L&T Finance Holdings on Thursday reported a reasonable set of numbers for the three months to June 2015. Adjusting for exceptional items...
L&T Finance Holdings on Thursday reported a reasonable set of numbers for the three months to June 2015.
Adjusting for exceptional items, the company reported a 15% rise in consolidated net profit for Q1FY16 at Rs192 crore against Rs 167 crore in the same period last year.
Addressing reporters, N Sivaraman, president and whole-time director, said Q1 profit came off a high base because the Rs 285-crore figure in Q1FY15 included the profit on sale of investment in City Union Bank.
The firm reported a 0.13 percentage points year-on-year rise in net interest margins (NIMs) in the June quater.
Loans and advances grew 21% y-o-y to Rs 49,219 crore from Rs 40,764 crore as on June 30, 2014. “This has been led by healthy disbursement growth of 37% on a y-o-y basis in our key focus areas, i.e., B2C products — two wheelers, housing and microfinance in the retail business and operational projects in the wholesale business,” the company said in a press release.
Asset quality remained stable with the gross non-performing assets (GNPAs), as a percentage of gross advances, at 2.64%, down 93 bps y-o-y, for a 180-day NPA-recognition cycle. On a sequential basis, however, NPAs increased 39 bps due to higher delinquencies in the farm portfolio.
Calculated for a 150-day NPA-recognition cycle,gross NPAs stood at 3.05%. Net NPA, as a percentage of net advances, stood at 1.60% in Q1FY16 against 2.67% in the same period last year. On a 150-day cycle, the company reported a figure of 2% in the first quarter this fiscal. Sivaraman added that the company did not sell any bad loans to asset reconstruction companies (ARCs) in Q1. The average assets under management (AAUMs) of the investment management business grew 12% to Rs 22,213 crore from Rs19,895 crore in the same period last year. The scrip closed 1.99% lower at Rs71.55 on the BSE.