L&T Finance Holdings consolidated net up 28% to Rs 342 crore in fourth quarter

Consolidated net profit of L&T Finance Holdings Ltd increased by 28.1% to Rs 342 crore in the fourth quarter ended March 2022 (Q4FY22) from Rs 267 crore in the previous quarter (Q4FY21).

For FY22, its consolidated net profit increased by about 10% to Rs 1,070 crore from FY21 Crore 971.

The Board of Directors has recommended a dividend of Rs 0.50 per share with a face value of Rs 10 for FY22, the company BSE has informed. Its stock closed down 0.6% at 87.55 per share.

The company’s net interest margin plus fees was flat at 8.17% in Q4FY22 compared to Q4FY21.

Its gross non-performing assets (NPA) fell to 3.8% at the end of March 2022, from 4.97% a year ago. The provision coverage rate was 48% in Q422, compared to 69% a year ago. Net NPAs fell from 1.57% in March 2022 to 2%.

It holds additional provisions of Rs 1,727 crore (2.1% of standard assets) on top of GS3 provisions and those in the form of expected credit loss on standard assets.

The company intends to reduce the share of wholesale business – real estate and infrastructure financing – over 18 to 24 months and increase retail lending activity. The share of retail portfolio mix increased from 43% in Q4FY21 to 51% in Q4FY21, the company said in a statement.

Dinanath Dubhashi, managing director and CEO of L&T Finance Holdings, said the company’s retail payouts were at an all-time high, due to continued focus on business strengths and integration of technology. data analysis in the decision-making process. It seeks to become a retail finance company with over 80% retail books by 2026.

Overall capital adequacy was 22.9% with Tier 1 at 19.7% at the end of FY22, compared to 23.8% with Tier I at 18.79% in FY22. exercise 21.

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