Conference Call with L&T; Finance Management and Analysts on Q4FY25 & Full Year Performance and Outlook. Listen to the full earnings transcript.
Finance company L&T; Finance announced Q4FY25 & FY25 results Q4FY25 Financial Highlights: PAT at Rs 636 crore vs. Rs 554 crore, up by 15% YoY. Net Interest Margin + Fees & Other Income at 10.15% vs 10.33% in Q3FY25. RoA stood at 2.22% vs 2.19%, up 3 bps YoY. RoE stood at 10.13 vs 9.53%, up 60 bps YoY. Retail disbursements for Q4FY25 at Rs14,899 crore vs. Rs 15,044 crore in the previous year. Secured assets disbursement growth led by Farmer Finance at 15% YoY. Risk-calibrated disbursement strategy in Rural Business Finance, resulting in reduced disbursements for the quarter at Rs 5,114 crore, down 11% YoY. FY25 Financial Highlights: Retailisation at 97% of overall book. Retail book at Rs 95,180 crore, growth of 19% YoY. Consolidated book at Rs 97,762 crore, growth of 14% YoY. PAT at Rs 2,644 crore vs Rs 2,320 crore, up by 14% YoY. Net Interest Margin + Fees & Other Income at 10.59% vs 10.67%, remained resilient in a volatile credit environment. Highest ever annual Return on Assets (RoA) of 2.44% vs 2.32%, up 12 bps YoY. Return on Equity (RoE) stood at 10.87% vs 10.35%, up 52 bps YoY. Retail disbursements for FY25 at Rs 60,040 crore, increase of 11% YoY. Secured assets disbursement growth led by Home Loans & Loan Against Property (LAP) at 27% YoY and Farmer Finance at 16% YoY. Risk-calibrated disbursement strategy in Rural Business Finance, resulting in tempered disbursements for the year at Rs 20,921 crore, down 3% YoY in FY25 as compared with 27% growth YoY in FY24. Wholesale book reduced to Rs 2,582 crore in FY25 from Rs 5,528 crore in FY24, reduction of 53% YoY Sudipta Roy, Managing Director & CEO, LTF, said: “In a year marked by considerable headwinds, our performance remained resilient while showcasing our ability to thrive even in a challenging environment. This stability is underpinned by our unwavering commitment to strong asset quality reinforced by a strong focus on collection efficiency across businesses. We believe the FY25 marks a significant step in laying the foundation for sustainable and predictable growth going forward. Operationally, we made significant strides with the successful 100% implementation of 'Project Cyclops' 2.0, our next-gen AI-ML based credit underwriting engine, in Two-wheeler Finance, and its ongoing rollout in Farm Equipment Finance. Furthermore, our large partnerships with PhonePe, CRED, and Amazon Pay, launched in the FY25, are gaining momentum. During the year, while we remained focused on strengthening our risk and credit frameworks, we equally worked on building capabilities, both on the technology and people front, which will serve us well in times to come. Looking forward, our focus remains on delivering quality services to our customers. We are confident that our commitment to operational excellence, customer centricity, strong governance, and prudent risk management, all powered by a digital-first approach, will sustain our growth momentum as we continue to build a customer-focused, digital-native financial services powerhouse.” Result PDF