Corporate Results

L&T Finance has recorded 2% decline in net profit to Rs 626.40 crore in the quarter ended December 2024 (Q3FY2025). The consolidated income from operations increased 15% to Rs 3806.38 crore for the quarter ended December 2024, while other income of the company jumped 9% to Rs 298.75 crore. The total income increased 15% to Rs 4105.13 crore for Q3FY2025.

Interest expenses increased 16% to Rs 1569.24 crore. Operating expenses increased 19% to Rs 1021.59 crore, allowing the operating profits to improve 11% at Rs 1514.30 crore. The cost-to-income ratio was steady at 40.3% in Q3FY2025 from 38.6% in Q3FY2024.

Depreciation declined 24% to Rs 36.19 crore, while provisions fell 27% to Rs 654.21 crore. Profit before tax surged 0% yoy basis at Rs 823.90 crore.

Effective tax rate increased to 24.1% in Q3FY2025 from 22.4% in Q3FY2024. Net Profit of the company, after share in profit of associates and non-controlling interest, improved -2% to Rs 626.40 crore for Q3FY2025.

Strong Retail Franchise with a Retail Book of Rs 92224 crore, up 23% over a year ago. Retailisation touched 97% end December 2024. Consolidated book size at Rs 95120 crore against Rs 81780 crore, up 16% YoY.

Q3FY25 Retail Disbursements at Rs 15210 crore, up 5% over Q3FY2024.

Gross Stage 3 (GS3) stood at 3.23% in Q3FY25 against 3.21% in Q3FY24. Net Stage 3 (NS3) stood at 0.97% in Q3FY25 against 0.81% in Q3FY24. The provision coverage ratio improved to 71.00% from 75.00% a year ago.

Credit cost before macro utilization at 2.91% against 2.59% for Q2FY25. An increase in slippages was witnessed owing to macro challenges in the Rural Business Finance (RBF) segment.

Proactive asset-liability management has limited the quarterly Weighted Average Cost of Borrowings (WACB) increase by 3 bps (QoQ) at 7.83% in Q3FY25

Secured assets growth led by Farmer Finance at 23% YoY and Home Loans & Loan Against Property at 24% YoY

Net Interest Margin + Fees & Other Income at 10.33% against 10.93%, down 60 bps YoY

Return on Equity (RoE) stood at 10.21% against 11.35%, down by 114 bps YoY

Book value per share of the company stood at Rs 99.93 per share at end December 2024. Adjusted book value (net of NNPA) per share of the company stood at Rs 96.30 per share at end December 2024.

Commenting on the financial results, Sudipta Roy, Managing Director & CEO of LTF said, 'Despite certain macro challenges within the microfinance sector, we have managed the situation effectively. We are hopeful that the environment will be much better over the next couple of quarters.

Our investments and efforts towards building a world class credit underwriting and monitoring infrastructure continued unabated. Apropos to the same, our next generation three-dimensional credit underwriting engine 'Project Cyclops' was extended to 100% of dealerships in Two-wheeler Finance and was also operationalized for the Farm Equipment Finance business.

In our pursuit of innovation within the lending landscape, LTF launched a strategic partnership with Amazon Pay to develop and offer cutting-edge credit solutions through the platform. We also extended PhonePe partnership to Personal Loans, delivering a seamless digital lending experience to our consumers.

Additionally, we have launched Knowledgeable AI (KAI), an AI-powered chatbot that revolutionizes the home loan experience. We were also delighted to host RAISE' 24, India's premier AI-themed event in the Banking, Financial Services, and Insurance (BFSI) sector focused on Al`s real-world applications. As we look ahead, we remain dedicated to driving innovation and enhancing our offerings to better serve our customers.'

Business performance

The Company's granular and deep pan-India Retail franchise is led by its strong distribution capabilities namely, its geographic presence in around 2 lakh villages from around 2028 rural meeting centers/branches and over 185 branches across urban centers. The Company also leverages its around 2.5 crore customer database to drive a credible cross-sell and up-sell franchise contributing 32% of the Company's disbursements in value and 43% in count during Q3FY25. LTF has 45% Rural assets and 55% Urban assets.

Rural Business Finance: Book size at Rs 26231 crore vs. Rs 23110 crore, up 14% YoY. Disbursements at Rs 4599 crore vs. Rs 5476 crore, down 16% YoY. A risk calibrated disbursement strategy was followed in the business owing to a challenging macro environment.

Farmer Finance: Book size at Rs.15075 crore vs. Rs 13845 crore, up 9% YoY. Disbursements at Rs 2495 crore vs. Rs 2027 crore, up 23% YoY. Growth in the segment aided by a better than average monsoon and festive season demand.

Two-wheeler Finance: Book size at Rs 12676 crore vs. Rs 10447 crore, up 21% YoY. Disbursements at Rs 2414 crore vs. Rs 2540 crore, down 5% YoY. Calibrated disbursements owing to the strengthening of documentation and credit guardrails for sourcing of better-quality credit tested customer and shift towards prime customers.

Personal Loans: Book size at Rs 7820 crore vs. Rs 6427 crore, up 22% YoY. Disbursements at Rs 1642 crore vs. Rs 847 crore, up 94% YoY. Growth was aided by digital partnerships and tapping growth in prime segments

Housing Loans and Loans Against Property: Book size at Rs 23461 crore vs. Rs 16654 crore, up 41% YoY. Disbursements at Rs 2475 crore vs. Rs 1998 crore, up 24% YoY. Growth on the back of focus on distribution channels and partnerships. Maintained a pristine secured portfolio performance

SME Finance: Book size at Rs 5817 crore vs. Rs 3078 crore, up 89% YoY. Disbursements at Rs 1249 crore vs. Rs 965 crore, up 29% YoY.

Financial Performance 9MFY2025

L&T Finance has recorded 14% jump in net profit to Rs 2007.49 crore in the half year ended December 2024 (9MFY2025). The consolidated income from operations increased 14% to Rs 10913.41 crore for the year ended March 2023, while other income of the company jumped 27% to Rs 1000.35 crore. The total income increased 15% to Rs 11913.76 crore for 9MFY2025.

Interest expenses increased 9% to Rs 4396.93 crore. Operating expenses increased 18% to Rs 2883.27 crore, allowing the operating profits to improve 19% at Rs 4633.56 crore. The cost-to-income ratio was steady at 38.4% in 9MFY2025 from 38.5% in 9MFY2024.

Depreciation declined 12% to Rs 97.92 crore, while provisions fell 26% to Rs 1849.90 crore. Profit before tax surged 15% yoy basis at Rs 2685.74 crore.

Effective tax rate increased to 25.3% in 9MFY2025 from 24.4% in 9MFY2024. Net Profit of the company, after share in profit of associates and non-controlling interest, improved 14% to Rs 2007.49 crore for 9MFY2025.

L&T Finance: Consolidated Results
Particulars	2412 (3)	2312 (3)	Var %	2412 (9)	2312 (9)	Var %	2403 (12)	2303 (12)	Var %
Income from operations	3806.38	3306.30	15	10913.41	9591.33	14	12913.93	12565.11	3
Other Income	298.75	274.96	9	1000.35	786.47	27	1141.19	736.59	55
Total Income	4105.13	3581.26	15	11913.76	10377.80	15	14055.12	13301.70	6
Interest Expended	1569.24	1353.43	16	4396.93	4042.10	9	5377.19	5797.24	-7
Operating Expense	1021.59	860.41	19	2883.27	2440.46	18	3393.10	2722.16	25
Operating Profits	1514.30	1367.42	11	4633.56	3895.24	19	5284.83	4782.30	11
Depreciation / Amortization	36.19	29.19	24	97.92	87.11	12	114.77	111.24	3
Provisions and Write-offs	654.21	514.19	27	1849.90	1473.12	26	2141.03	2540.41	-16
Profit before EO	823.9	824.04	0	2685.74	2335.01	15	3029.03	2130.65	42
Exceptional Item	0	0	-	0	0	-	0	-2687.17	-
PBT after EO	823.90	824.04	0	2685.74	2335.01	15	3029.03	-556.52	LP
Tax Expense	198.25	184.67	7	678.16	570.90	19	711.90	172.37	313
Net Profit for the period	625.65	639.37	-2	2007.58	1764.11	14	2317.13	-728.89	LP
Share in profit/(loss) of associate company	0.00	0.00	-	0.00	0.00	-	0.00	0.00	-
Profit attributable to non-controlling interest	-0.75	-0.81	-7	0.09	-2.11	PL	-2.97	-86.77	-97
PAT	626.40	640.18	-2	2007.49	1766.22	14	2320.10	-642.12	LP
PPA	0.00	0.00	-	0.00	0.00	-	0.00	2265.37	-
PAT after PPA	626.40	640.18	-2	2007.49	1766.22	14	2320.10	1623.25	43
EPS* (Rs)	10.0	10.3	'	10.7	9.4	'	9.3	7.3	'
Adj BV (Rs)	96.2	89.3	'	96.2	89.3	'	91.5	82.1	'
* Annualized on current equity of Rs 2494.27 crore EO and relevant tax. Face Value: Rs 10, Figures in Rs crore
PL: Profit to Loss, LP: Loss to Profit
Source: Capitaline Corporate Database

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