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L&T Finance Holdings today said that its second quarter consolidated net profit grew 8.4 per cent as its corporate lending slowed reflecting a prolonged delay in investment cycles.
In the July-September quarter, the financial holding company of Larsen & Toubro group, posted a net profit of Rs 156 crore against Rs 144 crore a year ago.
N. Sivaraman, Director-Finance, L&T Finance, said “Our loan growth on the corporate side, construction equipment and commercial vehicle segment was weak.”
Loans, advances
During the quarter, the Mumbai-based company’s loans and advances grew by a mere three per cent to Rs 35,458.7 crore.
Gross non-performing assets (NPAs) increased by Rs 147 crore to Rs 993 crore. The company said: “the elevated gross NPAs is mainly due to one account in the infrastructure segment.”
Outlook
The company expressed hopes that a good monsoon will lead to increase in demand for loans in the rural areas.
Sivaraman said that they expect the loan book to grow by 15-20 per cent for the full year. However, given the challenging macro-economic environment, the company expects more loans to turn bad in the remaining part of the year.
Shares of the company closed at Rs 77.30, down 2.34 per cent, on the Bombay Stock Exchange.
satyanarayan.iyer@thehindu.co.in
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