L&T Finance sees 31% growth in retail loan book, disbursements grow 33% in Q1

Following the announcement, shares of L&T Finance were trading higher by nearly 1%.

The firm said rural business finance saw a growth of 28% YoY to ₹5,770 crore while urban finance saw a growth of 44.25% YoY to ₹6,040 crore. Disbursements for farmer finance are up 8.1% YoY at ₹1,900 crore while disbursements for small and medium enterprises (SME) were up 61.44% YoY at ₹980 crore. The company’s acquired portfolio rose by 7.69% YoY to ₹140 crore.

L&T Finance announced an 11% year-on-year (YoY) rise in its fourth quarter consolidated net profit at ₹554 crore. The company said its net interest income (NII) rose 14% YoY to ₹1,909 crore during the quarter. It marked its highest quarterly retail disbursements in Q4FY24 at ₹15,044 crore, up 33% YoY.

For the fiscal year 2024, net profit grew 43% YoY to ₹2,320 crore while net interest income rose 12% YoY to ₹7,115 crore. Retail disbursements grew 29% YoY to ₹54,267 crore during the year. The company’s retail book grew 31% YoY to ₹80,037 crore. The firm’s rural business saw its highest-ever quarterly disbursements at ₹5,768 crore, up 31% YoY. The growth was aided by a strong focus on strengthening customer retention coupled with a renewed focus on new customer acquisition, the company stated.

The board had recommended a final dividend of ₹2.50 per equity share for FY24.

Shares of the company have risen by nearly 15% since the beginning of the year. The stock has gained over 41% in the last one year.