Shares of L&T Finance (LTF) dropped 3% to an intraday low of Rs 140.40 on Tuesday after the company shared its Q3 profits, which decreased by 2% compared to last year. The profit for this quarter was Rs 626 crore, down from Rs 640 crore last year. On a positive note, LTF’s retail loans grew by an impressive 23% from last year, reaching Rs 92,224 crore.
For the first nine months of FY25, LTF saw a total profit of Rs 2,007 crore, a solid 14% increase compared to the same time last year. However, the company’s net interest margin (NIM), which measures how much they earn from loans after paying interest, fell to 10.33% in Q3, down from 10.93% last year.
Looking at different loan categories, housing loans and loans against property grew the most, rising 41% to Rs 23,461 crore. The rural business finance segment reached Rs 26,231 crore, marking a 14% increase. The farmer finance sector also grew, reaching Rs 15,075 crore, a 9% increase. The two-wheeler finance book grew by 21% to Rs 12,676 crore, and personal loans increased by 22%, reaching Rs 7,820 crore.
L&T Finance showed good asset quality, with a gross stage 3 (GS3) ratio of 3.23%, slightly up from 3.21% last year. The net stage 3 (NS3) ratio increased to 0.97%, compared to 0.81% last year.
L&T Finance’s stock has decreased by 15.5% over the past year. In the last six months, it fell by 19.55%, and by 15.3% over the last three months. However, in the past month, the stock went up by 3.6%.
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