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L&T Finance Holdings reported a 15.5 per cent drop in its consolidated net profit for the second quarter of the fiscal.
Its net profit stood at ₹224.03 crore for the quarter-ended September 30, 2021 as against ₹265.12 crore in the same period last fiscal. However, on a sequential basis, it posted a 26.5 per cent jump from its net profit of ₹177.02 crore in the June 2021 quarter.
Its total revenue from operations increased by 10.5 per cent to ₹3,051.82 crore in the second quarter of the fiscal from ₹3,408.1 crore a year ago. However, other income declined by 18 per cent on a year-on-year basis to ₹82.64 crore in the July to September 2021 quarter.
“In the second quarter of the fiscal, all L&T Finance Holdings businesses witnessed robust disbursement momentum,” it said in a statement on Wednesday.
Rural finance
Its rural finance business saw the highest ever second quarter disbursement at ₹4,987 crore, up 51 per cent quarter-on-quarter. The total disbursements in the quarter stood at ₹7,339 crore for the focused businesses.
“Disbursement momentum will continue to further pick-up, backed by the company’s established ability to scale up product offerings in retail by harnessing our digital and analytics strengths. LTFH is well provisioned for any short-term Covid 2.0 led disruptions,” said Dinanath Dubhashi, Managing Director and CEO, L&T Finance Holdings.
However, its total lending book fell by 12 per cent to ₹86,936 crore in the second quarter of the fiscal as against ₹98,823 crore a year ago.
It is carrying additional provisions and one-time restructuring provisions of ₹1,747 crore or 2.22 per cent of the standard book in the second quarter of the fiscal.
The Gross Stage 3 assets in absolute terms stood at ₹4,796 crore in the second quarter of the fiscal, as against ₹4,881 crore in the first quarter and ₹4,921 crore in the second quarter of 2020-21.
In percentage terms, the GS3 and NS3 assets of the company stood at 5.74 per cent and 2.81 per cent respectively with PCR on Stage 3 assets at 52 per cent.
The company said collections have normalised across businesses in the second quarter of the fiscal led by smart data analytics, concerted field efforts and gradual unlocking of the economy
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