L&T Finance Q1 Review - Transient Impact Of Covid 2.0; Recovery Held Up Well In June: Motilal Oswal
BQ Blue’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer BloombergQuint’s subscribers an opportunity to expand their understanding of companies, sectors and the economy.
Motilal Oswal Report
L&T Finance Holdings Ltd. reported a Q1 FY22 profit after tax of Rs 2.7 billion (35% miss).
Additional Covid-19 provisions stood at Rs 3.7 billion in Q1 FY22.
It further restructured Rs 9.8 billion under one-time restructuring 2.0.
While net interest income was broadly in line, lower other income, and higher opex (up 31% YoY) led to a profit after tax miss.
Loan book fell ~11% YoY in Q1 FY22, driven by a QoQ decline in micro loans, two-wheeler finance, and real estate finance.
Even though L&T Finance has accounted for most of the asset quality pain, there will be a moderation in assets under management growth and consequent higher cost ratios.
Click on the attachment to read the full report:
This report is authored by an external party. BloombergQuint does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of BloombergQuint.
Users have no license to copy, modify, or distribute the content without permission of the Original Owner.