Q4 Results: L&T Finance Says It Has Put The ‘IL&FS Ghost’ Behind
Our principal is safe and we don’t need to make provisions for IL&FS exposure, CEO Dinanath Dubhashi said.
L&T Finance Holdings Ltd. said it deferred income worth Rs 84 crore in the March quarter, relating to its exposure in the special purpose vehicles of the Infrastructure Leasing & Financial Services and has covered for any downside related to the debt-ridden conglomerate.
The non-bank lender, through its subsidiaries, has an exposure of around Rs 1,800 crore to six road project SPVs of IL&FS.
“Our principal is safe and we don't need to make any provisions for IL&FS exposure,” L&T Finance’s Managing Director and Chief Executive Officer Dinanath Dubhashi told BloombergQuint in a post-earnings conversation. “We have put this IL&FS ghost behind us.”
Dubhashi said that the company maintained strong net interest margin and improved asset quality continuously, adding that there would be “no big shocks” impacting its balance sheet in the future.
Q4 Results Highlights (YoY)
- Net interest income grew 26 percent to Rs 1,226 crore.
- Profit after tax more than doubled at Rs 552.12 crore, from Rs 268.49 crore.
- Disbursements decreased to Rs 12,774 crore, versus Rs 20,184 crore.
- Net non-profitable assets expanded to 3.3 percent from 2.4 percent.
- Loan growth seen at 18.5 percent.
Watch the full interview here: