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Pivoting towards a ‘customer friendly’ fintech @ scale organization
Making steady start towards Lakshya 2026, Q1FY23 PAT up by 47% YoY
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· PBT at Rs. 357 Cr, up 50% YoY and PAT at Rs. 262 Cr, up 47% YoY
· Accelerated retailisation momentum powered by Fintech @ scale: Maintained strong business momentum backed by digitization and leveraging power of data in addition to inherent business strengths;
o Highest-ever quarterly retail disbursements at ~Rs. 8,938 Cr, up 10% QoQ and 148% YoY – Strong disbursement momentum surpassing Q4FY22
o Retail portfolio mix at 54% (up from 45% in Q1FY22); increase in retail book by 6% QoQ and 19% YoY – in line with Lakshya 2026 strategic plan
o Normalized collections rhythm with robust performance across businesses
o Powering up with Digital technology and new products to support future growth: Continued scale-up of end-to-end digital products Disbursements of Rs. 1,010 Cr in Consumer Loans, up by 26% QoQ; Steady uptick in SME Loans – Pilot launched in Q3FY22 and book size of Rs. 126 Cr till Q1FY23
· Continued performance on business levers:
o Achieved highest-ever NIM + Fees of 8.23% in Q1FY23, up 71bps YoY
o Lowest-ever WAC at 7.27%, even in a phase of increasing interest rate regime
o GS3 at 4.08% in Q1FY23; PCR at 55%; NS3 at 1.87%. Adequate additional provisions of Rs. 1,450 Cr (1.73% of standard assets) over and above GS3 and ECL provisions
· Poised for medium to long-term growth with:
o Strengthened balance sheet – Capital adequacy at 23.12% (Tier 1: 19.98%)
o D/E ratio at 4.05x in Q1FY23
· Rated AAA by CRISIL, ICRA, CARE and India Ratings
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The Board of L&T Finance Holdings (LTFH) Ltd., a leading Non-Banking Financial Company (NBFC), today announced the financial results for the first quarter ended June 30, 2022. LTFH being a Core Investment Company (CIC), carries out its businesses through its wholly owned subsidiaries.
LTFH is among the market leaders in Farm Equipment finance, Two-Wheeler finance, as well as Rural Business Finance (erstwhile Micro Loans) and continues to be one of the leading players in financing infrastructure sectors like renewables and roads. With a sustainable business model, data analytics led collection and disbursements, and a sharp focus on asset quality, the Company remains committed to building a stable and sustainable organization for all its stakeholders.
Commenting on the financial results Mr. Dinanath Dubhashi, Managing Director & CEO, L&T Finance Holdings, said, “LTFH’s results in Q1FY23, apart from highlighting our business strengths also reflects our continuing focus on our stated strategy of accelerated retailisation. Retail disbursements are at an all-time high. Our retail portfolio mix has reached 54%, and our chosen ‘Right to Win’ market leading products are on firm ground owing to sustained focus on our business strengths as well as deep integration of data analytics in the decision-making process, while disbursing, servicing and collecting loans, across the customer life cycle. We have disbursed at a monthly run rate of ~ Rs. 1,300 Cr in the Rural Business Loans segment, while hitting new milestones in Consumer Loans and Home Loans.”