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L&T Finance has recorded
11% increase in net profit to Rs 553.88 crore in the quarter ended March 2024
(Q4FY2024). The consolidated income from operations increased 3% to Rs 3322.60
crore for the quarter ended March 2024, while other income of the company
jumped 72% to Rs 354.72 crore. The total income increased 8% to Rs 3677.32
crore for Q4FY2024.
Interest expenses declined
8% to Rs 1335.09 crore. Operating expenses increased 26% to Rs 952.64 crore,
allowing the operating profits to improve 14% at Rs 1389.59 crore. The
cost-to-income ratio was higher at 40.7% in Q4FY2024 from 38.4% in Q4FY2023.
Depreciation rose 3% to Rs
27.66 crore, while provisions jumped 28% to Rs 667.91 crore. Profit before tax
rose 5% yoy basis at Rs 694.02 crore. Effective tax rate dipped to 20.3% in
Q4FY2024 from 37.1% in Q4FY2023. Net Profit of the company, after share in
profit of associates and non-controlling interest, improved 11% to Rs 553.88
crore for Q4FY2024.
Retail loan book of the company has surged 31% yoy to Rs 80037 crore
end March 2024 from Rs 61053 crore. The share of retail loan book has incearsed
to 94% of the overall loan book. Retail Disbursements jumped
33% yoy to Rs 15044 crore against Rs 11282 crore in Q4FY23.
Net Interest Income
(NII) at Rs 1909 crore against Rs 1679 crore, was up 14% YoY. Net Interest
Margin + Fees & Other Income at 11.25% against 9.21%, moved up up 204 bps
YoY. The weighted
average cost (WAC) of borrowing rose just 1 basis point to 7.82% QoQ, and by 34
basis points to 7.80% in FY24 compared with 7.46% in FY23, despite an environment of rising interest
rates.
The company has maintained robust retail asset quality. GS3
stood at 2.84% against 2.95% (QoQ) and 3.41% (YoY). NS3 stood at 0.62% against
0.64% (QoQ) and 0.71% (YoY)
Return on Assets (RoA) stood at 2.19% against 1.90%, up 29 bps
YoY. Return on Equity (RoE) stood
at 9.53% against 9.37%, up 16 bps YoY.
Commenting on the financial results, Sudipta Roy, Managing Director & CEO, L&T Finance said,
“In the second year of our Lakshya 2026 strategic plan, we are happy to report
a retailisation of 94% surpassing our goals well ahead of schedule. Our Net
Profit for FY24 saw a healthy 43% YoY growth to Rs 2320 crore, driven by a 31%
YoY increase in our retail book and a 29% YoY rise in disbursements. This is
the highest ever yearly PAT the Company has delivered during its lifetime.
Despite the challenging interest rate environment, our borrowing cost remained
stable and our portfolio credit metrics continued its improvement journey.
Looking ahead, our focus remains on exceeding the 95% retailisation target
while maintaining a robust book growth of more than 25%. Our commitment to
operational excellence, customer centricity, strong governance and risk
management, coupled with a digital first approach, will sustain our growth
momentum towards building a value creating, customer focused technology first
financial services powerhouse.”
Business
performance
Robust Retail
Franchise
The Company’s
granular and deep pan-India Retail franchise is led by its strong distribution
capabilities namely, its geographic presence in around 200000 villages from
1800 plus rural meeting centers/branches and over 150 branches across urban
centers This extensive geographic presence is also supported by over 13000
channel relationships built over a decade. The Company also leverages its 2.3
crore plus customer database to drive a credible cross-sell and up-sell
franchise contributing 34% of the Company’s disbursements in value and 46% in
count during Q4FY2024.
Healthy retail
disbursements & book
LTF achieved all its
Lakshya 2026 goals, ahead of time in Q3FY24 itself. In FY24, the retail book
witnessed a strong growth of 31% YoY and crossed the Rs 80000 crore milestone.
While disbursements grew by 29% YoY to Rs 54267 crore, both these factors led
to improved retailisation of the total lending book to 94%.
Rural Business
Finance:
Highest ever
quarterly disbursements with Q4FY24 disbursements at Rs 5768 crore against Rs
4401 crore, up 31% YoY. Highest ever annual disbursements with FY24
disbursements at Rs 21495 crore against. Rs 16910 crore, up 27% YoY. Book size
up 32% to Rs 24716 crore against Rs 18693 crore (YoY). Growth aided by a strong
focus on strengthening customer retention coupled with a renewed focus on new
customer acquisition
Farmer Finance
Q4FY24 disbursements
down by 2% to Rs 1530 crore against Rs 1556 crore (YoY). FY24 disbursements up
by 6% to Rs 6848 crore against Rs 6450 crore (YoY). Book size up 8% to Rs 13892
crore against Rs 12819 crore (YoY). Strong business momentum maintained during
the year despite a de-growth witnessed in the industry.
Two-wheeler Finance
Q4FY24 disbursements
up 45% to Rs 2502 crore against Rs 1727 crore (YoY). FY24 disbursements up 21%
to Rs 8586 crore against Rs 7110 crore (YoY). Book size up 25% to Rs 11205
crore against Rs 8960 crore. Growth in the business driven by geographic
penetration, maintaining a strong focus on customer value proposition and
building preferred dealer / Original Equipment Manufacturer relationships to
grow market share. Additionally, focus remains on continuously increasing the
Prime & Electric Vehicle segment owing to deepening and new tie-ups with
leading industry players.
Personal Loans
Q4FY24 disbursements
down 27% to Rs 968 crore against Rs 1322 crore (YoY). FY24 disbursements down
12% to Rs 4285 crore against Rs 4886 crore (YoY). Book size up 18% to Rs 6440
crore against Rs 5471 crore (YoY). Calibrated growth driven by a well thought
out strategy of revamping policies and risk guardrails
Housing Loans and
Loans Against Property
Highest ever
quarterly disbursements with Q4FY24 disbursements at Rs 2513 crore against Rs
1478 crore, up 70% YoY. FY24 disbursements up 59% to Rs 7544 crore against Rs
4730 crore (YoY). Book size up 38% to Rs 18443 crore against Rs 13410 crore
(YoY). Sustained business momentum in the business through strategic measures
like. deepening geographic presence, solid Direct Selling Agent and channel
partnerships & increasing customer retention
SME Finance
Q4FY24 disbursements
up 82% to Rs 1213 crore against Rs 667 crore (YoY). FY24 disbursements up 148%
to Rs 3657 crore against Rs 1473 crore (YoY). Book size up 183% to Rs 3905
crore against Rs 1378 crore (YoY). Strong growth in business volumes aided by
geo-expansion, deepening channel partnerships and focus on providing superior
value to customers. Maintained strong collection efficiency across Retail
businesses through enhanced on-ground efforts and data analytics-based resource
allocation.
Developing digital
finance delivery as a customer value proposition
LTF remains committed
to becoming one of the pre-eminent technology driven lenders in the country,
with efforts being divided across 4 quadrants, namely designing superior
customer experience digital process engineering, augmenting IT infrastructure
and strengthening information security. LTF offers 100% paperless journeys
across Rural Group Loans, Two-wheeler Finance, Farmer Finance, and Personal
Loans and has disbursed 100% loans across urban and rural areas digitally.
Furthermore, the Company’s customer-facing PLANET app, which has emerged as a
powerful digital channel for customers crossed more than 90 lakh downloads as
on date, comprising more than 11 lakh downloads on the rural side. As of date,
this channel has done collections of over Rs 1300 crore while servicing more
than 216 Lakh requests and has sourced loans of over Rs 5700 crore (including
web). The Company has started working on a revamped customer portal and the
next generation of Planet App.
Financial Performance
FY2024
The consolidated
income from operations increased 3% to Rs 12913.93 crore for the yearended
March 2023, while other income of the company jumped 55% to Rs 1141.19 crore.
The total income increased 6% to Rs 14055.12 crore for FY2024. Interest
expenses declined 7% to Rs 5377.19 crore. Operating expenses increased 25% to
Rs 3393.10 crore, allowing the operating profits to improve 11% at Rs 5284.83
crore. The cost-to-income ratio was higher at 39.1% in FY2024 from 36.3% in
FY2023. Depreciation rose 3% to Rs 114.77 crore, while provisions moved up 16%
to Rs 2141.03 crore. Profit before tax jumped 42% yoy basis at Rs 3029.03
crore. There is exceptional income of Rs 0 crore in Q4FY2024 compared with
exception expense of Rs 2687.17 crore in Q4FY2023. Effective tax rate increased
was at 23.5% in FY2024. Net Profit of the company, after share in profit of
associates and non-controlling interest, improved 43% to Rs 2320.10 crore for
FY2024.
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L&T Finance:
Consolidated Results
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Particulars
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2403 (3)
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2303 (3)
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Var %
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2403 (12)
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2303 (12)
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Var %
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Income from operations
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3322.60
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3210.70
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3
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12913.93
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12565.11
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3
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Other Income
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354.72
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206.83
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72
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1141.19
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736.59
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55
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Total Income
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3677.32
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3417.53
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8
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14055.12
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13301.70
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6
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Interest Expended
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1335.09
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1444.89
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-8
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5377.19
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5797.24
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-7
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Operating Expense
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952.64
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758.45
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26
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3393.10
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2722.16
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25
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Operating Profits
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1389.59
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1214.19
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14
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5284.83
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4782.30
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11
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Depreciation /
Amortization
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27.66
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28.53
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-3
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114.77
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111.24
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3
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Provisions and Write-offs
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667.91
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523.22
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28
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2141.03
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2540.41
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-16
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Profit before EO
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694.02
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662.44
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5
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3029.03
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2130.65
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42
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Exceptional Item
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0
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0
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-
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0
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-2687.17
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-
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PBT after EO
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694.02
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662.44
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5
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3029.03
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-556.52
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LP
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Tax Expense
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141.00
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245.51
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-43
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711.90
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172.37
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313
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Net Profit for the period
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553.02
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416.93
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33
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2317.13
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-728.89
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LP
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Share in profit/(loss)
of associate company
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0.00
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0.00
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-
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0.00
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0.00
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-
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Profit attributable to
non-controlling interest
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-0.86
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-84.15
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-99
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-2.97
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-86.77
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-97
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PAT
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553.88
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501.08
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11
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2320.10
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-642.12
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LP
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PPA
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0.00
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0.00
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-
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0.00
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2265.37
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-
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PAT after PPA
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553.88
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501.08
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11
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2320.10
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1623.25
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43
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EPS* (Rs)
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8.9
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8.1
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9.3
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7.3
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Adj BV (Rs)
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91.5
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82.1
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91.5
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82.1
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* Annualized on
current equity of Rs 2488.94 crore EO and relevant tax. Face Value: Rs 10,
Figures in Rs crore
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PL: Profit to Loss,
LP: Loss to Profit
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Source: Capitaline
Corporate Database
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