scorecardresearchL&T Finance Holdings hits new 52-week after Q3 profit jumps nearly 40%

L&T Finance Holdings hits new 52-week after Q3 profit jumps nearly 40%

Updated: 16 Jan 2023, 12:48 PM IST
TL;DR.
On Friday, the company reported a 39% jump in its consolidated net profit at 454 crore for the December quarter. In Q3 FY23, the company reported a 34% YoY rise in its loan book at 57,000 crore. The loan book stood at 52,040 in the preceding quarter.
Since its 52-week low of  <span class='webrupee'>₹</span>58.5 in March of last year, the stock has risen 63.13 per cent to date.

Since its 52-week low of 58.5 in March of last year, the stock has risen 63.13 per cent to date.

Shares of L&T Finance Holdings rose 6.32 percent to reach a new 52-week high on Monday after the company delivered solid Q3 numbers. The stock began the trade at 92.25 apiece and surged to hit a one-year high of 98.30, against the previous close of Rs.92.45.

During Monday's trade, the stock recorded volume of 32.1 million shares on the NSE and BSE, a 2.85-fold surge over its average weekly volume of 10.5 million.

On Friday, the company reported a 39 percent jump in its consolidated net profit at 454 crore for the December quarter as compared to a net profit of 326 crore in the year-ago quarter. Sequentially, the net profit was up by 11.82 percent.

The net profit from the retail segment stood at 394 crore, a growth of 76 percent YoY, supported by a strong retail return on assets (RoA), reaching 2.6 percent in Q3 FY23.

The revenue from operations during the quarter came in at 3,432 crore as against 2,971 crore in the corresponding quarter of the last fiscal.

Article
Stock price chart of L&T Finance holdings.

In an exchange filing, the company stated that it had the highest-ever quarterly retail disbursements of 11,607 crore, up 53 percent YoY and 13 percent QoQ. In addition, its retail portfolio mix now stands at 64 percent of the total loan book, compared to 58 percent in a similar quarter last fiscal year.

In Q3 FY23, the company reported a 34 percent YoY rise in its loan book at 57,000 crore. The loan book stood at 52,040 in the preceding quarter.

The net interest margin for the lender improved to 7.41 percent in Q3 as against 6.9 percent in the preceding three-month period.

On the asset quality side, gross bad loans stood at 4.21 percent or 3,723 crore, down 248 basis points from 6.69 percent or 5,623 crore, while the net NPA stands at 1.72 percent or 1,487 crore, down by 145 basis points from 3.17 percent or 2,565 crore as of December 2021.

The company reported an operating profit of 2,076 crore for the December quarter, an increase of 24.16 percent when compared to 1,672 crore in the year-ago quarter. EBITDA margin came in at 60 percent, up by 400 basis points (bps) from the same quarter last year.

Meanwhile, since its 52-week low of 58.5 in March of last year, the stock has risen 63.13 percent to date.

Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of MintGenie.

Article
Understanding high beta stocks
First Published: 16 Jan 2023, 12:48 PM IST