L&T Finance Q4 results: Net profit up 11%, NIM plus fees stands at 11.15%

L&T Finance Ltd’s (LT Finance) consolidated net profit rose by 11 per cent year-on-year (YoY) to Rs 554 crore in the quarter ended March 2024 (Q4FY24), on the back of healthy net interest margins (NIMs) and fees. It had posted a net profit of Rs 501 crore in Q4FY23.

Sequentially, the net profit declined from Rs 640 crore in the third quarter ended December 2023 due to one-time prudential provision of Rs 175 crore for Securities Receipts (SR) portfolio in Q4FY24, Sachinn Joshi, Chief Financial Officer, L&T Finance said.

As for full financial year FY24, net profit rose by 43 per cent to Rs 2,320 crore as against Rs 1,623 crore on FY24.

Its Net Interest Income (NII) on a consolidated basis grew by 14 per cent Y-o-Y 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 per cent in Q4FY24 from 9.21 per cent in Q4FY23.

Its stock had closed 2.38 per cent lower at Rs 163.75 per share on Friday on BSE.

The retail loan book grew by 31 per cent Y-o-Y 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 94 per cent.

Sudipta Roy, managing director & CEO, L&T Finance, said looking ahead, the focus remains on exceeding the 95 per cent retailisation target while maintaining a robust book growth of more than 25 per cent.

Its credit costs rose to 2.39 per cent from 2.24 per cent a year ago.

The capital adequacy ratio stood at 22.84 per cent with Common Equity Tier-I (CET 1) at 21.02 per cent at the end of March 2024.

First Published: Apr 27 2024 | 10:30 PM IST