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L&T Finance reported a strong performance for the June quarter, with consolidated net profit rising 29 per cent year-on-year to INR 902 crore. The company also recorded growth in its loan book, retail disbursements and net interest margin, while asset quality continued to improve. Gross Stage 3 assets declined and credit costs reduced due to stronger collections and the use of artificial intelligence-led tools. Unsecured personal loan disbursements more than doubled during the quarter, reflecting robust demand across retail lending segments.
L&T Finance reported a 29 per cent year-on-year increase in its consolidated net profit for the June quarter, with earnings rising to INR 902 crore from INR 701 crore in the corresponding period last year.
The Mumbai-based non-banking financial company, promoted by engineering and infrastructure major Larsen & Toubro (L&T), also reported an improvement in its core profitability during the quarter. Its net interest margin along with fees increased to 10.47 per cent, compared to 10.22 per cent in the same quarter a year ago.
The company continued to strengthen its asset quality, with Gross Stage 3 assets declining to 2.86 per cent from 3.31 per cent in the year-ago period. The reduction indicates continued improvement in the quality of its loan portfolio.
Credit costs also improved significantly, falling to 2.54 per cent from 3.43 per cent a year earlier, reflecting an improvement of 0.89 percentage points. L&T Finance attributed the better performance to stronger collections infrastructure and the increased deployment of artificial intelligence-led tools to enhance recovery and credit monitoring processes.
Its consolidated loan book grew 27 per cent year-on-year to INR 1.29 lakh crore, supported by healthy demand across its lending businesses. Retail disbursements also registered strong momentum, increasing 36 per cent over the same period last year.
Among various lending segments, unsecured personal loans witnessed the sharpest growth. Disbursements in this category more than doubled during the quarter to INR 4,380 crore, highlighting continued demand for retail credit despite a competitive lending environment.
Over the past few years, L&T Finance has been increasing its focus on retail lending as part of its long-term business strategy, while gradually reducing dependence on wholesale lending. The company has also been investing in digital capabilities, analytics and technology-led collection systems to improve operational efficiency and strengthen asset quality.
The company's shares ended the trading session marginally higher, closing 0.06 per cent up at INR 321.05 apiece on the BSE.
Source PTI
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