L&T Finance Holdings (LTFH) Q1FY23 Result: Profit fall 23.41% to ₹262.10 Cr, AUM rises 2.09% to ₹76,552 Cr QOQ

Increase in NIM+ Fees to 8.23% (up 71bps YoY) on the back of highest quarterly retail disbursements Lowest ever WAC at 7.27% with reduction in quarterly WAC by 37 bps YoY GS3 at 4.08% in Q1FY23; PCR at 55%; NS3 at 1.87%. Significant YoY asset quality improvement across businesses Asset Under Management (AUM) grew 2.09% to ₹76,552 Cr

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L&T Finance Holdings Ltd. (LTFH) is a financial holding company offering a focused range of financial products and services across rural housing and wholesale finance sectors as well as mutual fund products and wealth management services through its wholly-owned subsidiaries viz. L&T Finance Ltd. L&T Housing Finance Ltd. L&T Infrastructure Finance Company Ltd. L&T Investment Management Ltd. L&T Capital Markets Ltd. and L&T Infra Debt Fund Ltd.

The company has posted its Q1FY23 financial results today, the details are as below :

(I) Unaudited Consolidated Financial Results for Quarter Ended (QOQ comparison):

The company has reported, a consolidated Total Income of ₹3,135.80 crore in the quarter ended on June 30, 2022 as against ₹3,067.16 crore in the last quarter ended on Mar 31, 2022, increased by 2.23%.

The company has posted a consolidated Net Profit of ₹262.10 crore in the quarter ended on March 31, 2022 as against ₹342.24 crore in the previous quarter ended on June 30, 2022. The PAT surges down by 23.41%.

The status of the EPS of the company stood at ₹1.07 as on March 31, 2022 compared to the previous quarter ended on June, 2022 which was ₹1.39, down by 23.02%.

₹*June 30, 2022 (Q1FY23)Mar 31, 2022 (Q4FY22)
Total Income3,315.803,067.16
Total Expenses2829.022648.05
PBT /(Loss)306.78419.11
Total Tax /(credit)85.13128.93
PAT /(Loss) [to the owners]262.10342.24
*figures are in Crores

(I) Unaudited Consolidated Financial Results for Quarter Ended (YoY comparison):

The company has reported, a consolidated Total Income of ₹3,135.80 crore in the financial year ended on June 30, 2022 as against ₹3,115.71 crore for the same quarter ended on last year June 30, 2021 that increased by 0.64%.

The company has posted a consolidated Net Profit of ₹262.10 crore in the financial year ended on June 30, 2022 as against ₹177.85 crore for the same quarter ended on last year June 30, 2021. The PAT surges up by 47.37%.

The status of the EPS of the company stood at ₹1.07 as on June 30, 2022 compared to the quarter ended on last year June 30, 2021 which was ₹0.72, up by 48.61%.

₹*June 30, 2022 (Q1FY23)June 30, 2021 (Q1FY22)
Total Income3,135.803,115.71
Total Expenses2829.022936.92
PBT /(Loss)306.78178.79
Total Tax /(credit)85.1348.86
PAT /(Loss) [to the owners]262.10177.85
*figures are in Crores

L&T Finance Holdings Q4FY22 and Year Ended result – For details.

logo credit – L&T Finance Holdings Q1FY23 results 2022 – Market Times

(III) Key Highlights about the Performance :

  • Highest-ever quarterly retail disbursements at ~Rs. 8,938 Cr, up 10% QoQ and 148% YoY – Strong disbursement momentum surpassing Q4FY22
  • Retail portfolio mix at 54% (up from 45% in Q1FY22); increase in retail book by 6% QoQ mand 19% YoY – in line with Lakshya 2026 strategic plan
  • Increase in NIM+ Fees to 8.23% (up 71bps YoY) on the back of highest quarterly retail disbursements
  • Lowest ever WAC at 7.27% with reduction in quarterly WAC by 37 bps YoY
  • GS3 at 4.08% in Q1FY23; PCR at 55%; NS3 at 1.87%. Significant YoY asset quality improvement across businesses
  • Asset Under Management (AUM) grew 2.09% to ₹76,552 Cr

  • Fintech @ Scale: LTFH is on its path to becoming a ‘customer’ focused company from a ‘product’ focused one, in line with the Lakshya 2026 plan. During the quarter, the Company continued to emphasize on customer facing applications, with a clear focus on expanding the existing channels and ecosystems, and creating newer channels.
  • PLANET app – The launch of the customer facing application – PLANET – which was softlaunched in Q4FY22 has shown encouraging results with close to 2 lakh downloads. The application, which currently provides onboarding and servicing options for customers is available on both Appstore and Playstore.
  • WhatsApp for Business: Another key development has been the launch of the WhatsApp channel for Consumer Loan customers. In addition to the already existing WhatsApp Bot functioning as a servicing channel, we have now launched a WhatsApp channel for our partners where customers can apply for loans anywhere between Rs. 50,000 to Rs. 5,00,000 through the application with a TAT of 15 minutes.

Disbursements: In Q1FY23, retail businesses witnessed robust disbursement momentum. Retail Finance saw the highest ever quarterly disbursement at Rs. 8,938 Cr, up 10% QoQ and 148% YoY, with total disbursements in the quarter for focused businesses reaching ~Rs. 10,500 Cr. Retail book grew by 19% YoY, on the back of highest ever disbursements.

l&t finance aum chart

Retail Business :

  • a. Rural Business Finance (erstwhile Micro Loans): The Rural Business Finance business, which enables micro-entrepreneurship ecosystems at the grassroots level continued to witness strong momentum in disbursements with monthly run rate reaching levels of ~Rs. 1,300 Cr during the quarter (total disbursements at Rs. 3,811 Cr), while the book grew by 27% YoY. The Company continues to deepen channel presence and further geo-diversification will lead to future growth.
  • b. Farmer Finance (erstwhile Farm Equipment Finance): The Farm Equipment Finance business showcased robust performance with strong disbursements of Rs. 1,532 Cr, up by ~33% QoQ and 13% YoY by focusing on preferred dealer / OEM strategy, enhanced customer service and dominating counter share. The Company maintained its market share while financing ~33,000 tractors in the
    • quarter, which is the highest ever quarterly disbursement, in terms of number of tractors financed.
  • c. Urban Finance:
    • Consumer Loans: LTFH continued to grow its first ‘digital native’ Consumer Loans business, achieving disbursements of Rs. 1,010 Cr in Q1FY23 (up 26% QoQ). Additionally, the business continues to build a significant scale by cross-selling to LTFH’s existing as well as to open market customers.
    • Two-Wheeler Finance: The business saw the highest Q1 disbursements in the quarter (Rs. 1,517 Cr. in Q1FY23, up 84% YoY), despite a market slowdown in June. By maintaining a strong focus on customer value and building preferred dealer / OEM relationships to grow market share, the business is delivering on a strategy built around dominating counter share of preferred partners and offering mutual value by leveraging the increased application of data analytics.
    • Retail Housing (Home Loans & LAP): The Retail Housing Finance business continued to deliver strongly quarter on quarter performance, with disbursements at Rs. 936 Cr, led by a significant uptick from our revamped offerings and sourcing through select market channels. Additionally, the interest rate regime has made our offerings comparative to peers, which along with solid DSA relationships is translating into enhanced business growth.
  • d. Small and Medium Enterprise Loans (SME): In addition to existing products and to further accelerate retailisation, LTFH undertook a pilot launch of SME loans in Q3FY22, with end-to-end digital journey and use of analytics to deliver value-added proposition for customers and channels.
  • During the pilot, the business recorded a steady uptick with disbursements of Rs. 130 Cr till Q1FY23 and is now ready for a scale up.
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The stocks of L&T Finance Holdings Ltd last hit in BSE,

  • Intraday High of ₹ 72.65
  • Intraday low of ₹ 71.00