Conference Call with L&T; Finance Holdings Management and Analysts on Q3FY24 Performance and Outlook. Listen to the full earnings transcript.
Holding company L&T; Finance Holdings announced Q3FY24 results: Key Highlights: Profit After Tax (PAT): L&T; Finance Holdings records a consolidated PAT of Rs 640 crore for Q3FY24, marking a significant increase of 41% YoY. Net Interes t Income (NII): Consolidated NII grew by 8% to Rs 1,833 crore compared to Rs 1,693 crore in the same quarter last year. Achieved Lakshya 2026 goals two years ahead of time with: Retailisation at 91% vs. Lakshya 2026 target of >80% Retail Book growth at 31% YoY vs. targeted growth rate of 25% Retail Asset Quality with Gross Stage 3 (GS3) at 2.95% and Net Stage 3 (NS3) at 0.64% as against a target of GS3: <3% and NS3: <1%, respectively Achieved highest ever quarterly Retail Disbursements at Rs 14,531 crore, up 25% YoY driven by a robust business model, strong growth across all retail segments coupled with topnotch digital and data analytics Completed the merger of L&T; Finance, L&T; Infra Credit, and L&T; Mutual Fund Trustee with L&T; Finance Holdings in Q3FY24, thereby creating a ‘Single Lending Entity’ Business Performance: Retail Disbursements: Reached the highest-ever quarterly figure of Rs 14,531 crore, up by 25% YoY. Retail Book Size: Grew by 31% YoY, now standing at approximately Rs 74,759 crore compared to Rs 57,000 crore in Q3FY23. Net Interest Margins (NIMs) + Fees: Consolidated NIMs plus fees improved substantially to 10.93% in Q3FY24 from 8.80% in Q3FY23. Credit Cost: Consolidated credit cost slightly decreased to 2.52% in Q3FY24 from 2.67% in the same quarter of the previous year. Digital and Technological Advancements: Digital Disbursements: 100% of loans in Urban and Rural areas were disbursed digitally during the quarter. PLANET App: Crossed 76 lakh downloads, serving as a channel for collections and loan sourcing. Asset Quality: Gross Stage 3 (GS3): Reduced to 2.95% compared to 3.05% QoQ and 3.47% YoY. Net Stage 3 (NS3): Showed improvement, registering at 0.64% down from 0.67% QoQ and 0.73% YoY. Operational Highlights: Return on Assets (ROA): Consolidated ROA reached 2.53% in Q3FY24, an increase of 87 basis points (bps) YoY and 11 bps QoQ. Credit Ratings: 'AAA (Stable)' rating reaffirmed by major rating agencies post-merger. Commenting on the financial results, Sudipta Roy, who took over as Managing Director and Chief Executive Officer of L&T; Finance Holdings on January 24, 2024, said, “It gives me immense pleasure to announce that we have achieved all our ‘Lakshya 2026’ goals two years in advance. With Retailisation at 91%, we have transitioned to a Retail NBFC straddling the Rural and Urban ecosystem. Going forward, our key focus will be on making Lakshya's goals sustainable by ensuring that our performance is consistent and predictable. To achieve this, we have concentrated our attention on executing strategy basis 5 key pillars, namely enhanced customer acquisition through funnel creation and contiguous/new products, sharpening credit underwriting by moving from a mono-axis underwriting to multi-axis underwriting i.e., Credit Bureau plus Account Aggregator and Orthogonal Signals, creating futuristic digital architecture, heightening brand visibility through an increased share of voice, and capability building by ramping up tech talent.” Result PDF
L&T; Finance Holdings announced Q2FY24 results: 1. Financial Performance - L&T; Finance Holdings Ltd. records Q2FY24 consolidated Profit After Tax (PAT) of Rs. 595 crore, up 46% YoY. - NIMs up by 11% YoY at Rs 1,729 crore in Q2FY24. - Credit Cost down by 10% YoY at Rs. 517 crore in Q2FY24. - Capital Adequacy Ratio of 25.16% (Tier 1: 22.99%) in Q2FY24. 2. Retail Business Highlights - Highest ever quarterly Retail disbursements at Rs. 13,499 crore, up 32% YoY. - Retail portfolio mix now stands at 88% of the total loan book. - Retail book size up 33% YoY at Rs. 69,417 crore. - Improved Retail Asset Quality with GS3 at 3.05% and NS3 at 0.67%. 3. Wholesale Portfolio - Wholesale book reduced by 76% YoY. - Wholesale book now stands at Rs. 9,318 crore. 4. Moving to a Single Lending Entity - Proposed merger of subsidiaries - L&T; Finance Ltd., L&T; Infra Credit Ltd., and L&T; Mutual Fund Trustee Ltd. with the equity-listed holding company approved by NCLT. 5. ESG and CSR Initiatives - ~433 tCO2e emission avoided by switching to green power. - 7,350 Electric Vehicles financed in Q2FY24. - Various initiatives for creating digital and financial literacy, cleanliness drives, relief kits distribution, tree plantation, and road safety awareness. Mr. Dinanath Dubhashi, Managing Director & CEO, L&T; Finance Holdings Ltd. said, “After having achieved most of our Lakshya 2026 goals, it gives me immense pleasure to announce that we have continued the trajectory of metamorphosizing into a topnotch Retail finance Company. During the quarter, LTFH not only reached a retail portfolio mix of 88%, but also achieved the highest ever quarterly Retail disbursements of Rs. 13,499 crore, registering a growth of 32% YoY. This achievement is attributed to the twin strategy of strongly growing the retail asset book on one side and ensuring a sharp reduction in the wholesale book on the other, while maintaining best-in-class asset quality. On the fintech front, our customer facing application PLANET has crossed 60 lakh downloads as of date and is constantly evolving to offer exciting features to our customers, while servicing most of their requirements. Going forward, we will continue to focus on sustainably delivering Lakshya goals through a concentrated focus on 5 key pillars, namely enhanced customer acquisition, sharpening credit underwriting, implementing futuristic digital architecture, heightened brand visibility and capability building. At LTFH, we strongly believe that the Retail segment holds promising opportunities, and we will continue to grow and ride this growth by scaling up our product portfolio, customer touchpoints, capability enhancements, and use of data analytics in doing business. We will sustain our growth momentum and continue to work towards creating a customer-focused and sustainable Fintech@Scale. The Company will continue to develop digital finance delivery as a customer value proposition thereby touching every part of the customer ecosystem through our digital offerings.” Result PDF