L&T Finance Holdings (LTFH) posted a 16 per cent increase in its net profit for the quarter ending September 2012.
In the July-September period, the financial services company, owned by engineering and construction giant L&T, saw net profit rise to Rs 144 crore (Rs 124 crore in the year-ago period).
Income of the company grew by 29 per cent to Rs 935 crore from Rs 725 crore. Total expenses rose 31.4 per cent to Rs 190 crore from Rs 144.55 crore, owing largely to increase in employee benefits as well as allowances and write-offs.
On a year-on-year basis, the company’s assets (loans and advances) grew 27.23 per cent to Rs 27, 662 crore from Rs 21,742 crore as at end-September 2011.
Lower disbursements
The total disbursements for the half year aggregated to Rs 8,900 crore (previous year: Rs 9,805 crore). In the current half year, L&T Infrastructure Finance Company disbursed Rs 1,841 crore (Rs 2,846 crore) and L&T Finance (including L&T Fincorp) Rs 7,059 crore (Rs 6,959 crore)
L&TFH attributed the lower disbursements to the current environment in the infrastructure and corporate sectors, and its cautious approach to credit selection.
The disbursement in rural products finance at Rs 1,369 crore showed a robust a 32 per cent growth over previous year.L&TFH’s shares closed 1.82 per cent down at Rs 54.05 per share on the BSE.