L&T Finance Holdings reports profit of Rs 549 crore in Q1 FY20
Mumbai (Maharashtra) [India], July 20 (ANI): L&T Finance Holdings (LTFH), a diversified non-banking financial company (NBFC), has posted consolidated profit after tax of Rs 549 crore for the first quarter of 2019-20, up 2 per cent from Rs 538 crore in Q1 FY19.
ANI
Jul 20, 2019 11:34 IST
Mumbai (Maharashtra) [India], July 20 (ANI): L&T Finance Holdings (LTFH), a diversified non-banking financial company (NBFC), has posted consolidated profit after tax of Rs 549 crore for the first quarter of 2019-20, up two per cent from Rs 538 crore in Q1 FY19.
The pre-provisioning operating profit stands at Rs 1,342 crore for Q1 FY20, up 24 per cent on a year-on-year basis.
"With IL&FS being primarily resolved and adequate provisions made for the exposure to the housing finance company, LTFH believes that both these issues are behind us. Profits for Q1 FY20 have been arrived at after considering one-time adjustment for these two matters," the company said in a statement.
As per the latest resolution plan submitted by IL&FS management, five out of six special purpose vehicles amounting to Rs 1,696 crore out of Rs 1,816 crore will now be green. Consequently, the interest income of Rs 84 crore that was deferred in Q4 FY19 is now being recognised.
Considering the recent developments with a housing finance company, LTFH has taken the conservative and commercially prudent view to mark down 50 per cent (Rs 284 crore) of the total exposure (including principal and accrued interest).
"A strong liability franchise backed by prudent asset and liability management and diverse sources of funding is key to building a sustainable organisation," said Managing Director and CEO Dinanath Dubhashi.
"We remain partners of choice for global financial institutions which are reflected in our recent fund-raising from IFC and other leading global financiers. Our focus on liability management and asset quality helps us to preserve and build strengths in our focused businesses," he said.
LTFH will continue to invest in footprint expansion, team quality enhancement, technology infrastructure and data analytics framework, said Dubhashi.
In line with LTFH's strategy, the primary focus remains on portfolio quality and profitability by consistently strengthening the risk profile. The portfolio quality of LTFH has improved year-on-year with conservative underwriting, robust early-warning signals and strong project-monitoring metrics.
The company has shown a steady reduction in stage 3 assets, both in absolute and percentage terms. (ANI)
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