Gujarat’s other calling card

Gujarat’s other calling card

Whether it is female infanticide, education or health indicators, Modi’s Gujarat...
Safe assets

Safe assets

The asset disclosures for the 2014 Lok Sabha elections...

L&T Finance Q3 net surges 215%

Comments 0
SummaryNon-banking financial company L&T Finance Holding’s (LTFH) consolidated net profit rose 214.78% year-on-year (yoy) to Rs.294.60 crore in the third quarter ending December 2012.

Non-banking financial company (NBFC) L&T Finance Holding’s (LTFH) consolidated net profit rose 214.78% year-on-year (yoy) to R294.60 crore in the third quarter ending December 2012. LTFH attributed the growth to improved margins and tight control over operating expenses, though it was offset to some extent by an increase in credit costs. Earnings were also helped by an exceptional item amounting to R175.8 crore (net of tax) during the quarter, which includes profit on sale of a stake in Federal Bank and costs related to the integration of Fidelity’s mutual fund business.

LTFH's total income rose 27.34% to R983.25 crore. Its advances book expanded 31% to R31230.50 crore as on 31 December 2012. The gross non-performing assets (NPA) ratio of LTFH stood at 2.39%, higher than 1.81% in the previous quarter. The net NPA ratio stood at 1.56%, higher than 1.24% in the previous quarter. The increase in NPAs was primarily contributed by infrastructure loans, corporate loans and construction equipment loans, as a result of stress in the economic environment.

During the quarter, the company made additional provisions of R14.4 crore and wrote off R29 crore against loan assets in its micro-finance portfolio in Andhra Pradesh. The cumulative provisions as at the end of the December 2012, stood at R177.8 crore. During the quarter, LTFH completed the acquisition of Indo Pacific Housing Finance (IPHF), Fidelity's Indian mutual fund business and FamilyCredit (FCL). The consolidated results also include the results of these businesses.

Ads by Google

More from Economy

Reader´s Comments
| Post a Comment
Please Wait while comments are loading...