L&T Finance Holdings has reported a 10% growth in its consolidated profit after tax before exceptional items for the quarter-ended March 31, 2015, at R206 crore against R187 crore in the same period last year.
Net interest income rose 21% y-o-y to R705.56 crore in Q4. Income from operations stood at R1,634.64 crore against R1399.66 crore in the year-ago period. Loans and advances grew by 18% y-o-y to R47,232 crore against R40,082 crore, the company said in a release.
Net interest margins for the lending business stood at 5.68% for the year compared to 5.47% for the last year.
Asset quality saw some improvement with gross NPAs as a percentage of gross advances coming down to 2.25% in Q4 compared to 3.18% in the corresponding period last year.
Gross NPA also saw a sequential reduction of 76 bps. Net NPAs reduced to 1.26% in Q4, a drop of 1.03% y-o-y, while coming down 72 bps sequentially. The company attributed the sharp fall in NPAs to strong collection efforts and proactive calls on certain stressed assets.
“The slippages have come from two accounts in the infrastructure segment, but they are not quite significant,” said YM Deosthalee, CMD, L&T Finance Holdings. He added that recoveries have also been decent.
For FY16, the company has set an asset growth target of 25% even as it aims to optimise its leverage. “Unseasonal rains and expected deficient monsoon could have an impact on the rural sector in the quarter ending June 2015. Consequently, the improvement in delinquencies and stressed assets could moderate,” the release said.