L&T Finance Holdings posted a consolidated net profit of ₹531 crore for Q1 FY24, up over two-fold on year.
Retail loan book grew 34 per cent to ₹64,274 crore as of June 30, accounting for 82 per cent of total loans compared with 75 per cent a quarter ago and 54 per cent a year ago.
“We have achieved Retailisation of 82% in Q1FY24 itself, much ahead of Lakshya 2026 goal of greater than 80% Retailisation. In fact, we have been able to achieve most of our goals almost 3 years in advance,” MD and CEO Dinanath Dubhashi said.
He attributed this to the company’s twin strategy of strongly growing the retail asset book on one side and ensuring a sharp reduction in the wholesale book on the other, while maintaining best-in-class asset quality.
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The wholesale loan portfolio declined by 65 per cent to ₹14,292 crore. Of the ₹25,992 crore reduction YoY, ₹5,548 crore was in Q1 FY24.
The company said it is also leveraging its over 2.1 crore customer database to drive cross-selling, which now contributes to 34 per cent of disbursements.
Retail portfolio
Retail disbursements were at ₹11,193 crore, up 25 per cent YoY led by strong growth across all segments.
Rural Group Loans and Micro Finance saw record quarterly disbursements of ₹4,511 crore, 18 per cent higher on year, whereas farm equipment finance disbursements grew 15 per cent to ₹1,757 crore.
Two-Wheeler Finance disbursements were at ₹1,726 crore, an increase of 14 per cent YoY, the company said, adding that it will continue to focus on collection-led disbursements while building a robust network of dealerships through new initiatives.
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Consumer loan disbursements were up 15 per cent at ₹1,162 crore, and housing loans and Loans Against Property were up 39 per cent at ₹1,299 crore.
Retail NIM and fees for the quarter was 11.71 per cent, slightly better than 11.57 per cent a year ago. Credit cost fell to 2.78 per cent from 5.03 per cent.
The gross stage 2 assets ratio for retail assets improved to 3.21 per cent from 3.41 per cent a quarter ago and 3.61 per cent a year ago. The net stage 3 ratio too was marginally better at 0.70 per cent from 0.71 per cent in the previous quarter and 0.93 per cent in the previous year.