L&T Finance Share Performance
The market responded positively to L&T Finance Q4 results 2024, with the stock surging to an intraday high of ₹175 on the NSE, showcasing a 2.85% increase in morning trading. Despite a slight dip, settling at ₹172.3 per share, it still marked a commendable 1.26% increase at 1:10 am. Over the last five trading sessions, the stock has shown consistent growth, climbing nearly 9%. Remarkably, over the past year, it has doubled in value, indicating sustained investor confidence.
L&T Finance Q4 Results 2024 Highlights
L&T Finance’s overall profit witnessed a notable increase of 10.54% in Q4 of the 2023-24 fiscal year, reaching Rs 553.88 crore. However, there was a 13.5% dip compared to the previous quarter. The company’s interest income during January-March stood at Rs 3,322.60 crore, demonstrating its robust financial performance.
Strength in Numbers
In terms of Net Interest Income (NII) for Q4FY24, L&T Finance recorded Rs 1,909 crore, marking a substantial 14% rise from the previous year. Moreover, the Net Interest Margin plus Fees and Other Income saw a significant increase to 11.25%, reflecting a growth of 204 basis points from the previous year.
L&T Finance Q4 Earnings 2024 Retail Performance
L&T Finance Q4 earnings 2024 witnessed an impressive 33% year-on-year increase, reaching Rs 15,044 crore, surpassing the targeted Compound Annual Growth Rate (CAGR) of 25%. The company also achieved its highest annual retail disbursements in Q4FY24, totaling Rs 54,267 crore, showcasing a notable 29% year-on-year growth.
| Aspect | Details |
| Profit | Increased by 10.54% to Rs 553.88 crore |
| NII | Rose by 14% to Rs 1,909 crore |
| Retail Performance | Q4 earnings surged by 33% to Rs 15,044 crore |
| Asset Quality | GS3 at 3.15%, NS3 at 0.79% |
| Sectoral Growth | Rural book up by 32%, two-wheeler book by 25% |
| Diversification Strategy | Personal loans up by 18%, housing loans by 38%, SME by 183% |
| Improvement in Asset Quality | GS3 improved to 2.84%, NS3 to 0.62% |
Asset Quality
Despite its impressive performance, L&T Finance remains focused on maintaining high asset quality. In Q4FY24, the Consolidated Asset Quality displayed Gross Stage 3 (GS3) at 3.15% and Net Stage 3 (NS3) at 0.79%. Though slightly exceeding targeted levels, these figures indicate a proactive approach to managing risks and maintaining stability.
Sectoral Growth
As of March 31, L&T Finance experienced significant growth across various sectors. The rural business book surged by 32% year-on-year, reaching Rs. 24,716 crore, driven by enhanced customer retention strategies and a focus on acquiring new customers. Similarly, the two-wheeler finance book saw a noteworthy 25% year-on-year increase, reaching Rs. 11,205 crore, propelled by strategic market expansions and strong relationships with industry stakeholders.
Diversification Strategy
L&T Finance’s diversification strategy is evident in its growth across different loan portfolios. The personal loan portfolio increased by 18% year-on-year to Rs 6,440 crore, while the housing loan and loan against property book surged by 38% year-on-year to Rs 18,443 crore. Notably, the SME book experienced remarkable growth of 183% year-on-year, reaching Rs 3,905 crore, highlighting the company’s commitment to serving diverse customer segments.
Improvement in Asset Quality
Furthermore, L&T Finance has made significant strides in improving asset quality. By March 31, the gross stage 3 ratio dropped to 2.84% from the previous year’s 3.41%, and the net stage 3 ratio decreased to 0.62% from 0.71% a year ago. These improvements underscore the company’s proactive risk management practices and its dedication to maintaining a healthy loan portfolio.
In the latest quarter, L&T Finance Ltd, previously known as L&T Finance Holdings Ltd, witnessed a remarkable surge in its net earnings by 10.5%, reaching a substantial sum of Rs 553.88 crore. Investors took notice, as the company’s shares experienced a 3% increase on April 4th, following the announcement of a robust 33% growth in retail loans during the quarter ending March 31st.
Conclusion
In conclusion, L&T Finance Q4 results 2024 reflect its robust financial performance and strategic initiatives aimed at sustaining growth while ensuring asset quality and diversification across sectors. With a strong focus on customer-centricity and prudent risk management, the company is well-positioned to capitalize on emerging opportunities and navigate challenges in the dynamic financial landscape.
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