17 July 2020 L&T; Finance Holdings (LTFH) reported 1QFY21 PAT of INR1.47b. However, excluding the INR2.25b one-time gain on the sale of the Wealth Management business to IIFLWAM, the company reported net loss of INR780m (v/s our PAT estimate of INR1.8b). As a result, the total contingency provision buffer (over and above NPA provisions) stands at INR12.4b (i.e. 1.4% of standard loans). As the company maintained higher liquidity on the balance sheet, it experienced a drag of INR850m net income. Reported fees and other income halved YoY to INR1.9b on lower rural/corporate disbursements. The share of customers who were granted moratorium as of 30th 33%; and RE, Infra, and IDF ~40%. In corporate lending, performance has been divergent toll collections / builder loan collections reached 80%/33% of pre-COVID-19 levels in June.