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Digital and data analytics drives best-ever retail disbursements Q4FY22 PAT up by 28% YoY

* FY22 PAT at Rs. 1,070 Cr, up 10% YoY. Q4FY22 PAT at Rs. 342 Cr.

* Continued strong business momentum backed by inherent business strengths; accelerated

retailisation in FY22

* Highest ever yearly retail disbursements at Rs. 24,901 Cr, up 42% YoY

* Highest ever quarterly retail disbursement at ~Rs. 8,100 Cr, up 22% YoYo Retail portfolio mix at 51% (up from 43% in Q4FY21); increase in retail book by 6% QoQand 10% YoY

* Normalized collections rhythm with robust performance across businesses

* New products support future growth: Continued scale-up of Consumer Loan business: ~Rs. 800 Cr disbursed in Q4FY22, book at Rs. 2,300 Cr

* Continued performance on business levers:

* Achieved NIM+Fees of 8.17% in Q4FY22, up 7 bps QoQ

* Lowest ever WAC at 7.34%, down 13 bps QoQ. Reduction in quarterly WAC by 31 bps YoY and well protected from liquidity tightening and increase in interest rates

* GS3 at 3.80% in Q4FY22; PCR at 48%; NS3 at 2.00%. Adequate additional provisions of Rs. 1,727 Cr (2.10% of standard assets) over and above GS3 provisions and ECL on standard assets

* Poised for medium to long-term growth with:

sed for medium to long-term growth with:

* Strong balance sheet - Capital adequacy improved to 22.9% (Tier 1: 19.7%)

* D/E ratio at 4.27 in Q4FY22

* Rated AAA by CRISIL, ICRA, CARE and India Ratings

The Board of L&T Finance Holdings (LTFH) Ltd., a leading Non-Banking Financial Company (NBFC), today announced the financial results for the fourth quarter and financial year, ended March 31, 2022. LTFH being a Core Investment Company (CIC), carries out its businesses through its wholly owned subsidiaries.

LTFH is among the market leaders in Farm Equipment finance, Two-Wheeler finance, as well as Micro Loans and continues to be one of the leading players in financing infrastructure sectors like renewables and roads. With a sustainable business model, data analytics led collection and disbursements, and a sharp focus on asset quality, the Company remains committed to building a stable and sustainable organization for all its stakeholders

Commenting on the financial results Mr. Dinanath Dubhashi, Managing Director & CEO, L&T Finance Holdings, said, “LTFH’s results this quarter reflect our continuing focus on our stated strategy of retailisation of our business mix. The retail disbursements are at an all-time high owing to sustained focus on our business strengths as well as deep integration of data analytics in our decision-making process. The continued upswing in existing products and increased traction in new products bodes well in our journey to become a top-class retail finance company with over 80% retail book by 2026.”

Key Highlights:

The Company witnessed continued improvement in disbursements and collection efficiencies in Q4FY22. By continuing to work on the stated business levers of maintaining prudent liquidity, strengthening the balance sheet, following a data analytics-based collections approach, and rigorous adherence to collection led disbursement strategy, the Company is now strongly positioned for aggressive growth in retail businesses. The Company’s retail portfolio mix now stands at 51% (up from 43% in Q4FY21), in line with the stated strategic objective.

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