L&T Finance Q1 Review - Transient Impact Of Covid 2.0; Recovery Held Up Well In June: Motilal Oswal
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L&T Finance Q1 Review - Transient Impact Of Covid 2.0; Recovery Held Up Well In June: Motilal Oswal

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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:

Motilal Oswal L&T Finance Holdings Q1FY22 Result Update.pdf

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