L&T Finance Limited (LTF), one of India's leading non-banking financial companies, has announced its financial results for the second quarter, showcasing strong performance across key metrics.

Highlights

• Highest ever Profit After Tax (PAT) of ₹735 Crore, up 5% QoQ and 6% YoY
• Retail Book crosses the ₹1 lakh Crore milestone
• Retail portfolio at ₹1,04,607 Crore, reflecting an 18% growth YoY
• Highest ever Retail disbursements for Q2 at ₹18,883 Crore, up 25% YoY
• Retailisation stands at 98%

Financial Performance

LTF reported a consolidated PAT of ₹735 Crore for Q2, marking a 6% increase year-over-year. The company's retail book demonstrated robust growth, crossing the ₹1 lakh Crore milestone to reach ₹1,04,607 Crore, an 18% increase compared to the same quarter last year.

Asset Quality

The company maintained a stable asset quality profile:

• Gross Stage 3 (GS3) at 3.29% in Q2 vs. 3.19% in Q2 of the previous year
• Net Stage 3 (NS3) at 1.00% in Q2 vs. 0.96% in Q2 of the previous year

Business Segment Performance

Strategic Developments

1. International Credit Rating Upgrade: S&P Global Ratings upgraded LTF's long-term issuer credit rating to "BBB/Stable" from "BBB-/Positive".

2. Digital Initiatives:

   • Project Nostradamus beta launched for the Two-wheeler business.
   • Project Cyclops implemented in Two-wheeler Finance, Farm Equipment Finance, and SME Finance.

3. Partnerships: Google Pay added as a big-tech partner for Personal Loans origination.

4. Gold Loan Expansion: Plans to add around 200 new branches, taking the gold distribution strength to about 330 branches.

Management Commentary

Mr. Sudipta Roy, Managing Director & CEO of LTF, stated, "During the quarter, our focus remained firmly on execution and growth, enabling us to deliver a strong performance in a quarter traditionally considered a weak one in the BFSI industry. The performance highlights the improved momentum in all our lines of business, across rural and urban geographies, driven by the transformation initiatives carried over the last few quarters."

He added, "On the back of good monsoons and improving customer consumption sentiment, we are confident that this momentum will accelerate in H2 on the back of festive demand fueled by GST 2.0 reforms."

LTF continues to make strides in its digital transformation and customer-centric approach, positioning itself for sustained growth in the evolving financial services landscape.

L&T Finance , a prominent non-banking financial company (NBFC), has reported a 5.4% increase in its consolidated net profit for the second quarter. The company's net profit rose to 7.34 billion rupees, up from 6.96 billion rupees in the same period last year.

Revenue Growth

L&T Finance's revenue showed a robust growth of 7.8%, increasing to 43.35 billion rupees from 40.20 billion rupees year-over-year. This growth in both revenue and profit indicates the company's resilience and ability to expand its business operations.

Record Retail Loans

L&T Finance achieved record retail loans of 188.83 billion rupees in Q2, marking a 25% year-over-year increase. This significant growth in retail lending underscores the company's strong performance in the consumer finance segment.

Expansion Plans

The company plans to expand its branch network by opening 200 more branches by FY26, targeting 330 gold loan branches. This expansion strategy aims to strengthen L&T Finance's presence in key markets and enhance its service delivery capabilities.

Financial Performance Overview

To provide a clearer picture of L&T Finance's Q2 performance, here's a breakdown of the key financial metrics:

All figures in billion rupees

The company's improved financial performance can be attributed to various factors, including significant growth in its retail loan book and efficient cost management.

Market Outlook

A company executive expressed optimism about accelerated growth in H2, citing expected festive demand and support from GST 2.0 changes. This outlook suggests potential for further growth in the coming quarters.

Conclusion

L&T Finance's Q2 results show consistent growth in revenue, profit, and particularly strong performance in retail loans. The company's expansion plans and market outlook indicate a strategic focus on capitalizing on market opportunities. As the financial services sector continues to evolve, L&T Finance's performance will be closely watched in the NBFC sector in India.