L&T Finance Ltd Share Price – NSE  / BSE

Finance, Small Cap

The domestic equity indices traded with decent gains in early trade. The Nifty traded above the 24,900 level. Financial services, IT and realty shares advanced while media, FMCG and auto shares declined.

At 09:25 IST, the barometer index, the S&P BSE Sensex, advanced 377.07 points or 0.46% to 81,601.82. The Nifty 50 index jumped 60.95 points or 0.25% to 24,915.

In the the broader market, the S&P BSE Mid-Cap index added 0.15% and the S&P BSE Small-Cap index rose 0.05%.

The market breadth was positive. On the BSE, 1,592 shares rose and 1,448 shares fell. A total of 169 shares were unchanged.

Foreign portfolio investors (FPIs) sold shares worth Rs 5,485.70 crore, while domestic institutional investors (DIIs) were net buyers to the tune of Rs 5,214.83 crore in the Indian equity market on 18 October 2024, provisional data showed.

Economy:

India's net direct tax collections jumped by 182.02% over last decade to Rs 19.60 lakh crore in FY24, from 6.95 lakh crore in FY15, following strong growth in personal income tax, the latest time series data from the Income Tax Department showed. Personal income tax collections zoomed up nearly 300% to Rs 10.45 lakh crore, from 2.65 lakh crore in FY15, outpacing corporate tax collections, which rose by 112.85% to Rs 9.11 lakh crore from Rs 4.28 lakh crore in FY15.

Stocks in Spotlight:

L&T Finance declined 1.53%. The company reported 16.88% jump in consolidated net profit to Rs 695.58 crore in Q2 FY25 as compared with Rs 595.11 crore in Q2 FY24. Total income increased 15.56% YoY to Rs 4,024.02 crore during the quarter.

Tech Mahindra jumped 2.58% after the company’s consolidated net profit jumped 46.81% to Rs 1,250.1 crore on 2.36% rise in revenue from operations to Rs 13,313.2 crore in Q2 FY25 over in Q1 FY25. EBITDA stood at Rs 1,750 crore in the quarter ended 30 September 2024, up 11.9% QoQ and up 63.2% YoY.

Meanwhile, the company’s board has declared an interim dividend of Rs 15 per equity share for FY25. The record for the dividend is fixed as Friday, 1st November, 2024. The dividend shall be paid on or before 17th November 2024.

Kotak Mahindra Bank fell 3.04%. The company reported standalone net profit rose 4.78% to Rs 3,343.72 crore on 17.71% rise in total income to Rs 15,900.46 crore in Q2 FY25 over Q2 FY24. Net Interest Income (NII) for Q2 FY25 stood at Rs 7,020 crore, up 11% from Rs 6,297 crore recorded in Q2 FY24. Net interest margin (NIM) was 4.91% for Q2FY25.

Numbers to Track:

The yield on India's 10-year benchmark federal paper advanced 1.70% to 6.925 as compared with previous close 6.809.

In the foreign exchange market, the rupee edged higher against the dollar. The partially convertible rupee was hovering at 84.0650, compared with its close of 84.0700 during the previous trading session.

MCX Gold futures for 31 October 2024 settlement rose 0.63% to Rs 77,643.

The United States 10-year bond yield shed 0.19% to 4.083.

In the commodities market, Brent crude for December 2024 settlement added 30 cents or 0.41% to $73.36 a barrel.

Global Markets:

Asian stocks were mixed on Monday as traders digested China's latest loan prime rate cut and looked ahead to Japan's upcoming general election. The People's Bank of China lowered both the one-year and five-year LPRs by 25 basis points, signaling a continued effort to stimulate the economy.

Other key economic indicators this week include Tokyo's October inflation data and South Korea's preliminary third-quarter GDP figures. These releases will provide insights into the region's economic health and potential policy responses.

Global financial markets remain influenced by a complex interplay of factors. On one hand, investors are closely watching the economic prospects of the United States and China. On the other, geopolitical tensions in the Middle East and other regions continue to create uncertainty.

In the United States, major stock indices closed at record highs on Friday. The Dow Jones Industrial Average, S&P 500, and Nasdaq Composite all posted gains, driven by strong earnings reports and optimism about the tech sector. Notably, Netflix's post-earnings surge contributed significantly to the Nasdaq's performance.

The broader market benchmark, the S&P 500, advanced 0.40% on Friday. The Dow Jones Industrial Average gained 0.09%, while the Nasdaq Composite closed up 0.63%. This marks the sixth consecutive week of gains for all three major indices, the longest such streak since late 2023.

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Total income increased 15.56% YoY to Rs 4,024.02 crore during the quarter.

Profit before tax (PBT) increased 17.83% to Rs 939.57 crore in Q2 FY25 as compared with Rs 797.39 crore in Q2 FY24.

Net interest income improved 15% year on year (YoY) to Rs 3,527 crore in the quarter ended 30 September 2024. Net interest margin plus fees & other income in Q2 FY25 was 10.86% as against 10.84% in Q2 FY24.

The company’s retail book witnessed a strong growth of 28% YoY to Rs 88,975 crore while disbursements grew by 12% YoY to Rs 15,092 crore.

Rural business finance quarterly disbursements stood at Rs 5,435 crore in Q2 FY25, down 5% as compared with Rs 5,741 crore in Q2 FY24 while Book size increased 22% YoY to Rs 26,539 crore in Q2 FY25.

Farmer Finance disbursement jumped 16% YoY to Rs 1,782 crore in Q2 FY25. The book size stood at Rs 14,488 crore, up 9% YoY. “Growth was aided by good monsoon, Kharif crop, and steady reservoir levels”, stated by the company.

Two wheeler finance disbursement jumped 32% YoY to Rs 2,393 crore in Q2 FY25 as compared with RS 1,817 crore in Q2 FY24. Book size stood at Rs 12,669 crore in Q2 FY25, up 33% YoY.

Personal loans disbursements increased 4% YoY to Rs 1,361 crore during the quarter. Book size jumped 11% YoY to Rs 7,178 crore in Q2 FY25.

In Q2 FY25, Housing Loans & Loans against property (LAP) disbursement surged 46% to Rs 2,531 crore as compared with Rs 1,734 crore in Q2 FY24. The book size increased 42% YoY to Rs 21,731 crore during the quarter. The company said that growth was due to collaborative tie-up with prime developers across top locations.

SME Finance disbursement jumped 43% to Rs 1,244 crore during the quarter as compared with Rs 872 crore in Q2 FY24. The book size surged 115% to Rs 5,190 crore in Q2 FY25 as compared with Rs 2,413 crore in same quarter last year.

Sudipta Roy, managing director & CEO, LTF said, “The company has been able to demonstrate sustainable growth and profits through proactive portfolio management and persistent collection strategies. The second quarter of the current financial year has been challenging on account of multiple sectoral headwinds and a volatile macro environment

Looking ahead, we expect that the sectoral challenges may persist for the next two quarters and apropos to the same, we may dynamically recalibrate our business objectives in the coming quarters, prioritizing positive credit outcome over assets under management growth.

Our next gen credit underwriting engine, ‘Project Cyclops’, which was operationalized in the quarter ended September 30, 2024 in our two-wheeler finance product is expected to be leveraged for our other major products through the course of second half of the current fiscal. We expect this to be a strategic differentiator in the financial services ecosystem. Digitally-enabled acquisition engines would be scaled up through big-tech partnerships to ensure low-cost acquisition while maintaining superior credit quality.”

L&T Finance offers financing for two-wheelers, consumer goods, homes, farm equipment, women entrepreneurs, rural groups, real estate, and infrastructure. It provides financing for small and medium enterprises through term loans and overdraft facilities.

The counter rose 0.27% to end at Rs 166.65 on Friday, 18 October 2024.

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Net profit of L&T Finance rose 16.88% to Rs 695.58 crore in the quarter ended September 2024 as against Rs 595.11 crore during the previous quarter ended September 2023. Sales rose 25.06% to Rs 4019.34 crore in the quarter ended September 2024 as against Rs 3213.84 crore during the previous quarter ended September 2023.

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L&T Finance has allotted 15,76,250 equity shares under ESOS on 18 October 2024.

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