L&T Finance Holdings (LTFH) reported a 41% increase in consolidated net profit at ₹640 crore for the third quarter ended December 31, 2023. How did they do it? Read on to find out.
LTFH's rural and housing segments contributed 62% of the total loan book and 72% of the profit after tax. The rural segment grew by 25% year-on-year, while the housing segment grew by 12%. LTFH also improved its asset quality and reduced its gross non-performing assets ratio to 4.16%.
LTFH's managing director and CEO, Dinanath Dubhashi, said that the company is confident of achieving its medium-term return on equity target of 18-20%.
He also said that LTFH is well-positioned to capitalize on the opportunities in the rural and housing markets, as well as the infrastructure and renewable energy sectors.
LTFH's stock has gained over 50% in the past year, outperforming the Nifty Financial Services index. Analysts are bullish on LTFH's prospects, citing its strong growth, profitability, and asset quality. LTFH's stock is currently trading at ₹140.50, with a consensus target price of ₹165.00.
LTFH's strong growth in retail and an accelerated rundown in wholesale, which make the portfolio granular and improve consolidated profitability LTFH's sustainable moats in rural, two-wheeler and farm equipment segments, which offer high growth potential and low competition
1. LTFH's net profit increased by 41% to ₹640 crore. 2. LTFH's rural and housing segments drove the growth and profitability. 3. LTFH's asset quality improved and its gross NPA ratio decreased to 4.16%. 4. LTFH's stock has gained over 50% in the past year and analysts are optimistic about its future. 5. LTFH is confident of achieving its medium-term ROE target of 18-20%.