Magazine : 
L&T Finance Q4 Net up 44.5% on Strong Loan Growth
Bangalore: L&T Finance Holdings today reported nearly 45 percent jump in consolidated profit in January-March quarter at 
141 crore, aided by strong loan growth. The company had a net profit of 97.35 crore in the same quarter in the previous fiscal.
For the full fiscal, net profit grew by 16.2 percent to 454.80 crore, compared to 391.17 crore a year ago.
Advances grew by 39.80 percent to 25,016.98 crore compared to 17,894.90 crore in FY11. "We are happy to announce extremely good numbers despite trying times when the industry faced many travails such as a high interest rate regime and growth deceleration.
"Our overall numbers would have been much better had it not been for the 90-crore write down in our micro-finance portfolio (MFI) in Andhra Pradesh apart from Rs 55 crore provisioning for there," L&T Finance Holdings Chairman Y M Deosthalee told reporters.
L&T Finance Holdings is the only listed subsidiary of the engineering and construction giant Larsen & Toubro. This is first annual results after its listing last fiscal.
Healthy growth in profit was supported by strong improvement in overall loan book, improvement in net interest margin (6.25 percent) and higher operating efficiencies, Company President N Sivaraman said.
But the microfinance sector has been a big drag on the company and its profitability. In states other than Andhra Pradesh, the company continued with its cautious approach. The aggregate loan portfolio outside AP amounted to 132.21 crore.
In Andhra Pradesh, the company did not disburse any fresh loans towards microfinance while marginal collections continued. The company made a further provision of 75 crore during the current year, taking the cumulative provision to 134.67 crore.
The firm's microfinance business posted a wider net loss before tax of 122.86 crore for the year as against a loss before tax of 37.71 crore in the previous year.
Excluding microfinance, gross NPAs stood at Rs 329.04 crore, or 1.33 percent of gross advances, the company said.
Its subsidiary L&T Infrastructure Finance Company (L&T Infra) achieved a growth of 45.98 percent during the year, while L&T Finance (L&T Finance) achieved a growth of 24.47 percent in loans and advances.
Source: PTI
141 crore, aided by strong loan growth. The company had a net profit of 97.35 crore in the same quarter in the previous fiscal.
For the full fiscal, net profit grew by 16.2 percent to 454.80 crore, compared to 391.17 crore a year ago.
Advances grew by 39.80 percent to 25,016.98 crore compared to 17,894.90 crore in FY11. "We are happy to announce extremely good numbers despite trying times when the industry faced many travails such as a high interest rate regime and growth deceleration.
"Our overall numbers would have been much better had it not been for the 90-crore write down in our micro-finance portfolio (MFI) in Andhra Pradesh apart from Rs 55 crore provisioning for there," L&T Finance Holdings Chairman Y M Deosthalee told reporters.
L&T Finance Holdings is the only listed subsidiary of the engineering and construction giant Larsen & Toubro. This is first annual results after its listing last fiscal.
Healthy growth in profit was supported by strong improvement in overall loan book, improvement in net interest margin (6.25 percent) and higher operating efficiencies, Company President N Sivaraman said.
But the microfinance sector has been a big drag on the company and its profitability. In states other than Andhra Pradesh, the company continued with its cautious approach. The aggregate loan portfolio outside AP amounted to 132.21 crore.
In Andhra Pradesh, the company did not disburse any fresh loans towards microfinance while marginal collections continued. The company made a further provision of 75 crore during the current year, taking the cumulative provision to 134.67 crore.
The firm's microfinance business posted a wider net loss before tax of 122.86 crore for the year as against a loss before tax of 37.71 crore in the previous year.
Excluding microfinance, gross NPAs stood at Rs 329.04 crore, or 1.33 percent of gross advances, the company said.
Its subsidiary L&T Infrastructure Finance Company (L&T Infra) achieved a growth of 45.98 percent during the year, while L&T Finance (L&T Finance) achieved a growth of 24.47 percent in loans and advances..jpg "Gurbinder Singh Punn: Enabling Leaders To Achieve Unencumbered Success Through Effective Coaching")
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