L&T Fin Q1 net up 15% at Rs 192 cr on improved margins

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New Delhi | Published: July 24, 2015 7:20:54 AM

L&T Finance Holdings has reported a 15 per cent increase in its consolidated net profit at Rs 192 crore in the quarter ended June 2015 on account of improved...

L&T Finance Holdings has reported a 15 per cent increase in its consolidated net profit at Rs 192 crore in the quarter ended June 2015 on account of improved margins and stable operational expenses.

The company had reported a consolidated profit of Rs 167 crore in the same period last year without the exceptional item.

“The company saw improvements in margins and we were also able to maintain our operational expenses,” L&T Finance Holdings President and Whole-time Director N Sivaraman told reporters here today.

“The Rs 285 crore net profit on the consolidated basis in the first quarter of last year include the profit on sale of investment we had in the City Union Bank of (of around Rs 119 crore), which we had realised.

“All profit numbers we are talking about today are profit without the exceptional items. We were about Rs 167 crore in the first quarter of the last year without these exceptional items,” he added.

Net interest margins for the lending business grew 22 per cent to Rs 681 crore (5.65 per cent) from Rs 558 crore (5.52 per cent) in the same period last year.

The gross non performing assets level with 180 days NPA recognition cycle stood at 2.64 per cent against 3.57 per cent in the year-ago quarter. Net NPA with 180 days NPA recognition cycle stood at 1.60 per cent compared to 2.67 per cent.

According to the RBI guidelines, the NPA recognition criteria is revised from 180 days past due to 150 days past due with effect from first quarter of this fiscal.

On the 150 days NPA recognition cycle, gross NPA stood at 3.05 per cent while net NPA was at 2 per cent in the quarter.

“Based on our assessment, our current provisioning norms adequately take care of provisioning requirements due to the new NPA recognition norms,” the company said.

As on June 30, loans and advances grew 21 per cent to Rs 49,219 crore from Rs 40,764 crore in the same period last year.

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