Conference Call with L&T; Finance Management and Analysts on Q1FY25 Performance and Outlook. Listen to the full earnings transcript.
Holding company L&T; Finance announced Q1FY25 results: Financial Highlights: PAT at Rs 686 crore vs. Rs 531 crore, up 29% YoY Net Interest Income (NII) at Rs 2,020 crore vs. Rs 1,644 crore, up 23% YoY Net Interest Margin + Fees & Other Income at 11.08% vs. 9.64%, up 144 bps YoY Consol. Book size at Rs 88,717 crore vs. Rs 78,566 crore, up 13% YoY Return on Equity (RoE) stood at 11.58% vs. 9.72%, up 186 bps YoY Business Highlights: Retailisation at 95% Retail Book at Rs 84,444 crore vs. Rs 64,274 crore, implying a growth of 31% YoY Sustained improvement in Consol. Asset Quality – Gross Stage 3 (GS3) at 3.14% (reduction of 90 bps YoY) and Net Stage 3 (NS3) at 0.79% (reduction of 40 bps YoY) Credit cost at 2.37% remained stable across both QoQ and YoY Return on Assets (RoA) stood at 2.68% vs. 2.13%, up 55 bps YoY Healthy all-round growth in quarterly retail disbursements at Rs 14,839 crore vs. Rs 11,193 crore, up 33% YoY Weighted Average Cost of Borrowing (WACB) at 7.85% QoQ GS3 stood at 3.14% in Q1FY25 vs 4.04% in Q1FY24 (reduction of 90 bps YoY) NS3 stood at 0.79% in Q1FY25 vs 1.19% in Q1FY24 (reduction of 40 bps YoY) Commenting on the financial results, Sudipta Roy, Managing Director & CEO, LTF said, “It is with great pleasure that I announce our Q1FY25 results. The results you see for the quarter reflect the success of our 5-pillar strategy. The focus is on enhancing customer acquisition through the creation of a robust funnel and contiguous products, sharpening credit underwriting through the deployment of our proprietary digital credit engine ‘Project Cyclops’, building a futuristic digital architecture to drive innovation, increasing brand visibility through amplified share of voice, and capability building through the recruitment and upskilling of tech talent, which is resulting in robust performance. In our ongoing efforts to revolutionize the lending space, LTF has been prioritizing customer-centricity and harnessing cutting-edge technology. A significant milestone in this journey was the deployment of ‘Project Cyclops’ during Q1FY25, which enables an in-depth assessment of a customer's ability to service the loan availed by them. The innovative digital solution has been successfully rolled out in beta across 25 locations through a network of 200 selected dealers, offering Two-wheeler Loans. Furthermore, from establishing a distinctive Sonic Brand Identity to launching our ‘The Complete Home Loan’ campaign, LTF is steadfast in its business growth journey. I am confident that the focus on customer-centricity, innovation, and technology will continue to propel us forward as we strive for excellence in the lending space.” Result PDF
Holding company L&T; Finance announced Q4FY24 & FY24 results: Q4FY24 Consolidated Financial Highlights: Profit After Tax (PAT) reached Rs 554 crore, up 11% YoY from Rs 501 crore. Net Interest Income (NII) amounted to Rs 1,909 crore, showing a 14% YoY increase from Rs 1,679 crore. Net Interest Margin + Fees & Other Income stood at 11.25%, up 204 basis points (bps) YoY from 9.21%. Retail Disbursements totaled Rs 15,044 crore, reflecting a 33% YoY increase from Rs 11,282 crore. Return on Assets (RoA) stood at 2.19%, up 29 bps YoY from 1.90%. Return on Equity (RoE) stood at 9.53%, up 16 bps YoY from 9.37%. FY24 Consolidated Financial Highlights: Profit After Tax (PAT) amounted to Rs 2,320 crore, up 43% YoY from Rs 1,623 crore. Net Interest Income (NII) reached Rs 7,115 crore, marking a 12% YoY increase from Rs 6,368 crore. Net Interest Margin + Fees & Other Income stood at 10.67%, up 200 bps YoY from 8.67%. Retail Disbursements totaled Rs 54,267 crore, reflecting a 29% YoY increase from Rs 42,065 crore. Retail Book amounted to Rs 80,037 crore, up 31% YoY from Rs 61,053 crore. Return on Assets (RoA) stood at 2.32%, up 79 bps YoY from 1.53%. Return on Equity (RoE) stood at 10.35%, up 256 bps YoY from 7.79%. Commenting on the financial results, Sudipta Roy, Managing Director & CEO, L&T; Finance said, “In the second year of our Lakshya 2026 strategic plan, we are happy to report a retailisation of 94% surpassing our goals well ahead of schedule. Our Net Profit for FY24 saw a healthy 43% YoY growth to Rs. 2,320 Crore, driven by a 31% YoY increase in our retail book and a 29% YoY rise in disbursements. This is the highest ever yearly PAT the Company has delivered during its lifetime. Despite the challenging interest rate environment, our borrowing cost remained stable and our portfolio credit metrics continued its improvement journey. Looking ahead, our focus remains on exceeding the 95% retailisation target while maintaining a robust book growth of more than 25%. Our commitment to operational excellence, customer centricity, strong governance and risk management, coupled with a digital first approach, will sustain our growth momentum towards building a value creating, customerfocused technology first financial services powerhouse.” Result PDF
Conference Call with L&T; Finance Management and Analysts on Q4FY24 Performance and Outlook. Listen to the full earnings transcript.