L&T Finance Holdings March Quarter Earnings: Key Takeaways

Editor

posted on 5 years ago — updated on 1 second ago

36
views

Larsen & Toubro Finance Holdings’ consolidated profit after tax rose 94% to Rs548 crore in the March quarter from Rs 282 crore in the year-ago period.

L&T Finance Holdings on Sunday announced its earnings for the quarter ended March 2019. Here are key takeaways from the non-banking finance company’s (NBFC’s) March quarter results:

— Larsen & Toubro Finance Holdings’ consolidated profit after tax rose 94% to Rs548 crore in the March quarter from Rs282 crore in the year-ago period.

— For the full year, consolidated profit after tax stood at Rs2,226 crore, a jump of 77% from Rs1,255 crore in FY18.

— L&T Finance’s total income rose to Rs3,383.92 crore in the March quarter from Rs2,762.71 crore a year ago.

— Total assets grew 17% to Rs98,274 crore in FY19 from Rs83,793 crore in FY18.

— Wholesale finance book, which accounts for 48% of L&T Finance’s total assets, shrunk 1% to Rs47,178 crore.

— In its investment and wealth management businesses, average assets under management (AAUM) rose 8% to Rs70,944 crore during the March quarter from Rs65,932 crore in the year-ago quarter.

— Net interest margins (NIMs) rose to 5.08% in the March quarter from 4.64% in the year-ago quarter.

— The return on equity (ROE) for the March quarter stood at 16.57%. For FY19, RoE was at 17.92% as against 15.73% in FY18. “This is our first full year of delivering top quartile RoE,” said Dinanath Dubhashi, CEO, L&T Finance Holdings. “In FY20 and beyond, we intend to achieve sustainable RoE through a strategy of responsible growth, continued retailisation of the loan book, diversification of funding sources, healthy net interest margins plus fee income, and enhanced productivity.”

— L&T Finance’s total expenses stood at Rs 2,634.56 crore during the quarter as against Rs2,396.53 crore in the same quarter last year.

— L&T Finance Holdings said in a statement that it has around Rs1,800 crore exposure to six project special purpose vehicles (SPVs) of Infrastructure Leasing and Financial Services (IL&FS) through its subsidiaries.

— It added that the resolution plan submitted by the government (at the instance of IL&FS board) to the National Company Law Appellate Tribunal (NCLAT) specifies that these SPVs are capable of servicing loans to secured creditors and there will be priority on payments towards them.