Q2 2025 L&T Finance Ltd Earnings Call Transcript
Key Points
- L&T Finance Ltd (BOM:533519) reported a 17% year-on-year growth in quarterly consolidated profit after tax, reaching INR696 crores.
- The company achieved a 28% year-on-year growth in its retail book, which now stands at INR88,975 crores.
- Retail disbursements grew by 12% year-on-year, totaling INR15,092 crores for the quarter.
- The company surpassed its Lakshya 2026 goal of achieving greater than 95% utilization, reaching 96% by the end of the quarter.
- L&T Finance Ltd has maintained a strong collection efficiency in its Rural Business Finance vertical, with a rate of 99.43% in September 2024.
- The company faced challenges in its Rural Business Finance vertical due to widespread floods in certain regions, impacting collection efficiencies.
- There was a slight erosion in GST performance over Q1 FY25, attributed to macroeconomic deterioration in certain business verticals.
- The company's provision coverage ratio (PCR) decreased from 75% to 71%, primarily due to write-offs and new assets moving into Stage 3.
- L&T Finance Ltd anticipates continued challenges in Q3 FY25, with normalization expected only in Q4 FY25.
- The company is experiencing a period of deleveraging in the industry, which may moderate growth outlook in the coming quarters.
Ladies and gentlemen, good day and welcome to L&T Finance Limited Q2 FY25 earnings conference call. As a reminder, all participant lines will be in the listen-only mode and there will be an opportunity for you to ask questions after the presentation concludes. (Operator Instructions)
Please note that this conference is being recorded. We have with us today, Mr. Sudipta Roy, Managing Director and CEO; Mr. Sachinn Joshi, CFO; and Mr. Raju Dodti, COO and other members of the senior management team.
Before we proceed as a standard disclaimer, no unpublished price sensitive information will be shared during the call. Only publicly available documents will be referred to for discussion during the interaction in the call. While all efforts would be made to ensure that no unpublished price sensitive information will be shared in case of any inadvertent disclosure. The same would in any case form part of the recording of the call.
Further, some of the statements made on today's call may be forward-looking in nature. A note to this effect is provided in the Q2 results presentation
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