In the quarter ended March 2021, L&T Finance Holdings (LTFH) on Thursday reported a decline of nearly 31 per cent in its net profit to Rs 266 crore.
The company posted a net profit of Rs 385 crore in the same quarter of 2019-20.
However, LTFH said in a regulatory filing that its total income increased by 4.7 percent to Rs 3,587 crore in the fourth quarter of 2020-21 from Rs 3,426 crore.
The non-banking finance company said that rural finance reported an all-time high quarterly disbursement of Rs 6,026 crore in the reported quarter, up from 36 percent a year ago and 12 percent from the previous quarter.
LTFH stated that despite lower collections in the first quarter, collections in focused businesses increased by 33 percent during 2020-21.
It has been stated that collection efficiency during the business reached the pre-COVID-19 level.
Dinanath Dubashi, managing director and CEO of L&T Finance Holdings, said, “With the latter returning to normalcy, our concentrated businesses have seen a steady increase in disbursements, with growth in desired business and 15 per cent and 11 per cent growth in the farm. In two-wheeler finance)
On bad assets, the company stated that its gross phase-3 (non-performing assets) stood at Rs 4,504 crore in the fourth quarter of 2020-21 as against Rs 5,037 crore in the same quarter of 2019-20.
Also read : IBM to acquire software provider Turbonomic: Report
The net Stage-3 assets stood at Rs 1,377 crore as against Rs 2,078 crore.
As a prudential measure, LTFH is making additional provisions of Rs 1,033 crore as on 31 March 2021.
On Thursday, the company’s shares fell 2.18 percent to close at Rs 89.90 on the BSE.