In Monday’s intraday session on the BSE, shares of L&T Finance Holdings (LTFH) rose 6.3% to Rs 98 after the business reported a 39% increase in net profit for the December quarter at Rs 454 crore compared to Rs 326 crore in the same quarter last year.
In comparison to the same quarter the previous fiscal year, the lender’s interest income increased 15.6% year over year (YoY) to Rs 3,322 crore from Rs 2,874 crore. The lender’s net interest margin increased to 7.41% for the quarter from 6.9% for the three months prior.
At the end of December, its retail assets had grown 34% YoY to Rs 57,000 crore, while a planned sell-down had resulted in a 24% decrease in the expected wholesale book to Rs 31,000 crore. The retail portfolio mix has increased from 58% in the quarter that ended on September 30, 2022 to 64% as of this writing.
The company reported that it had the highest-ever quarterly retail disbursements in the December quarter, coming in at Rs 11,607 crore, up 53% over the same time last year.
At 11.47 am, the stock was trading at Rs 96, up 3.8% from the day before’s closing share price of Rs 92.45. The stock has also increased by over 33% over the past six months and by nearly 20% over the past year.
“L&T Finance Holdings has proposed a merger of its subsidiary lending companies, L&T Finance and L&T Infra Credit, with itself following the divestiture of the mutual fund business. A straightforward and cohesive structure will come from this, allowing for the best possible use of resources and management bandwidth. The required statutory and regulatory permissions must be obtained before this merger can proceed “According to a BSE filing by the company.
LTFH is a financial institution that provides financing for rural businesses, two-wheelers, and farm equipment (including micro-loans).
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