L&T Finance Holdings Ltd. records ‘Profit After Tax’ of Rs. 531 crores in Q1 of the FY 2023-24

Pune, July 20, 2023: L&T Finance Holdings Ltd. (LTFH), one of the leading Non-Banking Financial Companies (NBFCs), which is accelerating its journey towards becoming a customer-focused, top class, digitally-enabled retail NBFC has posted a consolidated PAT of Rs. 531 crores for the first quarter ended June 30, 2023, recording a growth of 103 percent YoY.

The Company has also achieved a retail loan portfolio mix of 82 percent of the total loan book, which is over the 80 percent retailisation target set under the Lakshya 2026 goal. The Company has achieved most of its Lakshya 2026 goals 3 years in advance. The Company’s customer facing application – PLANET app, has emerged as a powerful digital channel for its customers, crossing 44 lakh downloads till date since the fourth quarter of the financial year 2021-2022

Their quarterly retail disbursements stood at Rs. 11,193, recording a growth of 25 percent YoY. The retail book now stands at Rs. 64,274 crores, up 34 percent when compared with the Q1 of 2022. There has been an accelerated reduction in wholesale book by 65 percent YoY i.e., a reduction of Rs, 25,992 crores.

Mr. Dinanath Dubhashi, Managing Director & CEO, L&T Finance Holdings Ltd. said, “It gives me immense pleasure to announce that we have achieved Retailisation of 82% in Q1FY24 itself, much ahead of Lakshya 2026 goal of greater than 80% Retailisation. We have been able to achieve most of our Lakshya 2026 goals almost 3 years in advance. This achievement is attributed to the 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. The Company will continue to develop digital finance delivery as a customer value proposition thereby touching every part of the customer ecosystem through our digital offerings.”

During the quarter, LTFH witnessed strong growth across all retail segments:

Rural Group Loans & Micro Finance disbursements for the quarter registered its highest ever quarterly disbursements at Rs. 4,511 crores, recording a YoY growth of 18 percent. The business was aided by deepened geo-presence in under-penetrated markets, stronger customer retention with healthy share of vintage borrowers. A pilot of Rural Loan Against Property (Rural LAP), the latest offering under the Rural Business Finance umbrella, was also initiated in Madurai, Tamil Nadu.

Farm Equipment Finance disbursements saw a YoY growth of 15 percent for the quarter at Rs. 1,757 crores. The business witnessed growth & on-field productivity and enhanced customer retention through Kisan Suvidha top-up and Refinance.

Two-Wheeler Finance witnessed disbursements of Rs. 1,726 crores for the quarter with a 14 percent increase YoY. The business also witnessed the launch of two new products, Centum and VIP Pro to cater to better credit profile customer segment.

Consumer Loans continued to scale up while protecting portfolio quality with Rs. 1,162 crores disbursements for the quarter, compared with Rs. 1,010 crores in the same period a year ago.

Housing Loans and Loans Against Property showed sustained growth momentum in the quarter with a 39 percent increase in disbursements YoY at Rs. 1,299 crores.

SME Loans also registered robust growth with disbursements at Rs. 607 crores in for the quarter as against a disbursement of Rs. 68 crores in the same period a year ago. During the quarter, the business crossed overall disbursements of Rs. 2,000 crores since increase in geographical presence and concerted efforts towards digitization and channel expansion.