Saturday, July 21, 2012

L&T Finance Holdings Q1 net profit up 26% at Rs 121 cr


Non-banking finance company L&T Finance Holdings   on Thursday reported nearly 26% year-on-year growth for its first quarter consolidated net profit at Rs 121 crore, aided by a robust 37% loan book expansion to Rs 26,200 crore.

The company disbursed a little more than Rs 3,400 crore loans in the three-month period as against around Rs 3,200 crore. However, the NBFC did not disclose its consolidated net interest income or net interest margin.

During the quarter, the company's gross non-performing asset (NPA) ratio improved to 1.63% of loan assets from 1.80% in the corresponding quarter of the previous year.  However, gross NPA ratio excluding micro-finance business deteriorated to 1.37% from 1.33% in the Jan-March quarter.

The increase in gross NPA ratio was primarily as a result of stress in the economic environment, according to a company release.

The company cumulatively made a provision more than Rs 37 crore against non-performing loans including Rs 14.50 crore against the Andhra Pradesh micro-finance portfolio as compared with nearly Rs 20 crore in Q1, FY12.

Consolidated income from operations rose by 44% to Rs 906 crore in the first quarter of FY13 from Rs 629.5 crore in a year ago period.

L&T Finance shares were up by 0.50% to close the day at Rs 46.25 on BSE.
� A r p �m� � � profit of Rs 630 crore on revenue of Rs 6,370 crore in the quarter, according to CNBC-TV18 estimates.

The company ha so far whethered the slowdown that has hurt rival automakers like Bajaj. Hero MotoCorp reported highest-ever sales volumes in the quarter at 16,42,292 units. But it warned that sales could be impacted in the near future if monsoon rain was poor.

"The two-wheeler industry in the country, although still very untapped, has slowed down over the past couple of months, and the growth has come down to single digit. Going forward, a lot will depend on a good monsoon and the consequent harvest to get the buyers to exercise their decision to purchase and not postpone it. We have so far seen only a patchy monsoon and this might reflect on retail sales in rural and upcountry markets in the coming months," said Pawan Munjal, MD and CEO.

He further said that the currency volatility was also a concern and the rupee depreciation was likely to hurt margins.

Hero MotoCorp's EBITDA (earnings before interest, taxes, depreciation and amortization) margin was at 15%, versus 14.3% in the year-ago quarter.

The company had ended its over two-decade old partnership with Japan's Honda in 2010 and recently announced an investment of over Rs 2,500 crore to set up new plants at Gujarat and Rajasthan, apart from expanding its existing capacity and building an integrated research and development centre at Rajasthan.

With this expansion, Hero said its total installed capacity would top 9 million units in two-year's time, which is in-line with the stated objective of reaching 10 million units in the next five years.

Hero MotoCorp's shares closed down 1.2% at Rs 2,088.70 on NSE on Thursday.


Source: www.moneycontrol.com

Thanks,
Gaurav Agarwal
Head Dealer
DENIP Consultants Pvt Ltd

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