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Holding company L&T Finance announced Q1FY25 results:
Financial Highlights:
- PAT at Rs 686 crore vs. Rs 531 crore, up 29% YoY
- Net Interest Income (NII) at Rs 2,020 crore vs. Rs 1,644 crore, up 23% YoY
- Net Interest Margin Fees & Other Income at 11.08% vs. 9.64%, up 144 bps YoY
- Consol. Book size at Rs 88,717 crore vs. Rs 78,566 crore, up 13% YoY
- Return on Equity (RoE) stood at 11.58% vs. 9.72%, up 186 bps YoY
Business Highlights:
- Retailisation at 95%
- Retail Book at Rs 84,444 crore vs. Rs 64,274 crore, implying a growth of 31% YoY
- Sustained improvement in Consol. Asset Quality – Gross Stage 3 (GS3) at 3.14% (reduction of 90 bps YoY) and Net Stage 3 (NS3) at 0.79% (reduction of 40 bps YoY)
- Credit cost at 2.37% remained stable across both QoQ and YoY
- Return on Assets (RoA) stood at 2.68% vs. 2.13%, up 55 bps YoY
- Healthy all-round growth in quarterly retail disbursements at Rs 14,839 crore vs. Rs 11,193 crore, up 33% YoY
- Weighted Average Cost of Borrowing (WACB) at 7.85% QoQ
- GS3 stood at 3.14% in Q1FY25 vs 4.04% in Q1FY24 (reduction of 90 bps YoY)
- NS3 stood at 0.79% in Q1FY25 vs 1.19% in Q1FY24 (reduction of 40 bps YoY)
Commenting on the financial results, Sudipta Roy, Managing Director & CEO, LTF said, “It is with great pleasure that I announce our Q1FY25 results. The results you see for the quarter reflect the success of our 5-pillar strategy. The focus is on enhancing customer acquisition through the creation of a robust funnel and contiguous products, sharpening credit underwriting through the deployment of our proprietary digital credit engine ‘Project Cyclops’, building a futuristic digital architecture to drive innovation, increasing brand visibility through amplified share of voice, and capability building through the recruitment and upskilling of tech talent, which is resulting in robust performance.
In our ongoing efforts to revolutionize the lending space, LTF has been prioritizing customer-centricity and harnessing cutting-edge technology. A significant milestone in this journey was the deployment of ‘Project Cyclops’ during Q1FY25, which enables an in-depth assessment of a customer's ability to service the loan availed by them. The innovative digital solution has been successfully rolled out in beta across 25 locations through a network of 200 selected dealers, offering Two-wheeler Loans.
Furthermore, from establishing a distinctive Sonic Brand Identity to launching our ‘The Complete Home Loan’ campaign, LTF is steadfast in its business growth journey. I am confident that the focus on customer-centricity, innovation, and technology will continue to propel us forward as we strive for excellence in the lending space.”
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