Last Updated on October 23, 2023 by BFSLTeam BFSLTeam
Table of Content
- 1 Introduction
- 2 Financial Highlights
- 3 Operational Highlights of L&T Finance Holdings
- 4 L&T Finance Holdings Limited YoY and QoQ Performance Comparison
- 5 Key Figures and Ratios: L&T Finance Holdings Limited Consolidated
- 6 Key Figures and Ratios: Wholesale Finance
- 7 Key Figures and Ratios: Retail Finance
- 8 Awards and Accolades
- 9 Stock Performance
Introduction
L&T Finance Holdings Limited is a prominent non-banking financial company (NBFC) and the financial arm of the Larsen & Toubro Group. Established in 1994, this NBFC offers a diverse range of financial solutions, catering to a wide spectrum of clients and sectors including agriculture, construction equipment, and commercial vehicles in the rural and semi-urban areas of the country.
The company’s consolidated quarterly results declared on 20 Oct, 2023 include the following subsidiaries:
- L&T Finance Limited
- L&T Infra Credit Limited
- L&T Financial Consultants Limited
- L&T Mutual Fund Trustee Limited
- L&T Infra Investment Partners Trustee Private Limited
- L&T Infra Investment Partners Advisory Private Limited
- L&T Infra Investment Partners
- Mudit Cement Private Limited
Additional Read: Q2 Results Dashboard
Financial Highlights
- Total Income: ₹ 2,175 Cr
- Operating Expense: ₹ 860 Cr
- Profit before tax: ₹ 799 Cr
- Profit after tax: ₹ 595 Cr
L&T Finance Holdings Limited reported a whopping 46% YoY jump in its net profit for the quarter ending 30 Sep, 2023. The total income for the period stood at ₹ 2,175 Cr, 14% higher than Q2 Fy 22-23. The interest income gained 2% YoY to reach ₹ 3,054 Cr and the interest expenses dropped 8% to ₹ 1,325 Cr leading to a net interest margin of 8.62%. The absolute NIM was ₹ 1,729 Cr marking an 11% gain from the figure reported on 30 Sep, 2022. The company’s closing book value stood at ₹ 78,734 Cr, 13% lower than Q2 FY 23-24 while the average book value also dipped 11% YoY to ₹ 79,791 Cr. The book value per share was reported to be ₹ 89.3 – 8% higher from the same quarter last year. The earnings per share (EPS) went up by 46% to reach ₹ 2.4 per share.
Additional Read: Larsen & Toubro Ltd
Operational Highlights of L&T Finance Holdings
- Active customer franchise – Over 90 Lakhs
- New customers loans disbursed to – More than 6.4 Lakhs
- Upsell share in total disbursements – 38%
- Disbursement per upsell franchise – approximately ₹ 86,000 per franchise
- Customer base – ~1.46 Cr Rural and ~72 Lakhs Urban
- Retail disbursement growth – 32% YoY
- Gross Non Performing Assets – 3%
- Net Non Performing Assets – 1%
- Total disbursements
- Rural Group Loans & Micro Finance (JLG) – ₹ 5,740 Cr
- Farm Equipment Finance – ₹ 1,534 Cr
- Two wheeler Finance – ₹ 1,817 Cr
- Personal Loans – ₹ 1,308 Cr
- Home Loans & LAP – ₹ 1,734 Cr
- SME Finance – ₹ 872 Cr
- Retail book growth – 33% YoY
L&T Finance Holdings Limited YoY and QoQ Performance Comparison
| Q2 FY24 | Q2 FY23 | Q1 FY24 | |
| Revenue from operations | ₹ 3,213.84 Cr | ₹ 3,138.10 Cr | ₹ 3,223.32 Cr |
| Total income | ₹ 3,482.07 Cr | ₹ 3,257.36 Cr | ₹ 3,376.78 Cr |
| Total expenses | ₹ 2,684.68 Cr | ₹ 2,701.81 Cr | ₹ 2,663.20 Cr |
| Profit Before Tax | ₹ 797.39 Cr | ₹ 555.55 Cr | ₹ 713.58 Cr |
| Profit after Tax | ₹ 594.22 Cr | ₹ 405.57 Cr | ₹ 530.52 Cr |
| Total comprehensive income | ₹ 587.40 Cr | ₹ 349.64 Cr | ₹ 537.92 Cr |
Key Figures and Ratios: L&T Finance Holdings Limited Consolidated
| Q2 FY24 | Q2 FY23 | Q1 FY24 | |
| Yield | 15.23% | 13.25% | 14.74% |
| Net Interest Margin | 8.62% | 6.90% | 8.06% |
| Fee & Other Income | 2.22% | 1.53% | 1.58% |
| Operating Expenses | 4.29% | 3.19% | 3.81% |
| Earnings before credit cost | 6.56% | 5.24% | 5.83% |
| Credit Cost | 2.58% | 2.54% | 2.33% |
| Return on Assets (ROA) | 2.42% | 1.55% | 2.13% |
| Debt / Equity (Closing) | 3.45 | 4.18 | 3.42 |
| Debt / Equity (Average) | 3.34 | 4.05 | 3.50 |
| Return on Equity (ROE) | 10.81% | 8.02% | 9.72% |
Key Figures and Ratios: Wholesale Finance
| Q2 FY24 | Q2 FY23 | Q1 FY24 | |
| Yield | 10.86% | 10.21% | 10.51% |
| Net Interest Margin | 0.58% | 3.10% | 1.59% |
| Fee & Other Income | 2.03% | 0.62% | 0.58% |
| Operating Expenses | 2.62% | 1.10% | 2.02% |
| Earnings before credit cost | — | 2.62% | 0.14% |
| Credit Cost | 0.76% | 1.21% | 0.96% |
| Return on Assets (ROA) | – 0.30% | 0.84% | – 0.39% |
| Debt / Equity (Closing) | 3.63 | 4.77 | 3.79 |
| Debt / Equity (Average) | 3.60 | 3.94 | 4.65 |
| Return on Equity (ROE) | – 1.39% | 4.79% | – 1.94% |
Key Figures and Ratios: Retail Finance
| Q2 FY24 | Q2 FY23 | Q1 FY24 | |
| Yield | 16.10% | 15.65% | 16.08% |
| Net Interest Margin | 10.02% | 9.95% | 9.89% |
| Fee & Other Income | 2.14% | 1.38% | 1.82% |
| Operating Expenses | 4.58% | 4.40% | 4.33% |
| Earnings before credit cost | 7.59% | 6.93% | 7.38% |
| Credit Cost | 2.74% | 3.46% | 2.78% |
| Return on Assets (ROA) | 3.32% | 2.48% | 3.08% |
| Debt / Equity (Closing) | 3.91 | 4.62 | 3.96 |
| Debt / Equity (Average) | 3.79 | 4.48 | 4.03 |
| Return on Equity (ROE) | 16.31% | 13.89% | 15.67% |
Awards and Accolades
- Champions of ESG Award – Global Fintech Fest 2023
- Mahatma Award for ESG Excellence Sep ’23
- Sustainable Organisation Award Sep ’23 – UBS Forums
- Best Company in Sustainable CSR – Krypton Business Aug ’23
- Best “CSR Initiative” Award – Banking Frontiers Aug ’23
- National Award for “Women Empowerment” in NBFC industry Sep ’23 – FAME
Stock Performance
On the date the Q2 results were announced – 20 Oct, 2023 – the company’s share closed at ₹ 4,300.95, ₹ 66.40 (or 1.52%) less than its previous close of ₹ 4,367.35.
Source:
https://www.ltfs.com/investors
https://www.ltfs.com/docs/default-source/financialresult/investors-ppt/Investor Q2FY24
https://www.ltfs.com/docs/default-source/financialresult/quarterly-result/October-20-2023-Consolidated-Results
