Tag Earnings Report

Cipla Ltd Q3 FY25
Cipla Ltd Q3 FY25: Net Profit Soars 49% to ₹1,571 Cr, Strong Growth Across Segments

Cipla Ltd: Overview 

Cipla Ltd. is a leading global pharmaceutical company headquartered in India, known for its wide-ranging portfolio of affordable and high-quality medicines. The company operates across several therapeutic areas, including respiratory, cardiovascular, oncology, anti-infectives, and dermatology, with a strong focus on both branded prescription drugs and generic medicines. Cipla’s products cater to diverse markets, from emerging economies to developed nations, ensuring broad accessibility to essential healthcare solutions. The company is also actively expanding its presence in the consumer health sector, offering over-the-counter products and wellness solutions. 

The global increase in life expectancy, along with better healthcare access, is driving demand for pharmaceutical products, particularly those addressing chronic conditions and lifestyle diseases. Cipla has a robust global footprint, with subsidiaries in over 40 countries, including the United States, South Africa, and Uganda, among others. In addition to its manufacturing facilities in India, Cipla has invested in cutting-edge research and development to address critical health challenges, particularly in the areas of HIV/AIDS and malaria. Emerging markets represent a significant growth opportunity due to growing healthcare needs. India, Africa, and Latin America are seeing increased demand for affordable medicines, and Cipla has a strong presence in these regions. Operating in the highly competitive pharmaceutical industry, Cipla remains committed to providing sustainable healthcare solutions through innovation, affordability, and access to life-saving treatments. 

Latest Stock News 

In the U.S. Albuterol Generic market, Cipla’s Albuterol ranked #1, with its market share increasing to 21% during the quarter. However, Lanreotide supply issues impacted overall sales. As of December 2024, the company reported a total debt of ₹466 crores and a cash balance of ₹9413 crores. In the branded prescription segment, Cipla maintained its #2 market rank in the overall Chronic category, with an improved chronic mix of 61.5%. Key therapies like Respiratory, Urology, and Acute have been outpacing the market, with Urology achieving a 16% YoY market growth and maintaining its #2 rank. In Trade Generics, Cipla’s business is back on a growth trajectory, with two brands generating over INR 100 crore in TTM revenue and five brands generating INR 50 crore to INR 100 crore.  

Additionally, 18 new products were launched in 9M FY25. The Consumer Health segment also saw robust growth, with anchor and transitioned brands continuing to perform well. The company sustained a positive EBITDA trajectory, and key products such as Nicotex, Omnigel, and Cipladine ranked #1 in their respective markets. Furthermore, five new brands joined the market with revenue over INR 100 crore YoY. Cipla also received various generic drug approvals, including Phytonadione injectable 1mg/0.5ml, Esomeprazole granules 2.5mg/5mg, and Potassium Phosphates Injection USP. Additionally, Cipla’s Goa facility has been classified as ‘VAI’ (Voluntary Action Indicated) by the USFDA. 

Business Segments 

  • Branded Prescription: This is the primary segment of Cipla, consisting of prescription medicines that are sold under the Cipla brand to healthcare providers and patients. It covers a wide range of therapeutic areas, such as respiratory, cardiovascular, oncology, dermatology, and anti-infectives. The company’s branded products are well-established in several markets, including India, South Africa, and other emerging markets. They include both innovative drugs and generic formulations that provide affordable treatments. 
  • Trade Generics: This segment includes Cipla’s generic pharmaceutical products that are sold under non-branded names or as generic versions of branded medicines. Trade generics offer a more cost-effective option compared to branded prescription drugs. Cipla’s trade generics are available in several global markets, including India, where generics play a significant role due to high demand for affordable medicines. 
  • Consumer Health: Cipla’s Consumer Health segment is focused on non-prescription products, including over-the-counter (OTC) medicines and wellness products. These typically include treatments for common health issues like cough and cold, pain relief, digestive health, and dermatological needs. The company offers a wide range of vitamins, minerals, and supplements (VMS) in this category, targeting the growing wellness trend. It also includes products designed for specific consumer needs, like personal care products. 

Subsidiary Information 

  • Cipla Health Ltd: This subsidiary handles Cipla’s consumer health business, including over-the-counter (OTC) medicines and wellness products. Cipla Health focuses on non-prescription products like dietary supplements, personal care items, and vitamins, aiming to cater to the growing demand for health-conscious consumers. 
  • Cipla USA Inc.: Cipla USA is responsible for the distribution and marketing of Cipla’s generic and branded pharmaceutical products in the U.S. market. It plays a critical role in bringing Cipla’s generics to the U.S. and includes products in areas such as respiratory care, oncology, and central nervous system treatments. 
  • Cipla Europe Ltd: Cipla Europe focuses on the development and commercialization of Cipla’s products in European markets. The subsidiary supports Cipla’s growth in the European generic pharmaceuticals sector and markets products across various therapeutic areas, including oncology, respiratory, and cardiology. 
  • Cipla South Africa Ltd (Cipla Medpro): Cipla South Africa is one of Cipla’s most significant subsidiaries in Africa. The company provides affordable healthcare solutions across various therapeutic segments, including HIV/AIDS, oncology, and respiratory care, while also focusing on improving access to medicines across the continent. 

Q3 FY25 Earnings 

  • Revenue of ₹7073 crore in Q3 FY25 up by 7.01% YoY from ₹6604 crore in Q3 FY24.  
  • EBITDA of ₹1989 crore in this quarter at a margin of 28% compared to 26% in Q3 FY24. 
  • Profit of ₹1575 crore in this quarter compared to a ₹1068 crore profit in Q3 FY24. 

Financial Summary 

Amount in ₹ Cr Q3 FY24 Q3 FY25 FY23 FY24 
Revenue 6604 7073 22753 25774 
Expenses 4856 5084 17726 19483 
EBITDA 1748 1989 5027 6291 
OPM 26% 28% 22% 24% 
Other Income -10 222 293 552 
Net Profit 1068 1575 2833 4154 
NPM 16.2% 22.3% 12.5% 16.1% 
EPS 13.08 19.5 34.7 51.1 

ICICI Bank Ltd Q3 FY25
ICICI Bank Ltd Q3 FY25: Transforming Banking Through Innovation and Growth

ICICI Bank Ltd: Overview 

ICICI Bank Ltd., one of India’s largest private-sector banks, was established in 1994 and is headquartered in Mumbai, Maharashtra. The bank is widely recognized for its diversified range of banking and financial services, including retail banking, wholesale banking, treasury operations, and a strong emphasis on digital banking. As a key player in India’s financial sector, ICICI Bank is known for its innovative approach to banking, robust risk management practices, and technological leadership. The subsidiaries are also key players in their own segments makes an extra ordinary revenue. With a vast network of over 5,000 branches and over 15,000 ATMs across India, ICICI Bank has a strong presence in both urban and rural markets, making financial services more accessible to a wide customer base. 

The bank has consistently focused on technological advancement and has been at the forefront of the digital banking revolution in India, offering innovative solutions such as mobile banking, internet banking, and digital payment services. India’s banking industry continues to grow due to factors like increasing digital adoption, rising credit demand, and initiatives for financial inclusion. ICICI Bank is strategically well-positioned to capitalize on these growth opportunities, thanks to its established brand reputation, extensive reach, and emphasis on retail banking and digital transformation. 

Latest Stock News 

In the third quarter of FY25, ICICI Bank demonstrated improved asset quality as its gross non-performing assets (NPA) ratio declined to 2.3% from 2.48% in the preceding quarter, primarily due to recoveries of ₹5,015 crore from bad debts. Additionally, write-offs during the quarter reduced to ₹1,425 crore, reflecting better management of non-performing assets. The bank continued to expand its physical presence, adding 129 new branches in the quarter and a total of 375 branches over the last 12 months. Its domestic loan portfolio grew significantly by 15.1% year-on-year, while the retail loan portfolio posted a 10.5% year-on-year growth, accounting for 43.1% of the bank’s overall loan portfolio.  

Notably, the credit card portfolio witnessed a strong 17.9% year-on-year growth, although the personal loan portfolio experienced a slowdown in growth. In a strategic move, the bank divested its stake in the merchant acquiring business joint venture to First Data, with plans to bring the process under its in-house operations. However, treasury operations gains saw a decline, amounting to ₹681 crore for FY25, of which ₹375 crore was recorded in the current quarter. This performance highlights the bank’s ongoing efforts to strengthen its asset quality, expand its business footprint, and streamline operations to enhance overall efficiency. 

Business Segments

  • Wholesale Banking: The wholesale banking segment caters to corporate clients, large businesses, and medium-sized enterprises. ICICI Bank offers a very wide range of services, which includes working capital financing, trade finance, cash management, and corporate lending. Through its strong relationships with businesses and industries, the bank is able to provide tailored solutions to meet the diverse financing needs of corporates.  
  • Retail Banking: Retail banking is the cornerstone of ICICI Bank’s operations, contributing significantly to its revenue and profitability. The bank provides a wide array of services, including personal loans, home loans, auto loans, credit cards, savings and current accounts, and insurance products. ICICI Bank has made a name for itself by offering competitive interest rates and comprehensive solutions that cater to the diverse needs of individual customers. ICICI’s “iMobile” app and its digital payment systems, such as ICICI Pay, have made banking more convenient for millions of customers.  
  • Treasury: ICICI Bank’s treasury division manages its investment portfolio, liquidity, and foreign exchange activities. The treasury division plays an essential role in optimizing returns while ensuring liquidity for the bank’s operations. The Bank is dealing in debt markets, equity, foreign exchange markets, and derivative products to maximize profitability and manage risk effectively. 
  • Digital & Payments Business: ICICI Bank has established itself as a leader in India’s digital banking landscape, offering cutting-edge services that include mobile banking, internet banking, and digital payment solutions. The bank’s “Digital Banking 2.0” initiative has transformed the customer experience, making banking services more accessible, faster, and personalized. 

Subsidiary Information: 

  • ICICI Prudential Life Insurance Company Ltd: ICICI Prudential Life Insurance is one of India’s leading life insurance providers, offering a comprehensive range of products, including term insurance, ULIPs, retirement plans, and health insurance. It operates in a customer-centric approach, helping individuals secure their financial futures with tailored insurance solutions. The company is well-regarded for its financial strength and commitment to providing high-quality customer service. ICICI Prudential Life Insurance leverages the digital infrastructure of ICICI Bank, enabling seamless integration of insurance products with banking services. 
  • ICICI Lombard General Insurance Company Ltd: ICICI Lombard is a prominent player in India’s general insurance market; it provides a range of products such as health insurance, motor insurance, travel insurance, home insurance, and commercial insurance. The company is recognized for its quick claims processing, comprehensive coverage options, and strong digital platforms for policy management and customer support. ICICI Lombard continues to innovate in the insurance space, offering customized solutions and leveraging data analytics for better risk assessment and customer experience. 
  • ICICI Securities Ltd: ICICI Securities is one of India’s leading investment services companies, offering a broad spectrum of services such as equity trading, mutual funds, fixed-income products, and wealth management solutions. The company provides both retail and institutional clients digital platforms for easy trading, portfolio management, and financial planning. It is also a key player in investment banking, offering services such as mergers and acquisitions, private equity, and corporate advisory. ICICI Securities focuses on providing personalized services and investment strategies, helping clients achieve long-term wealth creation goals. 
  • ICICI Home Finance Company Ltd: ICICI Home Finance is a subsidiary of ICICI Bank that specializes in providing housing finance products to customers. It offers home loans, loan against property, and other mortgage products designed to meet the housing needs of individuals. The company is known for offering competitive interest rates and flexible loan terms, making homeownership more accessible to a broad range of customers. 

Q3 FY25 Earnings 

  • Revenue of ₹47037 crore in Q3 FY25 up by 15.1% YoY from ₹40865 crore in Q3 FY24.  
  • Financing Profit of ₹-9106 crore in this quarter at a margin of -19% compared to -8% in Q3 FY24. 
  • Profit of ₹13847 crore in this quarter compared to a ₹11515 crore profit in Q3 FY24. 

Financial Summary 

Amount in ₹ Cr Q3 FY24 Q3 FY25 FY23 FY24 
Revenue 40865 47037 121067 159516 
Interest  19409 22633 50543 74108 
Expenses 24929 33510 87864 99560 
Financing Profit -3473 -9106 -17341 -14152 
Financing Margin -8% -19% -14% -9% 
Other Income 18874 27608 65112 76522 
Net Profit 11515 13847 35461 46081 
NPM 28.2% 29.4% 29.3% 28.9% 
EPS 15.8 18.3 48.7 63.1 
HDFC Bank Q3 FY25 Earnings
HDFC Bank Q3 FY25 Earnings: Strong Deposit Growth, AUM Expansion, and Profit Surge Across Key Metrics

HDFC Bank Ltd: Overview 

HDFC Bank Ltd., one of India’s leading private sector banks, was incorporated in 1994 and is headquartered in Mumbai. Renowned for its robust operational efficiency and customer-centric approach, the bank offers a diverse range of banking and financial services, including retail banking, wholesale banking, treasury operations, and digital banking solutions. HDFC Bank has established itself as a market leader in the Indian financial sector with its innovative approach, strong risk management framework, and expansive reach. With a network of over 7,000 branches and 19,000 ATMs across urban, semi-urban, and rural areas, the bank ensures accessibility to financial services for millions of customers.  

Its commitment to digitization and innovation has made it a pioneer in offering cutting-edge digital banking products and services. The Indian banking industry is experiencing steady growth, driven by increased digital adoption, rising credit demand and the government’s focus on financial inclusion. HDFC Bank is well-positioned to leverage these opportunities due to its strong brand equity, extensive distribution network, and strategic focus on retail lending and digital transformation. 

Latest Stock News 

HDFC Bank reported strong performance across key metrics. Deposits saw a significant year-on-year (YoY) growth, with average deposits increasing by ₹3.36 trillion (15.9%) and end-of-period (EOP) deposits rising by ₹3.50 trillion (15.8%). The bank’s assets under management (AUM) also witnessed growth, with average AUM increasing by ₹1.86 trillion (7.6%) and EOP AUM up by ₹1.55 trillion (6.1%). The gross non-performing asset (NPA) ratio stood at 1.42%; with non-agriculture gross NPA at 1.19%. Liquidity coverage improved significantly, reaching 125% in December, compared to 110% in the previous year. 

HDB Financial Services added 0.9 million customers and 20 branches during Q3 FY25, with its loan book growing to ₹1,021 billion, marking a 22% YoY increase and a 4% sequential rise. HDFC Life Insurance sold 294,000 individual policies during the quarter, a 2% increase from the previous year, insuring 11 million lives overall. It recorded a New Business Premium of ₹79 billion with a new business margin of 26%. HDFC Asset Management Company reported 12.6 million unique investors and achieved a 24% penetration in the mutual fund industry, strengthening its leadership position. 

Business Segments 

  • Wholesale Banking: The Wholesale Banking Business of HDFC Bank serves a diverse clientele including Large Corporates, Multinational Corporations, Government, Public Sector Enterprises, Emerging Corporates and Business Banking/SMEs. Offering a wide array of financial products and services such as loans, deposits, payments, collections, tax solutions, trade finance, cash management solutions and corporate cards, etc. This business largely covers the rental discounting business as well as construction finance.  
  • Retail Banking: HDFC Bank’s Retail Business caters to a varied client base which includes Individuals, salaried professionals, small businesses like kirana stores, and Non-Resident Indians (NRIs). Among the offerings are Savings and Current Accounts, various loan options for personal and business needs, Credit and Debit Cards, Digital Wallets, Insurance and Investment Products and Remittance Services.  
  • Treasury: The Treasury department is responsible for managing the Bank’s liquidity requirements, as well as handling its investments in securities and other market instruments. It manages the balance sheet’s liquidity and interest rate risks and ensures compliance with statutory reserve requirements. It also manages the treasury needs of customers and earns a fee income generated from transactions customers undertake with your Bank, while managing their foreign exchange and interest rate risks. 
  • Digital & Payments Business: HDFC Bank is at the forefront of India’s digital banking revolution, offering a range of mobile and internet banking services. It is a leader in payment solutions, including credit and debit cards, point-of-sale terminals, and payment gateways. The bank’s “Digital 2.0” initiative focuses on enhancing customer experience through AI, machine learning, and automation. 

Subsidiary Information

  • HDFC Securities Ltd: HDFC Securities Ltd. is one of India’s leading stockbroking companies, renowned for its comprehensive range of investment and financial services. It offers products across various categories, including equity trading, mutual funds, fixed-income products, insurance, and investment advisory services. The company serves retail and institutional clients, ensuring accessibility through both online platforms and an extensive network of physical branches. 
  • HDB Financial Services Ltd: HDB Financial Services Ltd. is a non-banking financial company (NBFC) under HDFC Bank that specializes in providing innovative and customized financing solutions. Its product portfolio includes personal loans, business loans, gold loans, and consumer durable loans, catering to individuals, small businesses, and enterprises. 
  • HDFC AMC Ltd: Although HDFC Asset Management Company Ltd. (HDFC AMC) is no longer a direct subsidiary post-merger with HDFC Ltd., it continues to maintain close synergies with HDFC Bank. HDFC AMC is one of India’s largest mutual fund houses, providing a diverse range of investment solutions across equity, debt, and hybrid funds. 
  • HDFC Ergo General Insurance Company Ltd: HDFC Ergo General Insurance Company Ltd. is a joint venture between HDFC Ltd. and Ergo International AG, offering a comprehensive suite of general insurance products. Its portfolio includes health insurance, motor insurance, travel insurance, home insurance, and commercial insurance solutions. 
  • HDFC Pension Management Company Ltd: HDFC Pension Management Company Ltd. is a key player in India’s retirement planning ecosystem. As a pension fund manager under the National Pension System (NPS), the company helps individuals secure their post-retirement financial future. 

Q3 FY25 Earnings 

  • Revenue of ₹85040 crore in Q3 FY25 up by 9.01% YoY from ₹78008 crore in Q3 FY24.  
  • Financing Profit of ₹-3181 crore in this quarter at a margin of -4% compared to -20% in Q3 FY24. 
  • Profit of ₹18340 crore in this quarter compared to a ₹17718 crore profit in Q3 FY24. 

Financial Summary 

Amount in ₹ Cr Q3 FY24 Q3 FY25 FY23 FY24 
Revenue 78008 85040 170754 283649 
Interest  43242 46914 77780 154139 
Expenses 50530 41307 63042 174196 
Financing Profit -15764 -3181 29932 -44685 
Financing Margin -20% -4% 18% -16% 
Other Income 37007 27154 33912 124346 
Net Profit 17718 18340 46149 65446 
NPM 22.7% 21.6% 27% 23.1% 
EPS 22.7 23.1 82.4 84.3 
Axis Bank Ltd Earnings
Axis Bank Q3FY24: Pioneering Digital Transformation and Expanding Retail Banking in India

Axis Bank Ltd: Overview 

Axis Bank Ltd, established in 1993, is one of India’s largest private sector banks, renowned for its comprehensive suite of financial products and services catering to retail, SME, and corporate clients. The bank operates through an extensive network of over 4,700 branches, 15,000+ ATMs, and a growing digital presence, providing seamless access to banking services across urban and rural India. The bank operates through an extensive network of branches, ATMs, and digital platforms, ensuring seamless access to banking services for its diverse customer base. With a focus on digital transformation, Axis Bank has launched various innovative products and services, such as mobile banking, digital lending, and personalized financial solutions. The bank’s resilience is underpinned by strong financial performance, prudent risk management, and a diversified revenue stream. It continues to invest in technology, human resources, and operational efficiencies to maintain its competitive edge, making it a key player in India’s evolving financial ecosystem. The acquisition of Citibank India’s consumer business has further strengthened its retail portfolio, adding affluent customers and enhancing its credit card segment. India’s banking sector is on a growth trajectory, driven by economic recovery, government initiatives, and increasing digitization. Axis Bank is well-positioned to capitalize on these trends, with its strong focus on innovation, robust capital base, and diversified portfolio. The industry’s favourable outlook and Axis Bank’s strategic initiatives indicate a promising future for the company. 

Latest Stock News (18 Jan, 2025)

Axis Bank recently announced the re-appointment of Prof. Mahendra Dev as an Independent Director on its Board for a second term, reflecting the company’s commitment to maintaining strong governance and leveraging experienced leadership. However, the bank’s recent quarterly earnings have fallen short of market expectations, with weaker-than-anticipated profitability and lower net interest income growth. Several brokerage firms have subsequently revised their price targets for the stock downward, citing subdued performance and concerns over margin pressures. Despite these challenges, Axis Bank remains focused on its growth strategies, including digital transformation and retail segment expansion. Investors are closely monitoring the company’s execution in the coming quarters to assess recovery potential. 

Business Segments

  • Retail Banking: This segment is a cornerstone of Axis Bank’s operations, contributing significantly to its revenue. Retail banking caters to individual customers, offering a wide array of products such as savings and current accounts, fixed and recurring deposits, and various loan products, including home loans, personal loans, vehicle loans, and credit cards. The segment also includes investment services like mutual funds, insurance, and bonds. The bank has strategically expanded its reach through a vast network of branches and digital platforms, ensuring seamless service delivery. Its focus on leveraging technology for personalized banking experiences has further strengthened its position in the retail space, particularly with the growing adoption of its mobile banking and internet banking platforms. 
  • Corporate Banking: Axis Bank’s corporate banking division serves businesses ranging from small and medium enterprises (SMEs) to large corporations. This segment offers a comprehensive suite of services, including working capital loans, term loans, trade finance, and cash management solutions. The bank also provides specialized services like treasury products, Forex management, and advisory services for mergers and acquisitions. The corporate banking division plays a vital role in fostering long-term relationships with businesses by understanding their unique financial needs and providing customized solutions. It also emphasizes sustainable financing, supporting businesses aligned with ESG principles and renewable energy projects. 
  • Treasury & others: The treasury segment focuses on managing the bank’s investments, liquidity, and financial risks. It handles government and corporate securities, foreign exchange, and derivative instruments. Additionally, the treasury division supports the bank’s trading and arbitrage activities. This segment also manages Axis Bank’s capital markets operations, enabling clients to access debt and equity markets. The bank’s treasury activities ensure effective liquidity management, compliance with regulatory requirements, and optimal utilization of funds to maximize returns. 

Subsidiary Information

  • Axis Capital Ltd: This is the bank’s investment banking and institutional equities arm. It provides services such as capital raising through IPOs, QIPs, and private placements, as well as mergers and acquisitions advisory. Axis Capital is recognized for its robust research capabilities and deep market insights, serving institutional investors and corporate clients. 
  • Axis Securities Ltd: This subsidiary operates in the retail broking and investment advisory space. It offers trading services in equity, derivatives, and currency segments, alongside distribution of mutual funds, bonds, and insurance products. Axis Securities also facilitates investments in National Pension System (NPS) and provides portfolio management services, enhancing retail investors’ experience.  
  • Axis Finance Ltd: A non-banking financial company (NBFC), Axis Finance specializes in providing customized financial solutions. It caters to corporate and retail customers with products such as structured financing, loans against property, and personal loans, further diversifying the bank’s lending portfolio. 
  • Axis Trustee Services Ltd: This subsidiary acts as a trustee for various debenture and bond issuances, safeguarding the interests of investors. It ensures compliance with regulatory norms and facilitates the smooth functioning of debt market instruments. 
  • Freecharge Payment Technologies Ltd: Acquired by Axis Bank, Freecharge operates as a digital payment and financial services platform. It offers services like mobile recharges, utility bill payments, and digital wallets, supporting the bank’s digital banking initiatives and enhancing customer convenience. 

Q3 FY25 & Business Highlights 

  • Revenue of ₹32162 crore in Q3 FY25 up by 8.6% YoY from ₹28865 crore in Q3 FY24.  
  • EBITDA of ₹2210 crore in this quarter at a margin of 7% compared to 8% in Q3 FY24. 
  • Profit of ₹6779 crore in this quarter compared to a ₹6520 crore profit in Q3 FY24. 
  • The fee income in Q3 FY25 is ₹5455 crore with 6% growth YoY, the deposits were ₹1,095,883 crore with 9% of YoY increase. 
  • The segment wise loan mix is 60% Retail Loans, 11% SME Loans and about 29% of Corporate Loans, and the loan growth is seen of 9%. 
  • The cost of fund is an important indicator and it has risen to 5.46% in Q3 FY25. 

Financial Summary 

INR Cr. Q3 FY24 Q3 FY25 FY23 FY24 
Revenue 28865 32162 87448 112759 
Interest 15943 18040 43389 61391 
Expenses 10506 11913 30641 40032 
Financing Profit 2416 2210 13418 11336 
Financing Margin 8% 7% 15% 10% 
Net Profit 6520 6779 10919 26492 
NPM 22.5% 21.1% 12.5% 23.5% 
EPS 21.5 21.8 35.2 85.5 
L&T Finance Holdings Q2 FY25
L&T Finance Q2 FY25 Results: Net Profit Rises 2% to ₹696 Crore, Revenue Jumps 17%

Company Overview

L&T Finance Holdings, part of the Larsen & Toubro Group, is a key player in India’s financial sector, offering a wide range of services across rural, housing, and infrastructure finance. Through its subsidiaries, it provides products like microfinance, two-wheeler loans, farm equipment finance, and home loans. The company is also involved in financing large-scale infrastructure projects.

L &T Finance emphasizes digital transformation, using data analytics and AI to enhance customer experience and streamline operations. It has adopted a strong Environmental, Social, and Governance (ESG) framework, ensuring sustainable business practices. In recent years, it has improved asset quality by reducing non-performing assets (NPAs) and focusing on cost optimization. With a focus on retail and rural finance, L&T Finance is committed to long-term, responsible growth in India’s financial ecosystem.

Industry Outlook

India’s economy is projected to grow by 7% in FY25, driven by strong private consumption and credit demand. This growth is set to significantly boost the financial sector, particularly non-bank financial companies (NBFCs), which are expected to see increased profitability despite higher funding costs. Credit demand is likely to expand, especially in infrastructure, housing, and microfinance sectors, with NBFC loan growth projected to increase by 15%, fueled by strong performance in key consumption areas. Infrastructure lending is poised for substantial growth due to large investments in energy and urban development. L&T Finance plans to expand its infrastructure portfolio by over 20% to capitalize on these opportunities. Additionally, the company is focused on improving asset quality, aiming to reduce its Gross Non-Performing Assets (NPAs) to below 3.0%, down from 3.1% in FY24.  L&T Finance is also expected to enhance its sustainability efforts by increasing   its allocation towards ESG projects.

Business Segments

  • Rural Finance: This includes microfinance, farm equipment finance, and two-wheeler loans, primarily catering to rural consumers. It plays a key role in driving financial inclusion in India’s rural economy.
  • Retail Finance: L&T Finance offers home loans, loans against property, and other personal loans, targeting individual consumers in urban and semi-urban areas.
  • Infrastructure Finance: The company has a significant presence in financing large-scale infrastructure projects, such as energy, transportation, and urban development, supporting India’s infrastructure growth.
  • Mutual Funds and Wealth Management:  Through L&T Investment Management, the company manages a wide range of mutual funds and wealth management products for retail and institutional investors.

Q2 FY25 Highlights

  • L&T Finance reported a Profit After Tax (PAT) of ₹696 crore, reflecting a 17% increase compared to the previous year. This growth is a strong indicator of the company’s profitability and overall financial health.
  • The company maintained a stable Return on Assets (RoA) at 2.60%, up 18 basis points year-over-year. With 96% of its loan book now in retail financing, it is advancing its “retailization” strategy to reduce corporate loan dependence and improve asset quality.
  • L&T Finance’s retail loan portfolio grew 28% YoY to ₹88,975 crore, driven by strong demand for home loans, vehicle financing, and microfinance. The consolidated book grew 18% YoY, the highest since Q1FY20.
  • L&T Finance improved its Net Interest Margin (NIM) to 8.94%, up by 32 bps YoY, while reducing its Weighted Average Cost of Borrowings (WACB) to 7.80%, down by 5 bps. Credit cost remained stable at 2.59%, and the collection efficiency for the rural segment stood at 99.45%.

Financial Summary

INR in Cr.FY25 Q2FY25 Q1QoQ (%)FY24 Q2YoY (%)
Total Operating Income401937846.20%321425.10%
Total Expenditure (Excl Depreciation)157514826.20%133118.30%
Operating Profit (PBDIT) excl Other Income244423026.20%188229.90%
Other Income502.00%268-98.30%
Operating Profit (PBDIT)244923026.40%215113.90%
Interest147613519.20%132511.40%
Depreciation332817.10%2817.50%
Profit Before Tax9409221.90%79717.80%
Tax2432372.50%20319.60%
Net Profit6976851.70%59417.20%
Share in Profit of Associates000.00%00.00%
Minority Interest1-0.43-523.10%1-223.60%
Consolidated Net Profit6966861.50%59516.90%

SWOT Analysis

Strengths:

  1. Strong Family Background
  2. Wide Range of Products
  3. Effective Retaliation Strategy
  4. Significant Presence in Rural Areas

Opportunities:

  1. Expanding Rural Market
  2. Government Investment in Infrastructure
  3. Growth in Digital Services
  4. Potential for Cross-Selling

Weaknesses:

  1. Heavy Reliance on External Borrowing
  2. Legacy Issues with Corporate Loans
  3. Non-Performing Assets (NPAs)
  4. Delay in Digital Transformation

Threats:

  1. Changes in Regulations
  2. Economic Slowdown
  3. Increasing Competition
  4. Fluctuations in Interest Rates