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The consolidated net profit of diversified non-banking finance company L&T Finance Holdings fell 68.7 per cent to ₹174.51 crore in the second quarter, as it took the benefit of the lower corporate tax rate and deferred tax assets provisions.
It had a net profit of ₹559.12 crore in the July to September 2018 quarter. “LTFH is opting for lower corporate tax rate of 25.17 per cent, leading to lower tax liability from 2019-20 onwards,” it said in a statement on Friday. Its pre-deferred tax asset net profit is ₹647 crore for the second quarter this fiscal, which was an increase of 15 per cent from the ₹560 crore in the same period a year ago.
Its total lending book grew by 10 per cent in the second quarter of the fiscal to ₹1,00,258 crore, against ₹91,201 crore in the same period a year ago.
Net interest margin and fees stood at 6.86 per cent in the second quarter, against 6.86 per cent a year ago. Retailisation increased to 53 per cent in the quarter ended September 30from 47per cent a year ago.
Its total income grew to ₹ 3,711.85 crore in the second quarter of the fiscal. Average assets under management decreased by six per cent to ₹ 69,213 crore in the second quarter of the fiscal. The company said it maintains positive ALM gaps in all buckets up to one year and maintains liquidity of ₹11,607 crore.
Dinanath Dubhashi, Managing Director and CEO, LTFH, said: “The inherent strengths of our businesses, robust risk management framework, and strength due to parentage have been reaffirmed by multiple rating agencies by assigning AAA rating.”