L&T Finance Ltd announced a consolidated net profit rise of 11 per cent year-on-year (YoY) to Rs 554 crore in the quarter ending March 2024 (Q4FY24), bolstered by robust net interest margins (NIMs) and fees. This marks a significant increase from the Rs 501 crore net profit recorded in Q4FY23.
However, sequentially, the net profit witnessed a decline from Rs 640 crore in the preceding quarter, primarily attributed to a one-time prudential provision of Rs 175 crore for the Securities Receipts (SR) portfolio in Q4FY24, as per Sachinn Joshi, Chief Financial Officer, L&T Finance.
For the full financial year FY24, net profit surged by an impressive 43 per cent to Rs 2,320 crore, compared to Rs 1,623 crore in FY23.
On a consolidated basis, Net Interest Income (NII) experienced a robust growth of 14 per cent YoY, reaching Rs 1,909 crore in Q4FY24 from Rs 1,679 crore in Q4FY23. Notably, NIMs plus Fees improved to 11.25 per cent in Q4FY24 from 9.21 per cent in Q4FY23.
L&T Finance’s retail loan book expanded by 31 per cent year-on-year to Rs 80,037 crore by the end of March 2023 from Rs 61,053 crore in Q4FY23, with retail advances constituting 94 per cent of the total book.
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However, the company experienced a rise in credit costs to 2.39 per cent from 2.24 per cent a year ago. Nevertheless, the capital adequacy ratio remained strong at 22.84 per cent, with Common Equity Tier-I at 21.02 per cent at the end of March 2024.
