L&T Finance reported a 17% rise in its profit after tax, reaching ₹696 crore for the second quarter, up from ₹595 crore a year earlier. The company noted that its overall assets grew by 18%, with retail disbursements increasing by 12% during the same period.
The retail loan portfolio grew by 28%, totaling ₹88,795 crore as of September 30, 2024. The company’s net interest margins and fees remained steady at 10.86%.
However, Sudipta Roy, the managing director and CEO, mentioned that the company faced challenges in the second quarter due to various industry headwinds and a fluctuating economic environment. He warned that these challenges might continue for the next six months, leading the company to adjust its business goals, focusing more on positive credit outcomes rather than just growth in assets.
Despite these concerns, Roy expressed optimism about the company’s strategy and commitment to transformation and execution. On the asset quality front, the gross stage 3 assets ratio improved to 3.19% from 3.27% a year ago, while credit costs stayed stable at 2.59%. The company also managed to lower its cost of funds by 0.05% to 7.8% through effective asset-liability management.
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