L&T Finance Holdings on Friday reported a 16.71% growth in its third quarter consolidated net profit at Rs211.96 crore compared to the same period last year.
Growth in profits has been a result of consistent and steady improvement in key operating
parameters along with stabilization in the overall asset quality in the lending business and
positive contribution by the asset management business, the company said in a release.
Net Interest Margins (NIMs) for the lending business has shown a 20% growth y-o-y to Rs 750 crore (5.63%) from Rs 623 crore (5.66%) in the same period last year.
Income from operations rose by 15.76% in the third quarter to Rs1819.80 crore on a year-on-year basis.
Gross non-performing assets (NPAs) as a percentage of total assets stood at 3.33% when considered on a 150-day NPA recognition cycle. On an absolute basis, gross NPAs stood at Rs1,817.60 crore.
Net NPAs stood at 2.23% and on an absolute basis, it stood at Rs1,206.41 crore.
On a sequential basis, the gross NPAs increased by 25 basis points while the net NPAs rose by 23 basis points.
L&T Finance Holdings said in a press release that sequential increase in gross NPA% was largely on account of stress in rural markets.
Loans and advances as on December 31, 2015 grew by 23% y-o-y to Rs 55,694 crore as compared to Rs 45,225 crore as on December 31, 2014.
“The growth has been led by healthy disbursement growth of 40% on a y-o-y basis in our key
focus areas i.e. operational projects in renewable energy and roads; retail B2C products – housing, microfinance and two wheelers,” the release said.
The average assets under management (AAUM) of the investment management business grew by 17% to Rs 25,059 crore as compared to Rs 21,336 crore for the same period last year, the release stated.