Earnings Call Transcript Analysis Report #
Financial Performance #
L&T Finance Limited reported its Q4FY25 and full-year FY25 earnings, showcasing resilience despite a challenging microfinance environment.
Key Financial Metrics & Comparison #
Profitability #
- Annual PAT (FY25): ₹2,644 Cr, a 14% YoY growth, marking the highest ever annual PAT.
- Q4FY25 PAT: ₹636 Cr (Consol).
- Annual RoA (FY25): 2.44% (Consol), up 12 bps YoY, the highest ever annual RoA.
- Q4FY25 RoA: 2.22% (Consol), up 3 bps YoY.
- Annual RoE (FY25): 10.87% (Consol), up 52 bps YoY.
- Q4FY25 RoE: 10.13% (Consol), up 60 bps YoY.
NIMs + Fees #
- Q4FY25 (Consol): 10.15%, down from 10.33% in Q3FY25. Includes a negative impact of 23 bps due to a one-time refund of ₹55 Cr of broken period interest as per RBI advice.
- Annual FY25 (Consol): 10.59%.
Disbursements & Book Size #
- Q4FY25 Retail Disbursements: ₹14,899 Cr (slightly down from ₹15,044 Cr in Q4FY24).
- Annual FY25 Retail Disbursements: ₹60,040 Cr, up 11% YoY (highest ever).
- Retail Book (FY25): ₹95,180 Cr, up 19% YoY.
- Overall Book Size (FY25): ₹97,762 Cr, up 14% YoY.
Asset Quality #
- Consol GS3 (FY25): 3.29%.
- Consol NS3 (FY25): 0.97% (below Lakshya threshold of <1%).
- Macro-prudential provisions: ₹400 Cr utilized in FY25 (₹300 Cr in Q4FY25). Remaining buffer: ₹575 Cr.
Revised Guidance or Forecasts (FY26) #
- Book Size Growth: 20%+.