Shares in L&T Finance Holdings (LTFH) moved higher, despite reporting a 73% decline in net profit at Rs 148 crore in the first quarter ended June. The management commentary at the company showed that collections and disbursements were good and so was liquidity. The stock was trading almost 3 per cent higher in trade.
"LTFH saw significant pick-up in collections and disbursements in June, thus highlighting the business robustness across the lending platforms. Businesses started returning to normalcy in the third month of the quarter and the company placed incremental focus on preserving asset quality, strengthening the balance sheet and further building on the business strengths," the company said in a statement, while releasing its quarterly numbers.
The company also managed to reduction debtors by Rs.1,306 Crores and GS3 by Rs. 98 Cr on the back of improved 'on due date' collections primarily led by farm portfolio
"Consistent month on month increase in collection volumes, with retail collections till 14th July about 15% higher than similar period in June'20. Month on month increase in collections from wholesale portfolio, with toll collections in June reaching 80% and escrow collections in Real estate reaching 33% of pre-Covid levels. Increased push towards collections from digital modes including payment wallets," the company said in its statement.