L&T Finance Holdings announced September quarter results showing a sharp decline in net profit YoY, which fell by over 68% even as revenue growth rose 11.2%. Operating profit grew by single digits at 8%, compared to double digit growth in previous quarters. Net profits fell following a one time adjustment due to the deferred tax assets (DTA) after cut in corporate tax.
Under the fresh reduced tax guidelines, businesses that have taken higher provisions and created Deferred Tax Assets (DTA) at 34.9% must revise the tax rate to 25.17%, leading to a one-time P&L (profit & loss) charge of 9.77%. The company expects the tax rate impact to be lower going forward for FY20.
Real estate firm Oberoi Realty, whose share price was rising ahead of results, saw both revenue and net profit growth fall in its YoY September quarter numbers. Revenue growth fell 17% while net profit sunk 35.7% YoY. Other expenses jumped in the quarter to Rs. 1285.5 crore. See full result analyzer.