L&T Finance Posts Profit Surge Amid Sector Challenges

L&T Finance reported a 17% increase in consolidated profit after tax, reaching Rs 696 crore. The firm's overall assets grew by 18%, with a 28% rise in retail book growth. Despite sectoral challenges, the company remains focused on its transformation strategy and improving asset quality.

On Friday, non-bank lender L&T Finance announced a 17 percent rise in its consolidated profit after tax, totaling Rs 696 crore.

The firm, headquartered in the city, had a net profit of Rs 595 crore during the same period last year. Reporting an 18 percent growth in overall assets, the company saw a 12 percent increase in retail disbursements for the quarter under review. Retail book growth also surged by 28 percent, reaching a total of Rs 88,795 crore as of September 30, 2024.

The statement highlighted stable net interest margins and fees at 10.86 percent. Despite facing multiple sectoral headwinds and a volatile macro environment in the second quarter, Managing Director and CEO Sudipta Roy expressed confidence in the firm's future. He noted ongoing sectoral challenges could persist over the next two quarters, prompting dynamic recalibration of business objectives to prioritize positive credit outcomes over asset growth. Nonetheless, the company remains committed to its strategic transformation and execution amid improving asset quality and slightly lowered funding costs due to proactive asset-liability management.

(With inputs from agencies.)