25-04-2025
L&T Finance Q4FY25 Results: Revenue up 12% YoY at Rs 3,482 Crore; Profit rises 15% to Rs 636 Crore
L&T Finance Ltd. (LTF), one of India's leading Non-Banking Financial Companies (NBFCs), announced its audited financial results for the fiscal year and fourth quarter ended March 31, 2025, showcasing a stellar performance. The company recorded an all-time-high consolidated Profit After Tax (PAT) of Rs. 2,644 Crore for FY25, marking a 14% year-on-year (YoY) growth. For Q4FY25, PAT stood at Rs. 636 Crore, up 15% YoY.
The Board of LTF has recommended a final dividend of Rs. 2.75 per equity share, the highest in the company's history, subject to approval at the upcoming Annual General Meeting (AGM). This reflects LTF's robust financial health and commitment to delivering value to shareholders. Key Financial Highlights for FY25 (Consolidated) Retail Book Growth: The retail book surged to Rs. 95,180 Crore, a 19% YoY increase, with retailisation reaching 97% of the total lending book.
Consolidated Book: Total book size grew to Rs. 97,762 Crore, up 14% YoY.
Retail Disbursements: Disbursements reached Rs. 60,040 Crore, an 11% YoY rise, driven by strong growth in secured assets like Home Loans & Loan Against Property (LAP) (27% YoY) and Farmer Finance (16% YoY).
Profitability: PAT increased by 14% YoY to Rs. 2,644 Crore, with a record-high Return on Assets (RoA) of 2.44% (up 12 bps YoY) and Return on Equity (RoE) of 10.87% (up 52 bps YoY).
Asset Quality: Gross Stage 3 (GS3) was stable at 3.29% in Q4FY25, while Net Stage 3 (NS3) remained at 0.97%. Credit cost for FY25 improved to 2.50% from 2.67% in FY24.
Cost of Borrowing: Proactive asset-liability management restricted the Weighted Average Cost of Borrowing (WACB) to 7.84% in Q4FY25, with only a 33 bps increase over three years despite rising policy rates. Q4FY25 Performance PAT: Grew to Rs. 636 Crore, up 15% YoY.
Disbursements: Retail disbursements stood at Rs. 14,899 Crore, stable compared to the previous year, with Farmer Finance leading secured assets growth at 15% YoY.
Profitability Metrics: RoA improved to 2.22% (up 3 bps YoY), and RoE rose to 10.13% (up 60 bps YoY).
Net Interest Margin + Fees: Recorded at 10.15%, resilient despite a volatile credit environment. Strategic Initiatives and Digital Transformation
Under its Lakshya 2026 roadmap, LTF is accelerating its journey to become a top-class, digitally enabled, customer-focused retail financier. Key operational highlights include: AI-Driven Underwriting: Full implementation of Project Cyclops 2.0, an AI-ML-based credit underwriting engine, in Two-wheeler Finance, with ongoing rollout in Farm Equipment Finance.
Big Tech Partnerships: Collaborations with PhonePe, CRED, and Amazon Pay launched in FY25 are gaining traction, boosting growth in Personal Loans (42% YoY disbursement growth).
Digital Delivery: LTF offers 100% paperless loan journeys across multiple products. Its PLANET app 3.0 (Beta) has surpassed 1.72 Crore downloads, facilitating collections of over Rs. 3,800 Crore and sourcing loans worth Rs. 12,700 Crore.
Gold Loan Expansion: LTF entered into a Business Transfer Agreement with Paul Merchants Finance Pvt. Ltd. to acquire their gold loan business, aiming to scale its high-yielding secured portfolio by Q2FY26. Segment Performance Rural Business Finance: Book size grew 6% YoY to Rs. 26,320 Crore, with a cautious disbursement strategy leading to a 3% YoY decline in FY25 disbursements.
Farmer Finance: Book size up 10% YoY to Rs. 15,219 Crore, with disbursements rising 16% YoY, supported by favorable monsoon conditions.
Two-wheeler Finance: Book size increased 10% YoY to Rs. 12,321 Crore, though Q4 disbursements fell 26% YoY due to enhanced risk calibration.
Personal Loans: Book size soared 34% YoY to Rs. 8,648 Crore, with disbursements up 42% YoY.
Home Loans & LAP: Book size rose 35% YoY to Rs. 24,929 Crore, with disbursements up 27% YoY.
SME Finance: Book size grew 67% YoY to Rs. 6,524 Crore, with disbursements up 37% YoY. ESG and CSR Commitment
LTF continues to lead in Environmental, Social, and Governance (ESG) initiatives: Rated in the top decile of the S&P Global Corporate Sustainability Assessment for Diversified Financial Services.
ESG Risk Rating of 16.1 by Sustainalytics, classified as 'Low Risk', and an MSCI ESG Rating of 'A'.
CSR Initiatives: Sensitized over 2.30 lakh rural women on digital and financial literacy through 1,110 Digital Sakhis. Distributed 13,000 relief kits to flood-affected families in Bihar. Leadership Perspective
Mr. Sudipta Roy, Managing Director & CEO of LTF, commented, 'Despite significant headwinds, our resilient performance underscores our ability to thrive in challenging environments. The successful implementation of Project Cyclops 2.0 and partnerships with major tech platforms have strengthened our operational capabilities. Looking ahead, our focus on operational excellence, customer centricity, and prudent risk management will drive sustainable growth as we build a digital-native financial services powerhouse.'
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