Conference Call with L&T; Finance Management and Analysts on Q3FY25 Performance and Outlook. Listen to the full earnings transcript.
Finance company L&T; Finance announced Q3FY25 results Financial Highlights: PAT at Rs 626 crore vs Rs 640 crore, down by 2% YoY. Net Interest Margin + Fees & Other Income at 10.33% vs 10.93%, down 60 bps YoY. Consolidated book size at Rs 95,120 crore vs Rs 81,780 crore, up 16% YoY. Return on Equity (RoE) stood at 10.21% vs 11.35%, down by 114 bps YoY. Other Highlights: Retailisation at 97%. Retail book stood at Rs 92,224 crore, up from Rs 74,759 crore, reflecting a YoY growth of 23%. Robust consolidated asset quality: Gross Stage 3 (GS3) stood at 3.23% in Q3FY25 vs 3.21% in Q3FY24. Net Stage 3 (NS3) stood at 0.97% in Q3FY25 vs 0.81% in Q3FY24. Credit cost before macro utilization at 2.91% vs 2.59% for Q2FY25; wherein 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. Healthy credit calibrated growth in highest ever festive quarter retail disbursements at Rs 15,210 crore vs Rs 14,531 crore, up 5 % YoY. 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.” Result PDF