BQ Blue’s special research section brings together in-depth and quality research reports on stocks and the economy from India’s leading brokers, asset managers and research agencies. These reports offer BloombergQuint subscribers the opportunity to broaden their understanding of companies, sectors and the economy.
Prabhudas Lilladher Report
The profits of L&T Finance Holdings Ltd. in the fourth quarter of FY22 (profit after tax of 3.4 billion rupees) exceeded our estimates (our estimate: 3.3 billion rupees) due to lower provisions.
Loan traction showed good sequential growth at Rs 883.4 billion (our estimate: Rs 904 billion) with books growth of 3.3% QoQ, but a decline of 6% YoY.
Disbursements rose sharply to 48% QoQ / 82% YoY at Rs 147.3 billion, led by consumer loans, microloans and home loans.
Asset quality improved across all segments thanks to on-the-ground collection efforts.
Overall gross Stage III was reduced to 3.80% in the fourth quarter from 5.91% in the third quarter. Net Phase III was also 2.0% with a provision coverage ratio of 48%.
In order to counter the impact of any future wave of Covid-19, the management of L&T Finance has kept additional provisions of Rs 17.2 billion (2.10% of standard assets) to be released gradually over the next quarters.
Click on the attachment to read the full report:
This report is written by an external party. BloombergQuint does not guarantee the accuracy of its content and is in no way responsible for it. The content of this section does not constitute investment advice. For this, you should always consult an expert based on your individual needs. The views expressed in the report are those of the authoring entity and do not represent the views of BloombergQuint.
Users have no license to copy, modify or distribute content without permission from the original owner.