L&T Finance reported a 15 per cent year-on-year (yoy) increase in fourth quarter (Q4FY25) consolidated net profit at Rs 636 crore supported by a marginal increase in net interest income (NII) and a decent growth in fee & other income.

The non-banking finance company had reported a net profit of ₹554 crore in the year ago period. The company’s board recommended a final dividend of ₹2.75 per equity share (face value ₹10 per share) for FY25

Despite a sharp increase in credit cost, one of the reasons for the profitability in the reporting quarter is because it did not have to make additional prudential provision on security receipts at portfolio level it made in the year ago quarter (₹175 crore).

NII nudged up a tad to ₹1,936 crore (₹1,909 crore in the year ago quarter). Fee & other income was up 8 per cent yoy at ₹477 crore (₹441 crore).

Operating expenses edged up 2 per cent yoy to ₹1,004 crore (₹980 crore). Credit cost shot up 81 per cent yoy to ₹903 crore (₹500 crore).

Net interest margin declined to 8.15 per cent from 9.14 per cent per cent in Q4FY24. Profit before tax declined 7 per cent yoy to ₹806 crore (₹870 crore).

Consolidated loans book grew 14 per cent yoy to ₹97,762 crore. Within this, retail loan book, comprising home loans, loan against property, farmer finance, among others, grew about 19 per cent to ₹95,180 crore.

Published on April 26, 2025