L&T Finance Holdings on Thursday reported a 45.22% rise in its second quarter consolidated net profit at Rs 360.24 crore compared to the same period last year.
L&T Finance Holdings on Thursday reported a 45.22% rise in its second quarter consolidated net profit at Rs 360.24 crore compared to the same period last year.This growth has been achieved after taking accelerated credit cost of Rs 277 crore in order to further strengthen the portfolio, the company said in a statement. Income from operations rose 14.19% on a year-on-year basis in the second quarter to Rs 2,383.82 crore. Total income rose by 16.49% to Rs 2,494.72 crore.The Average Assets under Management (AAUM) in the Investment Management business increased by 61% to Rs 52,749 crore.
Average Assets under Service (AAUS) in Wealth Management business saw a growth of 52% to Rs 16,542 crore in the second quarter. Asset quality deteriorated marginally with the gross non-performing assets (NPA) rising by nine basis points to 5.8% in the second quarter compared to 5.71% in the previous quarter. The company has moved to recognition of GNPA at 90 days past due (DPD) since the first quarter of FY18. Net NPAs remained flat at 3.31% on a sequential basis. The company’s provision coverage ratio stood at 42.96%. L&T Finance Holdings has seen a 23% y-o-y increase in its assets. The lending business witnessed an 81% growth in disbursements on a y-o-y basis with the rural finance segment seeing 88% growth, housing finance seeing 32% growth and wholesale finance witnessing 94% growth in disbursements.