L&T Finance Limited — PPTs, 20-01-2025: Investor Presentation

### Financial Highlights:

For Q3FY25, L&T Finance reported a retail book of ₹92,224 Cr, marking a 23% year-on-year growth, while the consolidated book grew 16% to ₹95,120 Cr. Retail disbursements stood at ₹15,210 Cr, reflecting a modest 5% annual increase despite challenges in the Rural Business Finance segment. The NIMs plus fees decreased to 10.33% compared to 10.86% in Q2FY25, primarily due to a shift in book composition. Profit After Tax (PAT) was ₹626 Cr, down 2% year-over-year, while Return on Assets (RoA) decreased to 2.27%.

### Strategic Initiatives and Growth Drivers:

L&T Finance is advancing its “Lakshya 2026” strategy, focusing on enhancing retailisation and credit risk management. The company has implemented 'Project Cyclops,' a next-gen credit underwriting engine integrated with various data sources, improving decision-making capabilities. A strategic partnership with Amazon Pay aims to broaden personal loan offerings, further enhancing customer experience through digital initiatives.

### Business Developments:

The company anticipates improvements in collection efficiency following adverse macroeconomic events earlier in the fiscal year. Initiatives such as extending partnerships and launching digital solutions, like the AI-powered chatbot 'KAI' for home loans, support L&T Finance's digital-oriented growth strategy.

### Market Position and Competitive Advantage:

L&T Finance continues to maintain a robust retail franchise with a diversified product portfolio, ensuring a significant presence across urban and rural markets. The company's commitment to technological integration enhances its competitive edge in customer engagement and operational efficiency.

### Investor Implications:

Investors should note L&T Finance's impressive retail growth against a backdrop of market challenges, highlighting its resilience and adaptability. The strategic focus on digital transformation and a diversified portfolio could offer potential growth opportunities, despite slight declines in profitability metrics. Positive trends in collection efficiency may indicate a favorable outlook in the coming months.