L&T Finances Q1 net up 97%

Written by fe Bureau | Mumbai | Updated: Jul 24 2014, 05:50am hrs
L&T Finance Holdings on Wednesday reported a consolidated net profit of R286 crore for the quarter ended June 30, 2014, up 97% from R145 crore in the same period last year owing to a R119-crore gain from City Union Bank share sale.

Last month, L&T Finance sold a 4.55% stake in Chennai-based City Union Bank. However, the operational profit after tax (PAT) stood at R167 crore in Q1FY15.

The investment management business witnessed the average assets under management (AAUM) growing by 44% on a year-on-year basis to R19,895 crore.

The companys advances as on June 30 grew by 19% year-on-year to R40,764 crore compared with R34,340 core in the same period last year.

Margins in the retail business continued to improve and the overall credit costs have stabilised. There has been an increase in the overall gross NPA arising from the seasonality seen in the retail portfolio during the first quarter and existing stress in infrastructure sector, said chairman and managing director YM Deosthalee.

The NBFCs net NPA ratio stood at 2.67% at the end of the June quarter and was up 36 basis points (bps) from the same period in FY14.

Our efforts and the positive outlook for the medium term should bring about a gradual improvement in asset quality in the upcoming quarters, Deosthalee added.

The company believes that emergence of a stable government post elections has resulted in a positive business sentiment and heightened expectations of a faster recovery in the overall economy.

The focus of the Budget in terms of creating enabling framework for PPPs, REITs, Infrastructure Investment Trusts and relaxation in regulations to raise long-term bonds for the infrastructure funding are the positives, L&T Finance Holdings said.

The L&T Finance scrip closed down 0.75% to R72.50 on the BSE on Wednesday.