20 January 2020 LTFH reported 3QFY20 PAT of INR5.9b (+2% YoY), in line with our estimate of INR6.0b. The quarter was characterized by early teens loan growth across focused segments, stable asset quality and core RoE of ~16%. LTFH is expected to report moderate loan growth (7-8%), dragged by the defocused and wholesale book. With stability on cost of funds and growth in high-yielding assets, net income (NIM + fees) is expected to be healthy at ~7%. Overall PAT CAGR is expected to be ~12% with a robust RoE of ~17%. De-focused book declined ~55%/25% YoY/QoQ as the company sold off some DCM bonds without meaningful P&L; impact. LTFH raised INR104b in the quarter, of which ~50% came from term loans and ~35% via NCDs. Cost of funds was largely stable at 8.5%. Disbursements in microfinance have been range-bound at INR25-28b for the past eight quarters, while those in 2W and tractors picked up sharply on a QoQ basis due to the festival season.