L&T Finance Holdings - Q4FY13 Numbers Meet Street Expectations
Vinaya Patil / 25 Apr 2013
A better performance from the lending business has helped the company posted a strong bottomline growth, as it also managed to improve its asset quality despite the loan growth.
L&T Finance Holdings posted its Q4FY13 results indicating a good financial performance for the quarter. Backed by a better performance from the lending business, the company has posted a bottomline of Rs 170.69 crore as against Rs 140.66 crore in March 2012. Though the bottomline has declined as compared to Rs 294.08 crore posted in the December 2012 quarter, it is mainly on account of exceptional item of Rs 223.43 crore in the December 2012 quarter.
As regards the operational highlights, Loans & Advances as on March 31, 2013 grew by 29.8% YoY to Rs. 33,309.1 crore and by 6.6% as compared to Rs 31,230.5 crore as on December 31, 2012. Despite the loan growth, the company managed to improve its asset quality. The gross NPAs stood at 2.03% of loan assets as on March 31, 2013 as compared to 2.39% as on December 31, 2012. The net NPAs stood at 1.26% of loan assets as compared to 1.56% respectively.
Other Highlights Posted By The Management:
• Robust beginning of the Wealth Management business
• Successful maiden issue of Preference share capital of Rs 750 crore
• The sponsor of L&T MF has been changed from L&T Finance to L&T Finance Holdings with effect from March 28, 2013 to simplify the holding structure
• Average Assets Under Management (AAUM) for L&T Investment Management for Q4FY13 was Rs 11,169 crore with a market share of 1.6%.
Outlook
The management has provided the following outlook for the next fiscal. “Credible and stable signs of improvement in the business environment are yet to show up. We expect that the various policy initiatives being undertaken by the government to revive the capex cycle will yield positive results by the second half of the FY14 fiscal. This is expected to result in better growth in disbursements enabling us to book growth. Margins are expected to be stable or witness a marginal improvement due to the likely improvement in the interest environment. The asset quality continues to be under stress and may show an improvement in the second half of FY14”.
We had recommended L&T Finance Holdings to our Flash News Investment readers in Issue No. 18 (dated April 22, 2013). The company’s results have been strong and once can hold the scrip. New investors can also buy at the current levels.
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