scaling up our product portfolio, customer touchpoints, capability enhancements, and use of data analytics in doing business."

Lastly, he concluded, "We will sustain our growth momentum and continue to work towards creating a customer-focused and sustainable Fintech@Scale. The Company will continue to develop digital finance delivery as a customer value proposition thereby touching every part of the customer ecosystem through our digital offerings."