CMP: 151.80                            Market Capital: 30238Cr                  52weeks High / Low: 213.60 / 140.60

L&T Finance Holdings Ltd (LTFH), promoted by L&T Ltd (64.2%) is a leading NBFC which operates its business under five major segments: Rural, Housing, Wholesale, Investment Management, Wealth Management.

  • Rural Business: It comprises of lending towards Farm Equipments, Two Wheeler Finance and Micro Loans.
  • Housing Business: It comprises of lending towards Home Loans, Loan against Property and Real Estate Finance.
  • Wholesale Business: It comprises of lending towards Infrastructure Finance, Structured Corporate Loans and Supply Chain Finance.
  • Others : Investment Management & Wealth Management

 

L&T Finance (LTFH) Key Highlights from Quarter 1FY19 Results

  • 71% growth in PAT: PAT increased to Rs. 538 cr. for Q1FY19 up from Rs. 314 cr. for Q1FY18
  • ROE increased to 18.45%: ROE increased to 18.45% for Q1FY19 up from 17.19% for Q1FY18.
  • 27% YoY increase in assets recorded by Rural, Housing and Wholesale Finance Segments: Loan book grew to 85,380 cr. for Q1 FY19 up from 67,327 cr. for Q1 FY18.
  • L&T Finance (LTFH) Rural and Housing businesses together constituted 46% of total portfolio: Rural and housing book grew to 19,079 cr. and 20,536 cr. in Q1 FY19 as against 10,824 cr. and 13,743 cr. in Q1 FY18 respectively.
  • 60% growth in its Investment Management businesses:  Average Assets under Management (AAUM) in Investment Management business increased to 71,118 cr. in Q1FY19 from 44,484 cr. in Q1FY18.
  • L&T Finance (LTFH) Wealth Management business recorded 10% growth this quarter: Assets under Service (AUS) increased to 18,866 cr. in Q1FY19 from 17,120 cr. in Q1FY18.
  • Reduction in Cost to Income ratio : Cost to income ratio declined this quarter to 23.40% in Q1FY19 from 24.07% in Q1FY18. This reduction has been achieved despite substantial investment in digital & data analytics, branch infrastructure and manpower.
  • L&T Finance (LTFH) Rural Finance portfolio increased by 76%: Rural loan book stood at 19,079cr. for Q1FY19 against 10,824cr. for Q1-FY18
  • Housing Finance portfolio book register a growth of 48%: Housing Finance loan portfolio increased to 20,356 cr. for Q1-FY19 against 13,743 cr. for Q1-FY8
  • L&T Finance (LTFH) Asset Quality performance Q1 FY19 vs. Q1 FY18: Gross Stage 3 levels have gone down to 7.93% from 11.70%;Net Stage 3 levels have gone down to 3.17% from 6.13%;Provision coverage increased to 61.99% from 50.74%
  • Gross Stage 3 –Include :GNPA>90DPD;Impaired assets (SS4A,  SDR, 5:25,etc.) where regulatory forbearances;Identified standard assets which are under incipient stress
  • NIMs+Fees : NIMs + Fees stands at 6.58% for Q1FY19 vs 5.77% for Q1FY18
  • L&T Finance (LTFH) is on track to achieve its 2020 target.
  • Mandated Lead Arranger – Rankings :L&T Finance (LTFH) Ranked no.1 “Mandated Lead Arranger” in India by Thomson Reuters;Ranked no.2 “Mandated Lead Arranger” in India by Bloomberg

 

Source: Company Data, Wellgrow Securities

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