Q4 2025 L&T Finance Ltd Earnings Call Transcript
Key Points
- L&T Finance Ltd (BOM:533519) achieved the highest ever annual PAT of INR2,644 crores, marking a 14% year-on-year growth.
- The retail book grew by 19% year-on-year, reaching INR95,180 crores, reflecting strong execution and prudent risk management.
- Project Cyclops, an AI-ML based credit rating engine, has been successfully implemented, showing a significant reduction in risk costs for the two-wheeler portfolio.
- The company is expanding its product offerings with the acquisition of a gold loan business, expected to add significant value to its retail franchise.
- L&T Finance Ltd (BOM:533519) maintained a high collection efficiency of 99.6% in Tamil Nadu, indicating strong operational resilience despite regulatory challenges.
- The operating environment in the microfinance sector remains challenging, with state-specific events like the Karnataka ordinance impacting collection efficiencies.
- There was a decline in quarterly disbursements for the rural business finance segment, down by 11% year-on-year.
- The two-wheeler business saw a 26% year-on-year decline in quarterly disbursements, attributed to a shift towards lower-risk customers.
- The company utilized INR400 crores of macroprudential provisions due to increased credit costs in the microfinance portfolio.
- There are concerns about potential impacts from new regulatory measures in Tamil Nadu, which could affect the microfinance operations.
Ladies and gentlemen, good day and welcome to L&T Finance Limited Q4 FY25 and full year FY25 earnings conference call.
We have with us today Mr. Sudipta Roy, Managing Director and CEO; Mr. Sachinn Joshi, CFO; 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Before we proceed as a standard disclaimer, no unpublished price sensitive information will be shared during the call.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 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 While all efforts would be made to ensure that no unpublished price sensitive information will be shared in case of any inadvertent disclosure, the same would in any case form part of the recording of the call.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 Q4 and FY results presentation sent out to all of you earlier. (Operator Instructions) Please note that this conference is being recorded.
I would now like to invite Mr. Sudipta Roy to share his thoughts on the company's performance and the strategy of the
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