L&T Finance Q4 Review - Asset Quality Vulnerability Increases: Prabhudas Lilladher
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L&T Finance Q4 Review - Asset Quality Vulnerability Increases: Prabhudas Lilladher

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Prabhudas Lilladher Report

Q4 FY21 earnings stood stable for L&T Finance Holdings Ltd. owing to robust disbursals in key businesses (micro/consumer/home loans) aiding fees and steady asset quality (5% gross non-performing asset versus 5.3%: Q3).

However, as second wave engulfs hinterlands, we foresee increased vulnerability for the company's business led by-

1. concentrated exposures of rapidly expanding two-wheeler/micro/consumer loans in states full of uncertainties (elections, higher Covid-19 cases, partial lockdowns)

2. continued higher write-offs (Rs 7 billion for Q4 FY21, Rs 19 billion for FY21 largely led by rural business) partially aiding asset quality improvement

3. 6% provisions on micro loans although down from 10% (Q3 FY21) stand higher than industry run-rate.

Click on the attachment to read the full report:

Prabhudas Lilladher L&T Finance Holding Q4FY21 Result Update.pdf


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