L&T; Finance Holdings announced Q4FY23 & FY23 results: Q4FY23: Q4FY23 PAT at Rs 501 crore, up 10% QoQ and up 46% YoY Q4FY23 Retail NIMs + Fees at 11.87%, up 15 basis points (bps) YoY Retail Return on Equity (RoE) at 16.32% for Q4FY23 FY23: FY23 PAT at Rs 1,623 crore, up 52% YoY Highest annual retail disbursements at Rs 42,065 crore Accelerated reduction in wholesale book by 54% YoY to Rs 19,840 crore Capital Adequacy Ratio of 24.52% (Tier 1: 22.10%) in FY23 and adequate liquidity buffers in place Average Debt/Equity ratio stood at 3.97x as on March 31, 2023 Retail Return on Equity (RoE) at 13.80% for FY23 Commenting on the financial results, Dinanath Dubhashi, Managing Director & CEO, L&T; Finance Holdings said, “FY23 marks the first year of our four-year strategic plan - Lakshya 2026 and we are happy to announce that our retailisation now stands at 75%, which is almost nearing the greater than 80% retailisation goal of Lakshya envisaged for FY26. This achievement has been on account of a strong YoY growth of 35% in retail book with best-in-class asset quality and a decisive 54% reduction in the wholesale book. The strategic initiatives that were undertaken during the year has helped the Company in accelerating the fulfillment of the plan. Going forward, we will sustain our momentum towards creating a customer-focused and sustainable Fintech@Scale. The Company will continue to offer retail products which encircle the entire customer ecosystem, creating a bespoke cross-sell and up-sell franchise and optimum distribution strategy.” Result PDF
Conference Call with L&T; Finance Holdings Management and Analysts on Q3FY23 Performance and Outlook. Listen to the full earnings transcript.
Holdings companies firm L&T; Finance Holdings announced Q3FY23 results: Profit After Tax (PAT) at Rs 454 crore, up 39% YoY (Year-on-Year) Retail PAT at Rs 394 crore, up 76% YoY, supported by strong Retail Return on Assets (RoA), reaching 2.6% in Q3FY23 Retail Return on Equity (RoE) at 14.97% during the quarter Retail portfolio mix at 64% compared to 58% in the quarter ended September 30, 2022 Retail book at Rs 57,000 crore, up 34% YoY; led by key products - Rural Business Finance, Farm Equipment Finance and Two- Wheeler Finance Retail disbursements at Rs 11,607 crore, up 53% YoY and up 13% QoQ (Quarter-on-Quarter) Net Interest Margin (NIM) + Fees at 8.80%, up 70 basis points (bps) YoY due to changing portfolio mix towards retail. Retail NIM+Fees reached 11.38% in Q3FY23, up 25 bps YoY Gross Stage 3 (GS3) stood at 4.21% - Rs 3,723 crore as on December 31, 2022, down by 248 bps compared with 6.69% - Rs 5,623 crore as on December 31, 2021 Net Stage 3 (NS3) at 1.72% - Rs 1,487 crore as on December 31, 2022, down by 145 bps compared with 3.17% - Rs 2,565 crore as on December 31, 2021 Improved Retail Asset Quality with GS3 at 3.47% (down 38 bps YoY) and NS3 at 0.73% (down 45 bps YoY) Capital adequacy ratio at 23.49% (Tier 1: 20.61%; Tier 2: 2.88%); adequate liquidity buffers in place Strategic initiatives for achieving Lakshya 2026 remain on track: Concluded divestment of the mutual fund business and received sale consideration of Rs 3,485 crore along with surplus cash balance Rs 764 crore, thereby aggregating to Rs 4,249 crore Consequent to change in business model in order to enable Accelerated selldown of Wholesale book, a One-time provision of Rs 2,687 crore has been made during the quarter Commenting on the financial results, Mr. Dinanath Dubhashi, Managing Director & CEO, L&T; Finance Holdings Ltd. said, “We are progressing well on our journey towards Lakshya 2026 to become a top class, ‘digitally-enabled’, ‘customer-focused’, retail finance company. Our results in Q3FY23 not only highlight our robust business strengths, but also reflect our continued focus on accelerated retailisation, with the retail portfolio mix reaching 64%. On the strategic initiatives front, we have recently concluded the sale of our mutual fund business and are progressing well on our retailisation journey consisting of two major pillars, namely ‘Strong Retail Growth’ and ‘Accelerated sell-down of Wholesale portfolio’. We have also created adequate provisions to support the accelerated sell-down process. With a view to further strengthen the Fintech franchise, the Company continued to emphasize on digitisation, data analytics and customer-facing applications, with a clear focus on expanding the existing channels and ecosystems, and creating newer channels. Our application PLANET has recently crossed 17 lakh downloads. All these developments show that we are moving in the right direction to achieve our Lakshya 2026 goals and sustainably create value for all our stakeholders.” Result PDF