Money & Banking

L&T Finance Holdings Q3 net up 17%

Our Bureau Mumbai | Updated on January 19, 2018 Published on January 22, 2016

L&T Finance Holdings, the financial services holding company promoted by Larsen & Toubro, reported a 17 per cent increase in consolidated net profit at ₹212 crore in the third quarter ended December 31, 2015, against ₹182 crore in the year-ago period.

The company offers a diverse range of financial products and services across the corporate, retail and infrastructure finance sectors, as well as mutual fund products and investment management services through seven wholly-owned subsidiaries.

In the reporting quarter, the contribution of the retail finance business to overall net profit was down 5 per cent at ₹100 crore (₹105 crore in the year-ago period); net profit from wholesale finance business was up 28 per cent to ₹104 crore (₹81 crore); and net profit from investment management increased 100 cent to ₹3 crore (from a loss of ₹6 crore).

Disbursements in the retail finance business were up 34 per cent year-on-year at ₹6,983 crore. Disbursements in the wholesale finance business rose 48 per cent or ₹6,152 crore.

The company, in a statement, said the growth (in loans) was led by healthy disbursement of 40 per cent, on a year-on-year basis, in its key focus areas — operational projects in renewable energy and roads; retail business to consumer products (housing, microfinance and two-wheelers).

The average assets under management of the investment management business grew 17 per cent to ₹25,059 crore.

Gross NPAs (based on interest and / or instalment of principal remaining overdue for a period of more than 150 days) edged lower in the reporting quarter to ₹1,818 crore (₹1,977 crore in the year-ago quarter). Gross NPAs as a percentage of gross advances was lower at 3.33 per cent (4.48 per cent).

Gross NPAs in percentage terms show a reducing trend on a year-on-year basis despite above-normal delinquencies in the farm portfolio, indicating that NPAs in other business have been contained, the statement said.

Published on January 22, 2016
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