L&T Finance Holdings, a subsidiary of engineering and construction major Larsen & Toubro, today posted a whopping 215 per cent rise in net profit for the October-December quarter at Rs 294.6 crore driven by one-time gain from asset sale.
The increase in profit is a reflection of an exceptional gain of Rs 175.8 crore the company made from selling stake in Federal Bank, L&TFH said in a statement. The company had posted net profit of Rs 93.6 crore in the October-December quarter of the 2011-12 fiscal. "This growth has been on account of improvement in margins and tight control of operating expenses," the company said.
During the third quarter of 2012-13, loans and advances grew 30.77 per cent to Rs 31,230.5 crore, compared to Rs 23,883.3 crore in the year-ago period. In L&T Infra, loan assets were Rs 13,293.7 crore as on December 31, registering a growth of 31.80 per cent over last year, while L&T Finance (including L&T FinCorp) loan assets grew by 18.90 per cent to Rs 16,402.2 crore.
FamilyCredit contributed Rs 1,339.4 crore of loan assets and L&T Housing Finance added Rs 195.3 crore to the total loan assets, the company said. Disbursements for the quarter were Rs 6,656.1 crore, registering 20.59 per cent growth over the year-ago period. "Slow growth in disbursements on a yearly basis are a reflection of the current environment...impacting disbursements in infrastructure, corporate, auto and construction equipment segment and our cautious approach to credit selection," the company said.
The net NPAs stood at Rs 469.8 crore or 1.56 per cent of loan assets compared to Rs 287.1 or 1.25 per cent. During the quarter, L&TFH completed the acquisitions of Indo Pacific Housing Finance, Fidelity's Indian MF business and FamilyCredit.
On the outlook for the industry, it said: "The government has initiated several reform initiatives in the recent past which has resulted in improved sentiments. However, owing to tight liquidity situation and concerns around current account and fiscal deficit, the impact on investment climate would be seen in the coming quarters."
The statement added: "With no major changes in the operating environment in the last few quarters, the current