L&T Finance Reports Strong Q4 and FY24 Results
L&T Finance Ltd. (LT Finance) delivered a strong performance in the quarter ended March 2024 (Q4FY24), with its consolidated net profit rising by 11% year-on-year (YoY) to Rs 554 crore. This growth was driven by healthy net interest margins (NIMs) and fees. The company had posted a net profit of Rs 501 crore in Q4FY23.
However, sequentially, the net profit declined from Rs 640 crore in the third quarter ended December 2023 due to a one-time prudential provision of Rs 175 crore for Securities Receipts (SR) portfolio in Q4FY24, according to Sachinn Joshi, Chief Financial Officer, L&T Finance.
For the full financial year FY24, net profit rose by a significant 43% to Rs 2,320 crore as against Rs 1,623 crore in FY23.
The company's Net Interest Income (NII) on a consolidated basis grew by 14% YoY to Rs 1,909 crore in Q4FY24 as against Rs 1,679 crore in the quarter ended March 2023 (Q4FY23). Its NIMs plus Fees improved to 11.25% in Q4FY24 from 9.21% in Q4FY23.
The retail loan book of L&T Finance grew by an impressive 31% YoY to Rs 80,037 crore at the end of March 2023 from Rs 61,053 crore in Q4FY23. The share of retail advances in the total book stands at a high 94%.
Looking ahead, Sudipta Roy, managing director & CEO, L&T Finance, said the company remains focused on exceeding its 95% retailisation target while maintaining a robust book growth of more than 25%.
The company's credit costs rose to 2.39% from 2.24% a year ago.
The capital adequacy ratio stood at a healthy 22.84% with Common Equity Tier-I (CET 1) at 21.02% at the end of March 2024.