L&T Finance Holdings Second Quarter Review



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Motilal Oswal Report

L&T Finance Holdings announced a PAT of Rs 2.23 billion at T2FY22 (online). While the PPoP stood at Rs 11 billion (9% beat), higher credit provisions / costs of Rs 7.8 billion (12% more than our estimate) led to an online PAT.

The loan portfolio continued to consolidate and stood at Rs 869 billion (down ~ 12% year-on-year / 2% quarter-on-quarter), driven by Infra, LAP loans and defocused activity. The rural finance book has shown solidity, notably thanks to a return to a normalized monthly disbursement rate in micro-loans on September 21.

Additional provisions (including OTR) amounted to Rs 17.5 billion (2.2% of standard loans). As part of OTR 2.0, LTFH restructured loans worth Rs 18.1 billion (2.1% of the loan portfolio). The overall restructured portfolio amounted to 3.5% (including the repayment of Rs 1.5 billion in an Infra asset which was restructured into OTR 1.0).

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