- 18 Jul 2024
- ICICI Securities
L&T FINANCE REPORTED AN ALL-ROUND PERFORMANCE IN Q1FY25
LTF - 173 Change: 2.07 (1.21 %)News: L&T Finance reported an all-round performance in Q1FY25 with continued growth in advance book, improvement in margins and RoA. Disbursement in retail segment increased 33% YoY resulting in 31% YoY and 6% QoQ growth in AUM at ₹84,444 crore. Balance growth with rural finance (31% YoY and 5% QoQ) aiding yields and urban finance (32% YoY and 7% QoQ) contributing to secured loans remains encouraging. Margins got reported at 9.31%, witnessing an improvement of 17 bps QoQ, driven by flattish interest expense. Steady opex and credit cost led to 29% YoY growth in PAT at ₹686 crore, with RoA at 2.68%. Collection has witnessed slight moderation, however, asset quality remained steady with GNPA at 2.79% (-5 bps QoQ) and NNPA at 0.62% (flat QoQ)
Views: Consistent delivery on retail business with improvement in return ratios is expected to aid valuation. Commentary on wholesale book and experience in rural finance from asset quality perspective remains watchful
Impact: Positive