L&T Finance shares witnessed an upsurge to 3 percent and stood at Rs 189.85 per share on the BSE in Thursday's intraday deals. The stock price has gone upwards as the company reported a strong quarterly earnings in the April-June quarter in Q1FY25.
The company reported a 29 percent year-on-year increase in consolidated net profit to INR 686 crore for Q1FY25. This was aided by a strong Net Interest Margins and fee income. In the same period last year, its net profit stood at Rs 531 crore.
Furthermore, the lending unit of Larsen and Toubro Ltd achieved a 23 percent Y-o-Y growth in consolidated Net Interest Income to reach Rs 2,020 crore in Q1FY25, witnessing an up from INR 1,644 crore just a year ago. Moreover, the consolidated loan book size expanded by 13 percent Y-o-Y to Rs 88,717 crore as of June 2024. If we compare, it stood at INR 78,566 crore a year earlier.
LTF registered a 28 per cent Y-o-Y increase in disbursements in Rural Business Finance, detailing segment-wise performance. With this, the total valuation stood at Rs 5,773 crore in Q1FY25. Moreover, by the end of June 2024, the outstanding book in this segment increased by 31 percent Y-o-Y to Rs 25,887 crore.
With this, the asset quality also improved, wherein, the gross Non-performing Assets (NPAs) declined to 3.14 percent in Q1FY25 from 4.04 per cent in Q1FY24. When it comes to horizontal move, the company attributed its growth to expanding customer acquisition into new locations and increasing its customer base in existing locations vertically.
According to BSE, the company has a total m-cap of INR 46,236.32 crore. With an earning per share of Rs 5, the company’s shares are trading at a price to earnings multiple of 36.84 times. Shares of L&T Finance were trading 0.71 per cent higher at Rs 185.55 per share at 09:56 PM. And if we have to compare, the BSE Sensex was trading 0.11 percent higher at 80,808 levels.
