L&T Finance Holdings Ltd. (LTFH), a prominent Non-Banking Financial Company (NBFC), announced its financial results for the third quarter ending December 31, 2023. The company recorded a consolidated Profit After Tax (PAT) of Rs. 640 Crore, marking a significant 41 per cent YoY growth.
Under the Lakshya 2026 initiative, LTFH achieved its goals two years ahead of schedule, showcasing stellar performance in key metrics. Retailisation reached an impressive 91 per cent, surpassing the targeted >80 per cent. The Retail Book exhibited a robust growth of 31 per cent YoY, outpacing the projected 25 per cent growth rate.
LTFH’s Q3FY24 highlights include the highest-ever quarterly Retail disbursements at Rs. 14,531 Crore, marking a substantial 25 per cent YoY increase. The Retail Book grew by an impressive 31 per cent YoY, reaching Rs. 74,759 Crore. Furthermore, the company’s Net Interest Income (NII) (Consol.) saw an 8 per cent YoY growth, standing at Rs. 1,833 Crore.
The completion of the merger of L&T Finance Ltd., L&T Infra Credit Ltd., and L&T Mutual Fund Trustee Ltd. with L&T Finance Holdings Ltd. during the quarter underscores the company’s strategic move towards creating a ‘Single Lending Entity.’ This consolidation is expected to bring about enhanced governance, astute liability management, and improved operational efficiencies.
LTFH’s success can be attributed to its robust retail franchise, covering around 2,00,000 villages and serving over 93 lakh active customers through rural meeting centers and urban branches. The company demonstrated healthy disbursements across various segments, including Rural Group Loans, Farmer Finance, Two-Wheeler Finance, Personal Loans, Home Loans & Loans Against Property, and SME Loans.
LTFH has demonstrated its commitment to environmental sustainability with a reduction of over 33 per cent in carbon emissions. Additionally, the company financed over 25,650 Electric Vehicles, aligning with its ESG commitments. Social financing pacts and initiatives for rural and peri-urban areas, especially for women borrowers, highlight the company’s dedication to Corporate Social Responsibility (CSR).
Commenting on the financial results, Sudipta Roy, who takes over as Managing Director and Chief Executive Officer of L&T Finance Holdings Ltd. on January 24, 2024 said, “It gives me immense pleasure to announce that we have achieved all our ‘Lakshya 2026’ goals two years in advance. With Retailisation at 91 per cent, we have transitioned to a Retail NBFC straddling the Rural and Urban ecosystem. Going forward, our key focus will be on making Lakshya goals sustainable by ensuring that our performance is consistent and predictable.
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To achieve this, we have concentrated our attention on executing strategy basis 5 key pillars, namely enhanced customer acquisition through funnel creation and contiguous/new products, sharpening credit underwriting by moving from a mono-axis underwriting to multi-axis underwriting i.e., Credit Bureau plus Account Aggregator and Orthogonal Signals, creating futuristic digital architecture, heightening brand visibility through increased share of voice, and capability building by ramping up tech talent.”
