1. L&T Finance Holdings Q1 net profit up 8%

L&T Finance Holdings Q1 net profit up 8%

L&T Finance Holdings (LTFH) on Friday reported a consolidated net profit of Rs 207.4 crore for the quarter ended June 2016, up 7.9% from the same period last year.

By: | Mumbai | Published: July 23, 2016 6:14 AM

L&T Finance Holdings (LTFH) on Friday reported a consolidated net profit of Rs 207.4 crore for the quarter ended June 2016, up 7.9% from the same period last year.

The firm fared better on the asset quality front in Q1FY17, with its net non-performing assets (NPAs) falling 17% on a year-on-year (y-o-y) basis to Rs 1,752 crore. Gross NPAs at Rs 2,599 crore were down 1.3%.

The firm’s investment management business witnessed the average assets under management growing by 28% on a Y-o-Y basis to Rs 28,404 crore.

Its net interest margin (NIM) for the lending business was at 5.31% in the quarter under review, compared with 5.64% in the same quarter last year.

YM Deosthalee, chairman and managing director, L&T Finance Holdings, said in a statement that the company grew despite a slower-than-expected pick-up in the overall economy and significant cash flow pressures in rural markets.

“Our focus on financing operational projects in renewable energy and road sectors, and select segments of rural and housing finance has enabled this. Our philosophy of being a focused financial services player is playing out positively in terms of maintaining a consistently healthy growth in assets and profitability,” he said.

In April 2016, LTFH had unveiled its strategy to reach top quartile return on equity (RoE) by FY20. As part of this strategy, LTFH said it has realigned its focus on profitable growth in three lending businesses – rural, housing and wholesale – while de-emphasising other products in its lending portfolio.

Loans & advances in the focused businesses grew 23% y-o-y to Rs 53,331 crore.

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