L&T Finance Ltd. records an all-time-high consolidated Profit After
Tax (PAT) of Rs. 2,644 Crore in the financial year ended March 31, 2025, up 14%
Year-on-Year (YoY) and PAT of Rs. 636 Crore for the fourth quarter ended March
31, 2025, up 15% YoY
Board
recommends the highest ever final dividend till date of Rs. 2.75 per equity
share for the financial year 2024-25
L&T Finance Ltd.
(LTF), one of the leading Non-Banking Financial Companies (NBFCs) in India has
recorded an all-time-high consolidated Profit After Tax (PAT) of Rs. 2,644
Crore for the financial year ended March 31, 2025, up 14% Year-on-Year (YoY).
The Company has posted a PAT of Rs. 636 Crore, up 15% YoY for the fourth
quarter ended March 31, 2025.
The retail book now
stands at Rs. 95,180 Crore, up 19% when compared with retail book for the financial
year ended March 31, 2024. The Company has also recorded annual retail
disbursements at Rs. 60,040 Crore, up 11% YoY and quarterly retail disbursement
remained stable at Rs. 14,899 Crore for the fourth quarter ended March 31, 2025.
The Board of
LTF has recommended a final dividend of Rs. 2.75 per equity share (face value
Rs. 10 per share) for the financial year 2024-25 at the board meeting held on
April 25, 2025. This is the highest declared dividend by the Company till date.
The dividend once approved by the members at the ensuing Annual General Meeting
(AGM) will be paid within 30 days from the date of the AGM.
Furthermore,
the Company’s customer-facing PLANET app 3.0 (Beta), which has emerged as a
powerful digital channel for customers, crossed more than 1.72 Crore downloads
as on date, comprising more than 16 lakh downloads on the rural side. As of
date, this channel has done collections of over Rs. 3,800 Crore while servicing
more than 6.85 Crore requests, and has sourced loans of over Rs. 12,700 Crore
(including web). The Company has also launched a smarter, faster, and more
customer-centric website.
Commenting on the financial results, Mr.
Sudipta Roy, Managing
Director & CEO of LTF said, “In a year marked by considerable headwinds, our performance remained
resilient while showcasing our ability to thrive even in a challenging
environment. This stability is underpinned by our unwavering commitment to
strong asset quality reinforced by a strong focus on collection efficiency
across businesses. We believe the financial year 2024-25 marks a significant
step in laying the foundation for sustainable and predictable growth going
forward.
Operationally, we made significant strides with the successful 100%
implementation of 'Project Cyclops' 2.0, our next-gen AL-ML based credit
underwriting engine, in Two-wheeler Finance, and its ongoing rollout in Farm
Equipment Finance. Furthermore, our large partnerships with PhonePe, CRED, and
Amazon Pay, launched in the financial year 2024-25, are gaining momentum. During
the year, while we remained focused on strengthening our risk and credit
frameworks, we equally worked on building capabilities, both on the technology
and people front, which will serve us well in times to come.
Looking forward, our focus remains on delivering quality services to our
customers. We are confident that our commitment to operational excellence,
customer centricity, strong governance, and prudent risk management, all
powered by a digital-first approach, will sustain our growth momentum as we continue
to build a customer-focused, digital-native financial services powerhouse.”
Key Highlights:
Robust Retail Franchise:
The Company’s granular and deep pan-India Retail franchise is led by its
strong distribution capabilities
namely, its geographic presence in around 2 Lakh villages from 2085 plus
rural meeting centers/branches and over 212 branches across urban centers. The
Company also leverages its 2.6 Crore plus customer database to drive a credible
cross-sell and up-sell franchise contributing 36% of the Company’s repeat
disbursements in value and 49% in count during the fourth quarter ended March
31, 2025.
Healthy retail book and disbursements:
In the financial year 2024-25, the retail book witnessed a strong growth
of 19% YoY to close at Rs. 95,180 Crore and disbursements grew by 11% YoY to
Rs. 60,040 Crore. Both these factors led to improved retailisation of the total
lending book to 97%.
Rural Business Finance:
·
Book size up 6% to
Rs. 26,320 Crore vs Rs. 24,716 Crore YoY
·
Annual
disbursements for the financial year ended March 31, 2025 at Rs. 20,921 Crore
vs Rs. 21,495 Crore, down 3% YoY
·
Quarterly
disbursements for the fourth quarter ended March 31, 2025, at Rs. 5,114 Crore
vs Rs. 5,768 Crore, down 11% YoY
·
A risk calibrated
disbursement strategy was followed in the business owing to a fluid sectoral credit
environment
Farmer Finance:
·
Book size up 10% to
Rs. 15,219 Crore vs Rs. 13,892 Crore YoY
·
Annual
disbursements for the financial year ended March 31, 2025 at Rs. 7,935 Crore
vs. Rs. 6,848 Crore, up 16% YoY
·
Quarterly
disbursements for the fourth quarter ended March 31, 2025 at Rs. 1,755 Crore vs
Rs. 1,530 Crore, up 15% YoY
·
Double digit growth
showcased by the segment aided by better than average monsoon and improving
rural liquidity
Two-wheeler Finance:
·
Book size up 10% to
Rs. 12,321 Crore vs Rs. 11,205 Crore YoY
·
Annual
disbursements for the financial year ended March 31, 2025 at Rs. 9,285 Crore vs
Rs. 8,586 Crore, up 8% YoY
·
Quarterly
disbursements for the fourth quarter ended March 31, 2025 at Rs. 1,857 Crore vs
Rs. 2,502 Crore, down 26% YoY on account of better customer profiling through
‘Project Cyclops’ and channel risk calibration
Personal Loans:
·
Book size up 34% to
Rs. 8,648 Crore vs Rs. 6,440 Crore YoY
·
Annual disbursements
for the financial year ended March 31, 2025 at Rs. 6,096 Crore vs Rs. 4,285
Crore, up 42% YoY
·
Quarterly
disbursements for the fourth quarter ended March 31, 2025 at Rs. 1,915 Crore vs
Rs. 968 Crore, up 98% YoY
·
Growth in the
segment aided by big tech partnerships and tapping growth in prime segments
Housing Loans and Loan Against Property:
·
Book size up 35% to
Rs. 24,929 Crore vs Rs. 18,443 Crore YoY
·
Annual
disbursements for the financial year ended March 31, 2025 at Rs. 9,582 Crore vs
Rs. 7,544 Crore, up 27% YoY
·
Quarterly
disbursements for the fourth quarter ended March 31, 2025 at Rs. 2,332 Crore vs
Rs. 2,513 Crore, down 7% YoY
·
Growth
in the segment aided by newer partnerships and strong network of distribution
channels
SME Finance:
·
Book size up 67% to
Rs. 6,524 Crore vs Rs. 3,905 Crore YoY
·
Annual
disbursements for the financial year ended March 31, 2025 at Rs. 5,000 Crore vs
Rs. 3,657 Crore, up 37% YoY
·
Quarterly
disbursements for the fourth quarter ended March 31, 2025 at Rs. 1,528 Crore vs
Rs. 1,213 Crore, up 26% YoY
·
Growth
in the segment aided through increase in direct sourcing and existing strong
network of distribution channels
Foray into Gold Loans
with proposed acquisition:
·
Entered into
Business Transfer Agreement with Paul Merchants Finance Pvt. Ltd. for the
proposed acquisition of their gold loan business undertaking by way of a
slump sale on a going concern basis, subject to fulfilment of customary closing
conditions. The acquisition is in line with our strategy to enhance secured
high yielding book. It cuts time-to-scale gold loan business by 36 months,
providing a high quality, profitable attractive RoA profile gold loan franchise
at an attractive consideration. Integration plan and governance framework put
in place to achieve a targeted closing date within the second quarter of the
current financial year.
About L&T Finance Ltd (LTF):
L&T
Finance Ltd. (LTF) (www.LTFINANCE.com)
formerly known as L&T Finance Holdings Ltd., (LTFH) is a leading
Non-Banking Financial Company (NBFC), offering a range of financial products
and services. Headquartered in Mumbai, the Company has been rated ‘AAA’ — the
highest credit rating for NBFCs — by four leading rating agencies. It has also
received leadership scores and ratings by global and national Environmental,
Social, and Governance (ESG) rating providers for its sustainability
performance. The Company has been certified as a Great Place To Work® and has
also won many prestigious awards for its flagship CSR project – “Digital
Sakhi”- which focuses on women's empowerment and digital and financial
inclusion. Under Right to Win, being in the ‘right businesses’ has helped the
Company become one of the leading financiers in key Retail products. The
Company is focused on creating a top-class, digitally enabled, Retail finance
company as part of the Lakshya 2026 plan. The goal is to move the emphasis from
product focus to customer focus and establish a robust Retail portfolio with
quality assets, thus creating a Fintech@Scale while keeping ESG at the core.
Fintech@Scale is one of the pillars of the Company’s strategic roadmap -
Lakshya 2026. The Company has around 2.6 Crore customer database, which is being
leveraged to cross-sell, up-sell, and identify new customers.
