L&T Finance Ltd. (LTF), one of the leading Non-Banking Financial Companies (NBFCs) in India has recorded a PAT of Rs. 696 Crore(Consolidated), up 17% YoY for the second quarter ended September 30, 2024. The retail book stood at Rs. 88,975 Crore, reflecting a
YoY growth of 28%.
The consolidated loan book grew by 18% YoY, reaching its highest since the first quarter of the fiscal ended March 31, 2020.The Company has recorded quarterly retail disbursements of Rs. 15,092Crore for the second quarter ended September 30, 2024, up 12% YoY.
Furthermore, the Company’s customer-facing PLANET app, has emerged as a powerful digital channel for customers and has crossed more than 1.25 Crore downloads as on date, comprising more than 13.5 lakh downloads from the rural areas. As of date, this channel has done collections of over Rs. 2,400Crore and has done sourcing of over Rs. 8,600Crore (including web).
Commenting on the financial results, Mr. Sudipta Roy, Managing Director & CEO, LTF said, “Our Company has been able to demonstrate sustainable growth and profits through proactive portfolio management and persistent collection strategies. The second quarter of the current financial year has been challenging on account of multiple sectoral headwinds and a volatile macro environment. Looking ahead, we expect that the sectoral challenges may persist for the next two quarters and apropos to the same, we may dynamically recalibrate our business objectives in the coming quarters, prioritizing positive credit outcome over assets under management growth.
Our next gen credit underwriting engine, ‘Project Cyclops’, which was operationalized in the quarter ended September 30, 2024 in our two-wheeler finance product is expected to be leveraged for our other major products through the course of second half of the current fiscal. We expect this to be a strategic differentiator in the financial services ecosystem. Digitally-enabled acquisition engines would be scaled up through big-tech partnerships to ensure low-cost acquisition while maintaining superior credit quality.