L&T Finance Holdings Q1FY24 PAT more than doubles to Rs 531 crore

L&T Finance Holdings Ltd. (LTFH), one of the leading Non-Banking Financial Companies (NBFCs), which is accelerating its journey towards becoming a customer-focused, top class, digitally-enabled retail NBFC has posted a consolidated PAT of Rs. 531 crore for the first quarter ended June 30, 2023, recording a growth of 103 percent YoY.

The Company has also achieved a retail loan portfolio mix of 82 percent of the total loan book, which is over the 80 percent retailisation target set under the Lakshya 2026 goal. The Company has achieved most of its Lakshya 2026 goals almost 3 years in advance.

The quarterly retail disbursements stood at Rs. 11,193 crore for the quarter ended June 30, 2023, recording a growth of 25 percent YoY. The growth is driven by strong growth across all retail segments. The retail book now stands at Rs. 64,274 crore, up 34 percent when compared with the quarter ending June 30, 2022.

Besides, there has been an accelerated reduction in wholesale book by 65 percent YoY i.e., a reduction of Rs, 25,992 crore in line with Lakshya 2026 goals gaining momentum.

Commenting on the financial results, Mr. Dinanath Dubhashi, Managing Director & CEO, L&T Finance Holdings Ltd. said, “It gives me immense pleasure to announce that we have achieved Retailisation of 82% in Q1FY24 itself, much ahead of Lakshya 2026 goal of greater than 80% Retailisation. In fact, we have been able to achieve most of our Lakshya 2026 goals almost 3 years in advance. 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.”

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.”

 During the quarter ended June 30, 2023, LTFH witnessed strong growth across all retail segments.

Farm Equipment Finance disbursements saw a YoY growth of 15 percent for the quarter ended June 30, 2023, at Rs. 1,757 crore. The business witnessed growth on the back of improved on-field productivity and enhanced customer retention through Kisan Suvidha top-up and Refinance. Two-Wheeler Finance witnessed disbursements of Rs. 1,726 crore for the quarter ended June 30, 2023, with a 14 percent increase YoY. The Company continues to focus on collections led disbursements while building a robust network of dealerships through new initiatives. The business also witnessed the launch of two new products, Centum and VIP Pro to cater to better credit profile customer segment. Consumer Loans continued to scale up while protecting portfolio quality with Rs. 1,162 crore disbursements for the quarter ended June 30, 2023 compared with Rs. 1,010 crore in the same period a year ago. Housing Loans and Loans Against Property showed sustained growth momentum in the quarter ended June 30, 2023 with a 39 percent increase in disbursements YoY at Rs. 1,299 crore.

Source: Media reports

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