L&T Finance (LTF) Q1 24/25 earnings summary

Executive summary

• Achieved highest-ever quarterly consolidated PAT of INR 686 crore (₹686 Cr), up 29% year-on-year, driven by strong retail disbursement growth and robust execution of the five-pillar strategy.

• Retailisation reached 95% of the overall book, with the retail book at INR 84,444 crore, up 31% year-on-year.

• Met Lakshya 2026 retail goals two years ahead of schedule and reached 95% regionalization target.

• Maintained strong asset quality and collection efficiency, with disciplined credit guardrails and risk management.

• Unaudited consolidated and standalone financial results for the quarter ended June 30, 2024, were reviewed and approved by the Board and auditors, with unmodified opinions issued.

Financial highlights

• Consolidated book grew 13% year-on-year to INR 88,717 crore; retail book up 31% year-on-year to INR 84,444 crore.

• Retail disbursements rose 33% year-on-year to INR 14,839 crore, maintaining Q4FY24 momentum.

• Net interest margin plus fee rose to 11.08% from 9.64% year-on-year, aided by portfolio mix and stable borrowing costs.

• Consolidated profit after tax for Q1 FY25 was ₹685.25 crore, compared to ₹530.52 crore in Q1 FY24.

• Cost-to-income ratio for the quarter was about 40%, with ongoing cost control initiatives.

Outlook and guidance

• Confident of maintaining growth momentum in retail and secured businesses, with calibrated approach in personal loans.

• Targeting over 95% retailisation, over 25% CAGR retail growth, GS3 under 3%, NS3 under 1%, and ROA of 2.8–3% by FY26.

• Focus on digital transformation, robust credit underwriting, and expanding customer acquisition channels.