L&T Finance Q1FY25 Shows Significant Performance
L&T Finance Ltd. (LTF) reports robust Q1FY25 results with a 29% YoY rise in PAT, driven by strong growth across retail and diverse financial segments, including a significant increase in the retail book value to Rs. 84,444 crore.
by Damodharan N
Updated Jul 18, 2024
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Table of Content
L&T Finance Ltd. (LTF) has reported robust financial performance for Q1FY25, with a record Profit After Tax (PAT) of Rs. 686 crore, marking a 29% increase year-on-year. The company's strong retail franchise saw substantial growth, with a retail book reaching Rs. 84,444 crore, up by 31% YoY. Retail disbursements for the quarter stood at Rs. 14,839 crore, reflecting a 33% increase from the previous year.
Rural Business Finance:
Disbursements rose to Rs. 5,773 crore, up 28% YoY, with the book size increasing to Rs. 25,887 crore, up 31% YoY. Growth was driven by expanded customer acquisition both horizontally and vertically.
Farmer Finance:
Disbursements grew to Rs. 1,903 crore, up 8% YoY, with the book size reaching Rs. 14,204 crore, up 8% YoY, maintaining steady growth amid stagnant industry conditions.
Two-wheeler Finance:
Disbursements surged to Rs. 2,621 crore, up 52% YoY, and the book size increased to Rs. 12,025 crore, up 31% YoY. Growth was supported by new dealership activations and strong performance in EV financing and superbike segments.
Personal Loans:
Disbursements edged up to Rs. 1,178 crore, up 1% YoY, while the book size grew to Rs. 6,667 crore, up 11% YoY, driven by new partnerships across diverse locations.
Housing Loans and Loans Against Property:
Disbursements soared to Rs. 2,245 crore, up 73% YoY, and the book size expanded to Rs. 19,961 crore, up 42% YoY. Growth was bolstered by strategic launches and 'The Complete Home Loan' initiative across key markets.
SME Finance:
Disbursements surged to Rs. 978 crore, up 61% YoY, with the book size increasing to Rs. 4,471 crore, up 151% YoY, supported by enhanced channel diversification.
LTF's performance reflects its strategic focus on expanding market presence, enhancing customer engagement, and driving growth across diverse financial segments in the competitive landscape.
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L&T Finance Q1FY25 financials
L&T Finance Ltd. (LTF) has reported record-breaking financial results for the first quarter ended June 30, 2024, showcasing robust growth across its diversified retail segments. Here are the key highlights:
- Profit After Tax (PAT): LTF achieved an all-time high consolidated PAT of Rs. 686 crore, marking a significant 29% increase year-on-year (YoY).
- Retail Performance: The company's retail book expanded to Rs. 84,444 crore, up 31% YoY, with Q1FY25 retail disbursements reaching Rs. 14,839 crore, up 33% YoY.
- Digital Initiatives: LTF launched its 'The Complete Home Loan' campaign and introduced the beta version of 'Project Cyclops', an AI-powered underwriting engine aimed at enhancing credit assessment capabilities.
Financial Metrics:
- Net Interest Income (NII): Rose to Rs. 2,020 crore, up 23% YoY.
- Net Interest Margin + Fees & Other Income: Improved to 11.08%, up 144 basis points YoY.
- Consolidated Book Size: Grew to Rs. 88,717 crore, up 13% YoY.
- Return on Equity (RoE): Increased to 11.58%, up 186 basis points YoY.
Retailisation at 95%: Indicates that 95% of LTF's operations are focused on retail finance, highlighting its strong emphasis on retail customers. - Retail Book: Grew to Rs. 84,444 Crore from Rs. 64,274 Crore, marking a robust 31% year-on-year growth in the retail loan portfolio.
- Gross Stage 3 (GS3): Improved to 3.14% from the previous year, reflecting a reduction of 90 basis points (bps) year-on-year.
- Net Stage 3 (NS3): Improved to 0.79% from the previous year, indicating a reduction of 40 bps year-on-year in non-performing assets.
- Credit Cost: Remained stable at 2.37% both quarter-on-quarter (QoQ) and year-on-year (YoY), suggesting effective management of credit risks.
- Return on Assets (RoA): Increased to 2.68% from 2.13% YoY, demonstrating improved profitability and efficient asset utilization.
These results underscore LTF's strong asset quality with reductions in Gross Stage 3 (GS3) and Net Stage 3 (NS3) metrics, reflecting prudent risk management strategies. The company's proactive asset liability management contributed to a stable Weighted Average Cost of Borrowing (WACB) at 7.85% quarter-on-quarter (QoQ).
Mr. Sudipta Roy, Managing Director & CEO of LTF, expressed satisfaction with the quarter's performance, highlighting the success of their strategic pillars focused on customer acquisition, digital innovation, and talent development. He emphasized LTF's commitment to customer-centricity and technological advancement, positioning the company for sustained growth and leadership in the financial services sector.
L&T Finance
L&T Finance Ltd. (LTF), formerly L&T Finance Holdings Ltd. (LTFH), is a prominent Non-Banking Financial Company (NBFC) headquartered in Mumbai. Renowned for its diverse range of financial products and services.
LTF holds the highest 'AAA' credit rating from four leading agencies and is recognized for its strong Environmental, Social, and Governance (ESG) performance. The company excels in Retail finance, focusing on customer-centricity through initiatives like the "Digital Sakhi" project for women's empowerment and digital inclusion.
LTF aims to achieve fintech leadership under its Lakshya 2026 plan, leveraging a vast customer database of 2.4 crore to drive growth and innovation in the retail sector while upholding ESG principles.
L&T Finance Q1FY25 Shows Significant Performance - FAQs
1. What was LTF's Profit After Tax (PAT) for Q1FY25?
LTF reported a PAT of Rs. 686 crore, up by 29% YoY.
2. How much did LTF's retail book value increase by in Q1FY25?
The retail book value increased to Rs. 84,444 crore, marking a 31% YoY growth.
3. What was the percentage increase in retail disbursements for Q1FY25?
Retail disbursements rose by 33% YoY to Rs. 14,839 crore.
4. What was the growth percentage in Rural Business Finance disbursements for Q1FY25?
Disbursements in Rural Business Finance grew by 28% YoY to Rs. 5,773 crore.
5. How much did the Rural Business Finance book size increase by in Q1FY25?
The book size for Rural Business Finance increased by 31% YoY to Rs. 25,887 crore.
6. What was the YoY growth in Farmer Finance disbursements for Q1FY25?
Farmer Finance disbursements grew by 8% YoY to Rs. 1,903 crore.
7. What was the YoY growth in Two-wheeler Finance disbursements for Q1FY25?
Disbursements in Two-wheeler Finance surged by 52% YoY to Rs. 2,621 crore.
8. How much did the Two-wheeler Finance book size increase by in Q1FY25?
The book size for Two-wheeler Finance increased by 31% YoY to Rs. 12,025 crore.
9. What was the growth percentage in Personal Loans disbursements for Q1FY25?
Disbursements in Personal Loans edged up by 1% YoY to Rs. 1,178 crore.
10. What was the YoY growth in the book size of Personal Loans for Q1FY25?
The book size for Personal Loans grew by 11% YoY to Rs. 6,667 crore.
11. How much did Housing Loans and Loans Against Property disbursements increase by in Q1FY25?
Disbursements in Housing Loans and Loans Against Property soared by 73% YoY to Rs. 2,245 crore.
12. What was the growth percentage in the book size of Housing Loans and Loans Against Property for Q1FY25?
The book size for Housing Loans and Loans Against Property expanded by 42% YoY to Rs. 19,961 crore.
13. What was the YoY growth in SME Finance disbursements for Q1FY25?
Disbursements in SME Finance surged by 61% YoY to Rs. 978 crore.
14. How much did the SME Finance book size increase by in Q1FY25?
The book size for SME Finance increased by 151% YoY to Rs. 4,471 crore.
15. What was LTF's Net Interest Income (NII) for Q1FY25?
NII rose to Rs. 2,020 crore, up by 23% YoY.
16. What was the Net Interest Margin + Fees & Other Income for Q1FY25?
Net Interest Margin + Fees & Other Income improved to 11.08%, up by 144 basis points YoY.
17. What was LTF's Consolidated Book size for Q1FY25?
The Consolidated Book size grew to Rs. 88,717 crore, up by 13% YoY.
18. What was LTF's Return on Equity (RoE) for Q1FY25?
RoE increased to 11.58%, up by 186 basis points YoY.
19. What was LTF's Gross Stage 3 (GS3) asset quality ratio for Q1FY25?
GS3 improved to 3.14% from the previous year, reflecting a reduction of 90 basis points YoY.
20. What was LTF's Net Stage 3 (NS3) asset quality ratio for Q1FY25?
NS3 improved to 0.79% from the previous year, indicating a reduction of 40 basis points YoY.
21. What was LTF's Credit Cost for Q1FY25?
Credit Cost remained stable at 2.37% both QoQ and YoY.
22. What was LTF's Return on Assets (RoA) for Q1FY25?
RoA increased to 2.68% from 2.13% YoY.
23. What is LTF's retailisation percentage as of Q1FY25?
Retailisation stands at 95%, indicating that 95% of LTF's operations are focused on retail finance.
24. How many downloads has LTF's PLANET App crossed as of Q1FY25?
The PLANET App has crossed over 1 crore downloads to date.
25. What initiatives did LTF launch during Q1FY25 to enhance its offerings?
LTF launched 'The Complete Home Loan' campaign and deployed the beta version of 'Project Cyclops', an AI-powered underwriting engine.
26. What is the Weighted Average Cost of Borrowing (WACB) for LTF as of Q1FY25?
WACB stood at 7.85% QoQ.
27. What is LTF's strategic roadmap called for achieving fintech leadership?
LTF's strategic roadmap is called Lakshya 2026.
28. How many customers does LTF leverage for cross-selling and up-selling as of Q1FY25?
LTF leverages a customer database of around 2.4 crore for cross-selling, up-selling, and new customer identification.
29. What are some of the accolades received by LTF for its corporate social responsibility (CSR) initiatives?
LTF has won awards for its flagship CSR project, "Digital Sakhi", focused on women's empowerment and digital inclusion.
30. What is LTF's credit rating from leading agencies?
LTF holds the highest 'AAA' credit rating from four leading rating agencies.
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