Non-bank lender L&T Finance announced a strong financial performance on Friday, reporting a 29% year-on-year jump in its consolidated net profit for the June quarter. The Mumbai-headquartered company, which is promoted by the engineering and construction major L&T, saw its net profit climb to ₹902 crore compared to the ₹701 crore recorded in the same period last year. This growth was partially supported by operational yields, with the company’s net interest margin and fees expanding to 10.47% during the quarter, up from 10.22% in the previous year-ago baseline.
The quarter also highlighted solid operational improvements across asset quality management and cost controls. L&T Finance registered a notable drop in its stock of Gross Stage 3 assets, which decreased to 2.86% from the 3.31% reported in the corresponding quarter of the previous fiscal year. Additionally, the firm managed to trim its credit costs significantly, improving by 89 basis points to 2.54%. Management attributed these asset quality and credit efficiencies to a combination of enhanced collections infrastructure and the deployment of advanced artificial intelligence-led technological tools.
