Retail PAT was at Rs 533 crore, up 176% YoY, on the back of steady net interest margins (NIMs) + fees.

Retail NIMs + Fees stood at 11.71% in Q1 FY24 as compared with 11.57% in Q1 FY23. The company said that it witnessed a reduction in credit cost to 2.78% in Q1 FY24 as against 5.03% in Q1 FY23.

The company delivered strong quarterly retail disbursements at Rs 11,193 crore, up 25% in Q1 FY24 from Rs 8,938 crore in Q1 FY23.

The company's retail return on assets (RoA) and retail return on equity (RoE) stood at 3.08% and 15.67%, respectively in the quarter ended 30 June 2023.

Retail portfolio mix was at 82% in Q1 FY24 as compared to 54% recorded in Q1 FY23. Retail book stood at Rs 64,274 crore in Q1 FY24, up 34% YoY.

Improved Retail Asset Quality with GS3 at 3.21% and NS3 at 0.70% with provision coverage ratio of 79%.

The firm's net interest margin (NIM) increased to 8.06% for the quarter as against 6.54% reported in the corresponding quarter previous year.

Capital adequacy ratio stood at 25.75% (Tier 1 at 23.42%) in Q1 FY24 and adequate liquidity buffers in place.

Average debt/equity ratio stood at 3.50x as on 30 June 2023.

The wholesale book saw an accelerated and steep reduction of 65% YoY, a reduction of Rs 25,992 crore YoY, while registering a reduction of Rs 5,548 crore in Q1 FY24. This is in line with the Lakshya strategy of strongly growing the retail book while sharply reducing wholesale, said the company.

Commenting on the financial results, Dinanath Dubhashi, managing director & CEO, L&T Finance Holdings, said, “It gives me immense pleasure to announce that we have achieved Retailisation of 82% in Q1 FY24 itself, much ahead of Lakshya 2026 goal of greater than 80% retailisation. In fact, we have been able to achieve most of our Lakshya 2026 goals almost 3 years in advance. 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-inclass asset quality.

On the fintech front, our customer facing application PLANET has crossed 44 lakh downloads as on date and is constantly evolving to offer exciting features to our customers, while servicing most of their requirements. Going forward, 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.”

L&T Finance Holdings is a non-banking financial company (NBFC) that offers a range of financial products and services through its wholly owned subsidiaries.

The scrip declined 0.94% to currently trade at Rs 132.25 on the BSE.