L&T Finance Holdings' net profit rises 12% to Rs 326 crore in December quarter

 L&T Finance Holdings on Friday reported a 12 per cent increase in its net profit to Rs 326 crore for the quarter ended December 2021.

The non-banking finance company (NBFC) had registered a net profit of Rs 291 crore in the year-ago period.

In a statement, the company said it witnessed strong improvement in disbursements and collections in Q3FY22, and witnessed an all-time high retail quarterly disbursements of about Rs 7,600 crore, up by 29 per cent from a year ago.

Total income during the October-December 2021 period, however, was down at Rs 3,099 crore, as against Rs 3,504 crore in Q3FY21.

"The period saw businesses returning to pre-COVID-19 levels despite industry de-growth during the festive season."

"In our retail businesses of farm and two-wheeler finance, we maintained business momentum as a leading retail financier with a stable market share, owing to our digital and data analytics capabilities,” Dinanath Dubhashi, managing director and CEO of L&T Finance Holdings, said.

Dubhashi added that the company’s micro-loans business volumes have normalised and it continues to gain traction in consumer loans and home loans.

On the asset quality, the company’s gross non-performing assets (NPAs) rose to 5.91 per cent by the end of December 2021 from 5.12 per cent by the year-ago same period.

The net non-performing assets (NPAs) also rose to 3.03 per cent from 1.92 per cent.

The company said it continues to carry additional provisions of Rs 1,699 crore, and expressed confidence that the existing provisions will be sufficient to counter any moratorium-related stress on account of a one-time restructuring-related impact in future, if any, on account of COVID-19.