Jobaaj Stories
The financial services arm of infra major Larsen & Toubro (L&T) published its Q3FY23 results. The company disclosed a 39% YoY profit growth as it witnessed its highest-ever retail disbursements during the quarter.
Revenue from operations came in at Rs 3,432.29 crores, up 15.5% YoY, as the company recorded a 14x growth during the quarter as the same grew from Rs 4.06 crores to Rs 64.44 crores this quarter!!
Retail, which accounted for 50% of the company’s overall portfolio, had a contribution of 64% to the broad portfolio as the company had its highest-ever quarterly disbursement of Rs 11,607, up 53% when compared to the company’s disbursements in the corresponding quarter last year.
The Net Interest Income (NIM) of the company saw robust growth during the quarter as it surged 23.5% YoY and touched Rs 1,931.8 crores during the quarter that ended in December 2022. Consolidated NIM+fees improved by 70bps to 8.80% as the weightage of retail improved, thereby assisting the NIM to improve all over. Retail NIM+fees grew by 25bps and reached 11.38%.
The increase in expenses wasn’t in line with the increase in revenues, growing 5.7% YoY to Rs 2,885.13 crores. This resulted in a 39% YoY surge in profits as the same grew to Rs 454 crores against Rs 326 crores reported last year or Rs 406 crores reported last quarter.
Apart from the improved revenues and retail disbursements, the company also had capital gains of Rs 2,160 crores on account of the sale of its Mutual Fund business to HSBC AMC during the quarter. Moreover, the company has also announced the merger of L&T Finance Ltd. and L&T Infra Credit Ltd. with L&T Finance Holdings in its effort to create a ‘single lending entity’.
The company's stock closed at Rs 87.15 per share on Friday.
Article by Aman Agarwal.
