L&T Finance Holdings Ltd, one of India’s leading non-banking financial companies, on Friday (October 20) reported a 46% year-on-year (YoY) jump in net profit at ₹595 crore for the second quarter that ended September 30, 2023.

In the corresponding quarter last year, L&T Finance Holdings posted a net profit of ₹406 crore, the company said in a regulatory filing.

In the quarter, total revenue stood at ₹3,169 crore during the period under review, up 2.7% against ₹3,086 crore in the corresponding period of the preceding fiscal.

The company's credit cost was down by 10% year-on-year at ₹517 crore in Q2 of FY24 compared to ₹575 crore in Q2 of FY23. It achieved the highest-ever quarterly retail disbursements at ₹13,499 crore, up 32% year-on-year compared to ₹10,238 crore in Q2 of FY23.

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L&T Finance Holdings demonstrated a significant shift in its retail portfolio mix, which surged to 88% from 82% in the previous quarter and a substantial improvement from the 58% recorded in the same quarter the previous year.

This shift was accompanied by positive developments in retail asset quality, with Gross Stage 3 (GS3) at 3.05% and Net Stage 3 (NS3) at 0.67%. Moreover, the provision coverage ratio stood at a robust 79%.

The company's Retail Return on Assets (RoA) was notably impressive, registering at 3.32%, surpassing the set Lakshya FY26 target. Additionally, the Retail Return on Equity (RoE) achieved an encouraging 16.31%.

L&T Finance Holdings experienced substantial growth in its retail book size, marking a 33% year-on-year increase. In Q2 FY24, the retail book size reached ₹69,417 crore, compared to ₹52,040 crore in the same quarter of the previous fiscal year.

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The company has obtained NCLT approvals for the proposed merger of entities, a step closer to creating a single lending entity. The results came after the close of the market hours. Shares of L&T Finance Holdings Ltd ended at ₹137.80, down by ₹0.20, or 0.14 percent on the BSE.